|Company name||Elanco Animal Health Incorporated|
|Status||Class Action Complaint Filed|
NEW YORK, May 20, 2020 –Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Indiana on behalf of investors that purchased Elanco Animal Health Incorporated (NYSE: ELAN) securities between January 10, 2020 and May 6, 2020 (the “Class Period”). Investors have until July 20, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Elanco is an animal health company that develops, manufactures, and markets products for companion and food animals. Its four primary categories are: Companion Animal Disease Prevention (“CA Disease Prevention”), which offers parasiticides that protect pets from worms, fleas and ticks; Companion Animal Therapeutics (“CA Therapeutics”), which offers treatments for pain, osteoarthritis, otitis, as well as cardiovascular and dermatology indications; Food Animal Future Protein & Health (“FA Future Protein & Health”), which includes vaccines, nutritional enzymes, and antibiotics; and Food Animal Ruminants & Swine (“FA Ruminants & Swine”), which develops food animal products used extensively in ruminant and swine production.
On May 7, 2020, Elanco announced its first quarter 2020 financial results, reporting revenue of $657.7 million and earnings per share of -$0.12, reflecting “a reduction of approximately $60 million in channel inventory.” The Company’s Chief Executive Officer attributed the disappointing results to “distributor performance,” among other things, and stated that Elanco planned “to tighten [its] approach across many facets of [its] distributor relationships.”
On this news, the Company’s share price fell $3.05, or over 13%, to close at $19.88 per share on May 7, 2020.
The complaint, filed on May 20, 2020, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that, after consolidating its distributors from eight to four, the Company increased the amount of inventory, including companion animal products, held by each distributor; (2) that Elanco’s distributors were not experiencing sufficient demand to sell through the inventory; (3) that, as a result, the Company’s revenue was reasonably likely to decline; (4) that, as a result of the foregoing, Elanco would reduce its channel inventory with respect to companion animal products; and (5) that, as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Elanco Animal Health securities, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore or by email at email@example.com, telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.