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Elanco IPO won’t impact FD site, firm says

Spin off planned for animal health business

Plans to spin off Elanco U.S. Inc. from parent firm Eli Lilly and Co. will have “really no impact” on Elanco’s animal health plant in Fort Dodge, according to a company spokesman.

“There’s no impacted jobs or plans for the facility there in Fort Dodge,” company spokesman Scott MacGregor said Thursday. “Business operations will continue as normal.”

MacGregor said U.S. Securities and Exchange Commission regulations prevent him from saying much about an upcoming business move, called an initial public offering.

Eli Lilly and Co. executives previously announced that investors would be allowed to buy up to a 20 percent stake in Elanco through an initial public offering to be held later this year. The number of shares to be offered and the prices have not been revealed.

Eli Lilly and Co. plans to divest its remaining ownership share at some point following the initial public offering, according to an announcement from the company. The initial public offering and the subsequent divestment will make Elanco into an independent company.

“Based on our strategic review, we concluded that after-tax value for Lilly shareholders would be maximized by pursuing an initial public offering of Elanco,” David A. Ricks, the company’s chairman and chief executive officer, said in a written statement.

“We believe this will allow Elanco to efficiently deploy its resources to those growth opportunities that best serve its customers,” he added. “In addition, this will provide Lilly even greater focus on the human pharmaceutical business to pursue our purpose of creating life-changing medicines for patients.”

Elanco President Jeffrey Simmons said the organization is ready to become an independent company.

“With a sole focus on animal health, we will help our customers address the greatest challenges of keeping animals healthy and together advance a vision of food and companionship enriching life,” he said in a written statement.

Elanco came to Fort Dodge in late 2016 when it bought the plant at 800 Fifth St. N.W. and the portfolio of products made there from Boehringer Ingelheim Vetmedica Inc. for $885 million.

About 500 people work there.

The plant was built by Fort Dodge Laboratories, which became Fort Dodge Animal Health. It was briefly owned by Pfizer Inc. before Boehringer Ingelheim Vetmedica Inc. bought it in 2009.

Elanco is based in Greenfield, Indiana.

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