Anand Kapila K 4

What Happened
Anand Kapila, a member of Elanco's Board of Directors, was credited with 584.112 Deferred Stock Units (DSUs) on June 30, 2026. The units were issued at a closing share price of $24.61, representing an economic value of approximately $14,375. This transaction is reported as an award/acquisition (code A) and is a derivative credit (DSUs), not an open‑market purchase.

Key Details

• Transaction date: June 30, 2026; Form 4 filed July 2, 2026 (timely filing).
• Units issued: 584.112 Deferred Stock Units.
• Price used to calculate units: $24.61 (Elanco closing price on grant date).
• Reported value: ~ $14,375 (cash amount deferred divided by share price).
• Shares owned after transaction: not disclosed in this filing.
• Footnotes: (1) Ms. Kapila elected to defer her director cash retainer into the Company’s Directors' Deferral Plan; (2) each DSU equals the economic equivalent of one share and (3) DSUs will be settled in stock upon her separation from the Board.

Context
This was a routine compensation deferral (cash retainer credited as Deferred Stock Units), not a market purchase or sale. DSUs are derivatives that convert to actual shares when the director leaves the board, so this action reflects compensation timing and tax/deferral choices rather than an explicit buy/sell signal about Elanco stock.