Question · Q3 2025
Andrew Dusing asked about Elanco's pricing strategy for 2026, specifically for the pet segment, noting that the industry has seen 3-4% price increases while Elanco's was closer to 1.5% this year. He inquired if Elanco could reach or exceed the normal industry range in 2026, considering innovation and the lapping of launch promotions. He also asked about Zenrelia's go-to-market strategy, particularly regarding distribution agreements, and the feedback from October following a competitor's decision to give its largest dermatology product to distribution at the end of September.
Answer
Bob VanHimbergen, CFO, stated that Elanco's pricing strategy is to align price with customer value. He emphasized that current year launches like Credelio Quattro and Zenrelia are excluded from the pricing calculation but will be included in 2026 pricing, which will impact the reported price growth. Jeff Simmons, President and CEO, affirmed Elanco's consistent and strong relationships with distribution partners, highlighting that Elanco offers a total portfolio, unlike competitors who may be more selective or change strategies year-to-year. He believes Elanco's consistent partnership approach has paid off and differentiated the company.