Zoetis Inc.ZTS announced that its antiparasitic Simparica has been cleared in the EU. The once-monthly chewable tablet was approved by the European Commission (EC) for the treatment of fleas, ticks and sarcoptic mange in dogs aged eight weeks and above.
The EC approval did not come as a surprise considering that the Committee for Medicinal Products for Veterinary Use had already recommended an approval of Simparica in Sep 2015.
Simparica targets the growing antiparasitics market. As per company sources, theglobal marketof antiparasitics for pets was worth over $4.2 billion in 2014.
We believe that Simparica will complement Zoetis' robust and diversified product portfolio, which includes anti-infectives, vaccines, parasiticides, medicated feed additives and other pharmaceuticals for veterinarians and livestock producers.
The company has been quite active on the acquisitions front in the last couple of quarters. Earlier this month, Zoetis announced that it has completed the acquisition of PHARMAQ for $765 million on a debt-free basis. Addition of PHARMAQ will strengthen Zoetis' core livestock business and make it a market leader in this segment. PHARMAQ generated revenues of approximately $80 million in 2014. We are positive on the company's PHARMAQ acquisition. We expect to see more of such acquisitions/deals at the company in the near future as it continues to focus on its strategy of acquiring complementary businesses and products.
Currently, Zoetis carries a Zacks Rank #2 (Buy). Other favorably ranked stocks in the health care sector include GW Pharmaceuticals plc GWPH , Gilead Sciences Inc. GILD and Conatus Pharmaceuticals Inc. CNAT . While GW Pharma sports a Zacks Rank #1 (Strong Buy), Conatus and Gilead hold same Zacks Rank as Zoetis.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
