1-3 brief analogies to describe Zoetis (ZTS):

• Pfizer for animals
• Merck & Co. for the animal health market
• Eli Lilly for pets and livestock

• Vaccines: Preventative medicines that stimulate an animal's immune system to protect against infectious diseases.
• Parasiticides: Products designed to treat and control internal and external parasites in animals.
• Anti-infectives: Medications used to treat bacterial, fungal, and viral infections in animals.
• Other Pharmaceutical Products: A broad category encompassing various specialized medicines for pain management, dermatology, oncology, and other therapeutic areas in animals.
• Diagnostic Products: Instruments, reagents, and services that aid in the detection, monitoring, and management of animal diseases.

• **Animal Health Distributors:** These companies act as intermediaries, purchasing products from Zoetis and then distributing them to veterinary practices, livestock producers, and other retailers. Major public companies in this space that would be Zoetis's customers include:
  • **Patterson Companies Inc. (PSX)**
  • **Cencora (COR)** (formerly AmerisourceBergen, through its Animal Health segment)
  • **Covetrus (CVET)**
• **Veterinary Practices and Clinics:** Zoetis sells directly to thousands of veterinary clinics and hospitals globally, which are businesses that use and dispense Zoetis's medicines, vaccines, and diagnostics for companion animals and livestock.
• **Livestock Producers and Farmers:** Zoetis supplies products directly to agricultural businesses, ranging from individual farms to large corporate livestock operations, for the health and productivity of their animals.

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Kristin Peck became Chief Executive Officer of Zoetis in January 2020. She joined Zoetis in October 2012 as Executive Vice President and Group President, playing a key role in the company's growth and its Initial Public Offering (IPO) in 2013. Before joining Zoetis, Ms. Peck served as Executive Vice President, Worldwide Business Development and Innovation at Pfizer Inc., where she was responsible for evaluating strategic alternatives for Pfizer's Animal Health and Nutrition businesses, which ultimately led to the spin-off of Zoetis. Prior to Pfizer, she held roles in private equity and real estate finance at The Prudential Realty Group, The O'Connor Group, and J.P. Morgan, as well as at The Boston Consulting Group (BCG).

Wetteny Joseph joined Zoetis as Executive Vice President and Chief Financial Officer in June 2021. In this role, he oversees financial management, planning, operations, and indirect procurement. He also has oversight of the company's Human Health Diagnostics business. Before Zoetis, Mr. Joseph spent 13 years in executive positions at Catalent, a global leader in pharmaceuticals, biologics, and consumer health products, where he served as Senior Vice President and CFO from 2018. At Catalent, he drove financial growth through acquisitions and organic capital deployment. His career at Catalent began in 2008 as Corporate Controller, and he later became President of the Clinical Supply Services business. Earlier in his career, he held senior financial positions at HD Supply, including CFO for its plumbing and HVAC business unit, and was Corporate Controller for Hughes Supply, a company later acquired by Home Depot and became part of HD Supply. He also worked for six years at PricewaterhouseCoopers as an auditor and strategic financial advisor.

Nick Ashton serves as Executive Vice President and President, Global Manufacturing and Supply at Zoetis.

Jamie Brannan is the Executive Vice President and Chief Commercial Officer at Zoetis.

Robert Polzer is the Executive Vice President and President, Research and Development at Zoetis.

The most significant risk to Zoetis is **intensifying competition and potential market share erosion**, particularly within its key companion animal franchises like parasiticides and dermatology. This competition has reportedly impacted organic growth, with the U.S. Companion Animal organic growth showing a slowdown in Q3 2025. Analysts have downgraded Zoetis' stock due to these growing competitive pressures, which have materialized in the company's financial results. The increased competition from companies such as IDEXX and Elanco in vaccines and diagnostics further threatens Zoetis' market share.

Another major risk is **regulatory scrutiny and product-specific challenges**, highlighted by concerns surrounding the safety and efficacy of new drugs such as Librela. The FDA has issued warnings regarding Librela, posing regulatory and reputational risks that could affect consumer trust and adoption rates. Ongoing litigation and regulatory scrutiny for products like Librela have contributed to short-term volatility in the company's stock and could negatively impact financial performance.

Finally, **macroeconomic and global political conditions** present a broad risk to Zoetis' operations. The company is susceptible to global economic fluctuations, including inflation, supply chain disruptions, and trade tensions, which can impact its cost structure and international profitability. Economic slowdowns, changes in consumer spending on pet care, and volatility in livestock markets can lead to soft demand and operational challenges, particularly in international markets like China.

The rise of cultured meat (cellular agriculture) and other alternative protein technologies poses a clear emerging threat to Zoetis.

As these technologies scale and gain market acceptance, they have the potential to significantly reduce the global demand for traditionally farmed livestock, thereby shrinking a core market for Zoetis's pharmaceuticals, vaccines, and diagnostic products for cattle, swine, poultry, and fish.

Zoetis (symbol: ZTS) operates within the global animal health market, which was valued at approximately USD 63.3 billion in 2023 and is projected to grow to USD 119.34 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.3% from 2025 to 2032. Other estimates place the global animal health market at USD 60–70 billion in 2023, with projections reaching USD 75–90 billion by 2028 and up to USD 110 billion by 2033. Another report forecasts the global animal health market to reach USD 112.33 billion by 2030, with a CAGR of 10.46% from 2025 to 2030.

The company's main products and services primarily target two major segments: companion animals and livestock.

• Companion Animal Health Market: This market encompasses products such as parasiticides, vaccines, dermatology treatments, anti-infectives, and pain and sedation products for pets like dogs, cats, and horses. The global companion animal health market was estimated at USD 23.08 billion in 2023 and is projected to reach USD 42.50 billion by 2030, growing at a CAGR of 9.3% from 2024 to 2030. Another assessment indicates the global companion animal health market size was USD 25.28 billion in 2024, grew to USD 27.64 billion in 2025, and is projected to reach approximately USD 61.74 billion by 2034, with a CAGR of 9.34% between 2025 and 2034. North America held the largest share of this market, accounting for 35.82% in 2023 and 37% in 2024. Zoetis holds a significant position within this segment, with a 25% market share in companion animal health. Within the companion animal health market, the companion animal drugs segment alone was valued at USD 25.6 billion globally in 2024 and is expected to reach USD 49.8 billion by 2034, growing at a CAGR of 6.8% from 2025 to 2034. The drugs segment, a major component of this market, recorded revenues of USD 13.8 billion in 2024.

• Livestock Drug Market: Zoetis also serves the livestock sector, providing products for cattle, swine, poultry, fish, and sheep. The global livestock drug market was valued at USD 7 billion and is projected to reach USD 10.5 billion by 2030, growing at a CAGR of 6.2%.

Zoetis (ZTS) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and market dynamics:

1. Continued Innovation and New Product Launches: Zoetis maintains a robust pipeline and is expected to continue launching innovative products, particularly within its high-growth franchises. Key drivers include the osteoarthritis pain franchise, with products like Librela for dogs and Solensia for cats, which are projected to reach $1 billion in annual sales. The Simparica franchise, focusing on parasiticides, is also a significant growth engine, with the triple combination treatments market expected to expand. Furthermore, the dermatology franchise, featuring products like Apoquel and Cytopoint, continues to show strong performance and market expansion. The company has over 130 innovations planned for 2025.
2. Global Market Expansion, Especially in Emerging Markets: Zoetis is actively expanding its presence internationally, investing in infrastructure and operations in key emerging regions like India. This strategy aims to capitalize on rising disposable incomes and increasing global demand for quality pet care and animal protein. The International segment has already demonstrated robust performance, contributing significantly to revenue growth.
3. Growth in the Companion Animal Segment: The increasing trend of pet ownership and higher spending on pet care globally are significant tailwinds for Zoetis. The company's diverse portfolio of companion animal products, including those for pain management, parasiticides, and dermatology, positions it well to capture this growing market.
4. Strength and Expansion in the Livestock Segment: The livestock segment has shown consistent and strong organic operational revenue growth, driven by resilient market demand for animal protein and effective vaccine-led growth strategies. Zoetis's focus on developing solutions for cattle, swine, poultry, and fish globally helps meet the evolving needs of producers and contributes to sustainable growth.
5. Strategic Portfolio Management and Partnerships: Zoetis is refining its focus on high-growth areas through strategic divestitures, such as the sale of its Medicated Feed Additive (MFA) business in late 2024, to concentrate on preventatives, antibiotic alternatives, and genetic innovations. Additionally, strategic partnerships, like the collaboration with Danone on sustainable dairy farming, enhance its offerings and market reach.