08:03 AM EDT, 09/13/2024 (MT Newswires) -- Elanco Animal Health ( ELAN ) said Friday that its contract manufacturing supplier, TriRx Speke, has entered into trading administration, an insolvency process in the UK designed to assist companies facing financial challenges regain stability.

The company said it has a long-term supply agreement with TriRx to manufacture select farm animal products at the Speke site.

Elanco said it is working with the administrators to explore possible options and support business continuity in the short term by underwriting operational costs to make sure work in progress at the site does not stop.

As a result, the company said it expects minimal supply disruption in 2024 and anticipates a reduction of about $5 million to $10 million in adjusted EBITDA related to TriRx, while continuing to expect full year adjusted EBITDA of $900 million to $940 million.

The company's shares fell more than 2% in recent premarket activity on Friday.

Price: 14.01, Change: -0.38, Percent Change: -2.64