Elanco Begins Next Phase of Integration Post-Bayer Animal Health Acquisition; Executive Committee Member Sarena Lin to Depart

Rhea-AI Summary

Elanco Animal Health (NYSE: ELAN) announces that Sarena Lin, executive VP of Transformation and Technology, will leave the company at the end of January. Lin has played a crucial role in integrating Bayer's animal health business, achieving $300 million in synergies ahead of schedule. As Elanco progresses through its Innovation, Productivity, and Portfolio strategy, responsibility for finance and integration will shift to CFO Todd Young. The company anticipates eight product launches in 2021, with one potentially being a blockbuster, alongside targeted cost savings of $100 million.

Positive

• Intended $300 million in synergies from Bayer integration expected by 2023, two years ahead of schedule.
• Projected additional $100 million in cost savings/avoidance by 2023.
• Anticipation of eight product launches in 2021, including one with blockbuster potential.

Negative

• None.

Today Elanco Animal Health Incorporated (NYSE: ELAN) announced that executive vice president of Transformation and Technology, Sarena Lin, will take a role outside of the company at the end of January. Lin has led the company’s stand up and integration efforts over the last year, helping position Elanco for its final phases of integration and value capture.

Joining Elanco as head of North American operations in 2018, Lin most recently oversaw the creation of the company’s technology infrastructure post-separation from Eli Lilly and Company (“Lilly”), as well as the successful closure and first phases of integration of Bayer’s animal health business into Elanco. This included the completion of Elanco’s own IT operations and simultaneous build out of two Enterprise Resource Planning (ERP) systems to operate the standalone and newly acquired business.

“The work done by Sarena’s team to stand Elanco up as an independent company has helped us become a stronger, stable entity,” said Jeffrey N Simmons, Elanco president and chief executive officer. “I want to thank Sarena for her valuable contributions and wish her well. Because of the transformation work she led with her team, we are well positioned to begin the next phase of integration.”

As the integration enters its next phase, technology and transformation work will streamline, localizing ownership of the structure and technology to ensure affiliates are equipped to address the diverse needs of customers. Responsibility for finance and productivity initiatives related to the integration and the IT organization will shift to Todd Young, chief financial officer.

These changes are a key milestone in Elanco’s progression through the Innovation, Productivity and Portfolio (IPP) strategy. As the company outlined at its first Investor Day last month, the next phase of transformation will create shareholder value and increase productivity through:

• Accelerated value capture opportunities through the Bayer Animal Health integration to deliver $300 million in synergies by 2023, two years faster and at the high end of the company’s earlier commitment.
• Execution of the next phase of the multi-year productivity agenda across the manufacturing network to achieve an additional $100 million in cost savings/avoidance by 2023.
• A strengthened synergy between business and board, including an enhanced scope of the Board’s Finance Committee to emphasize operational initiatives, merger and acquisition integration, financial matters and margin expansion and related areas of oversight. Additionally, the company created a board-level Innovation, Science and Technology Committee focused on advancing and augmenting the product pipeline.

Additionally, the company outlined near-term growth drivers including:

• Eight expected product launches in 2021, one of which has blockbuster potential.
• Portfolio balance across species and geography.
• Key enablers including omnichannel leadership, pricing, and digital ecosystem.

“There has been a great deal of momentum created as we move into 2021,” Simmons continued. “We have been in a state of physical growth over the past few years, and now we are shifting to nurture that growth and its investment to return even greater value for shareholders and customers alike.”

ABOUT ELANCO
Elanco Animal Health Incorporated (NYSE: ELAN) is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders, and society as a whole. With nearly 70 years of animal health heritage, we are committed to helping our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our Elanco Healthy Purpose™ Sustainability/ESG Pledges – all to advance the health of animals, people, and the planet. Learn more at www.elanco.com

Forward Looking Statement
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about development and reflects Elanco’s current belief. Forward-looking statements are based on our current expectations and assumptions regarding our business and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. For further discussion of these and other risks and uncertainties, see Elanco’s most recent filings with the United States Securities and Exchange Commission. Except as required by law, Elanco undertakes no duty to update forward-looking statements to reflect events after the date of this release.

Elanco and the diagonal bar logo are trademarks of Elanco and its affiliates.
© 2021 Elanco or its affiliates.

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FAQ

What is the significance of Sarena Lin's departure from Elanco?

Sarena Lin's departure marks a transition as Elanco enters the next phase of integrating Bayer's animal health business, emphasizing the need for localized ownership of technology and finance.

What are Elanco's synergies from the Bayer acquisition?

Elanco aims to achieve $300 million in synergies from the Bayer acquisition, with a target completion date of 2023, two years earlier than originally planned.

What are the key growth drivers for Elanco in 2021?

Elanco expects eight product launches in 2021, a balanced portfolio across species and geography, and strong digital capabilities to drive growth.

Who will take over Sarena Lin's responsibilities at Elanco?

CFO Todd Young will assume responsibility for finance and productivity initiatives related to the integration and the IT organization following Sarena Lin's departure.