Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, August 3, 2018

Article Excerpt

ELI LILLY & CO., $100.58, symbol LLY on New York, develops, makes and markets drugs and animal-health products. The company now plans to sell 20% of its Elanco Animal Health business to the public in an IPO. Later this year, it will then spin off the remaining 80% by handing those shares out to its investors. Elanco makes medications for both livestock and companion animals (pets). The firm has grown rapidly through more than 10 acquisitions since 2007. They include the $5.4 billion takeover of Novartis AG’s animal-health unit in 2015. In 2016, Elanco opened a 48,000-square-foot research center next to its Greenfield, Indiana, headquarters to develop vaccines for pets and livestock animals. Other companies have also moved to spin off their pets-focused businesses. Drugmaker Pfizer (symbol PFE on New York and a recommendation of our Wall Street Stock Forecaster newsletter) spun off its Zoetis (symbol ZTS on New York) animal-health subsidiary in 2013. The shares of Zoetis have nearly tripled since then. In the…