Investors hope Greenfield-based Elanco—the No. 4 animal health company in the world—will be the next Zoetis, the former animal-health division of Pfizer, which has nearly tripled in value since going public in 2013.
The Eli Lilly and Co.-owned animal medicine maker’s shares rose to $36 each at closing Thursday, up from their $24 offering price.
Greenfield-based Elanco Animal Health Inc. raised more than expected in its initial public offering, pricing its shares above the marketed price range.
The Greenfield-based animal health unit is gearing up for independence after 65 years as part of drugmaker Eli Lilly and Co. But Elanco has been struggling, and top management will have to work hard to stabilize the operation.
Elanco Animal Health Inc. could see a market value of as much as $20 billion, according to Bloomberg Intelligence. At that valuation, a share sale could raise as much as $5 billion.
The Indianapolis-based pharmaceutical company said the division’s headquarters would remain in Greenfield after the spinoff and that no job cuts are planned.
The Indianapolis pharmaceutical giant is evaluating whether to keep the division, which makes animal-health products, or sell it or take it public. An analyst said it might fetch $16 billion.
Since October, when Eli Lilly and Co. announced it was reviewing whether to sell or spin off Elanco, Greenfield city leaders have been wondering what the future holds for the city’s economy.
