Zoetis

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Zoetis, Inc.
TypePublic
Traded asNYSEZTS
S&P 500 Component
IndustryPharmaceutical
Founded1952 (1952)
HeadquartersFlorham Park, New Jersey, United States[1]
Area servedWorldwide
Key peopleJuan Ramon Alaix (CEO)
RevenueIncrease US$ 04.34 billion (2012)[2]
Net incomeDecrease US$ 0436 million (2012)[3]
Employees9500[4]
WebsiteZoetis.com
 
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Zoetis, Inc.
TypePublic
Traded asNYSEZTS
S&P 500 Component
IndustryPharmaceutical
Founded1952 (1952)
HeadquartersFlorham Park, New Jersey, United States[1]
Area servedWorldwide
Key peopleJuan Ramon Alaix (CEO)
RevenueIncrease US$ 04.34 billion (2012)[2]
Net incomeDecrease US$ 0436 million (2012)[3]
Employees9500[4]
WebsiteZoetis.com

Zoetis, Inc. (/zō-EH-tis/[5]) is the world's largest producer of medicine and vaccinations for pets and livestock.[5][6] The company was a subsidiary of Pfizer, the world's largest drug maker, but with Pfizer's spinoff of its 83% interest in the firm it is now a completely independent company. The company operates in 70 countries worldwide with recent expansions into Southeast Asia and China.[1][7] Contemporaneous with the spinoff in June 2013 S&P Dow Jones Indices announced that Zoetis would replace First Horizon National Corporation in the S&P 500 stock market index.[8]

History[edit]

1950s to 2000s[edit]

In the 1950s, Pfizer began research on several drugs including Oxytetracycline.[9] John McKeen, a chemical engineer with Pfizer products, discovered its effective use in livestock. In 1952, the Pfizer Agriculture Division opened a 732 acre research and development facility in Terre Haute, Indiana called Vigo.[9][10] By 1988 the division was renamed Pfizer Animal Health.[9]

The acquisition of GlaxoSmithKline’s Norden Laboratories in 1995 boosted Pfizer's animal health division into small animal care including domestic pets.[9] Secondary research and development centres were opened in Kalamazoo, Michigan in 2003.[9] In the same year, Pfizer acquired Pharmacia Corporation for US$ 60 billion in stock options.[11] Between 2007 and 2011 the company acquired Embrex Inc, Catapult Genetics, Bovigen, Wyeth, Fort Dodge Animal Health, Vetnex Animal Health Ltd, Synbiotics Corporation, Microtek, King Pharmaceuticals, and Alpharma.[9] These acquisitions greatly increased Pfizer's market, range of products, countries it operated in, and resources.

2010s to present[edit]

Plans to break away Pfizer Animal Health into a separate company were officially announced in 2012.[5] The name chosen, Zoetis, roughly translates from the derived Latin zoological word zoetic, meaning 'pertaining to life'.[5]

In 2011, Zoetis Inc.'s revenues exceeded $4.2 billion and $4.34 billion in 2012.[2][5] The animal health industry worldwide is an estimated US$22 billion dollar industry.[5]

IPO[edit]

Records show that Pfizer officially filled for registration of a Class A stock with the U.S. Securities and Exchange Commission on August 10, 2012.[9][12] Zoetis' IPO on February 1, 2013 sold 86.1 million shares for US$ 2.2 billion.[13] Shares sharply rose 19% by the end of the trading day to $35.01 a share, up from $26.[5] At the time, it was the largest IPO from a U.S. company since Facebook's $16 billion IPO on May 18, 2012.[7] Pfizer retained 414 million Class B shares giving it an 83% controlling stake in the firm.[1] Stock investors were attracted to the steep profit margin in proportion to revenue and consumer confidence in potential future growth of the subsidiary.[5] The offering's lead underwriters were JPMorgan Chase, Bank of America Merrill Lynch and Morgan Stanley.[13] Most of the money raised through the IPO was used to pay off existing Pfizer debt.[5]

On 22 May 2013, The Wall Street Journal reported that Pfizer plans to sell its majority stake in the company.[2] According to the report, shareholders will have the option to swap their Pfizer shares for Zoetis shares.[2] The sell off of Zoetis is consistent with Pfizer's recent decision to shed other non-pharmaceuticals subsidiaries in an effort to save costs, raise capital, and pay off debt. The company has announced that JPMorgan Chase, Bank of America Merrill Lynch, Goldman Sachs & Co., and Morgan Stanley will be the lead underwriters.[2]

Products[edit]

Zoetis products include:[14][15][16]

References[edit]

  1. ^ a b c DIETERICH, CHRIS (January 31, 2013). "Zoetis Raises $2.2 Billion in IPO - WSJ.com". The Wall Street Journal (New York). Retrieved 1 February 2013. 
  2. ^ a b c d e Loftus, Peter (22 May 2013). "Pfizer to Spin Off Remaining Zoetis Stake". The Wall Street Journal. Retrieved 27 May 2013. 
  3. ^ "ZTS Annual Income Statement". The Wall Street Journal. 27 May 2013. Retrieved 27 May 2013. 
  4. ^ "ZOETIS INC. (ZTS) IPO - NASDAQ.com". NASDAQ. Retrieved 1 February 2013. 
  5. ^ a b c d e f g h i "Shares of animal health company Zoetis soar in IPO". CBS News (New York). February 1, 2013. Retrieved 1 February 2013. 
  6. ^ "Zoetis raises about $2.2 billion in IPO". The Associated Press (New York: Yahoo!). February 1, 2013. Retrieved 1 February 2013. 
  7. ^ a b Oran, Olivia; Ransdell Pierson (Jan 31, 2013). "UPDATE 2-Zoetis IPO prices at $26; largest US deal since Facebook". Reuters (New York). Retrieved 1 February 2013. 
  8. ^ Zoetis to join S&P 500
  9. ^ a b c d e f g "Form S-1". WASHINGTON, D.C: U.S. Securities and Exchange Commission. August 10, 2012. Retrieved 2 February 2013. 
  10. ^ "Pfizer Buys 732 Acre Vigo Chemical Plant". Chicago Daily Tribune. Jul 17, 1958. p. 1. Retrieved 2 February 2013. 
  11. ^ "Pfizer to Buy Pharmacia For $60 Billion in Stock". The Wall Street Journal. July 15, 2002. Retrieved 2 February 2013. 
  12. ^ "Zoetis™ Files IPO Registration Statement". Bloomberg L.P. New York. August 13, 2012. Retrieved 1 February 2013. 
  13. ^ a b J. DE LA MERCED, MICHAEL (February 1, 2013). "Shares of Zoetis Surge on Debut". New York Times (New York). Retrieved 1 February 2013. 
  14. ^ Pfizer Animal Health Products
  15. ^ https://online.zoetis.com/us/en/products/pages/productslanding.aspx
  16. ^ http://www.zoetis.com/news-media/press-releases/fda-approves-apoquel®-oclacitinib-tablet-control-itch-and-inflammation

External links[edit]