Drug Manufacturers - Specialty & Generic

Elanco Animal Health Inc. initiated a restructuring plan, branded as the 'Elanco Ascend' growth initiative, to generate significant cost savings, optimize its global manufacturing footprint, and align with future volume expectations. This strategic move includes reducing its workforce in higher-cost locations, notably through the closure of its German animal R&D facility and targeted reductions in its manufacturing workforce. Concurrently, Elanco is expanding its research and development presence at its new Indianapolis global headquarters and increasing investments in its U.S.-based manufacturing. This shift is influenced by a favorable tax environment, regulatory reforms leading to improved USDA regulatory review timelines, and greater certainty on tariffs, which collectively create conditions conducive to consolidating key innovation capabilities from Europe to the U.S. The restructuring is projected to deliver approximately $25 million in savings in 2026 and $60 million in 2027, with an overall target of $200 million to $250 million in adjusted EBITDA savings by 2030.