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Zoetis CEO: It's unclear if animal health will be a part of pharmaceutical tariffs
ZoetisZoetis(US:ZTS) CNBC Televisionยท2025-08-05 21:14

Financial Performance - Zoetis reported a beat and raised quarter, exceeding estimates and raising guidance [1][2] - Innovative franchises, including pain, Labrella, dermatology, and parasitics, experienced 11% growth [3] Product Performance & Challenges - Labrella, an osteoarthritis pain product for dogs, is facing headwinds despite high customer satisfaction with over 75% of pet owners being extremely or very satisfied [3][4] - Zoetis is focusing on medical education and awareness to drive Labrella adoption [4] Tariff & Manufacturing Strategy - The impact of potential pharmaceutical tariffs on animal health is unclear, but Zoetis argues for exclusion [5][7] - Zoetis has invested $1 billion in American manufacturing over the last 5 years [8] - 75% of Zoetis' sales in the United States are manufactured in the United States [8] - 60% of Zoetis' global manufacturing is in the US, while only 50% of its sales are in the US, making it a net exporter [8] - Almost 100% of Zoetis' intellectual property is located in the United States [9] Overall Strategy - Zoetis emphasizes its diverse, durable, and broad-based portfolio, strong pipeline, and strong supply chain [3][6] - Zoetis has multiple mitigation strategies in place to address the dynamic tariff environment [6]