Dark pool activity was detected in ELAN stock on January 15, 2020.

The dark pool order looks like a buy order because of how ELAN stock immediately rose after the print.

On January 13, 2020, Elanco Animal Health Incorporated (NYSE: ELAN) announced it signed an agreement to divest the U.S. rights to Capstar®, an oral tablet that kills fleas in dogs and cats, to PetIQ, Inc. (Nasdaq: PETQ), a leading pet medication and wellness company, for $95 million in an all-cash deal. The product had 2018 revenue of $28.5 million.

Divesting Capstar further advances Elanco’s efforts to gain U.S. regulatory clearance for the previously announced acquisition of Bayer AG’s (ETR: BAYN) global animal health business. The closing of the transaction with PetIQ is contingent on Elanco entering into a consent decree with the Federal Trade Commission (FTC) in connection with its Bayer transaction, as well as other customary closing conditions.

“We’re pleased with the continued progress on a number of fronts to move the acquisition of Bayer’s animal health business toward completion,” said Jeff Simmons, president and CEO of Elanco. “PetIQ’s vast distribution network and retail presence make it a natural choice to take Capstar into the future. As a current distributor for Capstar, PetIQ is well prepared to take over this product and ensure pet owners have continued access to this fast-acting flea control product.”

This is the second divestiture announcement Elanco has made in the last week as it works to bring its acquisition of Bayer’s animal health business to a close. Elanco previously announced an agreement to divest Osurnia®, a treatment for otitis externa in dogs, to Dechra Pharmaceuticals, PLC. The company has stated it anticipates divesting a small portfolio of products across both organizations with total 2018 revenue of approximately $120 million to $140 million to achieve any required clearances globally. Osurnia and Capstar account for approximately half of that revenue. Elanco is in advanced discussions with both the FTC and EU Commission in regards to the remaining assets in those jurisdictions.

On January 10, 2020, Raymond James analyst Elliot Wilbur initiated coverage of Elanco (ELAN) with a Market Perform rating. In a research note to investors, Wilbur says Elanco remains well positioned to capitalize on favorable animal therapeutics growth dynamics, particularly following the acquisition of Bayer’s (BAYRY) animal health business.

On January 6, 2020, Elanco Animal Health Incorporated (NYSE: ELAN) announced that it has signed an agreement to divest Osurnia®, a treatment for otitis externa in dogs, to Dechra Pharmaceuticals PLC (LON: DPH) for $135 million in an all-cash deal.

Elanco has made the independent decision to divest global rights to Osurnia, which had 2018 annual revenue of $31.2 million, with intent to advance the previously announced acquisition of Bayer AG’s (ETR: BAYN) global animal health business. The closing of the transaction with Dechra is contingent on Elanco entering into a consent decree with the Federal Trade Commission (FTC), the European Commission (EU Commission) and other agencies in connection with its Bayer transaction, as well as other customary closing conditions.

“We’re very pleased with the pace of the process and productivity from our discussions with the FTC and EU Commission. This is an important step forward for our acquisition of Bayer Animal Health and we look forward to continuing to work constructively with regulators,” said Jeff Simmons, president and CEO of Elanco. “Dechra is the right company with the right capabilities to take Osurnia forward, keeping this important product available for both veterinarians and pet owners.”

Elanco continues to make solid progress in its discussions with regulatory authorities in relation to the acquisition of Bayer AG’s animal health business. The company currently anticipates divesting a small portfolio of products across both organizations with total 2018 revenue of approximately $120 million to $140 million to achieve any required clearances globally. Elanco is in advanced discussions with both the FTC and EU Commission in regards to the remaining assets in those jurisdictions.

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Elanco Animal Health News From Google