Zoetis is the first opportunity for a direct investment in one of the major global animal health players, and it has faced a very warm reception from the market. We believe the previously underfollowed industry carries very attractive characteristics. Read more
Improving standards of living in the emerging markets leads to greater adoption of meat-heavy diets.
Companion animals are increasingly viewed as family members, driving significant growth in pet-care spending.
Since the animal health industry lacks large payers like Medicare, single-payer governments, or large insurance companies, Zoetis maintains significant pricing power.
Zoetis faces minimal generic competition, as more than 80% of sales are off patent or were never patented.
Zoetis has leading market share in the industry, giving it scale advantages over all competitors. Read more
Potential regulation or restriction of antibiotic use in animals could severely hurt Zoetis' production-animal product sales.
Lower-margin emerging market sales will make up an increasing portion of company sales, creating a headwind to Zoetis' margins.
Emerging market customers may be more price-sensitive and more open to using generic products.
As the animal health market grows, it could become more feasible for well-capitalized generic firms to enter the market.
The growing trend of organic foods could weigh on future demand for production-animal products. Read more
With limited results by which to judge current management, we default to a standard stewardship rating. Juan Ramon Alaix has been president of Pfizer Animal Health since 2006 and will be CEO of Zoetis. Under his leadership, Pfizer's animal health unit Read more
Zoetis sells anti-infectives, vaccines, parasiticides, and other health products for animals. The firm gets the majority of its revenue from production animals (cattle, Read more
Prescribe to Pharma for Emerging-Markets Growth Watch more