Zoetis (ZTS) The 44th Annual William Blair Growth Stock Conference summary

Industry overview and company positioning

• Animal health industry is resilient, with stable 5% CAGR since 2013 and recession resistance, driven by global demand for animal protein and the human-animal bond.

• Outperformed industry growth by 3 percentage points, achieving 8% CAGR since 2013.

• $8.5 billion in 2023 revenue, with two-thirds from companion animal and one-third from livestock, products sold in over 100 countries.

• Faster R&D cycles, limited third-party payer impact, and strong brand longevity differentiate animal health from human health.

• Demonstrated strong financial management, high ROIC, and consistent capital returns via dividends and buybacks.

Growth drivers and innovation strategy

• Success driven by customer engagement, innovation, and commercial execution, with a focus on unmet needs and scalable R&D.

• Dermatology franchise exceeded $1.4 billion in revenue, with significant market expansion since initial product launch.

• Ongoing opportunities in parasiticides, osteoarthritis pain, renal, oncology, and cardiology, with lifecycle innovation and new market entry.

• Confident in sustaining mid- to high-single-digit growth due to unmet needs and new product launches.

Livestock business and market dynamics

• Livestock accounts for one-third of revenue, growing 2%-4% globally, supported by rising global protein demand and emerging market growth.

• Focused on vaccines, immunotherapies, and leveraging R&D expertise to drive productivity and alternatives to antibiotics.

• Committed to continued investment in livestock for strong ROIC and business diversification.