I would correct Pugilist’s steps:

  1. Fight all 3 reg champions, using regular lures.
  2. Fight the Werehyena, which can be found inside al-Merayah fortress behind one door near one of the main gates, using a regular lure. Loot the blood from it’s corpse.
  3. Craft Grand Champion lure and then craft Malodorous Grand Champion lure from it, using the GCh lure + sacred blood, you harvested from the Werehyena champion.
  4. Wait 24 hours for the MGCh lure to decay, then use it as a bait inside the dungeon, kill the better Werebear and loot the horn for summoning Werebear pet from it.

Agreed, that this pet is mostly aesthetic one.

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