Elanco Animal Health Inc Q1 2023 Earnings Call Transcript

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

Question: Ekaterina V. Knyazkova - JPMorgan Chase & Co, Research Division - Analyst : This is Ekaterina on for Chris. So first, on ERP, I think you mentioned the magnitude of the ERP dynamic was greater than you were expecting in the quarter. Can you just elaborate a bit more on how you know that, that was all ERP and maybe not strong underlying kind of demand than you were expecting? How are you approaching, I guess, separating out the ERP piece from just like demand? And then the second question is on channel inventory levels in the quarter. So some of your competitors have mentioned distributors lowering inventory levels in Q1. So if you take out all that's happened with the ERP piece for the Bayer product, is this something that you also saw for the Elanco business? And then maybe how did that impact Q1?

Question: Brandon Vazquez - William Blair & Company L.L.C., Research Division - Analyst : A lot of product-specific questions have already been asked. So I guess one that kind of struck or got my attention was, if I heard you correctly, I think you said you -- macro trends are kind of improving globally. And as you look through the back half of the year, you kind of expect them to continue improving. Just kind of curious if you could talk a little bit about that because I think there's a lot of concern from investors, not just in health, but in general, that macro didn't kind of deteriorate in the back half. So what are you guys seeing there? And then maybe the follow-up to that is what's your confidence in being able to kind of keep the pricing benefits you're talking about now if there is a worsening macro environment.