4 Reasons to Be Wary of This Animal Health IPO

The animal health industry has proven to be attractive to growth-stock investors, with pet ownership growing and the demand for protein on the rise throughout the world. Pfizer spun out its animal health business in 2013 as Zoetis (NYSE: ZTS), and the stock has soared 208% since its first day of trading. So it was no surprise that when Eli Lilly (NYSE: LLY)spun out its animal heath business, Elanco Animal Health (NYSE: ELAN), with an initial public offering on Sept. 20 at an offering price of $24, investors snapped up the shares and the stock rose 50% on the first day of trading to close at $36. But is the stock a good investment going forward?