12 Most Profitable Pharmaceutical Stocks Right Now

7. Elanco Animal Health Incorporated (NYSE:ELAN)

Net Income Growth 5Y: 16.93%

Elanco Animal Health Incorporated (NYSE:ELAN) is a global leader in the animal health industry, specializing in the development, manufacture, and marketing of products that improve the health and well-being of animals. The company’s portfolio includes a wide range of pharmaceuticals, vaccines, and nutritional products designed for both companion animals (pets) and farm animals.

In Q3 2024, Elanco Animal Health Incorporated (NYSE:ELAN) reported revenue of over $1 billion, showing a 1% organic constant currency growth but a 4% decline on a reported basis due to the divestiture of its aqua business and unfavorable foreign exchange rates. Growth was driven by new product approvals, including Zenrelia and Credelio Quattro in the pet health segment, and strong performance in the farm animal segment, particularly in U.S. cattle and poultry sales.

The company’s gross profit was $538 million (52.2% of revenue), a 220-basis point decline compared to the previous year. Adjusted EBITDA was $163 million (15.8% of revenue), down 24% from Q3 2023, partially offset by improved pricing and cost savings. Net income was $364 million, boosted by a $640 million pre-tax gain from the divestiture, while adjusted net income was $66 million ($0.13 per share).

Elanco Animal Health Incorporated (NYSE:ELAN) revised its full-year 2024 guidance, expecting revenue between $4.42 and $4.45 billion with 3% organic constant currency growth, adjusted EBITDA between $900 to $930 million, and adjusted EPS between $0.89 to $0.95.

As of Q3 2024, 42 hedge funds included the company in their portfolios, according to data from the Insider Monkey database. The largest stakeholder in the company was Magnetar Capital with holdings worth $155.3 million.