How Investors Are Reacting To Zoetis (ZTS) Positive EMA Opinion For Long-Acting Cat Osteoarthritis Therapy

• On September 12, 2025, Zoetis Inc. announced that the European Medicines Agency's Committee for Veterinary Medicinal Products issued a positive opinion recommending marketing authorization for Portela, a new long-acting monoclonal antibody therapy for osteoarthritis pain in cats.
• If approved, Portela would be the first anti-nerve growth factor therapy of its kind for cats, offering three months of pain relief from a single injection and expanding Zoetis' OA pain management portfolio.
• We'll now review how this key regulatory milestone could influence Zoetis' innovation-driven investment narrative and future growth outlook.

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Zoetis Investment Narrative Recap

To be a Zoetis shareholder, you generally need to believe in the company's ability to drive sustained growth through innovation in animal health, especially in therapeutic categories like osteoarthritis pain management for pets. The recent positive regulatory opinion for Portela could help bolster Zoetis' OA pain franchise in the near term, though the main catalyst continues to be execution in high-value launches; risks remain heightened around adoption rates due to prior safety hesitancy in the OA segment.

Among recent announcements, the May 2023 FDA approval of Librela in the U.S. is especially relevant. Both Librela for dogs and Portela for cats represent Zoetis’ push into premium biologic pain management, which has become central to growth expectations and investor focus, but also exposes the company to risks if uptake is slower than anticipated.

However, for investors, it’s just as important to be aware of potential market hesitancy and competitive threat in current and future OA therapies, especially given...

Read the full narrative on Zoetis (it's free!)

Zoetis is projected to reach $10.9 billion in revenue and $3.2 billion in earnings by 2028. This outlook rests on an annual revenue growth rate of 5.2% and a $0.6 billion increase in earnings from the current $2.6 billion.

Uncover how Zoetis' forecasts yield a $190.29 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community range from US$153 to US$190, showing opinions can differ by over US$37 per share. With recent innovation in OA pain management, these diverse views highlight various paths Zoetis' next few years might take, consider exploring more perspectives to inform your outlook.

Explore 8 other fair value estimates on Zoetis - why the stock might be worth just $153.00!

Build Your Own Zoetis Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zoetis research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Zoetis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zoetis' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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