00:00What are you seeing that gives you a picture of whether or not we are slowing down when it comes
00:04to our spending on pets?
00:07Yeah, I will just say Animal Health has just completed one of the biggest years we had in 2025.
00:1310% growth on the farm side, up high single digit on the pet side, and we see no slowing.
00:21We just recently completed a survey.
00:23Some of this is part of the industry in our company where spend is up $500 a year plus on
00:29pets.
00:30If the expectation of care is high, you've got to bring value.
00:35You've got to bring convenience.
00:36But if you do that and you can reach the global market, 70% of new puppies are outside the
00:43U.S., so that global footprint matters.
00:45Listen, with expectation of care growing, the willingness to spend, we're seeing it.
00:49That's what turned in the best quarter since we spun out of Eli Lilly in 2018 that we turned in
00:55and announced yesterday with 10% growth.
00:58And we saw that growth on both sides, pet, farm, international, and U.S.
01:03Yeah, it's a great read.
01:04And, you know, it's interesting.
01:05It's in contrast to what we're seeing from some other players in this space, Zoetis and also Merck's Animal Health
01:11segment.
01:11I want to ask about those results because you did, as a result of what you reported, Jeff, it seems
01:17to seem that you guys are actually gaining share out there as some of your rivals are having a tougher
01:23time.
01:24First time in many years that we've seen your company outperform some of the competitors that are out there.
01:29Investors are focused on durability of these gains.
01:33They want it to be not just a one-quarter thing.
01:35So how heavy is the company cutting prices, trying to hold on to that share, and gain even more?
01:42Thank you for the question.
01:43I mean, I'll just say we've been on a path.
01:46We're in the midst of three years of consistent growth.
01:49And let me contrast a little bit.
01:51First of all, I think the industry is extremely durable, and we can come back to it.
01:55But, you know, animal protein is growing significantly.
01:57I mean, meat case sales are up 100% the last five years, right?
02:01Cottage cheese, meat sticks, the milkshakes, the new dietary guidelines, GLP.
02:07So protein is, you know, we're expecting 5% growth in protein.
02:10And then on this pet side, as I said, high single-digit growth.
02:13So then, well, what's going on underneath?
02:15When you start to look at companies, Elanco, let me contrast a little bit.
02:19First, it's innovation.
02:21Just like on the pharmaceutical side, we've launched six blockbusters in major markets.
02:25$2 billion during market.
02:27We've got the two fastest-growing products.
02:29Six billion-dollar parasiticide market.
02:32We've got the best medicine and just shared record market share growth there yesterday.
02:38And then the beef market, we know what's going on in beef.
02:40So I think it's innovation, one.
02:42Two is we bought Bayer a few years ago to really, they had a retail business.
02:47We've got an omni-channel.
02:48We announced yesterday we're in the dollar store now all the way to Costco.
02:52We have the OTC leadership in pet.
02:55I can take you online to Chewy and Amazon, to the dollar store, all the way to a complex product
03:00in the vet clinic.
03:01Nobody reaches more pet owners where they want to shop at the price point than Elanco.
03:06And then we've got a big farm animal business.
03:08We're number one in beef, swine, poultry.
03:11So that diversity matters, reaching more customers.
03:14When you're dependent on one innovation in one country, you become dependent.
03:18And Elanco, for the rest of this decade, and we laid out in our investor conference, you know, we're looking
03:23at mid-single-digit consistent on the top, high on the bottom, and double-digit, low-double-digit on EPS.
03:29And we feel very good about that.
03:32And I think our stock performance has shown that over the last 12 to 14 months.
03:35And I'm more excited about the next 12 to 14 months.
03:38Hey, Jeff, we only have 20 seconds left.
03:40But the durability of the protein craze right now, how do you know that that's here for good?
03:44Very briefly.
03:46Yeah, I think you just – it's not one trend.
03:49It's many trends.
03:50And it's not just the U.S.
03:51It's global.
03:52Wellness.
03:53We used to be all about, oh, get meat into the diet or milk or whatever.
03:57The protein is higher quality, a lot more – over 1,000 new products in dairy.
04:02And people are seeing this, that, hey, protein, you know, muscle retention is the key thing for that aging population,
04:11GLP use.
04:11So I see many more converging trends.
04:14And it's going to drive volume growth, not just share growth.
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