Elanco Sued Over Development of Two Drugs for Dogs, Stock Drop

Elanco Animal Health Inc. failed to disclose safety and launch timeline problems for canine products in development, an investor alleges.

Dermatology drug candidate Zenrelia wasn’t as safe as expected, Joseph Barpar says in a proposed class action filed Monday in the US District Court for the District of Maryland.

In June, the company disclosed the safety issue—which it said entailed a boxed warning and would “slow the product adoption curve” in the US—and revised its launch schedule for Zenrelia and an anti-parasite product, Barpar says. The announcement on June 27 caused the company’s stock price to fall 21%, closing at ...