Elanco Animal Health has agreed to divest the U.S. rights to Capstar, an oral tablet that kills fleas in dogs and cats, to pet medication company PetIQ, for $95 million in an all-cash deal. The product had 2018 revenue of $28.5 million. The sale puts Elanco closer to gaining regulatory clearance for its previously announced acquisition of Bayer’s global animal health business. The closing of the transaction with PetIQ is contingent on Elanco entering a consent decree with the Federal Trade Commission in connection with the Bayer transaction, as well as other customary closing conditions, according to the announcement. This sale follows closely on the heels of Elanco’s announcement that it will divest Osurnia, a treatment for otitis externa in dogs, to Dechra.
