- Elanco Animal Health's (NYSE:ELAN) "potential blockbuster" drug Experior may be in jeopardy after an unexpected legal change, according to Barclays.
- A district judge has allowed animal welfare, environmental and food safety advocates to challenge the FDA's approval of Elanco's Experior, according to Barclay's analyst Balaji Prasad.
- This legal challenge is a risk that Barclays or the market likely hasn't factored around Experior, a drug which reduces gas emissions from cattle or its waste. Experior is expected to represent a "meaningful" revenue opportunity for the company.
- "We have been very optimistic about the environmental benefit from this drug considering the focus on greenhouse gas emissions from cattle on Feedlots," Prasad writes.
- Elanco has said it plans to launch Experior by the end of Q1 and this ruling is unlikely to change plans for the drug and Barclays isn't making any changes to medium to longer term estimate revisions.
- Elanco remains underweight, PT $25.
- Earlier, Elanco Animal Health shares rise 4% as Credit Suisse upgrades to outperform.
Elanco's potential blockbuster cattle flatulence drug may be in jeopardy, Barclays says
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| Symbol | Last Price | % Chg |
|---|---|---|
| ELAN | - | - |
| Elanco Animal Health Incorporated | ||