Elanco Animal Health Faces Investor Scrutiny Over Product Launch Timelines

Elanco Animal Health Incorporated (NYSE: ELAN) is currently under investigation by prominent shareholder rights firm Hagens Berman Sobol Shapiro LLP. The investigation stems from concerns raised by investors regarding the accuracy of Elanco’s previous statements regarding the commercial launch timelines for two of its key products.

Elanco Animal Health had positioned Zenrelia, a dermatology treatment for pets, and Credelio Quattro, a broad-spectrum parasiticide, as potential “blockbusters.” On May 8, 2024, the company assured investors that both products had made significant progress through the FDA approval process. Elanco expressed confidence that the FDA possessed all necessary data and anticipated complete technical section and label approvals by the end of June 2024. The company projected a third-quarter launch for Zenrelia and a fourth-quarter launch for Credelio Quattro.

This news resulted in a substantial increase of over 24% in Elanco’s share price on May 8th. However, on June 27, 2024, Elanco significantly revised its launch timelines. The company now expects to launch Zenrelia in the fourth quarter with a label carrying a “boxed warning on safety” due to trial results involving unvaccinated dogs. This warning is expected to impact the product’s adoption rate. Additionally, Elanco disclosed that the FDA deemed Credelio Quattro’s New Animal Drug Application (NADA) incomplete, pushing the targeted launch date to the first quarter of 2025.

The revision of launch timelines caused a significant decline in Elanco’s share price, dropping over 20% on June 27, 2024. The discrepancy between prior assurances and the revised timelines has prompted Hagens Berman Sobol Shapiro LLP to open an investigation into whether Elanco may have misled investors about Zenrelia’s safety and the completeness of the Credelio Quattro NADA.

Hagens Berman partner Reed Kathrein, who is leading the investigation, stated, “We’re investigating whether Elanco may have misled investors about Zenrelia’s safety and the completeness of the Credelio Quattro NADA.”

Investors who suffered substantial losses in Elanco Animal Health are urged to submit their losses to Hagens Berman Sobol Shapiro LLP for further investigation.

About Hagens Berman:
Hagens Berman Sobol Shapiro LLP is a global plaintiffs’ rights complex litigation firm that focuses on corporate accountability. The firm represents investors, whistleblowers, workers, consumers, and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. With a track record of securing over $2.9 billion in this area of law, Hagens Berman is committed to fighting for justice.

For more information about the investigation and frequently asked questions, please visit the Hagens Berman website.

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