Analyst Note| Debbie S. Wang |
Zoetis posted strong first-quarter results that remain on track with our full-year expectations. After slight adjustments to our companion animal projections and for higher expenses in the second half as normal travel patterns pick up again, we’re leaving our fair value estimate unchanged for now. The firm’s track record for successful commercialization of novel therapies, especially for companion animals, only reinforces our confidence in Zoetis’s wide economic moat. Not only has Zoetis pioneered (and continues to dominate) the dermatology market for small animals, its line up of monoclonal antibody therapies for osteoarthritis is poised to jump start the pain relief market, which has been populated mainly with NSAIDs.