GREENFIELD (Inside INdiana Business) — Greenfield-based Elanco Animal Health Inc. (NYSE: ELAN) is reporting third-quarter net income of $10 million, compared to $60 million during the same period last year.
The company attributes the decrease to “asset impairments, restructuring, and other special charges.”
Elanco announced in August an agreement to acquire the animal health business of Germany-based Bayer AG in a cash and stock deal valued at $7.6 billion.
“We are pleased with the progression on the Bayer acquisition both in terms of engagement with regulators on anti-trust clearances and our early integration efforts,” said Elanco President and Chief Executive Officer Jeff Simmons.
Assuming the deal receives regulatory approval, it would create the second-largest animal health company in the world. Elanco says it expects to finish the deal in mid-2020.
Elanco is also reporting a 12 percent drop in revenue from its food animal ruminants and swine sector. The company blames the loss, in part, to the “reduced U.S. producer use of Paylean.” The feed additive, known as ractopamine, is legal in the U.S. but is banned in China.
Last month, Colorado-based JBS USA, a large meatpacking company, announced it would remove the growth drug from its U.S. hog supply as it attempts to grab a larger share of the China pork market.
China, the world’s largest pork consumer, has been grappling with a devastating pig disease that has killed more than 200 million head of swine.
Despite what the company calls “external factors,” Simmons is pleased with Q3 results.
“Elanco’s portfolio approach continues to deliver strong results, with double-digit growth in our targeted growth categories and 75 percent growth from our portfolio of innovation launched since 2015, highlighting the strong underlying fundamentals of the base business,” said Simmons.
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