A Product Recall Crashed Elanco’s Stock. Is This a Buying Opportunity?

Elanco Animal Health’s (NYSE: ELAN) stock caught fire recently, after more bad news arrived for one of its flagship products. Elanco is a pet pharmaceutical company that added Seresto to its portfolio after purchasing Bayer Animal Group (a subsidiary of Bayer) last year.
Seresto is a tick and flea collar designed to work on both cats and dogs. Unfortunately, the collar has built up a record as a potentially dangerous product for pets and humans alike. These recent findings have been a black eye for the company, and pose several risks including that the products could be pulled from the market or legal action from a civil suit. Given the risks, should investors buy the stock or wait on the sideline?
Image source: Getty Images.
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