Elanco Animal Health
Elanco (ELAN, Financial) is one of the four largest players in the highly attractive Animal Pharmaceuticals industry. As a result of its acquisition of Bayer’s Animal Health division in August 2020, Elanco now has an enhanced portfolio with a balanced global revenue base and a stronger focus on the more profitable Companion Animal business. The company’s scale in its sales and marketing functions is a competitive strength. In addition, we believe Elanco’s research and development (R&D) results will improve, as Elanco’s R&D budget is now comparable with industry leader Zoetis, after languishing at lower levels for many years. On December 31, Elanco was a 0.5% position in the Fund.
From Dodge & Cox's Stock Fund 2021 annual letter.
