), the former Animal Health business of
), started trading on the New York Stock Exchange from Feb1,
2013. Zoetis had priced over 86 million shares of Class A common
stock at $26 per share. The company's shares jumped nearly 20%
from the initial price, closing the first trading day at $31.01.
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We remind investors that Pfizer had announced its plans to spin
off its Animal Health business in Jun 2012. In Aug 2012, Zoetis -
the then subsidiary of Pfizer - filed a registration with the US
Securities and Exchange Commission for a potential initial public
offering of Class A common stock.
We are positive on Pfizer's decision to spin off its Animal
Health business as it will enable the pharma major to focus on
its core business. Pfizer has already taken some steps to make
its operations more streamlined and focused. The company sold its
Capsugel unit to
Kohlberg Kravis Roberts & Co L.P.
) for $2.375 billion in cash in Aug 2011.
Zoetis, which focuses on discovery, development, manufacture and
marketing of animal vaccines, medicines, biopharmaceuticals,
diagnostics and genetic tests, has a presence in more than 120
countries. The Animal Health segment of Pfizer had delivered
sales of $1.2 billion in the final quarter of 2012, up 6% year
We note that Zoetis boasts of a robust and diversified product
portfolio consisting of more than 300 product lines. It is
divided into five categories - vaccines, parasiticides,
anti-infectives, medicated feed additives and other
pharmaceuticals for veterinarians and livestock producers.
Pfizer currently carries a Zacks Rank #3 (Hold). However,
), another large-cap pharma stock, appears to be more favorably
placed as it carries a Zacks Rank #2 (Buy).