Zoetis
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Company type | Public |
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NYSE: ZTS S&P 500 Component | |
Industry | Pharmaceutical |
Founded | 1952 |
Headquarters | Florham Park, New Jersey, United States[1] |
Area served | Worldwide |
Key people | Juan Ramon Alaix (CEO) |
Revenue | ![]() |
2,656,000,000 United States dollar (2022) ![]() | |
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Number of employees | 9500[3] |
Website | Zoetis.com |
Zoetis, Inc. (/zō-EH-tis/[4]) is the world's largest producer of medicine and vaccinations for pets and livestock.[4][5] 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][6] 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.[7]
History
1950s to 2000s
![](http://upload.wikimedia.org/wikipedia/commons/thumb/0/03/ZoetisBuilding.jpg/250px-ZoetisBuilding.jpg)
In the 1950s, Pfizer began research on several drugs including Oxytetracycline.[8] 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.[8][9] By 1988 the division was renamed Pfizer Animal Health.[8]
The acquisition of GlaxoSmithKline’s Norden Laboratories in 1995 boosted Pfizer's animal health division into small animal care including domestic pets.[8] Secondary research and development centres were opened in Kalamazoo, Michigan in 2003.[8] In the same year, Pfizer acquired Pharmacia Corporation for US$ 60 billion in stock options.[10] 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.[8] These acquisitions greatly increased Pfizer's market, range of products, countries it operated in, and resources.
2010s to present
Plans to break away Pfizer Animal Health into a separate company were officially announced in 2012.[4] The name chosen, Zoetis, roughly translates from the derived Latin zoological word zoetic, meaning 'pertaining to life'.[4]
In 2011, Zoetis Inc.'s revenues exceeded $4.2 billion and $4.34 billion in 2012.[11][4] The animal health industry worldwide is an estimated US$22 billion dollar industry.[4]
On 22 May 2013, The Wall Street Journal reported that Pfizer plans to sell its majority stake in the company.[11] According to the report, shareholders will have the option to swap their Pfizer shares for Zoetis shares.[11] 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.[11]
In November 2014, activist investor Bill Ackman disclosed that Pershing Square Capital Management had taken an 8.5% stake in the company, amassing approximately 41.8 million shares, causing the share price to hit its highest price since the IPO.[12] On 17 November, the company announced it would acquire a portfolio of pet drugs from Abbott Laboratories for approximately $255 million.[13]
In November 2015 the company announced it would acquire developer of aquaculture treatments and diseases, Pharmaq, for $765 million.[14]
2012: IPO
Records show that Pfizer officially filed for registration of a Class A stock with the U.S. Securities and Exchange Commission on 10 August 2012.[8][15] Zoetis' IPO on 1 February 2013 sold 86.1 million shares for US$ 2.2 billion.[16] Shares sharply rose 19% by the end of the trading day to $35.01 a share, up from $26.[4] At the time, it was the largest IPO from a U.S. company since Facebook's $16 billion IPO on 18 May 2012.[6] 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.[4] The offering's lead underwriters were JPMorgan Chase, Bank of America Merrill Lynch and Morgan Stanley.[16] Most of the money raised through the IPO was used to pay off existing Pfizer debt.[4]
Products
Twenty eight sites in 11 countries make up Zoetis manufacturing network, each facility designed to meet chemical and infectious agent safety regulatory requirements. Many R&D operations are co-located with manufacturing sites, a collaboration that allows to bring new products to market faster. Zoetis builds on six-decade Pfizer history and aims for high tech innovative manufacturing technologies. Zoetis products include:[17]
References
- ^ a b c DIETERICH, CHRIS (31 January 2013). "Zoetis Raises $2.2 Billion in IPO - WSJ.com". The Wall Street Journal. New York. Retrieved 1 February 2013.
- ^ a b "Zoetis Annual Income Statement". Market Watch. Retrieved 21 July 2016.
{{cite web}}
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(help) - ^ "ZOETIS INC. (ZTS) IPO - NASDAQ.com". NASDAQ. Retrieved 1 February 2013.
- ^ a b c d e f g h i "Shares of animal health company Zoetis soar in IPO". CBS News. New York. 1 February 2013. Retrieved 1 February 2013.
- ^ "Zoetis raises about $2.2 billion in IPO". The Associated Press. New York: Yahoo!. 1 February 2013. Retrieved 1 February 2013.
- ^ a b Oran, Olivia; Ransdell Pierson (31 January 2013). "UPDATE 2-Zoetis IPO prices at $26; largest US deal since Facebook". Reuters. New York. Retrieved 1 February 2013.
- ^ Zoetis to join S&P 500
- ^ a b c d e f g "Form S-1". WASHINGTON, D.C: U.S. Securities and Exchange Commission. 10 August 2012. Retrieved 2 February 2013.
- ^ "Pfizer Buys 732 Acre Vigo Chemical Plant". Chicago Daily Tribune. 17 July 1958. p. 1. Retrieved 2 February 2013.
- ^ Frank, Robert; Hensley, Scott (15 July 2002). "Pfizer to Buy Pharmacia For $60 Billion in Stock". The Wall Street Journal. Retrieved 2 February 2013.
- ^ a b c d Loftus, Peter (22 May 2013). "Pfizer to Spin Off Remaining Zoetis Stake". The Wall Street Journal. Retrieved 27 May 2013.
- ^ Chen, Caroline (11 November 2014). "Ackman's Pershing Square Takes Stake in Drugmaker Zoetis". Bloomberg.
- ^ Chen, Caroline (17 November 2014). "Zoetis Buys Abbott Animal Health Assets in $255 Million Deal". Bloomberg.
- ^ http://www.genengnews.com/gen-news-highlights/zoetis-purchasing-pharmaq-for-765m/81251930/
- ^ "Zoetis™ Files IPO Registration Statement". Bloomberg L.P. New York. 13 August 2012. Retrieved 1 February 2013.
- ^ a b J. DE LA MERCED, MICHAEL (1 February 2013). "Shares of Zoetis Surge on Debut". New York Times. New York. Retrieved 1 February 2013.
- ^ Pfizer Animal Health Products Template:Wayback
External links
- Companies based in Morris County, New Jersey
- Companies established in 1953
- Companies listed on the New York Stock Exchange
- Research and development in the United States
- Madison, New Jersey
- Pharmaceutical companies based in New Jersey
- Publicly traded companies based in New York City
- Veterinary medicine companies