Elanco Records Loss in Q2, Prepares to Close Bayer Deal
(photo courtesy: Wes Mills)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowGreenfield-based Elanco Animal Health Inc. (NYSE: ELAN) is reporting a second quarter net loss of $53 million, compared to net income of $36 million during the same period a year earlier. The report comes as the company prepares to close next week on its $7.6 billion acquisition of Bayer Animal Health.
Elanco says its global food animal products felt the majority of the impact of the pandemic as processing plant closures, reduced foodservice demand, and economic pressure on livestock producers.
“Our team has diligently navigated the challenges during the second quarter. While our performance was significantly affected by actions to reduce channel inventory and by pandemic-related impacts, our efforts are already yielding results, including better competitive positioning and greater financial flexibility,” said Jeff Simmons, president and chief executive officer at Elanco.
Simmons says he expects the second quarter will have had the most severe impact from the pandemic for both companion animals and livestock this year.
As it prepares to close on the Bayer deal, Elanco says it has fulfilled its antitrust, financing, and pre-close integration obligations to complete the transaction.
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