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Zoetis Inc. is a global leader in the animal health industry, specializing in the discovery, development, manufacture, and commercialization of a wide range of products and services for animal health . The company offers medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for both companion animals and livestock across eight core species, including dogs, cats, horses, cattle, swine, poultry, fish, and sheep . Zoetis operates through two geographic segments, the United States and International, and markets its products directly to veterinarians and livestock producers in about 45 countries, while also contracting with distributors in regions where it does not have a direct commercial presence .
- Parasiticides - Provides treatments to protect animals from parasites, ensuring their health and well-being.
- Vaccines - Develops and manufactures vaccines to prevent diseases in various animal species.
- Dermatology - Offers products for the treatment and management of skin conditions in animals.
- Other Pharmaceuticals - Includes a range of pharmaceutical products for various health conditions in animals.
- Anti-infectives - Supplies medications to treat infections in animals, promoting recovery and health.
- Animal Health Diagnostics - Delivers diagnostic products and services to detect and monitor animal health issues.
- Medicated Feed Additives - Produces additives for animal feed to enhance health and growth.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Kristin C. Peck ExecutiveBoard | Chief Executive Officer and Director | Board of Directors at BlackRock, Board of Trustees at Mayo Clinic, Board of Directors at Catalyst, Member of Business Roundtable and The Business Council, Columbia Business School Board of Directors | CEO since January 2020, pivotal in Zoetis' IPO, led transformative initiatives. | View Report → |
Jamie Brannan Executive | Executive Vice President and Chief Commercial Officer | None | Joined Zoetis in 2016, strong commercial leadership, oversees global markets. | |
Jared Shriver Executive | President of U.S. Operations | None | Nearly 20 years at Zoetis, promoted to President of U.S. Operations in 2024. | |
Keith Sarbaugh Executive | Executive Vice President and Chief Digital & Technology Officer | None | Joined Zoetis in 2023, leads digital and technology strategy. | |
Nick Ashton Executive | Executive Vice President and President, Global Manufacturing and Supply | None | Joined Zoetis in 2020, extensive experience in production and supply chain. | |
Rimma Driscoll Executive | Executive Vice President and Head of Global Strategy, Commercial and Business Development, and Global BioDevices | None | Joined Zoetis in 2016, leads business development and strategy. | |
Roxanne Lagano Executive | Executive Vice President, General Counsel, and Corporate Secretary | None | Joined Zoetis in 2012, extensive experience in HR and operations. | |
Wetteny Joseph Executive | Executive Vice President and Chief Financial Officer | None | CFO since June 2021, implemented strategic initiatives and cost-saving measures. | |
Antoinette R. Leatherberry Board | Director | Board Member at Digital Direct Holdings, STRIVE, American Family Insurance Mutual Holding Company, Widener University Board of Trustees, Boston University Board of Trustees, Ellig Group Advisory Board | Former Principal at Deloitte, expertise in technology transformations and governance. | |
Frank A. D’Amelio Board | Director | Board Member at Humana Inc., Hewlett Packard Enterprise, Catalent Inc., CFO in Residence at Deloitte CFO Academy | Former CFO of Pfizer, led major acquisitions and divestitures. | |
Gavin D.K. Hattersley Board | Director | President, CEO, and Director of Molson Coors Beverage Company | CEO of Molson Coors, extensive experience in consumer products and financial strategy. | |
Gregory Norden Board | Director | Board Member at NanoString Technologies, Praxis, Royalty Pharma | Former CFO of Wyeth, extensive experience in corporate finance and M&A. | |
Louise M. Parent Board | Director | Board Member at Fidelity National Information Services Inc. | Former EVP and General Counsel at American Express, expertise in governance and compliance. | |
Michael B. McCallister Board | Director and Board Chair | Board Member at AT&T, Fifth Third Bank | Former CEO of Humana, extensive experience in M&A and insurance product development. | |
Paul M. Bisaro Board | Director | Chair of the Board at Mallinckrodt plc, Board Member at Myriad Genetics, Inc. | Nearly 30 years in pharmaceutical industry, extensive M&A experience. | |
Robert W. Scully Board | Director | Board Member at KKR & Co. Inc., Chubb Limited | Over 30 years in financial services, expertise in M&A and strategic advice. | |
Sanjay Khosla Board | Director | Senior Fellow and Adjunct Professor at Kellogg School of Management, Senior Advisor for Boston Consulting Group, CEO of Bunnik LLC, Board Member at Igniting Consumer Growth Acquisition Company Limited and Qualsights | Over 35 years of international business experience, transformed Kraft Foods' developing markets. | |
Vanessa Broadhurst Board | Director | Executive Vice President, Global Corporate Affairs at Johnson & Johnson, Member of The Executive Leadership Council, Board member of the Ad Council | Director since July 2022, leads corporate affairs at Johnson & Johnson. | |
Willie M. Reed Board | Director | Dean of the College of Veterinary Medicine at Purdue University | Thought leader in animal health, extensive experience in veterinary medicine and diagnostics. |
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Given the anticipated entry of new competitors in the dermatology space, particularly those with products carrying boxed warnings, what specific strategies is Zoetis implementing to defend market share for Apoquel and Cytopoint, and how might these strategies affect your promotional activities?
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With the growth of alternative channels like retail and home delivery contributing significantly to sales (alternative channels were up 34% year-on-year in Q3), how is Zoetis adapting its sales and marketing strategy to address the shift away from traditional veterinary clinic visits, and what impact do you expect this to have on your relationships with veterinarians?
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Considering that price contributed 6% to your 14% operational revenue growth in Q3 and that you anticipate the recent tailwinds from higher inflation to normalize, how do you plan to sustain your revenue growth as price-driven gains potentially decrease?
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The MFA divestiture is expected to impact your Q4 revenue growth by reflecting a reduction of U.S. and international sales; can you elaborate on the magnitude of this impact and discuss the strategies you have in place to mitigate any negative effects on your overall financial performance?
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You mentioned that headwinds in China have had approximately a 1% unfavorable impact on growth this year; could you provide more details on the specific challenges you're facing in the Chinese market and how you plan to address them to normalize growth in 2025?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Boehringer Ingelheim Animal Health Inc. | This competitor is part of the animal health division of Boehringer Ingelheim GmbH and is mentioned as one of the primary competitors in the animal health medicines, vaccines, and diagnostics market. |
This competitor is the animal health division of Merck & Co., Inc. and is identified as a primary competitor in the animal health industry. | |
This standalone animal health business is listed as a primary competitor in the animal health medicines, vaccines, and diagnostics market. | |
This company is highlighted as a primary competitor in the animal health diagnostics sector. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
U.S. Veterinary Distributor | Primary distributor of Zoetis products | All | Represents 14% of total revenue for 2024 , 15% for 2023 , and 14% for 2022. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
PetMedix Ltd. | 2023 | Zoetis acquired PetMedix Ltd. in Q3 2023 for an upfront cash consideration of $111 million plus up to $100 million in contingent payments to expand its portfolio of innovative antibody-based therapeutics for companion animals. |
adivo GmbH | 2023 | In Q3 2023, Zoetis completed the acquisition of adivo GmbH, a German R&D stage animal health company, with the transaction having no material impact on its condensed consolidated financial statements. |
Basepaws | 2022 | Zoetis completed the acquisition of Basepaws in Q2 2022, enhancing its precision animal health portfolio by adding genetic testing capabilities, including tests for 64 feline and over 210 canine health markers. |
Jurox | 2022 | On September 30, 2022, Zoetis acquired Jurox for a total purchase price of $226 million (with a net cash consideration of $215 million), integrating a comprehensive range of veterinary medicines for companion animals and livestock. |
Recent press releases and 8-K filings for ZTS.
- Zoetis reported an outstanding 2024 performance with the second highest growth rate in its history, driven by double-digit growth in companion animal franchises and consistent livestock growth (5-6%).
- The company emphasized an expanding product pipeline that includes a positive market reception for Librela and increasing market potential for its OA pain franchise, with updated estimates for the renal market now between $3-4 billion and enhancements in oncology and cardiovascular areas.
- Margin improvement remains a key focus, with initiatives such as divesting MFA, scaling manufacturing, and targeted pricing strategies aimed to enhance the higher-margin companion animal business, despite potential FX headwinds.
- Amidst macroeconomic uncertainties, Zoetis underlined the inherent resilience of the animal health industry, noting robust pet owner spending and favorable market trends even during economic pressures.