ELAN - Elanco adds ~9% as activist investor Sachem Head raises stake

• The shares of the veterinary science company Elanco Animal Health ( NYSE: ELAN ) jumped ~9% in the morning hours Friday after activist investor Sachem Head Capital Management, led by founder Scott Ferguson disclosed a ~6% stake in the company.
• Friday’s regulatory filing comes a day after the company announced that Ferguson, also the managing partner of Sachem Head, is leaving the ELAN’s board to focus on the hedge fund’s other commitments.
• “As one of the Company’s largest shareholders, Sachem Head will continue to engage with and be a resource for the Board and management team,” ELAN said in a statement.
• Ferguson recognized the company’s ongoing efforts to create shareholder value, adding, “I believe the market will come to appreciate the good work that is being done by management and the Board.”
• ELAN shares have well underperformed its rivals in the animal health space, as shown in this graph.

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