Zoetis Maintains Guidance Amid Pet-Care Demand and Competitive Pressures
Zoetis Inc. (NYSE: ZTS) has reaffirmed its revised guidance for operational revenue to decline between -3% and -1%, citing weaker U.S. pet-care demand, fewer veterinary visits, and increased competition in dermatology and parasiticides. Despite these challenges, the company is using targeted promotions rather than broad price cuts to defend market share. CEO Kristin Peck noted that while Apoquel retains about 87% of the U.S. market, parasiticide sales have declined by roughly 1%. The firm remains optimistic about future growth in areas like renal disease and oncology, with a potential approval for a new treatment expected late next year. Zoetis is also experiencing double-digit revenue growth from its livestock segment as it continues to adapt to market conditions. CFO Jay Saccaro expressed confidence in the company's leadership position and innovation pipeline.
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