02:33 PM EDT, 06/27/2024 (MT Newswires) -- (Adds stock movement, new information throughout.)

Elanco Animal Health ( ELAN ) was extending decline Thursday afternoon, falling as low as 22%, after saying it expects to launch Zenrelia in Q4, but with a warning label.

Elanco expects completion letter for the new canine dermatitis treatment in July, followed by a 60-day final administrative review, placing the final approval from the US Food and Drug Administration in Q3.

The warning label will limit dosage for unvaccinated dogs and may initially slow its adoption as well as reduce the number of treatments by around 25%.

Elanco also expects FDA approval for its Credelio Quattro during Q4 and US launch in 2025.

It also raised its forecast for innovation sales in 2024 to $400 million to $450 million, up from $375 million to $410 million previously.

Price: 14.11, Change: -3.87, Percent Change: -21.51