May 1 (Reuters) - Life-sciences giant Bayer

must face a U.S. antitrust lawsuit accusing a former unit of

the German company of undermining competition for rival tick and

flea treatments, according to a ruling unsealed on Wednesday.

U.S. District Judge Beth Freeman in San Jose, California,

said the plaintiff, pet products company Tevra, provided

sufficient evidence for a jury to hear claims that Bayer schemed

with retailers and distributors to block Tevra's generic,

lower-cost tick and flea pet medication.

Bayer has denied any wrongdoing. It deferred a request for

comment on Wednesday to Elanco Animal Health ( ELAN ), which

bought the company's animal health business five years ago in a

$7.6 billion deal.

Elanco, which is not a defendant, had no immediate comment

on the ruling on Wednesday. Tevra did not immediately respond to

a request for comment, and a lawyer for the company had no

immediate comment.

In a partial win for Bayer, Freeman said the plaintiffs

could not pursue damages after July 31, 2020, when Bayer exited

the animal health market.

A trial in the case is scheduled for July.

Americans spend billions of dollars a year on tick and flea

treatment for pets, according to an expert for the plaintiffs.

Omaha-based Tevra sued Bayer in 2019, seeking more than $76

million in alleged lost profits from the sale of its generic

topical imidacloprid, the active ingredient in tick and flea

treatment for cats and dogs.

Tevra competed with Bayer's Advantage and Advantix topical

flea and tick treatments.

Tevra's lawsuit alleged Bayer used improper exclusive

dealing agreements to maintain its market dominance and keep

Tevra's rival products at bay. The lawsuit said Bayer's alleged

scheme "ensured that both retailers and consumers pay

supra-competitive prices."

Bayer countered that its business deals are short-term and

easily breakable. It also told the court that other distribution

channels were available for Tevra's products, including online,

general merchandisers and veterinarians.

Freeman in her order said it "may be no small task for Tevra

to prove at trial that other distribution channels were not

viable alternatives for selling generic imidacloprid topicals."

The case is Tevra Brands LLC v. Bayer Healthcare LLC, U.S.

District Court for the Northern District of California, No.

5:19-cv-04312.

For Tevra: Daniel Owen of Polsinelli

For Bayer: Daniel Asimow and Sonia Pfaffenroth of Arnold &

Porter Kaye Scholer

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