Andrea Alfonso

Andrea Alfonso noted the call-out on consumer macro pressure and U.S. vet visit declines for 2026, asking if anything structurally changed in Q3 2025 versus Q2 2025 regarding non-wellness visits and consumer reticence, especially given third-party data showing some improvement in non-wellness visits.

Answer

Bob VanHimbergen, CFO, stated that nothing structurally changed quarter-over-quarter, and Elanco maintains a grounded and disciplined approach to guidance, reflecting the macro environment. Jeff Simmons, President and CEO, elaborated that while vet visits are stabilizing, Elanco believes it is insulated due to its presence in strong, growing markets (e.g., endectocides up 40%, dermatology up 13%), differentiated innovation (Credelio Quattro, Zenrelia, upcoming IL31), a diversified portfolio where pain and vaccines are also growing, and an effective omnichannel strategy including the largest vet sales team, significant media, unique distribution, and leadership in pet retail.

Andrea Alfonso from UBS asked about Elanco's early considerations for 2026, specifically regarding the call-out on consumer macro pressure and U.S. vet visit declines, questioning if anything structurally changed in Q3 versus Q2 and if third-party data showing improvement in non-wellness visits aligns with Elanco's observations.

Answer

CFO Bob VanHimbergen stated that nothing structurally changed quarter-over-quarter, emphasizing a grounded and disciplined approach to guidance. President and CEO Jeff Simmons added that vet visits are stabilizing but might be 'over-indexed,' as Elanco is insulated by strong, growing markets (endectocides up 40%, dermatology up 13%), differentiated innovation, a diverse portfolio (pain and vaccines growing), and an effective omnichannel strategy, including being the number one pet retail company.

Andrea Alfonso from UBS asked for more color on the U.S. Simparica Trio franchise's performance in the quarter, specifically regarding dosage share in vet clinics (especially for new puppies) and pricing spreads versus competitors. She also inquired about new canine parasiticides mentioned in the innovation roadmap, seeking details on their long-acting nature or new efficacy.

Answer

CFO Wetteny Joseph attributed Simparica Trio's moderated growth primarily to a tough prior-year comparison (27% growth in Q3 2024) and macro factors, while noting that share in vet clinics is largely maintained despite reduced flea-tick heartworm visits. He highlighted the continued expansion of the triple combination space, with oral medications' share growing from 30% to 47% in two years, positioning Trio as the market leader. Joseph stated that pricing dynamics during launch periods are anticipated to be short-lived. CEO Kristin Peck confirmed the pipeline is ahead of schedule and invited investors to the December 2nd innovation webcast for specific updates on canine parasiticides and other pipeline progress.

Andrea Alfonso requested insights into the Simparica Trio franchise in the U.S., including dosage share in vet clinics, new puppy adoption, and pricing spreads versus competitors. She also inquired about new canine parasiticides in the innovation roadmap, specifically regarding long-acting formulations, new efficacy, and breadth.

Answer

Wetteny Joseph, Chief Financial Officer, attributed Simparica Trio's performance primarily to a tough prior-year comparison (up 27% in Q3 2024) and macro factors. He stated that Zoetis is largely maintaining share in vet clinics, with limited competitive share gains. He noted the reduction in flea-tick heartworm visits but emphasized the expansion of the triple combination space and Trio's market leadership. Joseph declined to detail pricing spreads but expressed confidence in Zoetis's product differentiation. Kristin Peck, Chief Executive Officer, referred to the December 2nd innovation webcast for specific updates on the pipeline, including canine parasiticides.