Sachem Head takes $1.2 billion position in Elanco, stock price surges By Reuters


© Reuters.

BOSTON (Reuters) – Hedge fund Sachem Head Capital Management has built a $1.2 billion stake in Elanco Animal Health Inc (N:) and plans to push for changes at the company that makes medicines and vaccinations for pets and livestock, a person familiar with the matter said on Wednesday.

The investment, first reported by Bloomberg, translates into a stake of 9.1% in Elanco which is valued at $14 billion.

Elanco’s stock price climbed as much as 9% on news that Sachem Head, run by Scott Ferguson, plans engage with management to push for improvements.

Ferguson raised cash for the position through a so-called special purpose vehicle over the last months and has experience in investing in animal health after making a bet on Zoetis (N:) in 2014.

Elanco and Zoetis are competitors but Elanco has lagged with its shares up only 5.4% from a year ago, while Zoetis’ stock has climbed 27% during the same time.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*