Zoetis's stock falls 8% after report that its arthritis shots may have sickened pets

By Ciara Linnane

Company says drugs are safe and effective, but can have side effects

Zoetis Inc.'s stock (ZTS) tumbled 7% Friday to lead S&P 500 decliners, after a Wall Street Journal report that the company's arthritis shots Librela and Solensia may have sickened pet cats and dogs.

The two shots won Food and Drug Administration approval in 2022 and 2023 as the first antibody drugs for pets.

But the paper reported that health regulators in the U.S. and Europe have received thousands of complaints from pet owners saying their pets had severe side effects and, in some cases, had to be euthanized.

Zoetis told MarketWatch that it understands their concerns, but said the drugs are safe and effective.

"As with any medication there can be side effects. With more than 18 million doses distributed, we have continued to see low rates of adverse events with only 0.18% reported for Librela and 0.3% for Solensia, with no unusual trends in safety and efficacy," the company said.

Pet owners "must work with their veterinarian to ensure that any product is right for their pet and that the risks and benefits are clear before starting treatment."

The Journal report said regulators are conducting reviews, while some vets are refining the use of the drugs. Wall Street analysts are also asking questions of the company.

The FDA alone received more than 3,800 reports of side effects through the end of 2023, while the European Medicines Agency received more than 12,300 reports of side effects relating to Librela, and more than 7,700 for Solensia since they first went on sale there, according to the report.

Librela and Solensia chalked up $124 million in global sales last quarter. Zoetis, which had $8.5 billion of revenue in 2023, has told investors the franchise was its "next big opportunity." The company is a leader in animal-health products.

Zoetis shares have fallen 24% in the year to date, while the S&P 500 SPX has gained 7%.

-Ciara Linnane

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04-12-24 1327ET

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