Elanco Animal Health Inc (ELAN) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Elanco Animal Health's first-quarter 2025 earnings conference call.

女士們、先生們，感謝你們的支持。歡迎參加 Elanco Animal Health 2025 年第一季財報電話會議。

At this time, all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. (Operator Instructions)

目前，所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。（操作員指示）

Thank you. I would now like to hand the call over to Tiffany Kanaga, Head of Investor Relations. You may begin your conference.

謝謝。現在我想把電話交給投資者關係主管 Tiffany Kanaga。您可以開始您的會議了。

Good morning. Thank you for joining us for our Elanco Animal Health first-quarter 2025 earnings call. I'm Tiffany Kanaga, Vice President of Investor Relations and ESG. Joining me on today's call are Jeff Simmons, our President and Chief Executive Officer; Todd Young, our Chief Financial Officer; and Beth Haney from Investor Relations. The slides referenced during this call are available on the investor relations section of elanco.com.

早安.感謝您參加 Elanco Animal Health 2025 年第一季財報電話會議。我是投資者關係和 ESG 副總裁 Tiffany Kanaga。參加今天電話會議的還有我們的總裁兼執行長 Jeff Simmons；我們的財務長 Todd Young；以及投資者關係部的 Beth Haney。本次電話會議中引用的幻燈片可在 elanco.com 的投資者關係部分找到。

Today's discussion will include forward-looking statements. These statements are based on our current assumptions and expectations and are subject to risks and uncertainties that could cause actual results to differ materially from our forecast. For more information, see the risk factors discussed in today's earnings press release, as well as in our Form 10-K and 10-Q filed with the SEC. We do not undertake any duty to update any forward-looking statement.

今天的討論將包括前瞻性陳述。這些聲明是基於我們目前的假設和預期，並受可能導致實際結果與我們的預測有重大差異的風險和不確定性的影響。欲了解更多信息，請參閱今天的收益新聞稿中討論的風險因素，以及我們向美國證券交易委員會提交的 10-K 和 10-Q 表格。我們不承擔更新任何前瞻性聲明的義務。

Our remarks today will focus on our non-GAAP financial measures. Reconciliations of these non-GAAP measures are included in the appendix of today's slides and in the earnings press release. References to organic performance exclude the estimated impact of the aqua business, which was divested July 9, 2024. After our prepared remarks, we'll be happy to take your questions. I will now turn the call over to Jeff.

我們今天的發言將集中於我們的非公認會計準則財務指標。這些非公認會計準則指標的對帳包含在今天的投影片附錄和收益新聞稿中。對有機績效的提及不包括水產業務的預期影響，該業務於 2024 年 7 月 9 日剝離。在我們準備好發言之後，我們很樂意回答您的問題。現在我將電話轉給傑夫。

Thanks, Tiffany. Good morning, everyone. Elanco exceeded first-quarter guidance for revenue, adjusted EBITDA, and adjusted EPS. Continuing our momentum from the end of 2024, we've delivered a high-quality quarter with 4% organic constant currency revenue growth evenly driven by price and volume. This strong Q1 performance represents our seventh quarter of underlying growth.

謝謝，蒂芙尼。大家早安。Elanco 第一季的營收、調整後 EBITDA 和調整後 EPS 都超乎預期。我們延續了 2024 年底以來的良好勢頭，取得了高品質的季度業績，在價格和銷量的共同推動下，有機固定匯率收入實現了 4% 的成長。第一季的強勁表現代表我們實現了第七個季度的潛在成長。

On innovation, after delivering $198 million of first-quarter revenue from our new products, we are raising our full-year expectations to $660 million to $740 million. We are pleased by the commercialization of our basket of six potential blockbusters with the most recently launched product, Cordeo Quattro off to a great start, surpassing our expectations to date.

在創新方面，在第一季我們的新產品帶來 1.98 億美元的收入後，我們將全年營收預期上調至 6.6 億至 7.4 億美元。我們很高興看到我們推出的六款潛在重磅產品能夠實現商業化，其中最新推出的 Cordeo Quattro 取得了良好的開端，超出了我們迄今為止的預期。

With a relentless focus on cash, we are deleveraging faster than planned, improving our net leverage target for year end to 3.9 to 4.3 times, reflecting strong working capital performance, favorable currency, and the monetization of our Lotilaner US royalty stream for $295 million that we announced earlier this week.

透過持續關注現金，我們比計劃更快地去槓桿，將年底的淨槓桿目標提高到 3.9 至 4.3 倍，這反映了強勁的營運資本表現、有利的貨幣以及我們本週早些時候宣布的 2.95 億美元的 Lotilaner 美國特許權使用費流的貨幣化。

Looking ahead, we have raised our 2025 full-year revenue guidance for FX, and we are maintaining our outlook for organic constant currency growth of 4% to 6%. We continue to expect accelerating quarter-on-quarter growth with Q2 up 4% to 6%.

展望未來，我們提高了 2025 年全年外匯收入預期，並維持 4% 至 6% 的有機固定匯率成長預期。我們繼續預期季度環比成長將加速，第二季將成長 4% 至 6%。

March and April trends have provided early-proof points, and innovation continues to ramp on top of a strong-based business.

三月和四月的趨勢已經提供了早期的證據點，在強勁的業務基礎上，創新繼續蓬勃發展。

We also continue to expect full-year adjusted EBITDA $830 million to $870 million and adjusted EPS of $0.80 to $0.86. The Elanco strategy is working and offsetting external uncertainty. Our prudent approach recognizes our first-quarter outperformance, recent momentum, and favorable FX balanced by expected tariff impact and a dynamic macroeconomic backdrop.

我們也繼續預計全年調整後 EBITDA 為 8.3 億美元至 8.7 億美元，調整後 EPS 為 0.80 美元至 0.86 美元。 Elanco 的策略正在發揮作用並抵消外部不確定性。我們採取審慎的態度，承認了我們第一季的優異表現、近期的發展勢頭以及有利的外匯，並受到預期的關稅影響和動態的宏觀經濟背景的平衡。

Our execution and our One Elanco global operating model give us the agility needed to cover various scenarios that may emerge in this external environment, including tariffs and trade impacts, regulatory and policy changes, and shifts in the consumer sentiment and spending. We have a dedicated team implementing a multi-faceted intervention plans to allow us to deliver even during these turbulent times, and we will remain focused on growth, innovation, and cash as the right priorities to expand our long-term value proposition.

我們的執行力和「One Elanco」全球營運模式使我們能夠靈活地應對外部環境中可能出現的各種情況，包括關稅和貿易影響、監管和政策變化以及消費者情緒和支出的變化。我們有一個專門的團隊實施多方面的干預計劃，使我們能夠即使在動盪時期也能實現目標，我們將繼續專注於成長、創新和現金作為擴大我們長期價值主張的正確優先事項。

Let's take a moment to walk through how we're covering our expected tariff exposure on slide 5. You'll remember that with our late February call, we outlined $3 million to $4 million of potential impact from the first 10% imposed on China.

讓我們花點時間來看看第 5 張投影片上我們如何涵蓋預期的關稅風險。您會記得，在我們 2 月底的電話會議上，我們概述了對中國徵收第一個 10% 關稅可能造成 300 萬至 400 萬美元的影響。

We would strongly caution against extrapolating that impact to the 145% imposed today without also considering the pharmaceutical exemption and our intervention plans already in action.

我們強烈警告不要將這一影響推斷到今天實施的 145%，而不考慮藥品豁免和我們已經實施的干預計畫。

Since late February, we've begun implementing several mitigating strategies including supply chain optimization, inventory management, tactical pricing in select geographies, and strategic API sourcing.

自二月底以來，我們已開始實施多項緩解策略，包括供應鏈優化、庫存管理、特定地區的戰術定價以及策略 API 採購。

We believe the total net impact in 2025 to Elanco adjusted EBITDA from tariffs as they stand as of May 5 is an estimated $16 million to $20 million, almost entirely related to the tariffs imposed by the US and China. This negative impact is fully offset by our first-quarter outperformance as we are maintaining our full year adjusted EBITDA and adjusted EPS guidance.

我們認為，截至 5 月 5 日，關稅對 Elanco 調整後 EBITDA 的 2025 年總淨影響估計為 1,600 萬至 2,000 萬美元，幾乎全部與美國和中國徵收的關稅有關。由於我們維持全年調整後 EBITDA 和調整後 EPS 指引，這一負面影響被我們第一季的優異表現完全抵消。

We have a balanced profile of risks and further mitigating strategies also allowing for maintained guidance. While we benefit from the farm exemption today, if this policy is removed and a 5% to 25% tariff is imposed, we estimate our incremental exposure at $10 million to $30 million in 2025.

我們對風險有一個平衡的認識，並制定了進一步的緩解策略，以便維持指導。雖然我們今天受益於農業豁免，但如果取消這項政策並徵收 5% 至 25% 的關稅，我們估計 2025 年我們的增量風險敞口將達到 1000 萬至 3000 萬美元。

This risk and others, including potential economic slowdown, are offset by anticipated foreign exchange favorability based on April rates and a targeted value-based pricing increase. Elanco is well positioned to overcome macroeconomic challenges and uncertainty to deliver our plan.

這種風險以及其他風險（包括潛在的經濟放緩）被基於四月份匯率預期的外匯優惠和基於價值的目標定價上漲所抵消。禮來公司已做好準備，克服宏觀經濟挑戰和不確定性，實現我們的計劃。

Turning to the first-quarter revenue performance on slide 6, we break down the 4% underlying organic constant currency revenue growth. This chart highlights the importance of our diverse portfolio with three of our four business areas growing.

轉向幻燈片 6 上的第一季營收表現，我們將 4% 的潛在有機恆定貨幣收入成長分解出來。這張圖表凸顯了我們多元化投資組合的重要性，我們的四個業務領域中有三個正在成長。

We achieved the top end of our expected growth range in Q1, despite the challenging US retail backdrop in January and February. Our US retail business declined 21% during that two-month period, driven by cooler weather that significantly impacted consumer spending. January was the coldest on record since 1988. Tick bites reported by the CDC tracked at an eight-year low.

儘管一月和二月美國零售業面臨嚴峻挑戰，我們在第一季仍實現了預期成長的最高水準。由於天氣轉冷嚴重影響了消費者支出，我們的美國零售業務在這兩個月內下降了 21%。一月份是自1988年以來有記錄以來最冷的月份。美國疾病管制與預防中心報告的蜱蟲叮咬數量創八年來新低。

Importantly, retailers have broadly observed that when the weather cooperates, consumers engage, citing better trends into the spring. Our results support this with March rebounding to a positive 13% growth and strength carrying into April as we enter the heart of the North American parasiticide season.

重要的是，零售商普遍觀察到，當天氣配合時，消費者就會參與，並指出春季的趨勢會更好。我們的研究結果支持了這一點，3 月成長率反彈至 13%，隨著我們進入北美寄生蟲殺蟲劑季節的核心，這種強勁勢頭將持續到 4 月。

Our leadership in the US retail market has never been more relevant with the consumer under pressure. We provide a superior value proposition for pet owners with our strong OTC portfolio and broad physical availability.

我們在美國零售市場的領導地位對於面臨壓力的消費者來說從未如此重要。我們憑藉強大的 OTC 產品組合和廣泛的實體供應，為寵物主人提供卓越的價值主張。

In the US vet clinic, our revenue was flat in the quarter. Importantly, as we discussed on our earnings call a year ago, we are lapping an approximate $13 million benefit related to moving certain legacy bear products into distribution. Excluding this impact in the comparison, our vet clinic revenue growth would be approximately 8%. We benefited from the early and ramping contributions from Credelio Quattro and Zenrelia, which I will cover more in depth shortly.

在美國獸醫診所，我們本季的收入持平。重要的是，正如我們一年前在收益電話會議上所討論的那樣，我們將獲得約 1300 萬美元的收益，用於將某些傳統熊產品轉移到分銷渠道。如果不考慮這一影響，我們的獸醫診所收入增長率將約為 8%。我們受益於 Credelio Quattro 和 Zenrelia 的早期和不斷增加的貢獻，我很快就會對此進行更深入的介紹。

Altogether, we see a rebounding retail environment, good early traction for innovation, and a solid underlying fundamentals in our portfolio, all driving our expectation for US pet health to return to a step up in growth in Q2.

總而言之，我們看到零售環境正在反彈，創新具有良好的早期動力，並且我們的投資組合具有穩固的基本面，所有這些都推動了我們對美國寵物健康在第二季度恢復成長的預期。

Moving now to international pet health, we delivered 5% organic constant currency revenue growth driven by AdTab, Credelio, and Seresto. Our international pet health business remains a clear example of the value of innovation with new products driving 2 percentage points of growth for Elanco in the quarter. Specifically, AdTab more than doubled its revenue in the first quarter compared to last year, and we continue to be very pleased with Zenrelia's performance in Brazil, Canada, and Japan.

現在轉向國際寵物健康領域，在 AdTab、Credelio 和 Seresto 的推動下，我們實現了 5% 的有機固定貨幣收入成長。我們的國際寵物保健業務仍然是創新價值的明顯例證，新產品在本季度推動了 Elanco 2 個百分點的成長。具體來說，AdTab 第一季的營收與去年相比成長了一倍多，我們對 Zenrelia 在巴西、加拿大和日本的表現感到非常滿意。

The power of innovation and a diverse portfolio is also clear in the US farm animal business, up 17%, with continued strength in cattle. Experior again led the way with rapid adoption in heifers since we received FDA combo clearance in November.

美國農場動物業務的創新和多元化投資組合的力量也顯而易見，成長了 17%，其中牛肉業務繼續保持強勁成長。自 11 月獲得 FDA 組合許可以來，Experior 再次在小母牛中迅速普及，處於領先地位。

International farm was up 2% in organic constant currency, with growth and ruminants partly offset by the impact the Kexxtone recall and our commercial model changes in certain geographies from last year.

以有機固定匯率計算，國際農場增長了 2%，但增長和反芻動物的增長部分被 Kexxtone 召回事件的影響以及我們去年在某些地區的商業模式變化所抵消。

We estimate these two items created a combined 4-percentage-point headwind to our year-over-year growth. Looking at slide 7, we delivered $198 million of innovation revenue in the first quarter. This outperformance with growing momentum from our big six portfolio of potential blockbusters, leads us to increase our expected innovation contribution for 2025 by $20 million at both ends of the range to $660 million to $740 million.

我們估計這兩項因素對我們的年成長造成了 4 個百分點的阻力。看投影片 7，我們在第一季實現了 1.98 億美元的創新收入。這種優異的表現，加上我們六大潛在重磅藥物組合不斷增長的勢頭，使我們對 2025 年的預期創新貢獻在兩個範圍內均增加了 2000 萬美元，達到 6.6 億美元至 7.4 億美元。

We expect a consistent flow of high-impact innovation to fuel our growth for the next decade through targeted areas including our monoclonal antibody platform. In the near term, we continue to expect this platform to deliver our IL-31 approval in the fourth quarter of this year with commercialization in the first half of 2026. We remain in close dialogue with the USDA where we believe recent changes have not materially impacted the review team and process.

我們期望透過包括我們的單株抗體平台在內的目標領域持續不斷的高影響力創新來推動我們未來十年的成長。短期內，我們繼續預計該平台將在今年第四季獲得 IL-31 批准，並在 2026 年上半年商業化。我們與美國農業部保持著密切對話，我們認為最近的變化並沒有對審查團隊和流程產生實質影響。

Let's dig deeper on the progress of these 6 products on slide 8, starting with Zenrelia. Zenrelia is our entry into the $1.9 billion rapidly growing global dermatology market and it continues to make meaningful strides in clinic penetration. Zenrelia is now used in approximately 11,000 US vet clinics, or 35% of the total, up from 8,000 total clinics when we updated you in late February.

讓我們深入了解第 8 張投影片上這 6 款產品的進展情況，從 Zenrelia 開始。Zenrelia 是我們進入價值 19 億美元、快速成長的全球皮膚病學市場的入門產品，並且在臨床滲透方面繼續取得有意義的進展。目前，美國約有 11,000 家獸醫診所在使用 Zenrelia，佔總數的 35%，而我們在 2 月底更新時，診所總數為 8,000 家。

Of this 11,000 today, about 8,000 have fully adopted the product and about 3,000 are piloting use. And in line with positive trends broadly across our US pet-health business, we're encouraged by the progression of the Zenrelia's sales.

目前，在這 11,000 家企業中，約有 8,000 家企業已全面採用該產品，約有 3,000 家企業正在試用。與我們美國寵物保健業務普遍呈現的正面趨勢一致，Zenrelia 的銷售成長令我們感到鼓舞。

Importantly, as vets experience the strong and consistent efficacy of the product firsthand, they are responding. One in three clinics that have received samples has purchased Zenrelia and integrated it into their derm portfolios. Our reorder rates have climbed to 70%, up approximately 10 percentage points since late February. And we expect continued momentum as we've entered the allergy season.

重要的是，當獸醫親身體驗到該產品強大而持續的功效時，他們做出了反應。三分之一的收到樣本的診所購買了 Zenrelia 並將其納入其皮膚病產品組合中。我們的重新訂購率已攀升至 70%，自 2 月底以來上升了約 10 個百分點。隨著過敏季節的到來，我們預計這一勢頭將持續下去。

Our survey work shows that 26% of vets not using Zenrelia today expect to use it in the future, with the majority of that cohort citing seasonal allergies and frustrations with current options. Customers are responding too, with broadly positive reviews, applauding the efficacy, convenience, and the value of the product.

我們的調查顯示，目前未使用 Zenrelia 的獸醫中有 26% 預計未來會使用它，其中大多數人表示，這是由於季節性過敏和對當前選擇的失望。顧客們也做出了正面的反應，普遍給予了正面的評價，稱讚產品的功效、便利性和價值。

We are continuing with targeted outreach to pet owners, and we are increasing our focus on tech-to-tech sessions which have proven to be highly effective. The biggest challenge we face in the US for Zenrelia is moving beyond second-line treatment where it has been positioned in various clinics. Also, we're actively engaged in the process to update the US label.

我們將繼續有針對性地接觸寵物主人，並加強對科技對科技的關注，事實證明這些技術對科技的會議非常有效。在美國，Zenrelia 面臨的最大挑戰是超越其在各診所的二線治療定位。此外，我們正積極參與更新美國標籤的進程。

Data supporting a language change on the current label is already under CBM review and we expect to receive feedback later this year. In addition, we've already initiated new studies for a more comprehensive label change.

支援當前標籤語言變更的數據已在 CBM 審查之下，我們預計將在今年稍後收到回饋。此外，我們已經啟動了新的研究，以進行更全面的標籤變更。

Overall, we continue our robust engagement with the FDA, and we will keep you updated with our progress on both fronts. Outside the US, where we have less restrictive labels, we are very pleased with the launch of Zenrelia in Brazil, Canada, and Japan, which is a great start to capturing share in the $600 million to $700 million international dermatology market. Brazil, the first international market to launch, has outperformed our initial expectations for both penetration and sales, with efficacy being the key driver for switching to Zenrelia. We continue to expect approvals in Europe, the UK, and Australia this year.

總體而言，我們將繼續與 FDA 保持密切合作，並將隨時向您通報我們在這兩個方面的進展。在美國以外，我們的標籤限制較少，我們很高興看到 Zenrelia 在巴西、加拿大和日本的推出，這對於我們在 6 億至 7 億美元的國際皮膚病學市場中佔據一席之地是一個良好的開端。巴西是第一個推出該藥物的國際市場，其滲透率和銷售額均超出了我們最初的預期，而療效是轉向 Zenrelia 的關鍵驅動力。我們繼續期待今年獲得歐洲、英國和澳洲的批准。

Moving to Credelio Quattro. We launched and shipped product in January ahead of the parasiticide season. We are very encouraged by the early results with share capture ahead of expectations while cannibalization has also been favorable to our assumptions.

移至 Credelio Quattro。我們在殺蟲劑季節來臨前的 1 月推出並運送了產品。我們對早期結果感到非常鼓舞，市佔率超出預期，而蠶食也符合我們的假設。

In the span of just a few short months, we've already achieved approximately 10% dollar share of broad spectrum sales in the US vet clinics. Approximately two-thirds of share capture has come from competitive broad spectrum and deco products or new starts, highlighting the high veterinary interest in Credelio Quattro's differentiated profile.

在短短幾個月的時間裡，我們已經在美國獸醫診所的廣譜銷售額中佔了約 10% 的份額。約三分之二的市佔率來自競爭激烈的廣譜和裝飾產品或新產品，凸顯了獸醫對 Credelio Quattro 差異化產品的高度興趣。

All of our distributors have ordered multiple times within the quarter, and inventories of distribution are still running relatively lean. We attribute our initial success to strong vet response to the three dimensions of differentiation for Credelio Quattro. First, broad coverage, including multiple species of tapeworms, the speed of tick kill, and heartworm coverage from month one.

我們所有的經銷商在本季內多次下單，分銷庫存仍然相對較少。我們將最初的成功歸功於獸醫對 Credelio Quattro 三個差異化維度的強烈反應。首先，涵蓋範圍廣泛，包括多種絛蟲、蜱蟲殺滅速度以及從第一個月開始的心絲蟲覆蓋。

Both vet clinics and pet owners have proactively shared how pleased they are with the palatability of Credelio Quattro to dogs. Having seen this robust clinic demand, we're now increasing DTC investment to activate even more pet owners. We're also preparing for a global launch with approval submissions made in Australia, Canada, and Japan.

獸醫診所和寵物主人都積極分享了他們對 Credelio Quattro 對狗的適口性的滿意度。看到這種強勁的診所需求後，我們現在正在增加 DTC 投資以吸引更多的寵物主人。我們也正在為全球發布做準備，並已向澳洲、加拿大和日本提交了批准申請。

In Europe, our pet-health business has been led by the strength of AdTab, our OTC flea and tick product for both dogs and cats. We've seen accelerating growth, doubling sales year over year, with a clear runway for further gains.

在歐洲，我們的寵物保健業務一直以 AdTab 為主導，AdTab 是我們針對狗和貓的非處方跳蚤和蜱蟲產品。我們看到了加速成長，銷售額年增一倍，進一步成長的動能十分明顯。

AdTab was approved and launched in the UK in April, and we are strategically increasing brand-building DTC in the second quarter beyond our initial expectations, reflecting the attractive returns we're seeing on our investment. AdTab is quickly gaining share and we're also seeing minimal cannibalization of our existing portfolio.

AdTab 於 4 月在英國獲得批准並推出，我們在第二季度策略性地增加了品牌建設 DTC，超出了我們最初的預期，這反映了我們在投資上看到的可觀回報。AdTab 的市佔率正在迅速成長，而且我們現有產品組合的蠶食也降到了最低。

Finally, in pet health, our Canine Parvovirus Monoclonal Antibody is the first and only USDA conditionally approved treatment for parvo.

最後，在寵物健康方面，我們的犬細小病毒單株抗體是第一個也是唯一一個獲得美國農業部有條件批准的細小病毒治療方法。

Making CPMA widely available is crucial in our fight against this devastating virus, including in shelter environments where resources are often strained. We are focused on increasing access to this life-saving treatment, and we continue to explore strategic interventions to address the cost of treatment and to accelerate clinic penetration across all channels.

在我們對抗這種毀滅性病毒的過程中，廣泛提供 CPMA 至關重要，包括在資源經常緊張的庇護環境中。我們致力於增加獲得這種挽救生命的治療的機會，並繼續探索策略幹預措施以解決治療成本並加速診所透過所有管道的滲透。

In farm animal, Experior continues to rapidly grow in a market which we now estimate has potential size of over $350 million in the US and Canada with other additional international expansion opportunities. We have unlocked more of this market for Experior through the benefit of the US heifer clearance in November. We are confident in Experior's growth trajectory in the US and Canada, and the product's continued ability to drive overall portfolio benefits.

在農場動物領域，Experior 繼續在市場中快速成長，我們目前估計該市場在美國和加拿大的潛在規模超過 3.5 億美元，並且還有其他國際擴張機會。借助 11 月美國小母牛清關的優勢，我們為 Experior 打開了更多此類市場。我們對 Experior 在美國和加拿大的成長軌跡以及產品持續推動整體投資組合效益的能力充滿信心。

Lastly, with respect to Bovaer, we remain encouraged by the strong demand from dairy farmers and CPGs. Since February, we've doubled the number of cows on the product. However, adoption and our margins have been impacted near term as government incentives have not yet been released.

最後，關於 Bovaer，我們仍然對酪農和 CPG 的強勁需求感到鼓舞。自二月以來，我們產品的乳牛數量增加了一倍。然而，由於政府激勵措施尚未出台，採用率和我們的利潤率在短期內受到了影響。

Moving forward, to optimize Bovaer's economic value and to enhance dairy farmer flexibility, we intend to expand our label as well as lower manufacturing costs. Importantly, the Bovaer demand is robust, with April being our most significant month of new cows starting, while customer retention is high, consistent with farm animal feeding like Experior. We do believe that Bovaer can become another farm animal, Elanco blockbuster, and create the next major market in farm animal health. Overall, the basket of the big six innovations is outperforming and driving accelerating growth for the entire company.

展望未來，為了優化 Bovaer 的經濟價值並提高酪農的靈活性，我們打算擴大我們的標籤並降低製造成本。重要的是，Bovaer 的需求強勁，四月是我們新乳牛開始產奶的最重要月份，同時客戶保留率很高，與 Experior 等農場動物飼養的情況一致。我們確實相信 Bovaer 可以成為農場動物、Elanco 的另一個重磅炸彈，並創造農場動物保健領域的下一個主要市場。整體而言，六大創新組合表現出色，推動整個公司的加速成長。

Moving to slide 9, we highlight all three elements of our IPP or innovation portfolio and productivity strategy. Our innovation builds on our portfolio, which remains a key source of our resilience enabling this robust growth even in challenging times. Our diverse, durable product portfolio is balanced across geographies and species. In US pet health, we gain share in each of the four key markets in our comprehensive portfolio: para, NSAIDs, derms, and vaccines.

轉到投影片 9，我們重點介紹了 IPP 或創新組合和生產力策略的所有三個要素。我們的創新建立在我們的產品組合之上，這仍然是我們韌性的關鍵來源，即使在充滿挑戰的時期也能實現強勁成長。我們的產品組合多樣且耐用，在各個地區和物種之間實現了均衡。在美國寵物保健領域，我們在綜合產品組合的四個關鍵市場中均獲得了份額：副藥、非類固醇抗發炎藥、皮膚病學和疫苗。

Vet clinics prioritize partners who offer a complete set of solutions allowing us to leverage innovation to lift our broader pet-health portfolio. As an example, over 500 US clinics that adopted Credelio Quattro and Q1 also bought for the first time [ether] Elanco products. And US farm animal, we continue to build on our market leadership and targeted innovations like Pratilax, a treatment for bovine and swine respiratory disease, conveniently given as a one low-volume shot bolstering our wide portfolio of solutions.

獸醫診所優先考慮能夠提供全套解決方案的合作夥伴，這使我們能夠利用創新來提升我們更廣泛的寵物健康產品組合。例如，超過 500 家採用 Credelio Quattro 和 Q1 的美國診所也首次購買了 Elanco 產品。對於美國農場動物，我們將繼續鞏固我們的市場領導地位，並推出有針對性的創新，例如 Pratilax，這是一種用於治療牛和豬呼吸道疾病的藥物，只需一次小劑量注射即可方便地給藥，從而增強了我們廣泛的解決方案組合。

Finally, on productivity earlier this week, we announced the monetization of our Latta lanner milestones and US royalties for $295 million. This is a great example of Elanco pioneering new value streams and translating animal health into human health.

最後，關於生產力，本週早些時候，我們宣布將 Latta lanner 里程碑和美國版稅貨幣化，金額為 2.95 億美元。這是禮來開拓新的價值流並將動物健康轉化為人類健康的一個很好的例子。

Monetizing this non-core part of our portfolio accelerates our deleveraging objective. The transaction, combined with our more favorable foreign exchange rates positively impacting our cash balances and additional improvements in working capital, is driving our net leverage target for 2025 down to 3.9 to 4.3 times adjusted EBITDA.

將我們投資組合中這一非核心部分貨幣化可以加速我們去槓桿的目標。該交易，加上我們更有利的外匯匯率對我們的現金餘額產生積極影響以及營運資金的進一步改善，推動我們 2025 年的淨槓桿目標降至調整後 EBITDA 的 3.9 至 4.3 倍。

We also remain focused on the cost discipline as an element within our control in this challenging macro backdrop while we still strategically continue to invest in our innovation, product launches, and the expansion of our Elwood, Kansas and Fort Dodge, Iowa facilities, which are progressing as planned.

在這個充滿挑戰的宏觀背景下，我們仍然將成本控製作為我們可控的因素，同時我們仍然策略性地繼續投資於我們的創新、產品發布以及堪薩斯州埃爾伍德和愛荷華州道奇堡工廠的擴建，這些工程正在按計劃進行。

Our ongoing company-wide productivity agenda was further evidenced by the gross margin expansion in the quarter driven by better-than-expected manufacturing performance with good management of absorption, losses, and expenses. With that, I'll pass to Todd to provide more on the first-quarter results and financial guidance.

我們正在進行的全公司生產力議程得到進一步證明，本季毛利率擴大，這得益於好於預期的製造業績以及對吸收、損失和費用的良好管理。接下來，我將請托德提供有關第一季業績和財務指導的更多資訊。

Thank you, Jeff, and good morning, everyone. Today I will focus my comments on our first-quarter adjusted measures, so please refer to today's earnings press release for a detailed description of the year-over-year changes in our reported results. Starting on slide 11, we delivered $1.193 billion of revenue, representing a decrease of 1% on a reported basis. Excluding the unfavorable impact of foreign exchange rates and the vestiture of our aqua business, we achieved organic constant currency growth of 4% compared to the first quarter of 2024. Price and volume each contributed 2% in the quarter.

謝謝你，傑夫，大家早安。今天，我將重點放在我們的第一季調整後的指標，因此請參閱今天的收益新聞稿，以了解我們報告的結果同比變化的詳細說明。從第 11 張投影片開始，我們的收入為 11.93 億美元，按報告計算下降了 1%。排除外匯匯率和水產業務的不利影響，與 2024 年第一季相比，我們實現了 4% 的有機固定匯率成長。本季價格和數量各貢獻了 2%。

Relative to our Q1 guidance in February, we had a $11 million sales benefit from the weaker US dollar. Slide 12 shows revenue by the four quadrants of our business. Total pet health revenue increased 1% in cost and currency in the first quarter with price growth of 2%. In the US, pet health revenue declined 3%, driven by a headwind to growth from moving certain legacy-bear products into distribution in Q1 of 2024, a challenging retail environment and soft demand for vaccines offset by sales from key innovation products.

相對於我們二月第一季的預期，美元疲軟為我們帶來了 1,100 萬美元的銷售額收益。幻燈片 12 顯示了我們業務四個像限的收入。第一季度，寵物保健總收入按成本和貨幣計算增長了 1%，價格增長了 2%。在美國，寵物保健收入下降了 3%，原因是 2024 年第一季某些傳統熊產品進入分銷領域給成長帶來了阻力，零售環境充滿挑戰，疫苗需求疲軟，但被關鍵創新產品的銷售所抵消。

Outside the US, our Pratilax business grew 5% in constant currency driven by continued strong demand of AdTab across Europe and Credelio in multiple geographies. Zenrelia's sales in three international markets contributed, while soft demand in the China market was a headwind in the quarter.

在美國以外，受歐洲各地對 AdTab 和多個地區對 Credelio 持續強勁需求的推動，我們的 Pratilax 業務以固定匯率計算增長了 5%。Zenrelia 在三個國際市場的銷售做出了貢獻，而中國市場的需求疲軟是本季的一個阻力。

Globally, our farm-animal business achieves 7% growth in organic constant currency. The US farm-animal business grew 17%, driven by continued demand for Experior and the launch of Pradalex in the quarter. This growth was partially offset by the expected timing of poultry rotations.

在全球範圍內，我們的農場動物業務以有機固定匯率計算實現了 7% 的成長。受 Experior 持續需求和 Pradalex 本季推出的推動，美國農場動物業務成長了 17%。這一增長被家禽輪換的預期時間部分抵消。

Outside the US, our farm-animal business contributed 2% in organic cost and currency. Strength in cattle and wine in APAC was partially offset by the tough comparable from the Q2 2024 Kexxtone recall and our strategic do different approach in certain geographies.

在美國以外，我們的農場動物業務貢獻了 2% 的有機成本和貨幣。亞太地區牛肉和葡萄酒的強勁表現，被 2024 年第二季度 Kexxtone 召回事件的嚴峻形勢以及我們在某些​​地區採取的戰略性差異化做法部分抵消。

Continuing down the income statement on slide 13, gross margin increased 10 basis points to 57.4% due to price, strong manufacturing performance, and beneficial product mix, even with the challenge of our highest margin business, US OTC, declining in the quarter. These positive factors were partially offset by inflation and foreign-exchange headwinds.

繼續看第 13 張投影片中的損益表，儘管我們利潤最高的業務美國 OTC 在本季出現下滑，但由於價格、強勁的製造業業績和有利的產品組合，毛利率仍增加了 10 個基點，達到 57.4%。這些正面因素被通貨膨脹和外匯不利因素部分抵消。

Operating expenses rose 3% year over year this quarter, driven by investments supporting our pet health product launches and continued R&D investments focused on our late stage pipeline and geographic expansion opportunities.

本季營運費用年增 3%，主要原因是支持我們寵物保健產品發布的投資以及持續的研發投資，重點是我們的後期產品線和地理擴張機會。

Interest expense was $40 million compared to $66 million last year, with the savings primarily attributable to the significant debt reduction achieved in 2024 from the divestiture of our aqua business.

利息支出為 4,000 萬美元，而去年為 6,600 萬美元，節省的主要原因是 2024 年剝離水產業務後實現了大幅債務削減。

Flight 14 compares Q1 adjusted EBITDA year over year. Adjusted EBITDA was $276 million, a decrease of $18 million. Excluding the impact of the aqua divesture and foreign exchange headwinds, adjusted EBITDA increased $8 million in the quarter, reflecting on the underlying business strength.

Flight 14 將第一季調整後的 EBITDA 與去年同期進行了比較。調整後的 EBITDA 為 2.76 億美元，減少 1,800 萬美元。排除水產業務剝離和外匯不利因素的影響，本季調整後的 EBITDA 增加了 800 萬美元，反映了基礎業務的強勁表現。

Approximately $5 million of adjusted EBITDA relative to our February guidance came from the weaker US dollar that benefited revenue. Adjusted EPS was $0.37 in the quarter. The $0.03 year-over-year improvement was primarily driven by a favorable discrete tax rate benefit and the interest expense savings from debt reduction resulting from the July 2024 aqua divestiture.

與我們 2 月的預期相比，調整後的 EBITDA 約為 500 萬美元，這得益於美元走弱，從而有利於收入成長。本季調整後的每股收益為 0.37 美元。0.03 美元的年增率主要得益於有利的離散稅率收益以及 2024 年 7 月水產資產剝離帶來的債務減少所帶來的利息支出節省。

On slide 15, we provide an update on our cash, debt, and working capital. Cash used from operations was $4 million in the quarter, reflecting typical seasonality of our cash usage. We ended the quarter with net debt of $3.933 billion and a net leverage ratio of 4.4 times adjusted EBITDA.

在第 15 張投影片上，我們提供了有關現金、債務和營運資本的最新資訊。本季營運現金使用量為 400 萬美元，反映了我們現金使用的典型季節性。本季末，我們的淨負債為 39.33 億美元，淨槓桿比率為調整後 EBITDA 的 4.4 倍。

Now, let's move to our financial guidance starting on slide 17. We have maintained our expectations for organic constant currency revenue growth of 4% to 6%, while raising our revenue dollar range to reflect approximately $65 million to $70 million from the favorable impact of foreign exchange rates since the February earnings call. We have good line of sight to the mid-single-digit growth, given the strong Q1 performance already at 4%, with our innovation quickly ramping on top of a stable base.

現在，讓我們從第 17 張投影片開始討論財務指引。我們維持對有機固定匯率營收成長 4% 至 6% 的預期，同時自 2 月財報電話會議以來，受外匯匯率的有利影響，我們的營收美元範圍上調至約 6,500 萬至 7,000 萬美元。鑑於第一季的強勁表現已達到 4%，並且我們的創新在穩定的基礎上迅速提升，我們有望實現中等個位數的成長。

We continue to expect operating expenses to be up approximately 6% in constant currency with strategic investments in the global launches of our innovation portfolio. We also continue to expect H1 to represent a relatively smaller portion of full-year adjusted EBITDA versus the 61% weighting in 2024 and 2023 as the first half commercial investments impact operating expenses earlier in the year and then they drive greater contributions to revenue in the second half.

隨著我們在全球範圍內對創新產品組合進行策略性投資，我們預計營運費用以固定匯率計算將繼續上漲約 6%。我們也繼續預計，上半年佔全年調整後 EBITDA 的比例將相對較小，而 2024 年和 2023 年的權重為 61%，因為上半年的商業投資會在年初影響營運費用，然後在下半年帶來更大的收入貢獻。

Our adjusted EBITDA and adjusted EPS ranges are unchanged from February. Our year-to-date performance, proactive intervention plans covering various scenarios around tariffs, and the foreign exchange tailwinds are balanced by macroeconomic challenges and uncertainty.

我們的調整後 EBITDA 和調整後 EPS 範圍與二月相比沒有變化。我們今年迄今的表現、涵蓋關稅各種情景的主動幹預計劃以及外匯順風與宏觀經濟挑戰和不確定性相平衡。

We have reasons to feel confident in our ability to deliver our 2025 goals, including the accelerating trends we are seeing in March and April. However, as Jeff explained, a prudent approach is warranted in this dynamic environment.

我們有理由對實現 2025 年目標的能力充滿信心，包括我們在三月和四月看到的加速趨勢。然而，正如傑夫所解釋的，在這種動態環境中，採取謹慎的態度是必要的。

We have also updated our cash-and-balance-sheet expectations for 2025. With the proceeds of the load liner US-royalty monetization combined with cash generated from the business, we now expect between $450 million and $500 million of cash available for debt pay down this year. As a result, we now anticipate end of the year net leverage of 3.9 times to 4.3 times adjusted EBITDA.

我們也更新了 2025 年現金和資產負債表預期。透過將載重班輪美國特許權使用費貨幣化的收益與業務產生的現金相結合，我們預計今年可用於償還債務的現金將在 4.5 億美元至 5 億美元之間。因此，我們現在預期年底淨槓桿率為調整後 EBITDA 的 3.9 倍至 4.3 倍。

Slide 18 provides year over-year-bridges for 2025 adjusted EBITDA and adjusted EPS, and slide 23 in the appendix provides a number of additional assumptions to help support your modeling efforts.

投影片 18 提供了 2025 年調整後 EBITDA 和調整後 EPS 的同比預測，附錄中的投影片 23 提供了許多額外的假設，以幫助支持您的建模工作。

On slide 19, we provide our financial guidance for the second quarter. We expect organic constant currency revenue growth of 4% to 6%, largely driven by the positive momentum in our US pet-health business. On a reported basis, we expect $1.175 billion to $1.195 billion in revenue.

在第 19 張投影片上，我們提供了第二季的財務指導。我們預計有機固定匯率收入成長率將達到 4% 至 6%，這主要得益於我們美國寵物保健業務的正面動能。據報道，我們預計收入為 11.75 億美元至 11.95 億美元。

Our investments in recently launched products continue with a planned approximately 11% year-to-year increase in operating expenses as we head into the peak parasiticide and allergy season.

隨著我們進入寄生蟲和過敏高峰季節，我們將繼續對最近推出的產品進行投資，並計劃將營運費用年增約 11%。

Consequently, we expect adjusted EBITDA of $200 million to $220 million and adjusted EPS of $0.17 to $0.21. These ranges include a minimal impact from tariffs given the timing of their implementation and our mitigating actions. The expected adjusted effective tax rate in Q2 is 25% to 27%. Now I'll hand it back to Jeff for closing comments.

因此，我們預計調整後的 EBITDA 為 2 億至 2.2 億美元，調整後的 EPS 為 0.17 至 0.21 美元。考慮到關稅實施的時間和我們的緩解措施，這些範圍包括關稅帶來的極小影響。預計第二季調整後有效稅率為25%至27%。現在我將把發言權交還給傑夫，請他發表最後評論。

Thanks, Todd. We started the year saying 2025 is about delivering, not promising, and that's exactly what we're continuing to do. Elanco delivered a strong first quarter, outperforming our expectations across all key metrics. Growth is accelerating with revenue guidance being raised, and innovation and cash are tracking ahead of expectations. We also continue to accelerate deleveraging, reducing debt while investing in launches in key markets.

謝謝，托德。我們年初就說過，2025 年是實現目標的一年，而不是做出承諾的一年，而這正是我們將繼續做的事情。Elanco 第一季表現強勁，所有關鍵指標均超出我們的預期。隨著收入預期的提高，成長正在加速，創新和現金流也超乎預期。我們也將繼續加速去槓桿，減少債務，同時投資於主要市場的推出。

Our organization is engaged, energized, and well equipped to navigate these dynamic market conditions. Our people share my confidence and excitement into the balance of the year.

我們的組織積極參與、充滿活力，並具備良好的條件來應對這些動態的市場條件。我們的人民和我一樣對今年的剩餘時間充滿信心和興奮。

Truly, Elanco's in a position of strength. We are taking a prudent approach and executing our playbook in a dynamic external environment. We have the right teams, interventions, and actions to keep progressing towards our goals, to transform animal care and to deliver lasting value creation for shareholders and for society.

確實，禮來公司處於強勢地位。我們採取審慎的態度，在動態的外在環境中執行我們的策略。我們擁有合適的團隊、幹預措施和行動，可以不斷朝著我們的目標前進，改變動物護理，並為股東和社會創造持久的價值。

With that, I'll turn it over to Tiffany to moderate the Q&A.

接下來，我將把問答環節交給蒂芬妮 (Tiffany) 來主持。

Thanks, Jeff. We'd like to take questions from as many callers as possible, so we ask that you limit yourself to one question and one follow-up. Operator, please provide the instructions for the Q&A session, and then we'll take the first caller.

謝謝，傑夫。我們希望盡可能回答來電者的問題，因此我們要求您只提出一個問題並進行一次跟進。接線員，請提供問答環節的說明，然後我們將接聽第一位來電。

(Operator Instructions)

（操作員指示）

John Block, Stifel.

約翰·布洛克（John Block），斯蒂費爾（Stifel）。

Great, thanks guys. Good morning. But I'd love to hear just a little bit more about the 2Q guidance.

太好了，謝謝大家。早安.但我很想聽到更多關於第二季度指引的資訊。

I think the 2Q investments would seem to be dampening the near term EBITDA result. I think you talked about 11% constant currency OpEx spend with 6% for the full year, if you could just talk about the cadence there and then maybe you know the leverage going forward as that spend sort of subsides looking forward.

我認為第二季的投資似乎會抑制近期的 EBITDA 業績。我認為您談到了 11% 的恆定貨幣營運支出，全年為 6%，如果您可以談論那裡的節奏，那麼也許您知道未來的槓桿作用，因為這種支出在未來會有所減少。

Sure, John, thanks for the question. And yes, we're -- we've said from the start, we're going to have a no regrets launch approach on our big-six blockbusters. So in Q2 we're at the heart of the northern hemisphere parasiticide season and so we are investing behind Credelio Quattro. It's off to a great start.

當然，約翰，謝謝你的提問。是的，我們從一開始就說過，我們將採取不後悔的方式推出我們的六大賣座大片。因此，在第二季度，我們正處於北半球寄生蟲殺滅季節的中心，因此我們投資了 Credelio Quattro。這是一個好的開始。

As you heard in the prepared remarks, sales from distribution to vet clinics, we took a 10% share already. The product is resonating with its tick-kill quickness, the tapeworm coverage, as well as heartworm coverage from month one. So overall, we're going to be putting a lot of media dollars behind that, and that's increasing the spend.

正如您在準備好的發言中所聽到的，從分銷到獸醫診所的銷售額，我們已經佔據了 10% 的份額。該產品從第一個月起就以其快速殺死蜱蟲、絛蟲以及心絲蟲的功效而受到人們的歡迎。所以總的來說，我們將投入大量的媒體資金，這將增加支出。

Also in Europe, AdTab continues to have a nice run, doubling year over year in Q1. And part of the timing in Europe is there's a lot of sales in Q1, and then the investment to pull that sale out to consumers happens in Q2. So there is a little timing mismatch between the revenue and the investment, but fundamentally, given the importance of northern hemisphere parasiticide season to us, we really think of Elanco on a first half, second half basis, and you know, overachieving our expectations here in the first half relative to the start of the year on the back of these investments in AdTab, Credelio Quattro, and Zenrelia. But that's the cadence, and then we're going to get the lift here in the back half as those investments in Q2 really pay off to drive revenue on a continued accelerating basis to get to our mid-single digit growth for the full year.

同樣在歐洲，AdTab 持續表現良好，第一季較去年同期成長一倍。歐洲的部分時間安排是，第一季的銷售量很大，而將銷售給消費者的投資發生在第二季。因此，收入和投資之間存在一些時間上的不匹配，但從根本上講，考慮到北半球寄生蟲殺蟲季節對我們的重要性，我們確實會考慮上半年和下半年的情況，而且，由於對 AdTab、Credelio Quattro 和 Zenrelia 的投資，Elanco 在上半年的業績相對於年初而言超出了我們的預期。但這就是節奏，然後我們將在下半年獲得提升，因為第二季的投資確實會帶來回報，從而推動收入繼續加速成長，實現全年中等個位數的成長。

Got it. Very helpful. Maybe just -- I hate to burn one here, but I just want to be really clear. So on the tariffs. If nothing were to incrementally occur from here, you have what, $25 million in EBITDA from the FX moves that's not reflected in the guidance, you'll just sort of for now, keep that in your back pocket to see how the pharma exemption plays out. Maybe if you could just talk to that, and Jeff, I'll just sort of ask an offshoot to the second part of that question. Some of your wording around Zenrelia, the label change or potential seemed a little bit more fulsome or upbeat relative to past. So maybe you can give a little bit more details there on the potential timing behind that if that were to occur. Thank you.

知道了。非常有幫助。也許只是——我不想在這裡燒掉一個，但我只是想說清楚。關於關稅。如果從現在開始沒有任何進展，那麼外匯變動帶來的 2500 萬美元 EBITDA 並未反映在指引中，您現在只能將其放在後兜里，看看製藥豁免如何發揮作用。也許如果你可以談談這個問題，傑夫，我只是想問這個問題的第二部分的一個分支。您對 Zenrelia 的一些措辭、標籤變化或潛力相對於過去似乎更加充分或樂觀。因此，如果發生這種情況，也許您可以提供更多關於其背後潛在時間的細節。謝謝。

Yeah, John, you're reading slide 18 correctly. We've got a $25 million EBITDA tailwind from the weaker dollar. We decided not to reflect that in increasing our guidance here in May, just given the uncertainty with the former exemption. If everything holds as it is, then yeah, there'd be a $25 million upside from the facts on our base business that would push us close to $900 million of EBITDA by end of the range, or $875 million at the mid.

是的，約翰，你正確讀出了第 18 張幻燈片。美元走弱為我們帶來了 2500 萬美元的 EBITDA 順風。考慮到前一項豁免的不確定性，我們決定在 5 月提高指導價時不反映這一點。如果一切保持現狀，那麼是的，從我們的基礎業務來看，將會有 2500 萬美元的上漲空間，這將使我們的 EBITDA 在範圍末端接近 9 億美元，或在中間達到 8.75 億美元。

Yeah, John, and on the Zenrelia label, a lot of good constructive dialogue, as we've said. We've got two workstreams, one on the language of the label that's more short term, and one on the overall label itself. And I would just emphasize, yes, we continue to have good dialogue with the FDA. Some of the regulatory changes, we do not see any impact to us materially the reviewers are all in place. That dialogue is going forward. And on that language change, yes, the data's been with the CVM for some time. We expect an answer, it is on an a [do-put] type timeline as we get into the second half of this year. And again, we stand by the science and we'll continue to work with the CBM on this. And I think it also is demonstrated out in the field.

是的，約翰，正如我們所說，在 Zenrelia 標籤上有很多很好的建設性對話。我們有兩個工作流程，一個是關於標籤的短期語言，另一個是關於整個標籤本身。我想強調的是，是的，我們繼續與 FDA 保持良好的對話。對於一些監管變化，我們沒有看到對我們產生任​​何實質影響，審查人員都已到位。該對話正在推進。關於語言的變化，是的，資料已經與 CVM 一起保存了一段時間。我們期待得到答案，它將出現在我們進入今年下半年的 [do-put] 類型的時間表上。我們再次強調，我們堅持科學，並將繼續與 CBM 就此開展合作。我認為這在實踐中也得到了證明。

As I highlighted in my comments, the efficacy of Zenrelia continues to resonate as we move from 8,000 clinics to 11,000 clinics, we're in 35% of the clinics today. And then the less restricted markets outside of the US, it's ramping really well. We're in three key markets. We've got three major markets coming in the second half, which will also be part of Todd's point of the increased ramping of revenue in the second half as well. So yes, we're very happy with where we stand today with the CBM, and we'll continue to work with them going forward.

正如我在評論中所強調的那樣，隨著我們從 8,000 家診所擴展到 11,000 家診所，Zenrelia 的功效繼續產生共鳴，目前我們已覆蓋 35% 的診所。而美國以外限制較少的市場則發展得非常好。我們位於三個主要市場。下半年我們將進入三個主要市場，這也將是托德所說的下半年收入增加的一部分。是的，我們對目前 CBM 的進展感到非常滿意，我們將繼續與他們合作。

Thank you.

謝謝。

Michael Riskin, Bank of America.

美國銀行的麥可‧里斯金。

Great, thanks for taking the question, guys, and congrats to the strong start to the year. I'm going to pick up where John just left off on the innovation front. You sound really positive on all the innovation updates. You talked about Zenrelia; you talked about Quattro. $198 million in the first quarter is certainly well ahead of where we had you. I realize there's some seasonality with some of these products in terms of comparing the animal in the first half of the year, but still given these are newer, you still think they would ramp through the year. So could you just walk us through the difference between that and the raising the full-year innovation by $20 million? I think you'd be able to raise even more. So just sort of what you saw, if you could parse out, the jump to $198 million in the first quarter -- just the thought process for the rest of the year.

太好了，謝謝大家回答這個問題，並祝賀你們今年取得了良好的開端。我將繼續約翰剛才關於創新方面的討論。您對所有創新更新都持非常積極的態度。你談到了 Zenrelia；您談到了 Quattro。第一季的 1.98 億美元無疑遠遠超出了我們的預期。我意識到與上半年的動物相比，其中一些產品具有一定的季節性，但考慮到這些產品較新，你仍然認為它們會在全年內增加產量。那麼，您能否向我們介紹一下這與全年創新資金增加 2,000 萬美元之間的差異？我認為你還能籌集更多資金。所以，如果您能分析一下，就會明白第一季躍升至 1.98 億美元——這只是今年剩餘時間的思考過程。

Yeah, thank you, Michael, and I appreciate the question because I think that's when you look to Elanco, this is what really differentiates us -- is in my 35 years I've never had a slide like we just showed on six major innovations, and another one coming in IL-31. So you know, what I think has maybe been misunderstood in the past or last year is the basket of the six innovations overall holistically. And so what I would tell you is that's what's driving the growth is what we're calling the Big 6, soon to become the Big 7, major products in major markets that are going to be globalizing with really low cannibalization. We're seeing that play out more so in Q1 than any other quarter, and we continue to see it ramping going forward.

是的，謝謝你，邁克爾，我很感謝你提出這個問題，因為我認為當你看 Elanco 時，這就是我們真正的與眾不同之處——在我 35 年的職業生涯中，我從來沒有見過像我們剛剛展示的六項重大創新那樣的幻燈片，而另一項創新即將出現在 IL-31 中。所以，您知道，我認為過去或去年人們可能對這六項創新的整體概念有誤解。所以我想告訴你們，推動成長的是我們所說的“六大”，很快就會變成“七大”，它們都是主要市場上的主要產品，並且將以非常低的蠶食率實現全球化。我們發現，這一現像在第一季比其他任何季度都更為明顯，我們將繼續看到這一現像在未來不斷加劇。

We don't want to get ahead of ourselves. We're in launch mode, and as Todd said, there's, we're in the northern hemisphere parasiticide season, and that's key.

我們不想超越自己。我們正處於啟動模式，正如托德所說，我們正處於北半球寄生蟲殺滅季節，這是關鍵。

I would note a few that I would just highlight, and since the last quarter. And that's Credelio Quattro to build on some of Todd's comments. I mean, we believe one -- the marketplace continues to get bigger. The majority of puppy starts are in this segment of broad spectrum in DETO. So this is the biggest animal health segment growing the fastest, and we believe that this has the potential to be the best product. And here are the proof points that I would lean in on. So because we do think this is the biggest material driver going forward.

我會記下一些我只想強調的，以及自上個季度以來的情況。這就是 Credelio Quattro 對 Todd 的一些評論的補充。我的意思是，我們相信——市場會繼續變得更大。在 DETO 中，大多數幼犬都屬於這一廣泛範圍的領域。因此，這是成長最快的最大動物保健領域，我們相信這有可能成為最好的產品。以下是我要依賴的證明點。因為我們確實認為這是未來最大的物質驅動力。

That acceptance to Todd's point, I mean, a 10% dollar share is ahead of our expectation. Two-thirds of that shift is coming from the competition and new starts, and the cannibalization is more favorable than we thought. And the second is the differentiation that Todd said. And I would highlight, I think another element of differentiation that's coming unsolicited by vets and pet owners is the palatability of the product.

接受託德的觀點，我的意思是，10% 的美元份額超出了我們的預期。這種轉變的三分之二來自競爭和新企業，而這種蠶食比我們想像的更為有利。第二個就是托德所說的差別。我想強調的是，我認為獸醫和寵物主人主動提出的另一個差異化因素是產品的適口性。

And so you know we think that is definitely -- we're entering new clinics with Credelio Quattro. It's helping the total portfolio, and we have a special product in Credelio Quattro, and we're going to globalize that product as we've said.

所以你知道，我們認為這絕對是——我們正在與 Credelio Quattro 合作進入新的診所。它對整個產品組合有幫助，我們在 Credelio Quattro 中有一個特殊產品，我們將像我們所說的那樣使產品全球化。

I'll point also to Experior. We highlighted, Michael, for the first time what we believe the size of the market can be for Experior in Canada and the US. And as we've highlighted a 2%, 200% growth, and cattle numbers, more dose, more days. It's a sticky product that's adding a lot of value right now as cattle numbers are still down and ramping, and we will be bringing that product into geo expansion into a couple new markets in the second half of this year as well.

我還要指出的是 Experior。邁克爾，我們首次強調了我們認為 Experior 在加拿大和美國的市場規模。正如我們所強調的，增加了 2%、200%，而且牛的數量也增加了，劑量也增加了，天數也增加了。這是一種黏性產品，由於牛的數量仍在下降和上升，它現在正在增加很多價值，我們還將在今年下半年將產品擴展至幾個新市場。

So it's the basket of innovation. It's also Credelio -- the franchise overall for Credelio is another key driver. So look, we're an execution story and you know we are going to lean in and we are going to invest pretty significantly on these launches in the second quarter, as Todd mentioned, driving some of the EBITDA hole.

所以它是創新的籃子。這也是 Credelio —— Credelio 的整體特許經營權是另一個關鍵驅動因素。所以看，我們是一個執行故事，你知道我們將傾力投入，我們將在第二季度對這些產品的發布進行相當大的投資，正如托德提到的那樣，這將彌補部分 EBITDA 缺口。

Okay, I'll, I mean, you kind of preempted my second question talking about Quattro, but I'll still dig into that. That 10% dollar share that really stuck out to us, given we know what Simparica Trio reported, we've got a pretty good sense of where Nextcare Plus is. That's a pretty impressive 1Q.

好的，我的意思是，你有點搶先詢問我關於 Quattro 的第二個問題，但我仍然會深入研究這個問題。這 10% 的美元份額確實讓我們印象深刻，鑑於我們知道 Simparica Trio 的報告，我們對 Nextcare Plus 的狀況有了相當好的了解。這是相當令人印象深刻的第一季業績。

I guess the footnote there is it's 10% of clinic sales versus sellout. Is there any reason you think that should differ dramatically? I guess I'm just trying to kind of asking, how much prestocking may there have been from vets in that first quarter? Because you would think that that that 10% should just grow over time and that can get you a pretty healthy number for the full year. So just talk about the inning versus out clinic sales there. Thanks.

我想這裡的腳註是診所銷售額的 10% 而不是售罄。您認為這應該有很大不同，有什麼理由嗎？我想我只是想問一下，第一季獸醫可能預存了多少庫存？因為你會認為這 10% 應該會隨著時間的推移而增長，並且可以讓你在全年獲得相當健康的數字。因此，只討論局內銷售與診所銷售之間的關係。謝謝。

Yeah, Michael, you're thinking about it correctly. It's a great start. We're getting it onto the shelves of a lot of vet clinics. That's where we're getting that 10% dollar share from distribution into the vet clinics.

是的，邁克爾，你的想法是正確的。這是一個很好的開始。我們正在將它放到許多獸醫診所的貨架上。這就是我們從獸醫診所分銷中獲得的 10% 份額。

As we mentioned in the prepared remarks, we feel pretty good; we've got pretty lean inventories at the distribution, they had multiple orders during the course of the quarter. And now, we're really making these investments we talked about in Q2 to have the consumer as excited -- as the vets are about this great product.

正如我們在準備好的發言中提到的那樣，我們感覺非常好；我們的分銷庫存相當少，他們在本季度收到了多個訂單。現在，我們確實在進行第二季度談到的這些投資，以便讓消費者對這款出色的產品感到興奮——就像獸醫一樣。

And so with that, we do expect to start to get that outbound sales to be growing and taking share with consumers as well. But there is a little bit of the timing there, but we're really pleased with what Bobby Modi and his team did executing across the US to Credelio Quattro with a great start.

因此，我們確實希望外向型銷售能夠開始成長，並佔據消費者的份額。雖然這其中存在一些時機問題，但我們對鮑比·莫迪和他的團隊在美國為 Credelio Quattro 所做的工作感到非常高興，並取得了良好的開端。

Alright thanks, (inaudible).

好的，謝謝，（聽不清楚）。

Andrea Alfonso, UBS.

瑞銀的安德里亞·阿方索 (Andrea Alfonso)。

Thanks so much, everyone for taking the question. I really appreciate all the color that you've provided so far in Zenrellia. But just probing a little bit more on what you've seen in the quarter to quarter ramp, particularly curious about, you discussed rates. But curious about the makeup of order sizes and initial orders versus reorders, and if you could discuss the receptivity and uptake for the specialists versus the general vets. And if I may build on just sort of the question that Michael just raised, would it -- would you be able to characterize whether maybe Zenrelia or Quattro was the relatively greater driver of the $20 million increase in innovation revenue expectations? Thanks so much.

非常感謝大家回答這個問題。我真的很欣賞您迄今為止在 Zenrellia 中提供的所有色彩。但是，只是想進一步探討您在季度間成長中所看到的情況，特別令人好奇的是，您討論了利率。但我很好奇訂單規模和初始訂單與重新訂單的組成，以及您是否可以討論專家與普通獸醫的接受度和吸收度。如果我可以基於邁克爾剛才提出的問題進行進一步的探討，您能否描述一下 Zenrelia 還是 Quattro 是創新收入預期增加 2000 萬美元的相對更大的推動力？非常感謝。

Yeah, I'll take the first one, Todd. You can grab the second one. Thank you, Andrea, for the question. Look, as we look at Zenrelia, the first thing we do is we step back and see a market that's going to probably eclipse $2 billion. It continues to grow beyond what everyone's expecting. I mean, it's a double-digit growth market. It's global, and we're excited about Zenrellia, we're excited about IL-31 that's staying on track for a late 2025 approval, and as we've got a few other key assets here in the rest of the decade that we're coming into it. So overall, the derm market continues to be robust, resilient, and continues to grow, and we're ramping.

是的，我會選擇第一個，托德。你可以抓住第二個。謝謝安德里亞提出的問題。瞧，當我們看 Zenrelia 時，我們做的第一件事就是退後一步，看看這個可能超過 20 億美元的市場。它的成長速度超出了所有人的預期。我的意思是，這是一個兩位數成長的市場。它是全球性的，我們對 Zenrellia 感到興奮，我們對 IL-31 預計在 2025 年底獲得批准感到興奮，因為我們在接下來的十年中擁有其他一些關鍵資產。因此，總體而言，皮膚病市場持續保持強勁、有彈性且持續成長，我們正在加速發展。

As we've said, the key thing is get into formularies and to lean into these clinics. And every month, we have an increased number of clinics that are using Zenrelia in their formulary permanently. I think the message, the headline, and the buzz in the industry from Brazil, and Japan, back to the US, is the efficacy of this product.

正如我們所說，關鍵是進入處方集並依靠這些診所。每個月，都有越來越多的診所在其處方集中永久使用 Zenrelia。我認為從巴西、日本到美國，業界傳遞的訊息、標題和熱議的都是該產品的功效。

It's outstanding efficacy. It's been put in some of the toughest cases and it's performed. And so we're ramping up use. I think I would point to a couple of statistics, and that is that this 26% of vets that are not using, as we come into the derm season, are expecting to use. That's where we're targeting our focus. Our investment's a little bit more in the ground game than in DTC, where we're doing tech-to-tech sessions as well as the sampling program is working.

其功效十分卓越。它已被用於處理一些最棘手的案件，並且取得了成效。因此我們正在加大使用力度。我想指出幾個統計數據，那就是，隨著我們進入皮膚病季節，26% 的獸醫沒有使用，但他們希望使用。這就是我們關注的重點。我們在地面遊戲方面的投資比在 DTC 方面的投資要多一些，在 DTC 中，我們正在進行技術對技術的交流，採樣程序也在發揮作用。

We're getting good conversion when people sample it, when they put dogs on it. They then move it into a more of a mainstay product. Our challenge is ultimately about moving more clinics from a second-line treatment or a tough-case treatment to first-line treatment, and we believe the derm season that we're coming into is really important. Remember that we see -- when you look at the derm season, we're coming into the month. We just come out of the lowest season. In July to September, there's 25% more volume than it is in the low months. So we've got to lean in here and actually get increased use. And most of that investment though is going to be more in the sampling and the tech to tech.

當人們嘗試它，當狗放在上面時，我們獲得了良好的轉換率。然後他們將其轉變為更主流的產品。我們面臨的挑戰最終是讓更多的診所從二線治療或困難病例治療轉向第一線治療，我們相信我們即將進入的皮膚病季節非常重要。請記住，當你看到皮膚病季節時，我們就會進入這個月。我們剛剛走出淡季。7 月至 9 月的交易量比淡季高出 25%。因此，我們必須在這方面努力，並真正提高利用率。不過，大部分投資將更多用於採樣和技術研發。

And then we're looking for continued less restrictive labels in the big market of Europe, UK, and Australia, $600 million to $700 million market outside the US that we'll be entering heavily in the biggest markets in the second half of this year. Todd?

然後，我們正在尋找歐洲、英國和澳洲等大市場中繼續限制較少的品牌，美國以外 6 億至 7 億美元的市場，我們將在今年下半年大力進入這些最大的市場。托德？

Andrea, on your question of what's driving the race on innovation, it's really the complete portfolio. I mean, I think we've talked a lot here on AdTab and the strength we're seeing in Europe, the growth of Credelio Plus outside the US, you throw in Experior, continuing adding more and more cows on Bovaer, Quattro and Zinrelia. So, overall, we're really pleased with the complete portfolio across the globe.

安德里亞，關於你提出的推動創新競賽的因素的問題，答案實際上是完整的投資組合。我的意思是，我認為我們已經就 AdTab 和我們在歐洲看到的實力、Credelio Plus 在美國以外的增長、Experior 以及 Bovaer、Quattro 和 Zinrelia 上不斷增加的奶牛進行了大量討論。因此，總體而言，我們對全球的完整產品組合感到非常滿意。

Brandon Vasquez, William Blair.

布蘭登·巴斯克斯、威廉·布萊爾。

Hey everyone, thanks for taking the question. So maybe I'll -- I want to hit on the innovation guidance again, and maybe I can appreciate you typically don't give the revenue buckets, which is fine. But maybe, can you just talk to us about like what are the top three -- I'll take another step In asking this question and put it like -- what are the top three revenue contributors to that innovation bucket in 2025? Just to give investors kind of a little bit of a snippet of what we should be focusing on as the real growth drivers within that segment, and then I had a follow up.

大家好，感謝你們提出這個問題。所以也許我會——我想再次談談創新指導，也許我可以理解你通常不會給收入桶，這很好。但是也許，您能否與我們談談排名前三的創新產業是什麼？在提出這個問題時，我將進一步提出這樣的問題：2025 年，創新產業的三大收入貢獻者是什麼？只是為了給投資者一點關於我們應該關注的該領域真正成長動力的片段，然後我進行了跟進。

Yeah, I mean as a reminder, Experior went over $100 million last year. It got heifer clearance in November. And so if you want just the biggest dollar driver, I will give you that, and that's Experior -- Jose Simas and the team here, and US Cattle and the team in Canada are really making inroads, and we're winning in US farmland.

是的，我想提醒一下，Experior 去年的收入超過了 1 億美元。該公司於十一月獲得了小母牛許可。因此，如果您只想要最大的美元驅動力，我會給您，那就是 Experior——Jose Simas 和這裡的團隊，以及 US Cattle 和加拿大的團隊正在真正取得進展，我們正在美國農田中獲勝。

You can see it 17%. Growth in Q1. It continues to have great growth last year. It's adding Bovaer to the dairy portfolio. That team is really executing well and is the big driver. So the number one product, Brandon, from a dollar perspective, is Experior.

你可以看到它有 17%。第一季成長。去年它繼續保持著高速成長。該公司正在將 Bovaer 添加到其乳製品產品組合中。該團隊確實表現良好並且是主要推動者。因此，布蘭登，從金錢角度來看，排名第一的產品是 Experior。

And then again, we're not going to get into each of the individual ones, but again, with the start the Credelio Quattro has had, it is capturing more than we expected and that is going to be a big play, just given -- it is the best product on the market. It just kills everything, and it kills it fast, and it has sustainability. So we believe that's going to be the differentiator and really excited for customers to keep getting Credelio Quattro and their dogs. Every dog wants to be a quattro dog.

再說一次，我們不會深入討論每一個單獨的產品，但是，從 Credelio Quattro 的開局來看，它的銷量超出了我們的預期，這將是一場大戲，因為它是市場上最好的產品。它會殺死一切，而且殺死得很快，並且具有可持續性。因此，我們相信這將成為差異化因素，並且非常高興客戶能夠繼續購買 Credelio Quattro 和他們的狗。每隻狗都想成為一隻四輪狗。

Hi, Brandon, I would also say, I would also just say another note, that I know we had investor questions a year and a half ago about the base business. And I would point to a couple of things that I like to see. I've been a lot in the field the last three months is innovations in each portfolio are making the base stronger. So we had a good quarter in Europe with Seresto and AdTab -- or excuse me, Seresto and the A family because of AdTab.

你好，布蘭登，我還想說，我還想說另一點，我知道一年半前我們有投資者詢問有關基礎業務的問題。我想指出幾件我喜歡看到的事情。過去三個月我在這個領域做了很多工作，每個投資組合的創新都讓基礎變得更強大。因此，我們在歐洲透過 Seresto 和 AdTab（或不好意思，Seresto 和 A 系列因為 AdTab 而取得了良好的表現）。

Rementin continues to do very well because of Bovaer and Experior, both in dairy and beef. And Credelio Quattro, as I mentioned, has taken 500 clinics, and are buying additional Elanco products like Galliprant, and other products that they've never purchased before. So what excites me too is our base is as strong as it's been because our portfolios are getting better because of the innovation. I would point to that because that was a common question we got a lot last year and even earlier than that.

由於 Bovaer 和 Experior 的推動，Rementin 在乳製品和牛肉領域繼續表現良好。正如我所提到的，Credelio Quattro 已經接管了 500 家診所，並且正在購買 Galliprant 等 Elanco 產品以及他們以前從未購買過的其他產品。因此，令我興奮的是，我們的基礎仍然很強大，因為我們的投資組合由於創新而變得更好。我之所以指出這一點，是因為這是我們去年甚至更早以前經常遇到的常見問題。

Great, that's super helpful. And one follow up here quickly is just -- some this has just been hard to gauge and other competitors have been talking about it as well, but just spend a minute on the macro environment, I know you had a little bit of volatility you want to retail, again, others have seen that too, so not overly surprising. But expectations on how things are holding up so far on the consumer side of things and expectations and how that's trending into the rest of the year. Thanks guys.

太棒了，這非常有幫助。這裡的一個後續問題是——有些問題很難衡量，其他競爭對手也在談論這個問題，但只要花一點時間了解一下宏觀環境，我知道你的零售業務有一點波動，其他人也看到了這一點，所以並不太令人驚訝。但對於消費者方面目前情況如何以及預期在今年剩餘時間內趨勢如何，我們仍持謹慎態度。謝謝大家。

Yeah, I'll make a couple of comments, Todd. If there's anything else. I think I want to emphasize the headline is the Elanco is an execution story. We're not a pet visit, a dependent story, and I really point to -- yes, we need to be continuing to look at this is a durable market, but we do need to continue to monitor consumers and spend in the economy, and we're doing that.

是的，我會發表一些評論，托德。如果還有什麼事的話。我想強調的是，標題是 Elanco 是一個執行故事。我們不是寵物探訪，也不是依賴故事，我真正要指出的是——是的，我們需要繼續關注這是一個持久的市場，但我們確實需要繼續監測消費者和經濟支出，我們正在這樣做。

But I would say that given where we stand today with our omnichannel capabilities that we've set up, our innovation that we're launching, all the stuff that's happening with compliance and drop shipping and all of our expertise that we got from Bayer and her company, and the globalization we're taking, those are the things that will drive Elanco going forward. And we're quite insulated from a worry of a 1% or 2% change in a pet visit, and we think that all of this leads to our ability to take price where we can, make vets and farmers more money, and continue to have compliance grow.

但我想說，考慮到我們目前的狀況，我們已經建立的全通路能力、我們正在推出的創新、合規和直銷方面發生的所有事情、我們從拜耳和她的公司獲得的所有專業知識，以及我們正在進行的全球化，這些都是推動 Elanco 前進的動力。我們完全不用擔心寵物就診量發生 1% 或 2% 的變化，我們認為所有這些都使我們能夠在可能的情況下降低價格，為獸醫和農民賺取更多錢，並繼續提高合規性。

I will also highlight one other key trend that I think's important that doesn't get talked about enough, just as Todd mentioned on Experior, but as leaders in farm animal, animal protein and this whole making America and really making the world healthy, animal protein is on the uptake. And we've seen some initial statistics here as we look at '24 going into '25, and we're spending a lot of time in the boardrooms of our major protein companies around the world because we see a big opportunity.

我還將強調另一個我認為很重要但還未得到足夠討論的關鍵趨勢，正如 Todd 在 Experior 上提到的那樣，但作為農場動物、動物蛋白以及整個使美國和真正使世界變得健康的領域的領導者，動物蛋白正在受到重視。我們在展望24年和25年時看到了一些初步統計數據，我們花了很多時間在全球主要蛋白質公司的董事會會議室裡，因為我們看到了巨大的機會。

The dairy industry has just announced a $10 billion US investment in dairy products because of protein. Last year, they had a record of $104 billion in animal protein here in the US, while plant-based meat sought 20% decline, and on average Americans ate nearly 7% more meat last year than before the pandemic.

美國乳製品產業剛剛宣布將投資 100 億美元用於蛋白質乳製品的生產。去年，美國的動物性蛋白質消費量達到創紀錄的 1,040 億美元，而植物肉消費量則下降了 20%，美國人平均去年的肉類消費量比疫情前增加了近 7%。

So helping our customers with regulatory, with pathways for more use, with innovation, and ultimately what we do, making protein more valuable, and healthy, and more abundant and affordable for consumers, that's a trend that I don't think we've pointed to and what excites us about our farm-animal business as we go forward.

因此，透過監管、透過途徑、透過創新來幫助我們的客戶，最終我們所做的就是讓蛋白質更有價值、更健康、更豐富、更實惠，這是消費者從未關注過的趨勢，也是我們對我們的農場動物業務未來發展的興奮點。

Chris Scott, JPMorgan.

摩根大通的克里斯·斯科特。

Hey, this is Katerina on for Chris. Thank you so much for taking our questions. The first question is just around tariffs. If you think about mitigating impact in the medium term, do you think there's an ability to offset some of the potential tariff pressure via price increases? And do you think that's something that the market can absorb, or do you expect any price action to meaningfully impact demand, particularly, I guess, on the pet side?

嘿，我是 Katerina，為 Chris 服務。非常感謝您回答我們的問題。第一個問題是關於關稅的。如果您考慮在中期減輕影響，您是否認為可以透過提高價格來抵消部分潛在的關稅壓力？您認為這是市場可以吸收的嗎？或者您預期任何價格行動都會對需求產生重大影響，特別是在寵物方面？

And then the second question is just on Zenrelia. Can you remind us how you're thinking about the launch of the product in Europe? So we kind of expect a similar step of an investment ahead of that launch? And then how quickly do you think it can rampant that geography, and maybe anything you can say on what the European label could look like if you had any discussions with the regulators.

第二個問題是關於 Zenrelia 的。您能否告訴我們您對在歐洲推出產品有何想法？那麼，我們預計在該產品發布之前也會有類似的投資嗎？然後，您認為它會以多快的速度在該地區蔓延？如果您與監管機構進行討論，您能否談談歐洲標籤會是什麼樣子？

Thank you.

謝謝。

Sure, you Katerina, with your question on tariffs, we already are taking some price in certain markets. As we said China's been one where we are looking at those inbound tariffs and offsetting some of that impact with price. Certainly in the US market, we're looking at that, and considering the right way to do that in a value-based manner that we remain competitive. And again, lots of uncertainty in the in the world with respect to the tariffs, what retaliatory tariffs might look like, we do have a global manufacturing footprint. And with that, it puts in some positives in certain markets and negatives in other markets, but overall, that's the benefit of our global diversified portfolio, again, across both farm and pet.

當然，卡特琳娜，關於關稅的問題，我們已經在某些市場上採取了一些價格。正如我們所說，中國是我們關注進口關稅並透過價格抵消部分影響的國家之一。當然，在美國市場，我們正在關注這一點，並考慮以基於價值的方式實現這一目標的正確方法，以保持我們的競爭力。再說一次，世界上在關稅方面存在著許多不確定性，報復性關稅可能會是什麼樣子，我們確實有一個全球製造業足跡。因此，它對某些市場有正面影響，對其他市場也有負面影響，但總體而言，這是我們全球多元化投資組合的優勢，涵蓋農場和寵物兩個領域。

So it is something we'll pay attention to. And right now, we're not -- consumers are continuing to take care of their pets as they always do, and we fully expect that. Again, something we're very focused on as a company.

所以這是我們會關注的事情。而現在，我們還沒有——消費者仍在像往常一樣繼續照顧他們的寵物，我們完全期待這一點。再次強調，作為一家公司，我們非常關注這一點。

I'm really just in Europe, and the UK, as well as Australia markets that we have submissions in, we're in the final stage of the regulatory processes. Of course, every country is a little bit different. We're managing and responding to questions along the way. We continue to have confidence in a less restrictive label outside of the. But we will continue to work closely and monitor that.

我實際上只在歐洲、英國以及澳洲市場提交了申請，我們正處於監管流程的最後階段。當然，每個國家都有點不同。我們正在處理並回答整個過程中的問題。我們仍然對外部限制較少的標籤充滿信心。但我們將繼續密切合作並監控此事。

We do have our key teams in Europe already trained through the first phase. We've got our sales forces right sized following very much a similar playbook as the US. So we have that all in place, and then yes, there'll be a variable cost that will increase as we have and what we're doing now with that AdTab, we'll do some of that with Zenrelia as we get into the second half. And you know, expect to launch this product again with no regrets because it's a major market. International [Durham] is growing as faster than the US, and it's a $600 million to $700 million market. We know that Zenrelia, as we watch it in Brazil, Japan, Canada, has great potential in these markets. Thank you.

我們在歐洲的核心團隊確實已經完成了第一階段的訓練。我們的銷售隊伍規模合適，遵循的策略與美國非常相似。所以我們已經把所有事情都安排好了，然後是的，隨著我們的發展，可變成本也會隨之增加，我們現在對 AdTab 所做的工作，在進入下半年時，我們會對 Zenrelia 做一些類似的工作。而且你知道，我們希望再次推出這款產品而不會後悔，因為這是一個主要市場。國際[達勒姆]的成長速度比美國更快，其市場規模達到 6 億至 7 億美元。我們知道，正如我們在巴西、日本、加拿大所觀察到的，Zenrelia 在這些市場中具有巨大的潛力。謝謝。

Navann Ty, BNP Paribas.

法國巴黎銀行的 Navann Ty。

Hi, good morning. I had a question tone on the US retail environment. We know that the (inaudible) indicated a strong US retail environment. Can you discuss the drivers in addition to the cold weather of that challenging US retail environment for Elanco in January, February. And also if you can discuss what we're seeing in terms of positive trends in March and April for your key franchises.

嗨，早安。我對美國零售環境抱持疑問。我們知道（聽不清楚）顯示美國零售環境強勁。您能否討論一下除了寒冷天氣之外，1 月和 2 月美國零售環境對 Elanco 造成的挑戰有哪些因素？另外，您是否可以討論一下我們所看到的 3 月和 4 月貴公司主要特許經營業務的積極趨勢？

Yeah, I think the key difference there is, Zoetis was speaking to the retail RX market, Chewy , Amazon is just coming in with pet retail, and that's really about driving auto ship, driving compliance, and we're seeing really great success there.

是的，我認為主要的區別在於，Zoetis 針對的是零售 RX 市場，而 Chewy 和亞馬遜剛剛進入寵物零售領域，這實際上是為了推動自動發貨和合規性，我們在那裡看到了巨大的成功。

A lot of Galliprant goes through that is it's just easy to get your product continuous, and so that part very strong. Our focus in the over-the-counter market where Zoetis doesn't have any products is a little different. It's much more consumer, you heard a lot of the cold weather, the foot traffic down. And that was indicated when we showed down 21% for those products in the first two months of the year, but then rebounding in March, rebounding in April. And so overall, we feel like that is never going to be a double-digit sort of growth area because we need to bring in a there. But it is a consistent player of very high margin products that provides a lot of cash flow for us. And so we feel good about what the team's doing to execute, and feel like we've gotten out of the cold weather, and rest of collars will be getting purchases to prevent fleas and ticks across the US and Europe.

Galliprant 經歷了許多過程，它很容易讓你的產品連續，因此這一部分非常強大。我們對碩騰還沒有任何產品的非處方藥市場的關注點有些不同。消費者數量更多，你聽說過天氣變冷，客流量減少。這表明，今年前兩個月這些產品的銷量下降了 21%，但隨後在 3 月和 4 月出現反彈。因此，總的來說，我們覺得這永遠不會成為兩位數的成長領域，因為我們需要引入它。但它是一家始終如一的高利潤產品供應商，為我們帶來了大量現金流。因此，我們對團隊的執行感到滿意，感覺我們已經擺脫了寒冷的天氣，其餘的項圈將得到購買，以防止美國和歐洲的跳蚤和蜱蟲。

I would build on to there's a lot of buzz about Amazon and just to highlight, our strategy doesn't change. We're centered on physical availability, we picked up in the first quarter 48,000 more distribution points, which we brought this capability in from Bayer. We built on it with a lot of new expertise. We've got Blair Snyder out in California, and many others that we brought in from the CPG industry. And Amazon has and is one of the largest customers for Elanco because of our pet-retail business. So as they get into RX, it is a platform that requires unique capabilities, and we're familiar with those, we work with them every day, and we look forward to expanding into the RX business with Amazon.

我想強調的是，關於亞馬遜的討論很多，我們的策略沒有改變。我們以實物供應為中心，第一季我們新增了 48,000 個分銷點，這是我們從拜耳引進的能力。我們在此基礎上累積了大量的新專業知識。我們已經聘請了來自加州的布萊爾·斯奈德 (Blair Snyder)，以及來自快速消費品行業的許多其他人。由於我們的寵物零售業務，亞馬遜一直是 Elanco 最大的客戶之一。因此，當他們進入 RX 時，這是一個需要獨特功能的平台，我們熟悉這些功能，我們每天都與他們合作，我們期待與亞馬遜一起擴展到 RX 業務。

Ultimately, this is all about serving veterinarians and pet owners, giving them the products they want, where they want to shop at the price points that they want to shop at, and we've got the best portfolio, and global pet to do that.

最終，這一切都是為了服務獸醫和寵物主人，為他們提供他們想要的產品，讓他們以自己想要的價格在他們想要的地方購物，我們擁有最好的產品組合和全球寵物來做到這一點。

Thank you, that's very helpful. And maybe you'll follow up on pricing if you could discuss your price expectations for the year?

謝謝，這非常有幫助。如果您可以討論今年的價格預期，也許您會跟進定價？

Yeah, we continue to expect about 2% price for the full year. That's crossed the total global business and obviously varies between different areas of the business globally.

是的，我們繼續預計全年價格將上漲 2% 左右。這涉及了全球業務總量，並且顯然在全球不同業務領域之間存在差異。

Michael DiFiore, Evercore ISI.

Michael DiFiore，Evercore ISI。

Hey guys, thanks so much for taking my question, and congrats on such a strong launch to the year. It's two for me. I just want to revisit the Zenrelia label change request. It seems like it's progressing quicker than initially expected.

嘿，大家好，非常感謝您回答我的問題，並祝賀您今年取得瞭如此強勁的開局。對我來說是兩個。我只是想重新審視 Zenrelia 標籤變更要求。看起來進展比最初預期的要快。

Do you still view this requested change potentially taking a few years to materialize? And also, if you can comment on any give any color on vets' willingness to use first line. I know it's been a short while, but given the progress it has there been any change in their willingness to use first line based on what you're hearing in the field? And have a follow up.

您是否仍然認為這項要求的改變可能需要幾年時間才能實現？此外，如果您能對獸醫使用第一線藥物的意願做出任何評論，請提供任何意見。我知道時間已經過去很短了，但是考慮到進展情況，根據您在現場聽到的消息，他們使用一線治療的意願有任何變化嗎？並進行跟進。

Thank you.

謝謝。

Yes, Michael. So just very for clarity, nothing's changed. We've had a two-stream approach with the CBM and working with them. One is on the language changes that are maybe more moderate to the label today, which we believe is important. We've submitted the data that's on an in [do-put] type timeline. And those timelines, we started doing that immediately as soon as we got the response on the first label. And that work stream is all progressing, and again, we should have an answer to that in the second half of the year.

是的，邁克爾。因此，為了清楚起見，什麼都沒有改變。我們與 CBM 採取了雙流方法並與他們合作。一是語言變化可能對今天的標籤來說更為溫和，我們認為這一點很重要。我們已經提交了處於 [do-put] 類型時間線上的資料。當我們收到第一個標籤的回應時，我們立即開始按照這些時間表進行操作。這項工作目前正在順利進行，我們應該會在下半年得到答案。

The other one is we've started dogs on a larger trial that would be more of a full, bigger label change. And that's going to take much longer. That's going to be, as we've said, beyond definitely one year, maybe closer to two years. But what we're seeing with the product, it is a good investment to do for the longevity of the product overall.

另一個是，我們已經開始對狗進行更大規模的試驗，這將是更全面、更大的標籤改變。而這將需要更長的時間。正如我們所說，這肯定需要一年以上，甚至可能接近兩年。但就我們目前看到的產品而言，對於產品的整體壽命來說，這是一項很好的投資。

And Mike, just one of the reasons it takes longer because I know we got this discussion in [amature] conference is we have to have one-year old puppies that are unvaccinated and healthy to do the trial, and so you can't do it in a year because you don't have one-year old puppies. And so you've gone at least a year and so that's why it takes a longer time to do the clinical work on the unvaccinated dog (inaudible).

麥克，我知道我們在 [業餘] 會議上討論過這個問題，所以花費更長時間的原因之一是我們必須有未接種疫苗且健康的一歲小狗來進行試驗，所以你不能在一年內完成，因為你沒有一歲的小狗。所以你至少已經過了一年，這就是為什麼對未接種疫苗的狗進行臨床研究需要更長的時間（聽不清楚）。

And then your second question, absolutely we're seeing a nice ramp, as I mentioned, there's more veterinarians every month that are getting comfortable to bring Zenrelia in to first line or what I would call into their formulary to say hey, it's option A, B, or C, and we're in that portfolio of options. But we want more, and that's really the two big drivers to get veterinarians comfortable are other veterinarians and key opinion leaders visiting with them, sharing the data, spending time with them in a tech-to-tech dialogue, and then followed with a sampling program where vets can try this in different cases. And those are the two lead indicators. You combine that with the derm season that's coming, we believe we'll continue to see more vets move this to a first line treatment.

然後是您的第二個問題，正如我提到的那樣，我們絕對看到了一個很好的增長，每個月都有更多的獸醫願意將 Zenrelia 帶入第一線，或者我會在他們的處方集中說，嘿，這是選項 A、B 或 C，而我們就在這些選項組合中。但我們想要更多，而讓獸醫感到安心的兩大驅動力是其他獸醫和關鍵意見領袖拜訪他們，分享數據，花時間與他們進行技術對話，然後進行採樣計劃，讓獸醫可以在不同情況下嘗試這種方法。這就是兩個領先指標。結合即將到來的皮膚病季節，我們相信我們將繼續看到更多的獸醫將其作為一線治療方法。

Got it.

知道了。

The efficacy is the prevailing narrative out there in the industry right now on how well Zenrelia is doing in all cases in all situations.

功效是目前業界對 Zenrelia 在所有情況下表現如何的主流說法。

Got it. And just my quick follow up just on Experior. Just noticed that based on the USDA Ag data, cattle on feed seems to be below last year's levels, but again, Experior seems to be a significant growth driver. Could you maybe explain this discrepancy and add any color on less cattle on feed, but Experior performing so strongly.

知道了。這只是我對 Experior 的快速跟進。剛剛注意到，根據美國農業部農業數據，飼養牛的數量似乎低於去年的水平，但 Experior 似乎再次成為重要的成長動力。您能否解釋一下這種差異，並解釋為什麼飼養的牛較少，但 Experior 的表現卻如此強勁。

It's really the market position, Mike. I mean, Experior continues just to be so important to that feedlot owner and the economics for them. As a reminder, we added the heifer clearance. And so that's a big driver of the uplift that was 40% of the cattle. And so yes, we've got low cattle on feed, that's going to be a tailwind when that reverses as part of the cattle cycle in the years to come. So it really is that expanded market from heifers that helps us offset the lower cattle on feed numbers from a year ago while having Experior continue to ramp.

這確實是一個市場地位問題，麥克。我的意思是，Experior 對於飼養場主和他們的經濟來說仍然非常重要。提醒一下，我們增加了小母牛清除功能。這是導致牛隻數量增加 40% 的一個重要因素。是的，我們的飼養牛數量確實很少，但當這種情況在未來幾年隨著牛群週期的逆轉而出現時，這將成為順風。因此，小母牛市場的擴大確實幫助我們抵消了一年前飼養牛隻數量下降的影響，同時使 Experior 的產量持續增加。

Great, thanks so much.

太好了，非常感謝。

Aaron Wright, Morgan Stanley.

摩根士丹利的亞倫賴特。

Great, thanks for squeezing me in here. So on distributor stocking, we typically see parasiticide stocking that typically happens in the March time frame. Sometimes it looks more into April, I guess you called up the acceleration in March and April. You have a new product with Quattro presumably there was initial stocking there just because it's a new product alone and then, I guess, can you talk through some of the moving pieces in terms of the stocking-destocking dynamics and pet health, and like was there -- can you quantify any sort of initial stocking, I guess, from a Quattro perspective?

太好了，謝謝你讓我擠到這裡。因此，在分銷商庫存方面，我們通常會看到在三月期間發生的殺蟲劑庫存。有時它看起來更像是四月份，我想你提到了三月和四月的加速。您有 Quattro 的新產品，大概因為這是一個新產品，所以那裡會有初始庫存，然後，我想，您能否從庫存-去庫存動態和寵物健康方面談談一些變動因素，就像 - 您能否從 Quattro 的角度量化任何類型的初始庫存？

Yeah, I mean the main stocking issue was last year when we put the Bayer products into the distribution. Without that, the US pet-health business would have been up 8% in the quarter. I don't really think of it as a lot of stocking, Aaron, when the distributors ordered multiple times, and I don't think in Q1 of next year we're going to be calling out that we're having to cover the initial stocking.

是的，我的意思是主要的庫存問題是去年我們將拜耳產品投入分銷時出現的。若不計入此因素，美國寵物保健業務本季將成長 8%。亞倫，當分銷商多次訂購時，我並不認為需要大量庫存，而且我認為在明年第一季我們不會要求必須覆蓋初始庫存。

It really was a really quick in and out to the vets. As we said, getting 10% of sales out to vets from distribution meant that the distributors were and to keep stocking their initial orders weren't nearly good enough to fill the demand that they were getting from the vet clinics as our reps were out there, really pulling that through. So I think very little in the stocking dynamics the sense that it'll be proof this time a year from now when we're not calling out a stocking headwind on a year-to-year basis.

去看獸醫真的很快。正如我們所說的，從分銷商那裡獲得 10% 的銷售額給獸醫意味著分銷商繼續儲存他們的初始訂單，這遠遠不足以滿足他們從獸醫診所獲得的需求，因為我們的代表在那裡，真正地解決了這個問題。因此，我認為庫存動態很少，因為一年後的這個時候，當我們不再逐年預測庫存逆風時，它就會成為證據。

Okay, great, just wanted to clarify that. And then on, I guess, outside of innovation drivers like Experior, I guess, can you just speak to the underlying health of the livestock market, and how we should think about the quarterly progression from here across that business?

好的，太好了，我只是想澄清一下。然後，我想，除了像 Experior 這樣的創新驅動因素之外，您能否談談畜牧業市場的基本健康狀況，以及我們應該如何看待該業務從現在開始的季度進展？

Yeah. I think overall if you look at, Aaron, good question, I think, the headlines really as we just highlighted the cattle market that matters most to Elanco beef, confined feed, you've got low supply, high demand, good economics overall.

是的。我認為總體而言，如果你看一下，Aaron，好問題，我認為，頭條新聞確實正如我們剛才強調的那樣，對 Elanco 牛肉最重要的牛市場是密閉飼料，供應量低，需求量大，總體經濟狀況良好。

On the poultry side, the global strength continues, the global numbers from Robbo and others, as you see are 2.5% to 3% growth. We click along at that. You know you have poultry rotations inside of that that can impact quarter to quarter. But as a whole, we continue to take share, we continue to innovate, and the global poultry business is pretty resilient. There's talks of tariffs, but I think because it's so global, it's pretty insulated overall, and then swine, where we're really more North America China based, there's improved pricing that is expected, balanced overall.

在家禽方面，全球強勁勢頭持續，如您所見，Robbo 和其他公司的全球數據成長率為 2.5% 至 3%。我們就這樣點擊下去。您知道，其中的家禽輪換會對每季產生影響。但總體而言，我們持續佔領市場份額，持續創新，全球家禽業務相當有彈性。有關於關稅的討論，但我認為因為它是全球化的，所以總體上是相當隔離的，然後是豬肉，我們實際上更多地以北美和中國為基礎，預計價格會有所改善，總體上是平衡的。

So we see a stable market with portfolio that can win within that stable market with the tailwind, that buzz in the boardrooms right now, and protein is -- the opportunity in protein right now can be really positive, and we're supportive of the administration and how we can continue to make animal protein in the center of this whole health movement and diet movement, which is really sustainable health care, is that it all starts with what you eat, and I think it's a real opportunity. So -- and those are the trends we see overall pretty stable.

因此，我們看到一個穩定的市場，其投資組合可以在順風的推動下在穩定的市場中獲勝，目前董事會會議室裡的嗡嗡聲和蛋白質是 - 目前蛋白質的機會可能非常積極，我們支持政府以及我們如何繼續將動物蛋白置於整個健康運動和飲食運動的中心，這是真正可持續的醫療保健，一切都從你吃什麼開始，我認為這是一個真正的機會。所以——我們看到的趨勢總體上相當穩定。

Yeah, just specifically on Elanco, in international, we have headwinds here in Q1, a couple points on international growth and farm animal, from the Kexxstone recall from a year ago as well as our exiting certain other lower margin countries, and so that team of Ramiro Cabral and his organization is really executing well, and I expect that'll help the growth acceleration we will see in Q2 as we go up to 4% to 6% constant currency growth from the 4% in Q1.

是的，具體到 Elanco 來說，在國際方面，我們在第一季度遇到了一些阻力，國際增長和農場動物方面遇到了一些阻力，這源於一年前 Kexxstone 的召回事件以及我們退出某些其他利潤率較低的國家，因此 Ramiro Cabral 的團隊及其組織確實表現良好，我預計這將有助於我們在第二季度看到的增長率，因為我們的固定匯率到第 6% 上升到第 4% 上升到第 4%。

Good, let me just make a couple of quick closing comments. Thank you for your time, and we're entering no question, a much awaited period of sustained growth and accelerated value creation or an execution story.

好的，請容許我簡單說幾句結束語。感謝您抽出時間，毫無疑問，我們正進入一個期待已久的持續成長、加速價值創造或執行故事的時期。

The entire organization is focused on our three drivers of value: growth, innovation, cash. And Q1 was one of the highest quality quarters we've had in many years. Growth accelerating and will continue to accelerate the base and innovation.

整個組織都專注於我們的三大價值驅動力：成長、創新、現金。第一季是我們多年來品質最高的季度之一。成長不斷加速，並將繼續加速基礎和創新。

Innovation is a whole basket, as we just talked about, of innovation, and we're raising our guide because of the diversity of that innovation in major markets and the whole company is really focused on cash and margins.

正如我們剛才談到的，創新是一個綜合體，我們提高指導價是因為主要市場的創新呈現多樣性，整個公司都真正專注於現金和利潤。

We had our best quarter in a long time with manufacturing. There's a lot of momentum in our manufacturing organization driving margins, and it's exciting to see our cash to debt go from $150 million to now $450 million to $500 million. And I really want to emphasize tariffs. We've taken a prudent approach on the current state. And really, any future scenario we see is inside our guidance to make that clear for you, and the positive tailwind of FX is going to be helpful.

我們的製造業經歷了很長一段時間以來最好的一個季度。我們的製造組織在提高利潤率方面有著很大的發展勢頭，而且很高興看到我們的現金與債務比率從 1.5 億美元上升到現在的 4.5 億至 5 億美元。我確實想強調關稅。我們對當前情勢採取了審慎的態度。實際上，我們看到的任何未來情景都在我們的指導範圍內，以便讓您清楚地了解這一點，而外匯的積極順風將會有所幫助。

So thanks to our customers, vets, farmers, and pet owners for the time, the relationship. We are all about creating value for you. And thank you to our investors, we do believe we have a compelling value proposition, and we're going to continue to execute against growth, innovation, and cash, and create a whole lot of value for yourselves. Thanks for your time, we look forward to engaging with you here in Q2.

因此，感謝我們的客戶、獸醫、農民和寵物主人的付出和建立的關係。我們致力於為您創造價值。感謝我們的投資者，我們確實相信我們有一個引人注目的價值主張，我們將繼續致力於成長、創新和現金，並為你們創造大量價值。感謝您的時間，我們期待在第二季與您合作。

This concludes today's conference call. Thank you for your participation, you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。