Elanco provides update on relationship with TriRx

Elanco Animal Health provided an update on its relationship with contract manufacturing supplier, TriRx Speke Ltd. TriRx entered into trading administration, a formal insolvency process in the United Kingdom designed to help companies facing severe financial challenges regain stability. Administrators from FTI Consulting LLP have been appointed. Elanco has a long-term supply agreement with TriRx to manufacture select farm animal products at the Speke site. Elanco is working constructively with the Administrators to support business continuity in the interim and explore possible options in the best interest of all stakeholders. In the short term, Elanco is working with the Administrators to underwrite the operational costs to ensure work in progress at the site continues and that employees will be paid during the interim. As a result of this engagement, Elanco expects minimal supply disruption in 2024. Elanco expects a reduction of approximately $5M-$10M of adjusted EBITDA in 2024 related to the TriRx situation. Despite this headwind, Elanco continues to expect to deliver its full year adjusted EBITDA guidance of $900M-$940M.