Advantix-maker Elanco must face some price-fixing claims over flea, tick products
By Mike Scarcella
Oct 8 (Reuters) - A U.S. judge has narrowed a consumer lawsuit accusing animal health giant Elanco ELAN.N of monopolizing the market for some flea and tick treatments, causing dog and cat owners to pay higher prices for the company’s Advantix products.
In a ruling on Wednesday, U.S. District Judge James Hanlon in Indiana dismissed federal antitrust claims in the proposed nationwide class action, but allowed the case to proceed for now under the antitrust laws of 29 states and the District of Columbia.
The lawsuit, filed last year, alleged Elanco violated federal and state antitrust laws by pressuring pet specialty retailers not to sell rival, generic versions of its topical flea and tick treatments containing the insecticide imidacloprid.
In dismissing the federal antitrust claims, Hanlon said the plaintiff, a resident of Kansas, had not plausibly shown Elanco conspired with pet retailers to fix prices or restrain competition.
Elanco and attorneys for the plaintiff did not immediately respond to requests for comment.
Elanco has denied any wrongdoing.
The consumer lawsuit alleged Elanco’s business deals with retailers “left consumers with substantially fewer options to learn about and purchase generic brand imidacloprid topicals.”
Hanlon said it was too early to rule definitively on whether the plaintiff has legal standing to pursue claims on behalf of other consumers in other states.
Elanco in 2020 purchased Bayer’s animal health unit for $7.6 billion.
The consumer lawsuit was filed shortly before Bayer at a trial in California defeated similar federal antitrust claims brought by startup Tevra Brands, which accused Bayer of blocking competition in the retail market for topical flea and tick treatments.
Elanco has said the claims in the consumer lawsuit mirrored those in Tevra’s case.
The case is Tracy Spradlin v. Elanco Animal Health Inc, U.S. District Court for the Southern District of Indiana, No. 1:24-cv-01299-JPH-MKK.
For plaintiffs: Eric Dirks and Matthew Dameron of Williams Dirks Dameron
For Elanco: Daniel Asimow and Sean Callagy of Arnold & Porter Kaye Scholer
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