Elanco Animal Health Inc., a pharmaceutical company specializing in animal health products, reported its first quarter 2025 financial results on May 7, 2025. The company saw a revenue of $1,193 million, marking a 1% decline year-over-year, but a 4% organic constant currency growth. The reported net income was $67 million, while the adjusted net income stood at $184 million. Adjusted EBITDA was $276 million, representing 23.1% of revenue. The earnings per share (EPS) was reported at $0.13, with an adjusted EPS of $0.37. The net leverage ratio was 4.4x Adjusted EBITDA.

Elanco also raised its revenue guidance for the full year 2025 to between $4,510 million and $4,580 million. The company’s Farm Animal segment showed a 7% organic constant currency growth. Elanco aims to pay down gross debt by $450 million to $500 million in 2025. The company increased its innovation revenue target to between $660 million and $740 million. Additionally, Credelio Quattro achieved a 10% market share in U.S. vet clinics. The net interest expense decreased by $26 million compared to the first quarter.

On May 5, 2025, Elanco announced the sale of certain royalties and commercial milestones associated with XDEMVY (lotilaner ophthalmic solution) 0.25%, for the human health application of lotilaner, to Blackstone Inc. for $295 million in cash. This deal is expected to reduce the company’s net leverage ratio to between 3.9x and 4.3x by the end of 2025. The transaction will also result in a reduction of approximately $10 million in interest expense. Elanco retains rights to non-U.S. royalties and future lotilaner applications, but will lose the U.S. royalty stream from XDEMVY through 2033. The sale of approximately $10 million in milestone payments is expected to further improve the company’s financial position.

The company’s stock closed at $9.65 on May 4, 2025, with a market capitalization of $4.7 billion. The stock price has ranged between $8.02 and $18.80 over the past 52 weeks. Elanco Animal Health Inc. is listed on the New York Stock Exchange and was first listed on September 20, 2018.