By Dean Seal


Shares of Elanco Animal Health fell after the company said a warning that will be put on its dermatitis treatment for dogs could slow down adoption of the product.

The stock was down 17% at $14.99 in early trading. Shares are coming close to where they started the year.

The animal-medicine company said Thursday that the U.S. Food and Drug Administration has approved timelines for the treatment, Zenrelia, as well as the flea killer Credelio Quattro.

Zenrelia is expected to launch in the fourth quarter, but the U.S. label for the product is expected to include a boxed warning on safety, according to Bobby Modi, the executive vice president of U.S. Pet Health and Global Digital Transformation at Elanco.

Modi said the warning is based on the outcome of a trial with unvaccinated dogs that were dosed at three times the label dose. Still, the company believes the warning will "slow the product adoption curve in the U.S. and initially limit the number of expected treatment days by approximately 25%," he said.

The company plans to conduct additional research aimed at improving the label over time, Modi said.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

06-27-24 1034ET