Drugs

Bayer agrees to sell its veterinary drugs business to Elanco

a dog standing next to animal medication produced by Elanco (top) and Bayer at a veterinary practice
A dog standing next to animal medication produced by Elanco. Photo: Frank Rumpenhorst/AFP/Getty Images

Bayer agreed to sell its veterinary drugs business to Elanco for $7.6 billion in cash and stock.

Why it matters: It creates the world's second-largest animal health company by revenue, behind Zoetis, with a 13% market share. It also will help Bayer cut into the debt pile it built via last year's Monsanto acquisition.

Wall Street's fear of an opioids settlement

Data: Money.net; Chart: Axios Visuals

The stock prices of AmerisourceBergen, Cardinal Health and McKesson plummeted yesterday after Bloomberg reported the drug distributors made an opening offer of $10 billion to settle their portion of the national opioids lawsuit.

Between the lines: That figure was a lot higher than Wall Street had expected for those companies, indicating that other defendants — including opioid manufacturers — likely would pay tens of billions of dollars to avoid going to trial.