Elanco Animal Health Inc. will restructure its international operations and transition to a distribution model rather than operating out of physical locations in certain countries as part of the animal health unit's separation from former parent company Eli Lilly and Co.

According to a recently issued Form 8-K dated Dec. 10, Elanco's board of directors authorized the changes, which reflect executives' remarks during the third-quarter earnings call that Elanco would reduce its international footprint from 60 countries to fewer than 50. The process will allow Elanco to shift resources to higher priority areas, the company said.

In addition, Elanco will write off certain assets no longer applicable to its animal health business, also as part of its transition to an independent company. The restructuring actions will cost an estimated $37 million in the fourth quarter of 2018, with approximately $19 million designated for streamlining international operations and subsequent severance costs, and $18 million for asset write-off expenses.

Restructuring will likely be completed by December 2019, Elanco said.

Elanco, now based in Greenfield, Ind., was spun out from Eli Lilly in September.