'WE WILL BE PREPARED': Inside efforts to stop screwworm outbreak

Added: 2026-05-13

[00:00:00]Fox Business Alert. A deadly parasite outbreak in Mexico is creeping north and is now within 100 miles of the US border. The deadly pest known as the New World screworm fly is threatening humans, livestock, pets, and potentially the US food supply. The parasite has already infected more than 171,000 animals and nearly 1,800 people in Central America and Mexico. That's according to the CDC. Screwworm larvae burrow into the flesh of living animals, feeding on tissue, causing severe wounds, infections, and if left untreated, death. For ranchers, this is absolutely devastating. Okay.

[00:00:39]Infestations can spread rapidly through herds, wiping out productivity. And for consumers, less healthy livestock means way tighter beef and dairy supplies, which lead to higher prices. Officials are sounding the alarm and the FDA has just granted emergency use authorization to Elaine Co. Animal Health for its negent powder and tanadil treatments which prevent and control these infestations in livestock. Joining me now first on Fox Business, president and CEO of Elen Co. Animal Health, Jeff Simmons. And yes, the stock is up more than 11% right now. Big move here. Jeff, talk to us about first how serious this screwworm threat is to Americans and livestock.

[00:01:22]>> Yeah, thank you, Liz. Thanks for the opportunity. Um, this is serious, right?

[00:01:25]I mean, we need to keep our keep our focus on the American farmer and uh as well as even the pet owners. And I will really call out and a credit to the USDA and the FDA. They've been very proactive. uh they've seen this for a while and everything from bringing approvals like our products to even you know a sterile fly program and a lot of preventions a real call out I believe to both secretaries Kennedy and Rollins for all the work that they've done. Uh yes we have uh received approvals we've been very engaging on this um 70 years Eleno's focused on the American farmer and this is a time where we need to lean in. I think it just shows the importance of innovation and these products and I believe that you know we will be prepared if if the need is there for these products um for the farmer and the pet owner and that's I think the importance of why animal health has never been more relevant to society from this growing protein meat milk and egg demand as well as the importance of pets in every home almost around the world and so I think this is a real life example of what our industry has done it's a $40 billion animal health industry that today we're we're touching almost every life every day. This is an important one, Liz, but I think the the country the government is ready and uh my my hope is it does not come, but if it does, we will be prepared and I'm confident in that.

[00:02:44]>> Are you scaling up production of these therapies that you have?

[00:02:48]Yeah, we believe we've got the right amount of supply and we're working in conjunction with the government as well as all the the right associations as well as even there in Mexico as we've got operations in Mexico. So, we've got some experience with these products already on the ground in Mexico where the problem is there. So, we will have production and you know it really leads to as I say it comes back to boy the importance of innovation and having products available for the greatest needs and that really ties into our quarter that we announced today. I mean, innovation is a a very big part of animal health. It's a big part of Eleno's history and story, and it was a big part of our quarter as it was a big driver to our growth. I mean, we delivered the biggest quarter um since being an IPO out of Lily in 2018 here in the first quarter of 2026.

[00:03:35]>> Yeah, I remember that. And uh you've been at the helm. Congratulations. It has been a very solid run, especially year to date. The stock has done incredibly well. Look, we don't want to profit off misery like the screworm fly, but what kind of opportunity could this be for Elaine Co. at times like this?

[00:03:55]People rush to buy up supply even if it's not here yet.

[00:04:00]>> Yeah, I think this would be very targeted. I don't see this as something that we're looking by any means to do anything but serve farmers and it will play a need um so that we can you know the health and the well-beings of animals. we say making animals lives better makes life better both from pets uh and and the livestock side and we're working in conjunction with them and again I don't see this as something that we're putting in any of our guidance or anything we will make sure we have plenty of supply we will work closely uh with both Mexico and the US and uh I have high confidence that we're we're taking all the right provisions at the government level as well as the company level to intervene but as you've seen even with the human side emerging diseases are not something that's a sustain ustainable business model. What it is is just the right thing to do and we will do the right thing.

[00:04:48]>> Oh, this is like um what was that movie?

[00:04:51]The Hellstrom Chronicles. The Hellstrom Chronicles of the Bugs taking over the world. Um despite the threat to livestock and of course humans that we're talking about here, your largest revenue driver is for pet health. Are people still spending as much as they did, let's say, during COVID on these types of medications and things for their pets? Because we saw a huge ground swell during that time and then it kind of trailed off and then it started moving higher once again.

[00:05:20]>> Liz, it's a great question and I just have to say I I've been in this industry almost four decades and I've never seen anything like it right now between the pet side and the protein side. The trends are resilient. this industry has grown for 30 consecutive years pretty much. Um and even with challenges right now economically and with consumers, you know, what I'm saying seeing is the willingness to spend the expectations of care on the pet side um have never been greater and we're seeing that we're bringing record innovation. Uh we just launched Credellio Quattro that also has been granted an emergency approval for your pets. If you have a problem and a concern about New World screwworm, we have a clearance now with Cordelio Quattro. Uh but it's also got the fastest tick kill and CDC is announcing that tick bites are up more than they ever have here in the month of April.

[00:06:08]And uh we saw a record over, you know, 40% of clinics today have Quattro and that's growing nicely. Uh but to back to your point, um the rewarding innovation, the willingness to spend is there. The globalization right now, 70% of new puppies in the world are international.

[00:06:26]And you're seeing countries like China and Brazil that only have two out of 10 homes with a pet. That is escalating back up to where the US is now. Seven and a half, eight out of homes. So tremendous runway of growth on the pet side. And then come on, step back and look at protein. Five years ago, people were asking about, you know, uh, alternative proteins and meatless Mondays, and that has totally shifted with GLP use, driving protein up 30 to 50% uh, consumption on GLP users, the dietary guideline changes, the aging population. So, the industry has never been more resilient, I think, and stronger than it is today. And it was the backdrop of results. Our base business grew today, our innovation grew today. We're taking market share, and we're riding a a market that's been growing. last year high single digits.

[00:07:11]>> Your let's see your market cap at the moment and it's rising certainly today is about $13 billion. Your your competitor Zoetas is definitely bigger.

[00:07:23]That one is about $47.2 billion. Your performance year to date has definitely outperformed Zoetas. You're up 14.5%.

[00:07:33]Zoetus down 10.6%. again different sizes of companies but how do you continue to maintain this energy of trajectory?

[00:07:43]>> Yeah, it's real simple and I've been saying this for three years. We've had three years of growth. We got three priorities in Eleno that drive value for society, our customers and our shareholders. Growth, innovation, cash and this quarter delivered all of those and we've been very consistent. So Liz, high quality growth. We got farm, animal, pet, 5050. They grew. We had 8% volume. I mean we're in a supply side economy. We're creating value and driving demand. Uh 2% price, 5% positive exchange. So um the quality of growth for us across the board was was wonderful and and every sector, every geography grew and that's been an obsession the last three years. But the second priority innovation is it we launched six blockbusters. In our 70 years we have only had 10 and we've just launched six more. And these are in big markets. One half billion dollar parasitices. two two billion dollar derm globally. Uh a cattle market. We brought two big products into cattle. So big markets, big differentiated blockbuster assets. And lastly is cash. We're incenting all employees. We're driving cash. We've delevered almost six turns out of our debt or five turns out of our debt. And uh we've got the strongest balance sheet we've had. And uh look, long-term consistent flow of innovation will drive durable growth that will convert into cash and shareholder value.

[00:09:03]Um we are we believe the most compelling investment opportunity and the best industry to invest in in my opinion.

[00:09:10]>> Jeeoff, uh we've got much more compelling video than the screworm on the screen. Lots of really cute pets.

[00:09:16]My dad, would you believe I was 6 years old when he took me to see the Hellstrom Chronicles, which by the way is an apocalyptic horror film about humans battling insects. So was way back in the 70s. Uh good to see you and and congratulations on the really solid numbers, Jeeoff. Thank you.

[00:09:32]Thank you, Liz.