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Zoetis Inc. (/zō-EH-tis/[4]) is an American drug company, the world's largest producer of medicine and vaccinations for pets and livestock.[5][4][6] The company was a subsidiary of Pfizer, the world's largest drug maker, The company directly markets the products in approximately 45 countries, and sells the products in more than 100 countries. Operations outside the United States accounted for 50% of the total revenue.[5] Contemporaneous with the spinoff in June 2013 S&P Dow Jones Indices announced that Zoetis would replace First Horizon National Corporation in the S&P 500 stock market index.[7]

In the 1950s, Pfizer began research on several drugs, including oxytetracycline, which was found to be effective in livestock.[8] In 1952, the Pfizer Agriculture Division opened a 732-acre research and development facility in Terre Haute, Indiana, called Vigo.[8][9] By 1988 the division was renamed Pfizer Animal Health.[8]

The 1995 acquisition of Norden Laboratories from GlaxoSmithKline expanded Pfizer's animal health division into small animal care, including domestic pets.[8] Secondary research and development centres were opened in Kalamazoo, Michigan, in 2003.[8] In the same year, Pfizer acquired Pharmacia Corporation for US$60 billion in stock options.[10] Between 2007 and 2011, the company acquired Embrex Inc, Catapult Genetics, Bovigen, Wyeth, Fort Dodge Animal Health, Vetnex Animal Health Ltd, Synbiotics Corporation, Microtek, King Pharmaceuticals, and Alpharma.[8]

2010s to present

Plans to break away Pfizer Animal Health into a separate company were officially announced in 2012.[11][4] The new firm was named Zoetis in allusion to the Latin-derived zoological term zoetic, meaning 'pertaining to life.'[4]

Zoetis Inc.'s revenues exceeded $4.2 billion in 2011 and $4.34 billion in 2012.[12][13][4] The animal health industry worldwide is an estimated US$22 billion dollar industry.[4] On 22 May 2013, The Wall Street Journal reported that Pfizer plans to sell its majority stake in the company.[13] According to the report, shareholders will have the option to swap their Pfizer shares for Zoetis shares.[13] The sell-off of Zoetis is consistent with Pfizer's recent decision to shed other non-pharmaceuticals subsidiaries in an effort to save costs, raise capital, and pay off debt.

The company has announced that JPMorgan Chase, Bank of America, Merrill Lynch, Goldman Sachs & Co., and Morgan Stanley will be the lead underwriters.[14][13]