ELANCO ANIMAL HEALTH (+) : Corporate contact: Key takeaways

Research evidence excerpt

ELANCO ANIMAL HEALTH (+) : Corporate contact: Key takeaways

EQUITIES

PHARMACEUTICALS

ELANCO ANIMAL HEALTH OUTPERFORMPRICE* USD22.9  TARGET PRICE USD29 (UPSIDE 27%)

FLASH NOTE

Corporate contact: Key takeaways

11 JUNE 2026 Securities Research Report Production time: 18:01* (London time)

Research Analyst & Publishing Entities

Navann Ty, CFA BNP Paribas Securities Corp (1) +(1) 917 749 7734 navann.ty@us.bnpparibas.com

What happened?

We had a catch-up call with Elanco and highlight there has been no change to guidance. We have slots open today

and tomorrow to discuss takeaways – book here.

Elanco addressed industry misconceptions post-1Q26. The company indicated market fundamentals remain

strong, with consistent MSD growth expected going forward. This is supported by resilient pet owner demand, where

the company pointed to its recent survey supporting this view.

Across the industry, we understand Elanco is not seeing price used as a lever. No-regrets has worked well.

The company reiterated the focus with Zenrelia remains on messaging around efficacy and with Quattro on

differentiation, highlighting the no-regrets approach has worked well. The discount for Zenrelia vs Apoquel has narrowed

from ~20% to ~8-10%, while Quattro is now at a premium vs Simparica Trio (both consistent with our market models).

The company expects a mid-2027 response from the FDA re: Zenrelia label after submitting the new protocol-

concurred study, which is on track to be submitted towards the end of this year.

Elanco also reiterated Befrena will have a phased launch (implying limited 2Q26E revenue – BNPPE $1.5m), as

mAb manufacturing ramps. We understand the company has been strategically, selectively reaching out to KOLs via

the Befrena Early Experience Program.