Animal health company Zoetis raises $2.2B in initial public offering

New York, NY, United States (4E) – Animal health company Zoetis Inc. ended its first trading day above the proposed range, gaining $5.01 to $31.01 and raising $2.2bn in its initial public offering (IPO).

Zoetis was spun off by Pfizer as part of the strategic plan to break off units not related to the core medicine business. The Madison, N.J.-based firm is now the world’s biggest animal-medicine company by revenue and its IPO is the biggest since Facebook went public last year.

Pfizer has been spinning off its businesses outside its core medicine division to focus more on making products that will replace its aging brands like Lipitor, now facing challenge from generic brands. Pfizer sold its infant-nutrition unit to Nestle SA in 2012.

The company, which makes vaccines and drugs for pets and livestock, directly sells to veterinarians and livestock producers in 70 countries. Two-thirds of the company’s revenues come from sales of livestock products.

The company is benefiting from higher demand for protein, an increasing trend in emerging markets as wealth grows in those countries. The shrinking availability of land and water is also putting a premium on products that boost productivity of animal protein.

About 17 per cent stake of Zoetis was offered in the IPO. The company’s main competitors include Sanofi and non-listed firms of Merck and Lilly.

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