Elanco Animal Health Incorporated (NYSE:ELAN) Q1 2024 Earnings Call Transcript

Jeff Simmons: Yes Balaji, thanks for the questions. On the regulatory process, there’s always nuances and changes, but as we’ve highlighted, we believe the CVM has all the information that they need for approval. We are on a path, we believe, for the technical sections to be approved by the end of June, and then the administrative process will follow, and typically the administrative process is pretty straightforward. On the ADUFA timeline, it’s noted for 60 days, and we do not expect any other new dynamics there. Then relative to the Trio market and market growth, as I’ve highlighted, and we won’t get into any more detail than we’ve already disclosed relative to our Quattro label, but we do believe the broader coverage is valued in the marketplace.

We do believe our capability with one of the broadest inside the vet clinic, outside the vet clinic parasiticide capabilities globally gives us great opportunity here, and the market is desiring this, as you see in the shift. Thank you again for the question.

Katy Grissom: Jeff, I’ll send it to you to close.

Jeff Simmons: Yes, just very quickly, thank you. Thanks for your interest in Elanco. We continue to say inside the company and outside the company, the three key drivers for this company through ’24 and ’25 is growth, innovation, cash, and I believe this quarter again showed proof points, really for the third quarter in a row, of third consecutive quarter of nice solid growth from our diverse portfolio, both farm animal, pet health, U.S., international, and even price and volume. On the innovation side, I really want to note the existing innovation, $100 million in the quarter. We’ve got nice momentum in innovation, we’re increasing our guide there, and in our late stage we highlight increased certainty in the proof points that we noted, all the progress in February.

Then as Todd has mentioned, as inventories come down, net working capital has gone up and the cash conversion is on track, and the aqua sale for midyear is also tracking. Ultimately I think inside Elanco, engagement is high, our energy is on executing quarter to quarter. We’ve delivered another quarter and our focus is to continue to do that going forward and keep anchoring back to growth, innovation and cash. Thank you again for the time today. We look forward to engaging with you throughout the quarter.

Operator: Thank you. This concludes today’s conference call. We thank you for participating and you may now disconnect.