Zoetis Is Not Your Average BioPharma Play
Alpha Gen Capital
Alpha Gen Capital
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.
Nov. 10, 2015, 8:49 AM
Nov. 2, 2015, 5:33 PM
- Zoetis (NYSE:ZTS) is acquiring Pharmaq, a top provider of vaccines and pharmaceuticals for farmed fish, for $765M. The deal is expected to close on or about Nov. 10, and to be financed with the help of Zoetis' credit facility.
- With Pharmaq having 2014 revenue of $80M, Zoetis is paying a little under 10x sales. The company is based in Norway, and operates in a number of international markets.
- Zoetis CEO Juan Ramon Alaix: "We are gaining a new platform for growth and value creation that we can expand. Pharmaq strengthens our core livestock business by providing market leadership in aquatic health and a strong late-stage pipeline in the worlds largest category of protein and fastest growing animal health market." Zoetis notes the aquatic health market was worth ~$400M in 2014, and has been growing 7%-8%/year. Zoetis' core livestock market has been seeing a 6% CAGR, and the companion animal market a 5% CAGR.
- The announcement comes ahead of Zoetis' Tuesday morning Q3 report.
Jun. 26, 2015, 11:04 AM| Jun. 26, 2015, 11:04 AM | 18 Comments
Jun. 25, 2015, 4:07 PM
May 29, 2015, 12:19 PM
- Bayer's (OTCPK:BAYRY) (OTCPK:BAYZF) current #5 rank in the global animal health market could change once it divests its low margin plastics business either via an IPO or direct sale, possibly to a private equity firm. Analysts believe the unit could fetch as much as 11B euros ($12.1B).
- CEO Marijn Dekkers says animal health is a "very attractive business for us. We've always looked with interest in it. It hasn't happened with us yet."
- The top acquisition target would be Zoetis (ZTS +0.8%) which generated $4.8B in sales in 2014. Bayer will probably have competition, though. Valeant Pharmaceuticals (VRX -1.7%) and Merck (MRK +0.2%) have been mentioned as likely suitors.
Feb. 10, 2015, 4:41 PM
- Zoetis (NYSE:ZTS) finalizes its purchase of Abbott's animal health assets for $255M. The integration of the business into its operations is expected to impact this year's performance as follows:
- Additional revenue: ~$75M; a negative impact on reported EPS of ($0.03); a positive impact of $0.01 on non-GAAP EPS.
- Previously: Zoetis buys Abbott's animal health business (Nov. 17, 2014)
Nov. 17, 2014, 9:16 AM
Nov. 11, 2014, 4:16 PM
- The presence of Pershing Square's Bill Ackman on the list of major investors in Zoetis (NYSE:ZTS) sends a clear signal that it may be an acquisition target by none other than Valeant Pharmaceuticals (NYSE:VRX). A deal is not out of the question in light of its diminishing prospects of acquiring Allergan (NYSE:AGN) since Actavis (NYSE:ACT) joined the mix.
- In after hours trading, VRX is up a fraction and ZTS is unchanged, both on higher-than-normal volume.
- Previously: Zoetis jumps 6% on report of Ackman stake
Nov. 11, 2014, 3:48 PM
- Bill Ackman's Pershing Square has taken a ~$2B stake in Zoetis (NYSE:ZTS), and may push for a sale to a large drug maker like Valeant Pharmaceuticals (NYSE:VRX), sources tell Dow Jones.
- The stake would amount to ~10% of Zoetis, and includes an investment by fellow hedge fund Sachem Head Capital Management.
- ZTS recently +7.2%.
- Related: Zoetis CEO Juan Alaix on Q3 2014 Results