Elanco Animal Health Inc at Goldman Sachs Global Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : Jeff, do you want to maybe start with some your opening comments, obviously, coming off of a good quarter, kind of raised the outlook for the year. Maybe talk about, what's kind of gone better than planned so far this year from a top line standpoint and kind of what you see as the key priorities are for the rest of the year?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : Yes, hopefully it will get done before before you leave.

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : I guess as we think about the opportunity going forward, when you look into that channel, how do you feel like the community kind of views the product portfolio that's coming from Alenco and it seems like you've made a lot of progress on that front in terms of talking about the value kind of proposition across the portfolio that you're going to bring to market you know, can you talk about kind of what benefit that's had so far with the base business and then how that maybe accelerates when you bring new innovation to market?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : And I guess from a commercialization standpoint, how do you kind of leverage that to get that kind of like higher share of wallet or clinic penetration that you're talking about? Is it through kind of bundling like what's the mechanism in terms of going to market.

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : Great. And when it comes to, I guess, innovation in that different differentiation piece, you talked on the last call about sort of, you know, prioritizing kind of optimization of the label. Can you maybe just kind of like talk about what that means, you know, and maybe as you kind of gotten some of the different technical sections approved kind of level of confidence in the differentiation that you're bringing to market?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : And I guess as you kind of think about bringing these products to market, you kind of feel like they'll follow the traditional like launch curve that you see where you kind of reach more of a run rate or kind of steady-state growth three or four years into the future? Or is there any reason to believe that like these drugs could be different. These obviously, like established markets that you're going into, could it be a faster uptake?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : I guess would then really, you talked about kind of doing the market research it like a $2 billion market kind of over time, what drives it there? So obviously, like would imply significant growth from where we are today. And then how do you think about kind of the factors that would influence the veterinarian adoption of a product like this in earlier and what would influence kind of the consumer's decision to use that product or switch from the product they're currently using?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : Yes. And I guess, you know, the launch of no regrets philosophy. What does that mean in terms of maybe incremental spend that we could see post approval and consequently what that means for maybe margins initially as sales ramp up?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : Okay. You also talked about kind of faster approvals for some of the international markets. There isn't really yes. I guess maybe talk about what you kind of see what markets you expect to get approval in early this year or early next? And I guess from a capacity and ability to supply what could potentially be a global market in 25 how do you feel like the Company is positioned from that standpoint?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : Great. And then one other question as it relates to that really a launch, but also I think kind of Quattro would fit into this question as well. There's been a lot of focus on just how much prices has gone up for the consumer in the vet channel. And I guess you know some some concern of that that is impacting demand. How does that change? Maybe how you're thinking about kind of commercial and go-to-market strategy? Kind of know, you know, if you do agree that there is a view of the kind of consumers maybe stretch and kind of looking for additional value? And if so, how does that maybe change kind of the go to market? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 6:40PM, ELAN.N - Elanco Animal Health Inc at Goldman Sachs Global Healthcare Conference

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : On the outcome there. And significant economic incentive for dairy farmers to use probably type of education needs to be done to kind of get them engaged in the carbon credit market and being a place to kind of secure these incentives that are out there as they start to use this product. Can you just maybe talk us through that, that process and how you see that kind of playing out.

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : So does that mean I guess, faster uptake potentially than what you saw with Experior.

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : I guess kind of putting it all together on the last quarter call you kind of talked about $600 million to $700 million of revenue from the innovation products that you have next year. That would imply a pretty significant year over year contribution, 6%, 7% to growth. I think in the past, you know, and I don't know if you've talked about this recently, but you kind of talked about sort of a low-single digit type erosion in the base business, but it seems like that would kind of put you on a trajectory for mid-single digit growth in constant currency revenue next year, is that like at a high level, the right moving pieces as we think about what this means for the business and '25.

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : And I guess on another kind of component of the outlook is just kind of how you feel about the health of that industry I think there's been a lot of focus on visits. Obviously, you know, maybe it's been more on the wellness side, which may not impact kind of therapeutics as much as maybe just kind of both near term and kind of when you look out over the next 18 months, how you feel about kind of the health of that market? And then you know the impact on your business and do you feel like there's, you know, that headwind to visits creates a drag?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : And have you seen an accelerated shift more recently to retail, you know, there's a lot of thought about like easier to get the product or some of these alternative channels and maybe going into that for the consumer, do you feel like that's accelerated in your mind. And then I also wanted to ask, like you have made at retail a big focus. You've extended the number of stores where your products are available. You can maybe talk to us about where you are in that process in terms of increasing availability?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : And what do you see as outlook for the livestock market, it seems like maybe more innovation analysis from you your company than we've had in the recent past, and Tyson made the decision to go back to using Iona for us. I guess, do you feel like maybe this is a more favorable environment for the life of our portfolio than what we've seen in the past several years?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : Got it. And you mentioned, you know, some pressures in China. I guess. Are there any other geographies that you're kind of watching in terms of, you know, maybe trending not as favorably or more favorably than you anticipated just from an international standpoint?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : Yeah, maybe the last minute that we have. I know you have the Analyst Day back in 2020. The company has it really kind of revise its long-term targets since then, I guess, what do you think that you'd be at a point to kind of issue kind of the next set of kind of long-term guidance and like what do you think what components do you think are most important for like investors to think about as we think about the longer-term future of the company?

Question: Nathan Rich - Goldman Sachs Group Inc - Analyst : And John, thanks so much for the.