Fountain Report Excerpts Feb 13, 2024

Fountain Report Excerpts
  1. Elanco Animal Health has agreed to sell its aqua business to Merck Animal Health for approximately $1.3 billion in cash, representing approximately 7.4 times the estimated 2023 revenue of the Elanco aqua business, according to the announcement. The transaction reinforces Elanco’s focus on its most significant value creation opportunities, notably in pet health and livestock sustainability. In addition to the expected U.S. approvals in the first half of 2024 for Credelio Quattro, Zenrelia and Bovaer, Elanco’s targeted areas of focus include next-generation products for pet parasiticides, dermatology and pain, as well as livestock sustainability. Additionally, the company is pursuing platform-aligned targets such as monoclonal antibodies and other major emerging spaces of high unmet need.
  1. IDEXX Laboratories reported fourth quarter revenue of $902 million, up 9% on a reported basis and driven by companion animal group growth of 10% on a reported basis. Companion animal group diagnostics recurring revenue gains of 11% as reported were supported by continued benefits from IDEXX execution drivers including high quality placements of CAG diagnostics capital instruments across regions, high customer retention, new business gain and net price realization. Earnings per diluted share were $2.32 for the quarter, up 13% as reported. Revenue for the full year of $3.66 billion was up 9% as reported, driven by 10% reported growth in CAG diagnostics recurring revenue. EPS for the year of $10.06 was up 25% as reported.
  1. With a rise in vaccine hesitancy and a decline in vaccine uptake, some researchers fear there might be a spillover effect among pet owners who then choose to forgo rabies vaccines for their cats and dogs. “We’re aware that we live in a world where rabies transmission is relatively low,” said Matthew Motta, an assistant professor of health law, policy and management at Boston University. “But we worry very much about a world in which that won’t be the case, and the way you get there is through vaccine hesitancy.” Very few humans die in the United States from rabies, but that is no accident, said Dr. Rodney Rohde, Regents’ professor and global fellow at Texas State University. “It’s really tied to our really largely successful dog and cat vaccine programs and livestock to a lesser extent over the last 50 years,” Rohde told PBS NewsHour.

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