Eli Lilly benefits from Merk's suspension of Zilmax sales

|About: Eli Lilly and Company (LLY)|By:, SA News Editor

Eli Lilly's (LLY) Elanco Animal Health unit appears to be benefiting from Merck's (MRK) decision to halt sales of its Zilmax cattle feed additive due to health concerns, with Elanco so inundated with demand for its Optaflexx product that it's telling some new customers that it's unable to supply them immediately.

Elanco denies that it's unable to meet the demand.

Meanwhile, livestock expert John Nalivka doesn't believe that the tight supply of the additives will have a major impact on beef production. "We're not going to run out of beef," Nalivka says.