Eli Lilly's Animal-Health Business Files for Initial Public Offering
(Bloomberg) -- Eli Lilly & Co.'s animal-health unit has filed for a U.S. initial public offering, formalizing the next step in the parent company's move to focus completely on drugs for people.
Elanco Animal Health Inc. filed with an initial offering size of $100 million, according to a filing with the U.S. Securities and Exchange Commission, which is a placeholder amount that is likely to change. The separation is expected to be completed in the second half of the year, the parent company has said.
The offering is expected to represent an ownership stake of less than 20 percent in Elanco, Lilly said in a separate statement. The number of shares to be offered and the price range for the offering have not yet been determined, according to the statement.
Elanco could see a market value of as much as $20 billion, according to Bloomberg Intelligence. At that valuation, a share sale could raise as much as $5 billion.
Lilly began reviewing the animal unit's future in December, and is hoping to repeat the success Pfizer Inc. had listing out its animal business under the name Zoetis Inc. Since becoming an independent company in 2013, Zoetis shares have more than tripled.
Elanco, based in Greenfield, Indiana, got its start within Eli Lilly in 1954, according to the filing. After the offering, the parent company will continue to own a controlling interest in Elanco.
The company lost $311 million on revenue of $2.9 billion in 2017. That compares to a net loss of $47.9 million on revenue of $2.9 billion a year earlier, according to the filing.
Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are leading the offering. The company has applied to list its stock on the New York Stock Exchange under the symbol ELAN.
To contact the reporter on this story: Alex Barinka in San Francisco at abarinka2@bloomberg.net
To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Matthew Monks
©2018 Bloomberg L.P.
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
