Eli Lilly and Company (LLY) CFO: No Plans to Follow Pfizer Inc. (PFE)'s Footsteps
1/29/2013 8:27:48 AM
Eli Lilly & Co. (LLY) has no plans to follow in the footsteps of rival Pfizer Inc. (PFE) by selling or spinning off its Elanco animal-health unit. Lilly Chief Financial Officer Derica Rice said Tuesday the Elanco business has been a solid contributor to Lilly's sales and earnings and is complementary to Lilly's core business of making drugs for humans. "We are pleased and happy with our Elanco animal-health business," Mr. Rice said in an interview after Lilly reported fourth-quarter results that included an 18% increase in revenue for the unit. "We have no intentions of divesting that business through a sale or public offering." Pfizer, in contrast, plans to sell up to a 19.8% stake in its Zoetis business in an initial public offering. The IPO is expected later this week and could raise $2.2 billion in what would be the biggest IPO from a U.S. company since Facebook Inc.'s (FB) last year. The Zoetis deal is part of Pfizer's strategy to divest itself of certain businesses outside of its core human-pharmaceutical business. Pfizer has said it could shed its post-IPO ownership stake in Zoetis at a later date. Some analysts have suggested that Pfizer's planned IPO could spur other drug makers to spin off their respective animal-health divisions, especially because the animal-health market appears set for sales growth in the years ahead.