Elanco Animal Health Inc at Morgan Stanley Global Healthcare Conference Summary

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

Question: Erin Wright - Morgan Stanley - Analyst : Okay. Thanks, Bob. I want to start with innovation, if I can. I mean, that's just a key theme for you right now and you're really executing against the pipeline. You recently raised your 2025 innovation guide I guess, can you help us try to understand kind of the cadence of some of these key drivers and the impetus of the raise growth versus net expectations? And then can you remind us of the contributions that we should anticipate both this year and into next year? And what products are you kind of most excited about in terms of innovation contributions? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 12:30PM, ELAN.N - Elanco Animal Health Inc at Morgan Stanley Global Healthcare Conference

Question: Erin Wright - Morgan Stanley - Analyst : And as we think about other upcoming blockbuster launches, you mentioned, for instance, IL-31 approval this year. Can you talk a little bit more about what else is in the pipeline and we're always going to ask about what's next. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 12:30PM, ELAN.N - Elanco Animal Health Inc at Morgan Stanley Global Healthcare Conference

Question: Erin Wright - Morgan Stanley - Analyst : Okay. That's great. And let's talk a little bit about underlying kind of base business trends. You talked a little bit. I thought it was interesting what you said earlier in terms of all of this is to help support kind of also and leverage kind of there can be bundling capabilities there can be corporate relationships that you can establish all that kind of stuff in terms of bundling the broader offering. Can you talk a little bit about that but also what you're seeing in base business fundamentals from a vet office visit standpoint? And then also on the farm animal side, I think we're at maybe an inflection point in terms of the cattle cycle. So hopefully, that's something that you can play into as well. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 12:30PM, ELAN.N - Elanco Animal Health Inc at Morgan Stanley Global Healthcare Conference

Question: Erin Wright - Morgan Stanley - Analyst : Yes, we have some other industry constituents coming later today to talk about it as well. And so we're looking forward to that. But going back to what you just said. So what is the delta between kind of farm animal long-term steady state kind of margin from an operational standpoint and then pet.

Question: Erin Wright - Morgan Stanley - Analyst : Okay. So okay. So then let's talk about pets. So Credelio Quattro, and you came out with the press release that speaks saying blockbuster status for you. So congrats on that front. -- you've noted that it's 14% of dollar share. I think that was as of the most recent quarter. But if you had the latest data points there, that would be great. But you've been gaining share in noting that 70% of the share capture is coming from competitive broad-spectrum products as well. Can you give us an update on some of these adoption metrics that you've given in the share metrics as well in terms of Quattro and success revenue?

Question: Erin Wright - Morgan Stanley - Analyst : On the promotional activity that you're doing there? And should we anticipate any sort of stocking dynamics quarter-to-quarter from a Credelio perspective? I know you don't break it out quarter-to-quarter, but your expectations on that quarterly progression? I know one of your competitors was talking about step up promotional activity and activity from a competitive standpoint that was -- that they were facing, presumably may be a part of that. Can you talk a little bit about the nature of your relationship with distribution on that front and some of the promotional activity?

Question: Erin Wright - Morgan Stanley - Analyst : Are you seeing any changes in terms of further cannibalization across our legacy business from Paris, how is that playing out relative to your expectations?

Question: Erin Wright - Morgan Stanley - Analyst : How are you making inroads at this point in terms of the larger consolidators with this product? And how -- I think last time I was on the phone with you, you were on the phone previously with the large consolidator. So how are those contracts progressing?

Question: Erin Wright - Morgan Stanley - Analyst : Okay. I want to switch gears to derm, if we can. So you said you're going to an international term meeting in Spain. For instance, can you talk about the global opportunity for Zenrelia relative to what you're seeing in the US how the US market is playing out relative to your original expectations when you kind of sell the black box warning and understand how that's -- how the adoption rate or how that's impacting the adoption rate.

Question: Erin Wright - Morgan Stanley - Analyst : And as you think about the safety or the label and the potential for changes in the US market, I guess what are the prospects for changes? What is when will we hear more on that front.

Question: Erin Wright - Morgan Stanley - Analyst : And it would be more language change as opposed to elimination of the black box?

Question: Erin Wright - Morgan Stanley - Analyst : And then how are you thinking about the competitive landscape, so in atopic dermatitis and more broadly kind of how are you thinking about, for instance, a new competitor coming in, especially in the international market.

Question: Erin Wright - Morgan Stanley - Analyst : Okay. And IL-31, where can you be differentiated there as the formulation duration dosing safety scopolaball? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 12:30PM, ELAN.N - Elanco Animal Health Inc at Morgan Stanley Global Healthcare Conference

Question: Erin Wright - Morgan Stanley - Analyst : Okay, but still on track and sometime in 2026 is when it will be more material from a financial perspective for you in terms of the launch.

Question: Erin Wright - Morgan Stanley - Analyst : Okay. Okay. Great. And then, Bob, you talked a lot about your operational focus across the company. And can you talk a little bit about some of the key drivers and what do you see as kind of the most low-hanging fruit? Where do you see margins going over time over the longer term across this business based on an evolving mix of the --

Question: Erin Wright - Morgan Stanley - Analyst : Okay. And you called for kind of constant currency organic top line growth of 5% to 6% this year, and you recently raised that guidance. I guess -- how do we think about the quarterly gain in from here? What gets you to -- what are some of those key drivers and headwinds and tailwinds that we should also be thinking about as we head into 2026.

Question: Erin Wright - Morgan Stanley - Analyst : And can you remind us in terms of the key products that are subject to tariffs at this point, where is the level of visibility on that front end and how much is manufactured in Europe that's sold into the US and other ways.

Question: Erin Wright - Morgan Stanley - Analyst : And yes, I know we only have two minutes left, and this is a big question, and Bob, I hate to push on this so much, but I do think it's an important part of the story. I remember in terms of the operational improvement across the business and just back at the IPO and the spinout from Lilly, it was the 1,000 basis points of margin expansion that you were going to see. And like, obviously, there were things that happened, whether it was the per transaction or otherwise, I mean where do you see that latent synergy opportunity relative to like cost cutting at the bar asset at other areas? Is it manufacturing footprint? Like where do you actually -- or is it some of those like CMO relationships that you have or otherwise? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2025 / 12:30PM, ELAN.N - Elanco Animal Health Inc at Morgan Stanley Global Healthcare Conference

Question: Erin Wright - Morgan Stanley - Analyst : And then are we going to hear more about this tumor of Investor Day in terms of long-term prospects across the business? And yes, could you give it to.

Question: Erin Wright - Morgan Stanley - Analyst : Yes. Yes. I think the last thing was 2020. So hopefully, we'll have -- thank you so much. I appreciate the time today. Always a great discussion.