Rumors involving Elanco Animal Health and its destiny are ramping up, with reports this week of several large private equity firm showing an interest in the animal health company.

According to Bloomberg, Bain Capital, Advent International and the Carlyle Group are all exploring options related to Elanco.

In late 2017, JP Morgan Chase & Co. placed the value of Elanco at $14-16 billion.

According to Feedstuffs' sister publication Animal Pharm, any private equity company aiming to scoop up Elanco will be focused on helping the firm execute its three main priorities of improving its product mix, stimulating innovation and boosting productivity through margin expansion.

An initial public offering (IPO) also remains an option. The only major animal health firm to take the public market route to date has been Zoetis. Just this week, however, Henry Schein announced plans to take its animal health business public.

Eli Lilly & Co., Elanco’s parent company, is not commenting on any of the rumors or marketplace speculation.

Lilly announced in October 2017 that it would be reviewing strategic alternatives for its Elanco business, including a possible IPO, merger, sale or retention of the business. The announcement of the business review followed Elanco’s acquisitions of Novartis Animal Health and Boehringer Ingelheim Vetmedica’s U.S. vaccine portfolio, both which expanded the company’s product offerings across the companion and food animal segments and knowledge services.

There is, of course, still the possibility that Lilly may hold onto Elanco. Lilly is expected to reveal its plan for Elanco in late July.

Elanco, headquartered in Greenfield, Ind., operates in more than 70 countries with 6,500 employees worldwide.

Elanco reports Q1 results

For the first quarter of this year, Elanco posted decreased global revenues of $761.3 million, a 1% decline compared to a year earlier. The company did note that it saw 1% growth when earnings were adjusted to exclude the impact of products that it has made the strategic decision to exit.

Among those exits are contract manufacturing at a Ft. Dodge manufacturing facility that it acquired as part of a deal with Boehringer Ingelheim Animal Health last year and the discontinuation of two distribution agreements. Elanco has been the distributor of Luitpold Animal Health’s equine degenerative joint disease treatment and Ethicon’s surgical supplies for companion animals. The company also is currently looking at options for its recombinant bovine somatotropin business.

Elanco’s global food animal related revenues decreased 7% in the first quarter of this year to $474.3 million. The company’s core food animal business declined 4% due to U.S. buying patterns during the quarter and ractopamine competition. Poultry products for the company performed well, with revenues up 11%. Elanco expects to see full-year growth for its overall core food animal portfolio.

Elanco’s companion animal business saw a 10% revenue increase to $287 million in the first quarter.