Elanco launches transformational strategy on Investor Day

Elanco (ELAN) hosted its first Investor Day in five years. Elanco detailed its Innovation, Portfolio and Productivity, or IPP, strategy aimed at guiding the company’s transformation to a sustainable growth company, delivering consistent mid-single digit organic constant currency revenue growth and adjusted EBITDA margin expansion. Elanco outlined a new three-year financial outlook with the expected annual results beginning in 2026: revenue growth in the mid-single digits in organic constant currency, adjusted EBITDA growth in high single digits, adjusted EPS growth in low double digits, free cash flow of at least $1B from 2026 through 2028. The company will expand its R&D presence in its new Indianapolis global headquarters and surrounding OneHealth Innovation District, while continuing to invest in its U.S.-based manufacturing footprint. Elanco will further invest in its Kansas monoclonal antibody (mAb) manufacturing facility. Elanco expects the 2026 net tariff impact to be immaterial to adjusted EBITDA growth. Elanco now expects its basket of innovation to generate approximately $1.1B in revenue in 2026, up over $200M from $840M-$880M expected in 2025. The company has increased its target innovation areas to eight and added two new major internal development platforms with monoclonal antibodies and immunotherapy. Expects to double revenue from its ‘Big 6’ potential blockbuster products from 2025 to 2028 as it globalizes this basket of innovation. Elanco announced organizational changes designed to generate $25M and $60M in savings in 2026 and 2027, respectively. In total, the company expects its Elanco Ascend program to deliver $200M-$250M in adjusted EBITDA savings by 2030, with about 30% achieved in 2026.