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A new laboratory study published this week showed that Simparica Trio, the company's treatment for heartworm and other parasites, was significantly more effective against drug-resistant heartworm than NexGard Plus. Drug resistance is a growing problem where certain parasites become less sensitive to the standard class of medicines used to kill them.
This is a useful win for the company's pet care business. Heartworm prevention is a crowded market, and having peer-reviewed data that shows a clear edge over a major rival helps the company keep its lead. For a long-term owner, it is a sign that the company's focus on research is helping it defend its most important products as older treatments face more competition.
Source: Business Wire
Cantor Fitzgerald set a price target of $94 for the stock on Tuesday. This is higher than the average analyst target of $87 and suggests the firm sees room for the stock to rise from its current level of about $78. Since this was just a target update and not a change in the firm's actual rating, it is a routine move. It shows that analysts still see value in the company's lead in pet and livestock medicines, even while the stock has struggled so far this year.
Source: Cantor Fitzgerald
The FDA, the agency that regulates medicines, granted an emergency use authorization for Simparica Trio to treat New World screwworm in dogs. These larvae feed on the living tissue of animals and can be fatal if left untreated.
While this is a specific emergency use rather than a standard new product launch, it expands the utility of one of the company's most important brands. Simparica Trio is already a major contributor to the pet care business, and being the go-to treatment for an active outbreak helps protect its market position.
Source: Business Wire
Zoetis filed a formal notice with the SEC, the government body that oversees public companies, regarding the hiring of Jay Saccaro. He is joining the firm in a dual role as both Chief Financial Officer and Chief Operating Officer. This filing follows the announcement made earlier this week. While the paperwork is a routine requirement, the move itself is a significant step in the company's plan to combine its financial and operational leadership under one person.
Source: 8-K filing
Zoetis has appointed Jay Saccaro as Executive Vice President, Chief Financial Officer, and Chief Operating Officer. Starting August 17, he will lead the company's financial planning and investor relations while also managing the global manufacturing and supply network.
This move puts one leader in charge of both the company's spending and its production. It comes as Zoetis works to balance its heavy investment in new pet medicines with the need to keep operations efficient while demand for vet services is soft.
Source: Business Wire
Management has a long history of setting reachable targets and clearing them. This makes their forecasts highly reliable, even as the business faces a more difficult path lately.
| Expectation | |
|---|---|
| EPS | $1.52 |
| Revenue | $2.30B |