RTTNews | Sep 30, 2020 07:48AM EDT

07:48 Wednesday, September 30, 2020 (RTTNews.com) - Elanco Animal Health Incorporated (ELAN) announced the company plans to eliminate more than 900 positions across nearly 40 countries, primarily in Sales and Marketing, but also R&D, Manufacturing and Quality, and back office support. The company expects to realize at least $100 million of annual compensation and benefits savings toward the planned synergy goal of $275 million to $300 million.

Elanco expects to incur a restructuring charge of $130 million to $145 million in third quarter along with $40 million to $45 million in fourth quarter. The remaining estimated $20 million will be incurred in 2021.

Elanco has also started repayment against its loan that funded the Bayer Animal Health acquisition. The company repaid $100 million of its $4.275 billion Term Loan B.

Todd Young, CFO, said: "We will continue to repay debt from our operating cash flow in 2021 with a focus on our $500 million note, which is due in August 2021."

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