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Animal health company Zoetis Inc. (NYSE:ZTS) traded higher Friday as analysts commented on the FDA approval of German drugmaker Boehringer Ingelheim's parasiticide NexGard Plus for dogs.
The treatment, designed as a monthly beef-flavored chew, competes with ZTS's Simparica Trio, a flavored, chewable tablet indicated for the prevention of parasites, among its other uses in dogs.
Zoetis (ZTS) shares added ~7%, marking the biggest intraday gain since November on above-average volumes, while analysts remained upbeat on the company's prospects even as Boehringer Ingelheim is set to launch NexGard Plus on July 31.
"Our first read on labeling for NexGard Plus leaves us to believe Trio will continue to have key competitive advantages, which should bode well for future growth," William Blair's Brandon Vazquez wrote with an Outperform rating on the stock.
Vazquez cited multiple reasons for his view, including the drug's higher efficacy against fleas and heartworm disease and its recent label expansion to include Lyme disease, for which NexGard Plus is not indicated.
Meanwhile, Barclays analyst Balaji Prasad also noted similar advantages for Simparica Trio, citing its more convenient dosing regimen for heartworm prevention and its efficacy against five species of fleas compared to just four with NexGard Plus.
Prasad "remains convinced" about the company's robust parasiticide franchise and issues an Overweight rating on the stock along with a $260 per share target.