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Zoetis (NYSE: ZTS) | Company Profile, History, Competitors

 

Zoetis (NYSE: ZTS) manufactures and sells animal health medicine for livestock and companion animals. The company sells its products in over 100 countries worldwide. The company was founded in 1952 and headquartered in Parsippany, NJ.

The company was founded in 1952 as an agricultural division within Pfizer. Zoetis provides a wide range of animal services including vaccines, antibodies, anti-infectives, drugs, parasiticides and feed additives.

Business Overview

Zoetis operates in five main segments:
  • Vaccines (26% of 2017 Revenues): Sells vaccines or antibodies to prevent diseases in animals
  • Anti-Infectives (24% of 2017 Revenues): Products that kills, prevents the growth of bacteria, fungi or protozoa
  • Other Pharmaceuticals (22% of 2017 Revenues): Pain and sedation medication, oncology, allergy, dermatology and reproductive products
  • Parasiticides (14% of 2017 Revenues): Products that prevent or eliminate external and internal parasites such as fleas, ticks and worms
  • Medicated Feed Additives (9% of 2017 Revenues): Products added to animal feed to provide medicines to livestock, including supplemetns, premix feeds and base mixes.

Top Products in Livestock Portfolio

Below are the top products in Zoetis's livestock portfolio.

Product Category Description Animals
Ceftiofur injectable line Anti-Infectives Antibiotic against grain-positive and grain-negative bacteria Cattle, sheep, swine
Draxxin Anti-Infectives Antibiotic for the treatment and prevention of bovine and swine respiratory disease Cattle, swine
Spectramast Anti-Infectives Treatment of mastitis in dairy cattle Cattle
Terramycin Anti-Infectives Antibiotic for the treatment of susceptible infections Cattle, poultry, sheep, swine
Bovi-Shield Vaccines Prevents bovin rhinotrachetitis, viral diarrhea parainfluenza3, respiratory syncytial virus and leptospirosis  Cattle
Rispoval Vaccines Prevents cattle pneumoni, Pl3 virus and BVD virus Cattle
Suvaxyn PCV / Fostera PCV Vaccines Prevents viremia and lymphoid depletion Swine
Cydectin Parasiticides Controls cattle parasites including roundworms, lungworms, mites and lice Cattle, sheep
Dectomax Parasiticides Control for internal and external parasite infections Cattle, swine
Aureomycin Medicated Feed Additives Controls and treats respiratory, enteric and reproductive diseases Cattle, poultry, sheep, swine
BMD Medicated Feed Additives Prevents enteritis, increases weight gain and feed efficiency Poultry, swine
Lasalocid line Medicated Feed Additives Controls coccidiosis, increases weight gain and feed efficiency Poultry, cattle
Lincomycin line Medicated Feed Additives Controls necrotic enteritis, dysentery ileitis and mycoplasmal pneumonia Swine, poultry
Embrex devices Other Enhances hatchery operations efficiency Poultry
Lutalyse Other Controls estrus or induces parturition Cattle, swine
Orbeseal / Teatseal Other Prevents new intramammary infections in dairy cattle Cattle

Top Products in Animal Companion Portfolio

Below are the top products in Zoetis's animal companion portfolio.

Product Category Description Animals
Clavamox / Synulox Anti-Infectives Pencillin approved for use in dogs and cats Cats, dogs
Convenia Anti-Infectives Treatment of common bacterial skin infections Cats, dogs
Vanguard L4 (4-way Lepto) Vaccines Protects against leptospiosis caused by Leptospira canicola, L. grippotyphosa, L. icterohaemorrhagiae and L. pomona Dogs
Vanguard line Vaccines Prevents canine distemper, canine hepatitis, respiratory disease, canine parainfluenceza and canine parvoviral enteritis Dogs
Revolution / Stronghold Parasiticides Protects against fleas, heartworm disease and earmites in cats and dogs Cats, dogs
ProHeart Parasiticides Prevents heartworm infestation and treats adult hookworm infections Dogs
Apoquel Other Controls pruritus associated with allergic dermatitis and atopic dermatitis Dogs
Cerenia Other Prevents and treats acute vomiting in dogs Cats, dogs
Rimadyl Other Pain refliec associated with osteoarthritis and postoperative pain Dogs

Manufacturing & Distribution

As of 2017, Zoetis has 25 global manufacturing sites as well as over 180 third-party contract manufacturing organizations.

In terms of future products, Zoetis has over 200 programs in research and development. Zoetis enters into agreements with external parties to collaborate on research programs.

Sales & Marketing

As of 2017, Zoetis has a salesforce of 2,900 employees. Their sales representatives visit their customers directly to promote products and services. Zoetis also has veterinary technicians who have advanced medicine degrees to train and educate customers.

Customers

Zoetis sells its products to a broad range of customers. For livestock, these include livestock producers or veterinarians, third-party veterinary distributors and retailers. For companion animals, Zoetis sells directly to veterinarians through its direct salesforce.

Competitors

Its main competitors are Boehringer Ingelheim Vetmedica (animal health division of Boehringer Ingelheim), Merck Animal Health, Elanco Animal Health (Eli Lilly) Phibro Animal Health, Bayer Animal Health (Bayer).

History

The company was founded in 1952 as an agricultural division within Pfizer. In 1988, the agricultural division was renamed Pfizer Animal Health.

In 1995, the company acquired GlaxoSmithKline's animal health division, Norden Laboratories, and entered the vaccinations and small animal care business including domestic pets. In 1997, the company launched Rimadyl, an anti-inflammatory medicine for dogs. In 1999, the company launched Revolution, for heartworm and flea infestations.

In 2003, Pfizer acquired Pharmacia, which expanded the company's cattle product division and CSL Animal Health, which is for livestock. In 2007, Pfizer acquired Embrex and expanded into poultry devices and vaccines. In 2008, Pfizer acquired Catapult Genetics and Boivgen to expand into animal genetics. In 2010, Pfizer acquired Wyeth and Ford Dodge Animal Health, which expanded further into animal care. In 2010, Pfizer acquired Microtek International and entered into avacinnes for aquaculture.

In 2013, Pfizer announced that its Animal Health business would become a separate company called Zoetis. It spun out Zoetis which began trading on the NYSE under ticker ZTS.

In 2015, Zoetis acquired the animal health assets of Abbott Laboratories and KL Products, which offered automation services for hatchery operations. In 2018, Zoetis acquired Abaxis, a veterinary diagnostics company for household pets and farm animals.

Management

Juan R. Alaix (CEO): Juan Alaix serves as CEO since 2012. Prior, he served as the CEO of the predecessor Pfizer Animal Health business. Prior to Pfizer, he worked as Regional President of Pharmacia and General Manager at Rhône-Poulenc Rorer, a French chemical and pharmaceutical company.

Glenn David (CFO): Glenn David serves as CFO since 2016. Prior, he was Senior Vice President of Finance Operations at Zoetis. Before that, he served as VP Global Finance for Pfizer Animal Health and VP Finance for the US Primary Care Division. Prior to Pfizer, he worked at Credit Suisse, Paine Webber and Bankers Trust.

Financials

 $ USD in millions     2013     2014  2015  2016  2017
 Revenues  $4,561 
$4,785 
$4,765 
$4,888 
$5,307 
 Gross Profit  $2,936 
$3,105 
 $3,098 
 $3,264 
 $3,546 
 Operating Profit  $794 
$944 
 $750 
 $1,394 
 $1,706 
 Net Income $504 
$583 
$339 
 $821 
 $864 
 EPS $1.01 
$1.16 
$0.68 
$1.65 
$1.75 

Zoetis, Inc.
 
  Type     Public
  Ticker     NYSE: ZTS
  Industry Healthcare
  Founded 1952
  Headquarters Parsippany, NJ
  Revenues
$5.3bn (2017)
  Employees 9,200 (2017)
  Website zoetis.com