The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Maryland on behalf of those who acquired Elanco Animal Health Incorporated (“Elanco” or the “Company”) (NYSE: ELAN) securities during the period of November 7, 2023 to June 26, 2024, inclusive (“the Class Period”). Investors have until December 6, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
In November 2023, Elanco set a timeline for the U.S. approval of two drugs for dogs in the first half of 2024: Zenrelia, an oral medication, and Credelio Quattro, a parasiticide. In May 2024, Elanco delayed the timeline for the U.S. approval and commercial launch of Zenrelia to the third quarter of 2024, and the U.S. approval of Credelio Quattro to the third quarter of 2024 with a commercial launch set for the fourth quarter of 2024.
On June 27, 2024, the Company issued a press release on Zenrelia and Credelio Quattro and their updated U.S. Food and Drug Administration (“FDA”) approval timelines. According to the press release, Elanco expected the U.S. label for Zenrelia to include a boxed warning on safety “based on the outcome of a trial” which Elanco believed would “slow the product adoption curve in the U.S.” and initially reduce the number of days the medication can safely be administered to vaccinated dogs by approximately 25%. Elanco stated that it was now expecting Zenrelia to receive FDA approval in the third quarter of 2024, with a potential commercial launch in the fourth quarter of 2024. The Company also stated that Credelio Quattro is expected to receive FDA approval in the fourth quarter of 2024. On this news, the price of Elanco shares declined by $3.69 per share, or approximately 20.53%, from $17.97 on June 26, 2024, to close at $14.28 per share on June 27, 2024.
The lawsuit alleges that Elanco made false and/or misleading statements and/or failed to disclose that: (i) Zenrelia was less safe than the Company had led investors to believe and (ii) Elanco was unlikely to meet its own previously issued timeline for the U.S. approval and commercial launch of both Zenrelia and Credelio Quattro.
If you purchased or otherwise acquired Elanco securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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