*By Michael Teich*
Wall Street seems to have an appetite for Elanco.
Stock in the animal healthcare start-up that sells antibiotics for pets and livestock surged 50 percent in its market debut Thursday. Shares closed at $36 after pricing at $24 in the IPO ー a price that was already above the expected range of $20 to $23 a share.
Although the company may be relatively unknown to traders, Elanco is a household name among players in the animal healthcare industry, CEO Jeff Simmons told Cheddar.
“We may be new here on Wall Street, but we’re not new in the market for veterinarians and for farmers. We’ve been out there for more than six decades," he said.
Elanco, which spun out of pharmaceutical giant Eli Lilly in July, generates two-thirds of its $2.9 billion in revenue from drugs given to livestock ー cattle and chicken, for example.
The use of antibiotics in livestock has been a polarizing issue among consumers.
In its S-1 IPO filing, the company mentioned one risk to its outlook was the preference for dairy products produced without antibiotics.
Simmons, however, said the trend is actually an opportunity for the company and argued the medication creates safer food products.
“It all starts with a healthy animal. A healthy animal creates safe high quality meat milk and eggs,” he said. “We gotta come on and make sure that animal stays healthy.”
Food animal medicines and vaccines raked in $21.2 billion in revenue in 2017, according to research and consulting firm Vetnosis, and the industry is not expected to slow down any time soon.
According to data firm [Research and Markets](https://www.prnewswire.com/news-releases/global-animal-healthcare-market-2017-2025---a-53-billion-market-potential-300577550.html), the global market for animal healthcare is forecast to be worth $53.42 billion by 2025.
For full interview [click here](https://cheddar.com/videos/animal-medicine-company-elanco-surges-in-market-debut).
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
