2022-09-08 | NYSE:ELAN | Press release

Scott Ferguson leaves the board

Sachem Head expresses confidence in Elanco’s leadership and strategy

Elanco Animal Health Incorporated (NYSE:ELAN) today announced that Scott Ferguson, founder and managing partner of Sachem Head Capital Management LP (“Sachem Head”), is stepping down from the board of directors as part of the refocusing of Ferguson and Sachem Head on his time on other Sachem Board engagements As one of the company’s major shareholders, Sachem Head will continue to be engaged and a resource to the Board and the Board. ‘management team.

Ferguson said: “I am resigning from the board to devote more time to other opportunities within Sachem Head’s portfolio and to my service on two other public company boards. I have enjoyed working with my fellow directors since my appointment in December 2020, and I believe the Company has laid the right plan to create shareholder value through sustained cost discipline and the development of its pipeline. innovation. As the company executes its plan, I believe the market will appreciate the good work done by management and the board.”

“The Board of Directors and I appreciate Scott’s strong partnership and contributions during his tenure as we execute our plans for sustainable growth and improved profitability,” said R. David Hoover, Chairman of the Elanco Board of Directors. “We look forward to continuing our dialogue with Sachem Head and benefiting from Scott’s insights’”

Jeffrey N. Simmons, President and Chief Executive Officer, said, “We continue to drive strong execution of our strategy across our global business, including our tireless efforts to continue growing our margins while advancing our innovation pipeline. Going forward, we will continue to benefit from the expertise of the Finance and Oversight Committee of our Board of Directors, which was strengthened in December 2020 to oversee our productivity initiatives. Our submissions over the next few months for pet health blockbusters will open the door to our next era of innovation and growth, which we believe will bring increased value to customers and shareholders.”

ABOUT ELANCO

Elanco Animal Health (NYSE:ELAN) is a global animal health leader dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and companion animals, creating thus of value to farmers, animal owners, veterinarians, stakeholders and society as a whole. With nearly 70 years of experience in animal health, we are committed to helping our customers improve the health of the animals in their care, while having a meaningful impact on our local and global communities. At Elanco, we are guided by our vision of food and companionship that enriches lives and our approach to sustainability, Elanco Healthy Purpose™ – all to advance the health of animals, people, the planet and of our business. Learn more at www.elanco.com.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements regarding product launches and expectations regarding our industry and operations, performance and financial condition, and including, in particular, statements relating to our business, growth strategies, product development efforts and future expenditures.

Forward-looking statements are based on our current expectations and assumptions about our business, the economy 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. Accordingly, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those set forth in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including, but not limit the following:

  • increased competition, particularly from generics;
  • the impact of disruptive innovations and advances in veterinary medical practices, animal health technologies and alternatives to animal-derived protein;
  • changes in regulatory restrictions on the use of antibiotics in farm animals;
  • our ability to implement our business strategies or achieve targeted cost savings and gross margin improvements;
  • consolidation of our customers and distributors;
  • an outbreak of an infectious disease transmitted by farm animals;
  • the impact on our operations, supply chain, customer demand and liquidity as a result of the COVID-19 global health pandemic;
  • the potential impact on our business and global economic conditions resulting from the conflict between Russia and Ukraine;
  • the success of our R&D and licensing efforts;
  • misuse, off-label use or counterfeiting of our products;
  • unforeseen safety, quality or effectiveness issues and the impact of identified issues associated with our products;
  • fluctuations in our business results due to seasonality and other factors;
  • the impact of weather conditions and the availability of natural resources;
  • risks related to changes in foreign trade policy;
  • risks related to fluctuations in exchange rates;
  • our dependence on the success of our best products;
  • the impact of customer exposure to rising costs and declining customer revenues;
  • lack of availability or significant increases in the cost of raw materials;
  • the use of alternative distribution channels and the impact of increased or decreased sales to our distributors, resulting in fluctuations in our revenues;
  • risks related to impairment of goodwill or identifiable intangible assets;
  • animal assessment risks;
  • manufacturing issues and capacity imbalances;
  • the impact of litigation, regulatory investigations and other legal matters and the risk that our insurance policies may be insufficient to protect us from the impact of such matters;
  • the actions of regulatory agencies, including as a result of their interpretation of product safety studies;
  • risks related to tax liability or exposure;
  • risks related to environmental, health and safety laws and regulations;
  • risks related to our presence in foreign markets;
  • challenges to our intellectual property rights or our alleged violation of the rights of others;
  • our reliance on sophisticated information technology and infrastructure and the impact of breaches of our information technology systems;
  • the impact of increased regulation or decreased financial support related to farmed animals;
  • the adverse effects of labor disputes, strikes, work stoppages and the loss of key personnel or highly qualified employees;
  • risks related to underfunded pension plan liabilities;
  • our ability to make acquisitions and successfully integrate the businesses we acquire, including KindredBio and Bayer’s animal health business (Bayer Animal Health);
  • the effect of our substantial indebtedness on our business, including restrictions in our debt agreements that will limit our operational flexibility; and
  • risks related to certain governance arrangements in our governing documents.

For additional information about factors that could cause actual results to differ materially from forward-looking statements, please see the company’s most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission. Although we have attempted to identify important risk factors, there may be other risk factors not currently known to us or that we currently believe are not material and which could cause actual results and developments to differ. materially from those indicated or implied by the forward-looking information. statements contained in this press release. If any of these risks materialize, or if any of the above assumptions underlying the forward-looking statements prove incorrect, actual results and developments may differ materially from those expressed or implied by the forward-looking statements contained in this press release. We caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements included elsewhere in this press release. Any forward-looking statements made by us in this press release speak only as of the date hereof. Factors or events that could cause our actual results to differ may arise from time to time and it is impossible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. Comparisons of results for current and prior periods are not intended to express future trends or indications of future performance, unless specifically expressed as such, and should be considered historical data.

Boyd S. Abbott