Elanco Animal Health Signs Deal With PetIQ To Divest Capstar

(RTTNews) - Elanco Animal Health Inc. (ELAN) said it agreed to divest the U.S. rights to Capstar, an oral tablet that kills fleas in dogs and cats, to PetIQ Inc. (PETQ), 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 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 in connection with its Bayer transaction, as well as other customary closing conditions.

It 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.