Zoetis (ZTS) Leerink Global Healthcare Conference 2026 summary

Companion animal market trends

• Pet owners continue to prioritize pet health, with overall vet clinic revenues up 6% in Q4 2025, though millennials and Gen Z face financial pressures impacting visit volumes.

• Emergency care visits are rising, indicating delayed treatments, while preventive care remains a focus for industry growth.

• Corporate-owned vet clinics that raised prices see more pronounced volume pressures, prompting a reevaluation of pricing strategies in 2026.

• Awareness campaigns and direct-to-consumer efforts are driving patient starts, especially internationally, where companion animal growth matches the U.S.

• Alternative channels and autoship programs are boosting compliance and expanding market reach for key products.

Product performance and growth drivers

• Trio, a leading parasiticide, generated over $1 billion in U.S. revenue, with high satisfaction rates and significant room for further market expansion.

• Triple combination parasiticides now cover about 50% of vet clinic patients, with new puppy starts at two-thirds, indicating future growth potential.

• Autoship channels nearly double compliance rates for parasiticides, from six to eleven months, supporting sustained growth.

• Dermatology products, including Apoquel and Cytopoint, show strong satisfaction and compliance, with less than 50% of itchy dogs currently treated, leaving room for expansion.

• Key Derm products grew 16-17% in 2024, with double-digit volume growth, and international markets offer further opportunities.

Innovation, pipeline, and strategy

• Long-acting Cytopoint is expected to receive approval in late 2026, enhancing the dermatology portfolio amid new IL-31 competitors.

• Librela for OA pain is stabilizing, with high satisfaction and a large untapped market; long-acting OA products are anticipated in the U.S. by 2027.

• Launch strategies for new products now emphasize initial specialist engagement and phase IV studies before broader rollout.

• The pipeline is robust, with renal and chronic kidney disease assets representing a $3-4 billion TAM and significant clinical impact.

• Diagnostics and early intervention products are in development to address kidney disease before advanced symptoms appear.