Zoetis

Zoetis, Inc.
Public
Traded as NYSE: ZTS
S&P 500 Component
Industry Pharmaceutical
Founded 1952 (1952)
Headquarters Florham Park, New Jersey, United States[1]
Area served
 Worldwide
Key people
 Juan Ramon Alaix (CEO)
Revenue Increase US$ 04.34 billion (2012)[2]
Decrease US$ 0436 million (2012)[3]
Number of employees
 9500[4]
Website Zoetis.com

Zoetis, Inc. (/zō-EH-tis/[5]) is the world's largest producer of medicine and vaccinations for pets and livestock.[5][6] 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.[7][8] The company operates in 70 countries worldwide with recent expansions into Southeast Asia and China.[1][9] 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.[10]

History

1950s to 2000s

In the 1950s, Pfizer began research on several drugs including Oxytetracycline.[11] 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.[11][12] By 1988 the division was renamed Pfizer Animal Health.[11]

The acquisition of GlaxoSmithKline’s Norden Laboratories in 1995 boosted Pfizer's animal health division into small animal care including domestic pets.[11] Secondary research and development centres were opened in Kalamazoo, Michigan in 2003.[11] In the same year, Pfizer acquired Pharmacia Corporation for US$ 60 billion in stock options.[13] 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.[11] 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.[5] The name chosen, Zoetis, roughly translates from the derived Latin zoological word zoetic, meaning 'pertaining to life'.[5]

In 2011, Zoetis Inc.'s revenues exceeded $4.2 billion and $4.34 billion in 2012.[2][5] The animal health industry worldwide is an estimated US$22 billion dollar industry.[5]

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.[11][14] Zoetis' IPO on 1 February 2013 sold 86.1 million shares for US$ 2.2 billion.[15] Shares sharply rose 19% by the end of the trading day to $35.01 a share, up from $26.[5] At the time, it was the largest IPO from a U.S. company since Facebook's $16 billion IPO on 18 May 2012.[9] 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.[5] The offering's lead underwriters were JPMorgan Chase, Bank of America Merrill Lynch and Morgan Stanley.[15] Most of the money raised through the IPO was used to pay off existing Pfizer debt.[5]

2013

On 22 May 2013, The Wall Street Journal reported that Pfizer plans to sell its majority stake in the company.[2] According to the report, shareholders will have the option to swap their Pfizer shares for Zoetis shares.[2] 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.[2]

2014

In November, 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.[16] On 17 November, the company announced it would acquire a portfolio of pet drugs from Abbott Laboratories for approximately $255 million.[17]

2015

In November the company announced it would acquire developer of aquaculture treatments and diseases, Pharamaq, for $765 million.[18]

Products

Zoetis products include:[19][20][21]

References

  1. 1 2 3 DIETERICH, CHRIS (31 January 2013). "Zoetis Raises $2.2 Billion in IPO - WSJ.com". The Wall Street Journal (New York). Retrieved 1 February 2013.
  2. 1 2 3 4 5 Loftus, Peter (22 May 2013). "Pfizer to Spin Off Remaining Zoetis Stake". The Wall Street Journal. Retrieved 27 May 2013.
  3. ↑ "ZTS Annual Income Statement". The Wall Street Journal. 27 May 2013. Retrieved 27 May 2013.
  4. ↑ "ZOETIS INC. (ZTS) IPO - NASDAQ.com". NASDAQ. Retrieved 1 February 2013.
  5. 1 2 3 4 5 6 7 8 9 "Shares of animal health company Zoetis soar in IPO". CBS News (New York). 1 February 2013. Retrieved 1 February 2013.
  6. ↑ "Zoetis raises about $2.2 billion in IPO". The Associated Press (New York: Yahoo!). 1 February 2013. Retrieved 1 February 2013.
  7. ↑ http://press.pfizer.com/press-release/pfizer-announces-preliminary-results-zoetis-exchange-offer-and-adjusts-2013-financial-
  8. ↑ http://news.zoetis.com/press-release/corporate/zoetis-becomes-fully-independent-acceptance-pfizer-shares-tendered-exchange-
  9. 1 2 Oran, Olivia; Ransdell Pierson (31 Jan 2013). "UPDATE 2-Zoetis IPO prices at $26; largest US deal since Facebook". Reuters (New York). Retrieved 1 February 2013.
  10. ↑ Zoetis to join S&P 500
  11. 1 2 3 4 5 6 7 "Form S-1". WASHINGTON, D.C: U.S. Securities and Exchange Commission. 10 August 2012. Retrieved 2 February 2013.
  12. ↑ "Pfizer Buys 732 Acre Vigo Chemical Plant". Chicago Daily Tribune. 17 Jul 1958. p. 1. Retrieved 2 February 2013.
  13. ↑ Frank, Robert; Hensley, Scott (15 July 2002). "Pfizer to Buy Pharmacia For $60 Billion in Stock". The Wall Street Journal. Retrieved 2 February 2013.
  14. ↑ "Zoetis™ Files IPO Registration Statement". Bloomberg L.P. (New York). 13 August 2012. Retrieved 1 February 2013.
  15. 1 2 J. DE LA MERCED, MICHAEL (1 February 2013). "Shares of Zoetis Surge on Debut". New York Times (New York). Retrieved 1 February 2013.
  16. ↑ Chen, Caroline (11 November 2014). "Ackman's Pershing Square Takes Stake in Drugmaker Zoetis". Bloomberg.
  17. ↑ Chen, Caroline (17 November 2014). "Zoetis Buys Abbott Animal Health Assets in $255 Million Deal". Bloomberg.
  18. ↑ http://www.genengnews.com/gen-news-highlights/zoetis-purchasing-pharmaq-for-765m/81251930/
  19. ↑ Pfizer Animal Health Products
  20. ↑ https://online.zoetis.com/us/en/products/pages/productslanding.aspx
  21. ↑ http://www.zoetis.com/news-media/press-releases/fda-approves-apoquel®-oclacitinib-tablet-control-itch-and-inflammation

External links

This article is issued from Wikipedia - version of the Tuesday, November 03, 2015. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.