Elanco & Bayer Animal Health Lawsuit Settlement

Elanco Companion Animal Health and Bayer Animal Health have reached a successful resolution regarding a lawsuit filed by Bayer earlier this year. "Elanco has always believed the lawsuit was without merit and continues to deny the allegations set forth in the complaint," stated Eric Graves, senior director of Elanco Companion Animal Health.

In a suit filed in May, Bayer objected to a letter Elanco sent to veterinarians regarding the flea and tick marketplace. This is a non-monetary resolution, and Elanco maintains its ability to communicate and advertise concerning the availability of flea and tick products outside the veterinary channel. In addition, Elanco can continue to communicate and advertise regarding the availability of Bayer's Advantage II and Advantix II products through retail channels and over-the-counter merchants.

Today's resolution also allows Elanco to continue promoting its Track and Trace product tracking system and its strict sales policy. Using unique identification numbers and bar coding on boxes and cartons, Elanco helps ensure product integrity and guard against theft, while helping to keep its products sold within the veterinary channel. If Elanco products are discovered outside that relationship, Elanco endeavors to identify the point of sale and cut off the offending diverter. Elanco's strict sales policy and Track and Trace technology is designed to help keep the sale of its parasiticide products within the scope of the veterinary-client-patient relationship. Since the implementation of the sales policy and the product tracking system, Elanco has revoked the ability of more than 300 veterinarians to purchase products because they failed to abide by Elanco's corporate sales policy.

"We believe our innovative product introductions and efforts to keep our products within the veterinary channel illustrate our support and commitment to veterinarians and their practices," Graves said. "This resolution allows us to continue to discuss issues that our valued veterinary partners find important. Our success is completely tied to their success," Graves said. "We have absolutely no second thoughts about that."

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