ELANCO ANIMAL HEALTH (+) : Zenrelia exceeds expectations

Research evidence excerpt

ELANCO ANIMAL HEALTH (+) : Zenrelia exceeds expectations

EQUITIES

PHARMACEUTICALS

ELANCO ANIMAL HEALTH OUTPERFORMPRICE* USD23.7  TARGET PRICE USD29 (UPSIDE 23%)

Zenrelia exceeds expectations

We had a 1-1 follow-up with Elanco post 1Q26 beat. We remain O/P as Elanco executes on the11 MAY 2026

Securities Research Report innovation momentum and deleveraging story. Innovative products continue to exceed expectations,

Production time: 11:13* (London time)

with an internal target of consistent flow of high impact innovation (incl. LAI Derm).

Research Analysts & Publishing Entities

Navann Ty, CFA Zenrelia hit blockbuster status ($100m), ahead of strong derm season; Befrena gradual ramp

BNP Paribas Securities Corp1 Zenrelia reached (TTM) blockbuster status ahead of our expectations, leading us to increase our

+(1) 917 749 7734

navann.ty@us.bnpparibas.com FY26E estimate 60% to ~$160m. The company indicated momentum accelerated, which we

understand was driven by a mix of share gains and market expansion. Elanco is already midway on

Curtis Moiles

a brand-new follow-up study, which remains a potential upside driver. Befrena remains on track forBNP Paribas Securities Corp1

(+1) 646 544 1659 commercial launch this quarter and should gradually ramp through the year (BNPP $16m FY26E).

curtis.moiles@us.bnpparibas.com

Strong parasiticide season could support Quattro, value retailers support legacy para

Quattro has kicked off global expansion with a launch in Australia and approval in Canada, with the

EU, UK, and Japan next on the list. We understand international markets will take time to add up to

meaningful revenue, implying a gradual ramp. Elanco called out a strong start to the parasiticide