Zoetis Inc.

Zoetis delivered a decent set of results for the last quarter of 2022 meeting analyst expectations as well as the high end of its management guidance. Despite the economic challenges, ongoing pandemic recovery, and the political unpredictability brought on by the war in Ukraine, they delivered operational growth for the year in each of their top 13 markets. The company’s unique companion animal portfolio drove its 8% operational revenue increase for the year, growing 14% operationally. In comparison, the cattle portfolio decreased by 2% operationally because of generic competition and market issues, particularly in the U.S. Besides that, they are off to a good start in pain management with two monoclonal antibodies for osteoarthritis pain, Librela for dogs and Solensia for cats. As they expand geographically and supply, they are redefining care in this category once more and seeing a strong early response to both products in their significant markets. Among key updates, they collaborated with EpiVax to create CircoMatch, a novel bioinformatics technique that forecasts the coverage of Porcine Circovirus Type 2 vaccinations against field isolates of PCV2. We give Zoetis Inc. a ‘Buy’ rating with a revised target price.