Zoetis Is Not Your Average BioPharma Play
Alpha Gen Capital
Alpha Gen Capital
Fri, Jul. 8, 7:03 PM
- Bill Ackman has cut back again in Zoetis (ZTS +1.7%), the animal health firm spun off from Pfizer.
- His Pershing Square Capital Management unloaded another 6.1M shares, reducing his stake to 3.8% from a previous 5%. That means (as of June 15) the stake is below the mandatory line for reporting beneficial ownership.
- Ackman was once one of Zoetis' largest shareholders, with an 8% stake.
- After hours: ZTS -0.04%.
Fri, Jun. 3, 8:01 AM
- GW Pharmaceuticals (NASDAQ:GWPH) initiated with Buy rating and $181 (87% upside) price target by Cantor Fitzgerald.
- Bluebird bio (NASDAQ:BLUE) initiated with Hold rating and $42 (13% downside risk) price target by Cantor Fitzgerald.
- Kite Pharma (NASDAQ:KITE) initiated with Outperform rating and $61 (11% upside) price target by Raymond James.
- Spark Therapeutics (NASDAQ:ONCE) initiated with Hold rating and $58 (5% upside) price target by Jefferies.
- Zoetis (NYSE:ZTS) initiated with Buy rating and $58 (21% upside) price target by Stifel Nicolaus.
- Cardiome Pharma (NASDAQ:CRME) initiated with Buy rating and $9.50 (87% upside) price target by H.C. Wainwright.
- Premier (NASDAQ:PINC) initiated with Overweight rating and $41 (24% upside) price target by Barclays.
- Gilead Sciences (NASDAQ:GILD) initiated with Buy rating and $109 (25% upside) price target by Gabelli & Co.
- Intellia Therapeutics (NASDAQ:NTLA) initiated with Outperform rating and $39 (39% upside) price target by Credit Suisse.
Fri, May 13, 11:51 AM
- ConforMIS (CFMS -51%) downgraded to Neutral from Overweight by JP Morgan. Price target lowered to $8 (62% upside) from $18.
- Johnson & Johnson (JNJ -0.5%) downgraded to Neutral from Buy by BTIG Research.
- EPIRUS Biopharmaceuticals (EPRS +2.2%) downgraded to Neutral from Buy by BTIG Research.
- BioDelivery Sciences (BDSI -1%) downgraded to Hold from Buy by Canto Fitzgerald. Price target lowered to $5 (150% upside) from $9.
- NewLink Genetics (NLNK +7.6%) downgraded to Neutral from Buy by SunTrust Robinson Humphrey. Price target lowered to $12 (15% upside) from $59.
- St. Jude Medical (STJ +0.3%) downgraded to Equal Weight from Overweight by Barclays. Price target raised to $80 (5% upside) from $74.
- Zoetis (ZTS +0.3%) downgraded to Sell from Neutral by Goldman Sachs. Price target raised to $48 (4% upside) from $46.
- Cogentix Medical (CGNT +9.1%) downgraded to Neutral from Buy by Roth Capital. Price target is $1.15 (25% upside).
Thu, May 12, 6:03 PM
Tue, May 10, 1:59 AM
- Bill Ackman's Pershing Square is selling part of its stake in Zoetis (NYSE:ZTS), the former animal health arm of Pfizer, for a price range of $46.75 to $47 per share.
- The transaction is expected to be valued around $800M and will be managed by Bank of America Merrill Lynch and Credit Suisse, NYT reports.
- Pershing will continue to own 25M shares in the company following the sale.
- ZTS fell 1.8% AH on the news.
Wed, May 4, 10:10 AM
- Zoetis (ZTS -2.9%) Q1 results: Revenues: $1,162M (+5.4%); R&D Expense: $90M (+12.5%); SG&A: $315M (-11.0%); Net Income: $204M (+23.6%); EPS: $0.41 (+24.2%); Non-GAAP EPS: $0.48 (+17.1%).
- 2016 Guidance: Revenue: $4,775M - 4,875M; Adjusted SG&A Expenses: $1,290M - 1,330M; Adjusted R&D Expenses: $360M - 380M; Adjusted EPS: $1.83 - 1.90; Adjusted net income: $915M - 950M; Reported EPS: $1.41 - 1.56; Reported net income: ~$705M - 780M.
- 2017 Guidance: Revenue: $5,075M - 5,275M; Adjusted SG&A Expenses: $1,250M - 1,340M; Adjusted R&D Expenses: $360M - 380M; Adjusted EPS: $2.24 - 2.38; Adjusted net income: $1,120M - 1,190M; Reported EPS: $2.01 - 2.19; Reported net income: ~$1,005M - 1,095M.
Wed, May 4, 7:04 AM
Tue, May 3, 5:30 PM
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Mon, Apr. 25, 6:51 AM
- In a regulatory filing, animal health firm Zoetis (NYSE:ZTS) reports that hedge fund and major stockholder Pershing Square Capital Management has decided not exercise its option to extend William Doyle's term on the board through the 2017 Annual Shareholders meeting. Accordingly, Mr. Doyle's term will expire on May 12 when the company hosts its 2016 Shareholders Meeting.
- Healthcare industry veteran Doyle, elected to the board in February 2015, has been with Pershing Square since 2013.
Fri, Feb. 19, 4:35 PM
Tue, Feb. 16, 7:58 AM
- Zoetis (ZTS +2.7%) Q4 results: Revenues: $1,274M (-3.5%); R&D Expense: $109M (-12.1%); SG&A: $425M (-14.5%); Net Income: $22M (-82.5%); EPS: $0.04 (-84.0%); Non-GAAP EPS: $0.43 (+7.5%).
- FY2015 results: Revenues: $4,765M (-0.4%); R&D Expense: $364M (-8.1%); SG&A: $1,532M (-6.8%); Net Income: $339M (-41.9%); EPS: $0.68 (-41.4%); Non-GAAP EPS: $1.77 (+12.7%).
- 2016 Guidance: Revenue: $4,650M - 4,775M from $4,750M - 4,875M; Adjusted SG&A Expenses: $1,250M - 1,300M from $1,310M - 1,360M; Adjusted R&D Expenses: $360M - 380M (unch); Adjusted EPS: $1.71 - 1.81 from $1.84 - 1.94; Adjusted net income: $855M - 905M from $925M - 975M; Reported EPS: $1.30 - 1.48 from $1.50 - 1.68; Reported net income: ~$650M - 740M.
- 2017 Guidance: Revenue: $4,950M - 5,150M from $5,025M - 5,225M; Adjusted SG&A Expenses: $1,220M - 1,310M from $1,270M - 1,360M; Adjusted R&D Expenses: $360M - 380M (unch); Adjusted EPS: $2.18 - 2.32 from $2.24 - 2.38; Adjusted net income: $1,090M - 1,160M from $1,125M - 1,195M; Reported EPS: $1.95 - 2.13 from $2.04 - 2.22; Reported net income: ~$975M - 1,065M.
Tue, Feb. 16, 7:02 AM
Mon, Feb. 15, 5:30 PM
Thu, Jan. 14, 7:18 AM
- Animal products maker Zoetis (NYSE:ZTS) sells its 55% ownership stake in a Hsinchu, Taiwan manufacturing site to Yung Shin Pharmaceutical Industrial Co., Ltd., for ~$13M in cash. The deal includes the divestment of a portfolio of products associated with the site, including feed additives, anti-infective drugs and nutritional premixes for livestock sold in Taiwan and international markets.
- The transaction, part of the company's previously announced operational efficiency program announced on May 5, 2015, is not material to Zoetis' financial results. The deal should close in Q2.
Tue, Jan. 12, 8:55 AM
- Animal Health firm Zoetis (NYSE:ZTS) disagrees with the European Commission's decision on Belgium's "excess profit" tax scheme and plans to appeal. Yesterday, the EC concluded that the scheme, which exempted corporate "excess profit" from taxation in Belgium, is illegal under European Union state aid rules.
- The ruling, if upheld, will not affect the company's 2015 results but will result in a one-time net tax charge this quarter of $35M - 45M, related to the periods 2013 through 2015, which includes the revaluation of its deferred tax assets and liabilities using the rates expected to be in place at the time of the reversal. Zoetis' effective tax rate on adjusted income will increase from 28% to ~33%, reducing non-GAAP EPS guidance by $0.13 and GAAP EPS by $0.20 - 0.22 this year.
- For 2017, the company expects an effective tax rate of 30% and reduces its EPS expectation by ~$0.06.
- A complete guidance update will be given on February 16 when management reports 2015 results.
Tue, Jan. 5, 7:22 AM
- Zoetis (NYSE:ZTS) divests is manufacturing facility located in Haridwar, India to Indian firm Zydus Cadila (Cadila Healthcare Ltd.) for $29M in cash. The transaction also includes a portfolio of generic products produced there including medicated feed additives, anti-infectives, parasiticides and livestock nutritionals sold mainly in India.
- The deal, immaterial to Zoetis, should close this quarter.
Zoetis, Inc. is engaged in the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The company manages its operations in four geographic regional segments: the United States, Europe/Africa/Middle... More
Industry: Drug Manufacturers - Major
Country: United States
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