2024-06-30 05:58:23 ET
Summary
- Elanco Animal Health shares have dropped over 20% due to a delay in the innovative product pipeline, but potential for a recovery remains.
- The company's divestment of the aqua business at a high sales multiple reduced leverage ratios, improving the outlook for 2024 earnings.
- Despite setbacks, it is activist investor involvement and cost-cutting measures as well as product debuts which might drive a recovery here.
Shares of Elanco ( ELAN ) have taken a beating, somewhat unexpected I guess. In February, I applauded the company for delivering on a solid divestment in order to address leverage....
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Elanco Animal Health: Pipeline Concerns Appear Overblown