The Shield to Save You from the Puppy Apocalypse

研报英文原文证据摘录

The Shield to Save You from the Puppy Apocalypse

Performance and Growth Drivers

While we acknowledge that U.S. pet care trends remain challenging, we believe this narrow view overlooks the company’s significant international

exposure and the demand within its Farm Animal segment. Unlike many peers, Elanco maintains a balanced geographic footprint, with approximately

52% of its revenue coming from International markets and 48% from the U.S. As regions outside the U.S. experience rising standards of living, we

could see an increase in pet adoption and medicalization, a trend already visible in the rapid uptake of JAK inhibitors in markets like Japan and Brazil,

which may serve as a long-term growth driver for Elanco’s international portfolio.

Capturing Global Puppy Starts

Elanco views the international pet market as a long-term structural opportunity because 70% of new puppies globally are located outside the United

States. Furthermore, the international dermatology market is estimated at $800 million and is growing faster than the U.S. market. Also, unlike in the

U.S., where Zenrelia has certain label restrictions, its international labels in 45 countries are without restrictions, which has accelerated adoption. In

Brazil, Zenrelia captured the majority share of the JAK market from the incumbent (Apoquel) within just one year, exceeding a 50% market share and in

Japan the market share for Zenrelia is already over 35%. JAK market share ranges from high-teens to over 30% in key European markets, supported

by a head-to-head study that has resonated well with international veterinarians. Also, AdTab is the fastest-growing brand in Europe’s $600 million

OTC ecto category and became the #1 brand in less than two years with over 50% oral OTC market share.