Elanco price target lowered to $16 from $19 at Piper Sandler

Piper Sandler analyst David Westenberg lowered the firm’s price target on Elanco to $16 from $19 and keeps a Neutral rating on the shares. The firm interviewed three veterinary professionals on how they think Elanco’s potential label would impact prescribing behavior. Net-net, Piper thinks the new label will result in a discount of around 20% and a slower adoption cycle as veterinarians will likely take time to develop trust in the product. The firm further thinks unit volume at peak is probably only down about 5%-10%, but with the lower price, there would be more margin impact than it would otherwise. In total, it sees somewhere between a 25%-35% impact to peak sales and a slower ramp.