Zoetis shares have fallen about 10% since their recent peak in late July amid concerns that a weakening economy will prompt consumers to spend less on their pets. But investors could also be overlooking the chance from a key product launch that might turn out to be considered one of the most important in animal health history. A recent survey conducted by Piper Sandler shows a lot of the 101 veterinarians it polled expect the costs they charge and the amount of patients they see to mostly delay within the months ahead. Pets have increasingly been elevated to the status of furry children , so it stands to reason that spending on their health-care needs can be prioritized in household budgets. “While this survey did show some modestly weakening macro data, we expect the sell-off during the last month likely reflected that,” said analyst David Westenberg. While Piper Sandler “modestly” trimmed earnings estimates for 2024 for animal health-care firms Zoetis, Idexx Laboratories and Elanco Animal Health , Westenberg said Zoetis’ products performed well within the survey. “Librela looks like it may be widely utilized in the primary 12 months, and we expect Zoetis will actually gain share in parasiticides even with latest major competition,” Westenberg said. Librela is a monoclonal antibody that treats the pain related to osteoarthritis in canines. It’s the primary drug of its kind within the U.S. market, and a couple of quarter of dogs shall be diagnosed with the condition sooner or later of their lives, in line with the U.S. Food and Drug Administration. Westenberg’s survey indicated greater than three-fourths of the vets polled were planning to order it in its first 12 months of launch. Zoetis already sells Solensia, a version of the drug for cats that was approved last 12 months. Solensia rang up $30 million in sales last 12 months, but the chance for Librela is even greater, in line with the analyst. ZTS YTD mountain Even with the recent pullback in Zoetis stock, shares are up greater than 18% 12 months so far. In parasiticides, Zoetis sells Simparica Trio, a chewable medication dogs can take once a month to stop heartworm, ticks and fleas, in addition to roundworms and hookworms. In response to FactSet, 87% of analysts rate Zoetis a buy and carry a median price goal of $223, which suggests nearly 30% upside from current levels. If there’s one thing clouding the image for pet health care, in line with Piper Sandler, it is sustained concerns in regards to the labor market and whether practices will find a way to seek out enough vet technicians and veterinarians to completely staff up. Piper Sandler said 58% of the vets it surveyed said their clinics were understaffed, which implies the situation has gotten worse for the reason that firm’s last poll in the primary quarter. Heading into 2024, Westenberg expects the overhang of the pandemic pet boom to finally fade on vet visits. This may very well be helpful over an extended time horizon to Idexx, which makes diagnostic tests, because its comparisons to prior periods will improve, he said. As for Elanco, its stock is down 20% this 12 months. FactSet said the vast majority of analysts, some 55%, rate the stock a hold. Within the Piper Sandler survey, few vets said they’d pick the corporate’s Credelio Quattro as their primary parasiticide when it’s released. While that statement is not encouraging for Elanco, it further supports the strength of Zoetis’ business. Quattro is predicted to be approved in the primary half of next 12 months, Westenberg said.
A key step forward for Novo Nordisk’s GLP-1 pill
Novo Nordisk flags flutter outside their office in Bagsvaerd, on the outskirts of Copenhagen, Denmark, July 14, 2025. Tom Little...
