Matej Mikulic
Research expert covering health, pharma & medtech
Zoetis - Statistics & Facts
Zoetis is the world’s largest animal health company. In 2023, Zoetis generated some 8.5 billion U.S. dollars in revenue, a slight increase compared to the 8.1 billion dollars in the preceding year. The company’s focus is on the production of drugs and vaccines for companion animals and livestock. There is also a very small business division for contract manufacturing services and human health, comprising only one percent of the company’s total revenue. Thus, Zoetis can, more or less, be defined as a pure play animal health company. Interestingly, more than 60 percent of Zoetis’ revenues are generated through products for cats and dogs, while around 18 percent are generated through products for cattle.
Leadership in global animal health
Until 2012, Zoetis was a part of pharmaceutical giant Pfizer. Pfizer’s animal health division had roots back to the 1950s, with livestock products being the focus. From the 1980s, the division was officially named Pfizer Animal Health. Ideas of a spin-off emerged in the early 2010s, leading to the final separation of Pfizer Animal Health from the rest of the company in 2013. The new, independent company named itself Zoetis, a word derived from the zoological term zoetic which means ‘living’ or ‘vital’, and established its headquarters in Parsippany, New Jersey. Since then, Zoetis has made several acquisitions, of which the two-billion-dollar deal with Californian company Abaxis has been the largest so far. According to some sources, the global animal health market is currently valued at around 34 billion U.S. dollars, implicating that Zoetis alone holds between one fourth and one fifth of the market. Zoetis’ biggest competitors are Boehringer Ingelheim’s and Merck & Co.’s animal health divisions.Diversified, with moderate pressure
Zoetis’ major product categories consist of parasiticides, vaccines, anti-infectives, and dermatologic products for animals. From a regional point of view, Zoetis is present in many countries, although with different focuses. While, for example, revenues in the United States are clearly dominated by companion animal products, making up over three quarters, it is the other way around in Latin American countries like Brazil, Chile, and Mexico. Brazil is the company’s most important national market outside the United States, generating five percent of Zoetis’ total revenue. Because generic competition in the animal health market does not put the same pressure on companies as in the human health market, R&D spending is significantly lower here. In 2023, Zoetis spent around seven percent of its revenue on research and development. Among pharmaceutical companies focused on human health, this share is mostly at around one fifth of revenues.
