Zoetis (ZTS) Poised to Grow on Companion Animal Portfolio

Zoetis (ZTS) Poised to Grow on Companion Animal Portfolio

We issued an updated report on Zoetis, Inc. ZTS on Aug 18.

Zoetis boasts a robust and diversified product portfolio. The company’s business is divided into five categories – anti-infectives, vaccines, parasiticides, medicated feed additives and other pharmaceuticals. Zoetis markets its offerings primarily across eight core species – cattle, swine, poultry, sheep and fish (collectively, livestock) and dogs, cats and horses (collectively, companion animals).

Zoetis derives a majority of its revenues from a diversified product portfolio of medicines and vaccines that are used to treat and protect livestock and companion animals. The company continues to strengthen its diverse portfolio of products through lifecycle innovations, strong customer relationships, and access to new markets and technologies. Apoquel and other product launches continue to drive growth in companion animal portfolio.

The company expects to witness stronger growth from its companion animal portfolio in 2017 driven by its dermatology portfolio, Apoquel and Cytopoint, further penetration of Simparica, and ongoing uptake of new vaccines.  Latest data shows that 55% of dogs with dermatology problems in the U.S. are treated with Apoquel or Cytopoint, up from 52% in the first quarter.

In addition, new approvals further boost portfolio. Zoetis received approval for Clavamox Chewable in the U.S. in May 2017, Cytopoint in the European Union in April and in Canada in March.

Zoetis stock has moved up 13.5% in the year so far compared with the industry ‘s loss of 3.5%.

However, disease outbreak among animals is a concern for Zoetis’ livestock products. Such outbreaks may hurt regional or global sales of particular animal-derived food products or result in reduced exports of the same, either due to heightened export restrictions or import prohibitions, in turn, dampening demand for livestock products.

Moreover, Zoetis faces stiff competition from other animal health medicines and vaccines companies like Merck Animal Health, the animal health division of Merck & Co MRK , Elanco, the animal health division of Eli Lilly and Co. LLY , Bayer Animal Health, the animal health division of Bayer AG BAYRY and Boehringer Ingelheim Animal Health (the animal health division of Boehringer Ingelheim).

Zacks Rank

Zoetis currently carries a Zacks Rank #3 (Hold). You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market. 

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2020.  Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eli Lilly and Company (LLY): Free Stock Analysis Report

Merck & Company, Inc. (MRK): Free Stock Analysis Report

Bayer AG (BAYRY): Free Stock Analysis Report

Zoetis Inc. (ZTS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Related posts