Zoetis Inc. (ZTS)

Symbol Overview

ZTShttp://www.nasdaq.com/symbol/ztsHealth Care2013Major Pharmaceuticals

Latest Zoetis Inc. (ZTS) company news

Zoetis to Participate in the 2018 Cantor Global Healthcare Conference

PARSIPPANY, N.J.--(BUSINESS WIRE)--

Zoetis Inc. (ZTS) will participate in the 2018 Cantor Global Healthcare Conference on Monday, Oct. 1, 2018, in New York, N.Y. Clint Lewis, Executive Vice President and Group President, International Operations, Commercial Development, Genetics and Aquatic Health, will represent the company and respond to questions from analysts. He is scheduled to present at 9:30 a.m. ET.

Investors and other interested parties will be able to access a live audio webcast of the presentation by visiting http://investor.zoetis.com/events-presentations. A replay of the presentation will also be available on the Zoetis website at the conclusion of the event.

About Zoetis

Zoetis is the leading animal health company, dedicated to supporting its customers and their businesses. Building on more than 60 years of experience in animal health, Zoetis discovers, develops, manufactures and markets veterinary vaccines and medicines, complemented by diagnostic products, genetic tests, biodevices and a range of services. Zoetis serves veterinarians, livestock producers and people who raise and care for farm and companion animals with sales of its products in more than 100 countries. In 2017, the company generated annual revenue of $5.3 billion with approximately 9,000 employees. For more information, visit www.zoetis.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180924005138/en/

Animal health firm Elanco surges 41 percent on debut

Elanco Animal Health Inc. President and CEO Jeff Simmons, rings the ceremonial bell as the stock begins trading on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 20, 2018. REUTERS/Brendan McDermid

By Aparajita Saxena

(Reuters) - Eli Lilly unit Elanco Animal Health Inc's (ELAN.N) shares jumped as much as 41 percent on their stock market debut on Thursday, adding to investor enthusiasm for the fast-growing pet healthcare market.

Elanco's shares opened at $32.25 on the New York Stock Exchange, higher than their IPO price of $24 per share, giving the company a market value of $11.49 billion. As of 1641 GMT, the shares hit a high of $33.85.

The company raised $1.51 billion from the offering, which it expects to largely pass on to Eli Lilly and Co (LLY.N).

The U.S. drugmaker is expected to own about 82.3 percent of Elanco after the IPO, which was announced in July following a nine-month review of Lilly's businesses which include diabetes and lung cancer drugs.

"We looked at the after-tax value to Lilly's shareholders during the separation, and that was an important metric during the discussions," Elanco CEO Jeff Simmons told Reuters.

Simmons emphasized Elanco's focus would be its core animal health business. "We do not see the need for M&A to execute growth plans."

Elanco has been spending 8 percent of sales on research and development, Simmons told CNBC earlier in the day.

The company sells medicines for both pets and livestock, and its Rumensin cattle feed additive accounts for 10 percent of its annual sales of about $3 billion.

Elanco sold 62.9 million shares as part of its IPO, and had targeted an offering price between $20 and $23 per share.

Rising demand for its pet healthcare products has driven much of the company's business in recent years, propelling Elanco to No. 4 globally in the list of animal healthcare groups by revenue.

The pet medicine and vaccine market is largely dominated by Pfizer Inc's (PFE.N) animal health unit Zoetis (ZTS.N), which raised $2.2 billion in a 2013 IPO.

Zoetis' shares have nearly tripled since then and many analysts expect Elanco will replicate that success in an industry projected to grow at 5 percent from 2017 to 2023, according to data firm Vetnosis.

Elanco's listing should deliver more value to Lilly shareholders and help the company as it sharpens focus on cancer treatments and looks beyond the recent failure in trials of its experimental Alzheimer's drug.

The 16-member IPO underwriting team included Goldman Sachs, JPMorgan, Morgan Stanley, Barclays, Bank of America and Citigroup.


(Reporting By Aparajita Saxena in Bengaluru; Editing by Sai Sachin Ravikumar and Shounak Dasgupta)

Lilly's Elanco Rises After $1.5 Billion Animal-Health IPO

Lilly's Elanco Rises After $1.5 Billion Animal-Health IPO

The Eli Lilly & Co.-owned animal medicine maker rose to $32.11 from its $24 offering price at 11:40 a.m. Thursday in New York trading, giving it a market value of $11.7 billion. Elanco priced 62.9 million shares on Wednesday, after marketing them at $20 to $23 each. Elanco already operates fairly independently from its soon-to-be former parent, which will help it move quickly once it’s on its own, according to Chief Executive Officer Jeff Simmons.

See what the IHS Markit Score report has to say about Zoetis Inc.

Zoetis Inc

NYSE:ZTS

Score: Positive (80)

67 days at current score.

Upgraded from Neutral on July 14th 2018

View full report here!

Summary


  • This company ranked positively compared to the Healthcare sector despite only 2 positive IHS Markit Categories
  • Bearish sentiment is low
  • Economic output in this company's sector is expanding


Bearish sentiment

Short interest | Positive

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Short interest is extremely low for ZTS with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting ZTS.

Money flow

ETF/Index ownership | Neutral

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ETF activity is neutral. The net inflows of $6.50 billion over the last one-month into ETFs that hold ZTS are not among the highest of the last year and have been slowing.

Economic sentiment

PMI by IHS Markit | Positive

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According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Healthcare sector is rising. The rate of growth is strong relative to the trend shown over the past year.

Credit worthiness

Credit default swap

CDS data is not available for this security.

Please send all inquiries related to the report to [email protected].

Charts and report PDFs will only be available for 30 days after publishing.

This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

The Zacks Analyst Blog Highlights: Berkshire Hathaway, Coca-Cola, Disney, BHP and Zoetis

The Zacks Analyst Blog Highlights: Berkshire Hathaway, Coca-Cola, Disney, BHP and Zoetis

For Immediate Release

Chicago, IL –September 11, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Berkshire Hathaway BRK.B, Coca-Cola KO, Disney DIS, BHP Billiton BHP and Zoetis ZTS.

Here are highlights from Monday’s Analyst Blog:

Top Analyst Reports for Berkshire-Hathaway, Coca Cola and Disney

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway, Coca-Cola and Disney. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

Buy-ranked Berkshire Hathaway’s shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+20.3% vs. +16.9%). The Zacks analyst thinks Berkshire Hathaway’s inorganic growth story remains impressive with strategic acquisitions. A strong cash position allows it to make earnings-accretive bolt-on buyouts. Demand for utilities is expected to rise in the future and drive earnings growth.

Continued insurance business growth also fuels increase in float. A sturdy capital level further adds an impetus to the company. The insurance business generates maximum return on equity but its exposure to catastrophe loss remains a concern. Huge capital expenses due to railroad operations also emerge as headwinds. Capital expenditure is estimated to be $10 billion in 2018.

Shares of Coca-Cola have outperformed the Zacks Soft Drinks Beverages industry in the past year, (-1.7% vs. -6.2%), driven by a solid earnings trend with beat recorded in the last five quarters. The Zacks analyst thinks the company gains from the effective execution of strategies to evolve as a consumer-centric, total beverage company.

Further, the acceleration of its sparkling soft drinks category through investment and innovation bodes well. Though Coca-Cola reported top and bottom line beat in second-quarter 2018, reported revenues and operating margins were hurt by new accounting standards and negative currency.

Going forward, the company expects unfavorable currency to hurt both revenues and operating margin in the second half. Further, the company anticipates the Trump administration’s recent tariffs on aluminum to increase the cost of producing soda cans. This along with escalating freight costs and higher in other input costs is likely to result in increased prices for sodas, which should hurt profitability.

Disney’s shares have increased +3.3% year to date, outperforming the Zacks Media Conglomerates industry’s +2.3% gain in that same time period. The Zacks analyst thinks Disney’s top-line will benefit from the impressive line-up of big budget movies slated to be released over the next 18 months. Parks & Resorts segment is also expected to gain from significant visitor growth and increased per capita spending.

The pending acquisition of Fox will boost international presence as well as content portfolio. However, Disney’s ongoing investments on its technology platform are expected to keep margins under pressure. Additionally, higher programming costs at ESPN remains a concern. Moreover, weakness in the Consumer Products & Interactive Media segment is a headwind.

Other noteworthy reports we are featuring today include BHP Billiton and Zoetis.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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