Zoetis’ New FDA Approval for Dectomax-CA1 Might Change the Case for Investing in ZTS

• Zoetis Inc. recently received conditional approval from the U.S. FDA for Dectomax-CA1 Injectable, the first and only product permitted for prevention and treatment of New World screwworm infestations in key cattle categories including beef cattle, dairy cattle under 20 months, pregnant beef cows, newborn calves, and bulls.
• This regulatory milestone addresses a multi-billion-dollar threat to U.S. agriculture and further strengthens Zoetis’ leadership in innovative animal health solutions for livestock producers.
• We’ll examine how Zoetis’ exclusive FDA approval for Dectomax-CA1 reinforces its product portfolio and influences its investment narrative.

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Zoetis Investment Narrative Recap

To be a Zoetis shareholder, you need to believe in the ongoing demand for animal health solutions, especially as protein consumption and companion animal care needs grow globally. The new FDA conditional approval for Dectomax-CA1 Injectable reinforces Zoetis' leadership in livestock parasiticides, but does not materially shift the key short-term catalyst, successful adoption of its innovation pipeline, or reduce the biggest risk, which remains competitive pressure in core franchises and margin-sensitive products.

Among Zoetis' recent announcements, the September 12, 2025 EMA recommendation for Portela®? (relfove™?), targeting feline osteoarthritis pain, is highly relevant. Both Dectomax-CA1 and Portela®? highlight Zoetis’ focus on expanding its portfolio with products addressing specific unmet needs, which is critical as pipeline execution is a primary driver for investor confidence in near-term growth.

Yet, in contrast, the potential impact of ongoing price erosion in core franchises remains something every investor should be aware of...

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

Zoetis' outlook forecasts $10.9 billion in revenue and $3.2 billion in earnings by 2028. This scenario assumes annual revenue growth of 5.2% and an increase in earnings of $0.6 billion from the current $2.6 billion.

Uncover how Zoetis' forecasts yield a $189.22 fair value, a 32% upside to its current price.

Exploring Other Perspectives

Nine different retail investors from the Simply Wall St Community have set fair value estimates for Zoetis between US$153 and US$189.21. With the company’s innovation-dependent outlook, your own analysis may lead you to quite different conclusions about future growth and risk in the animal health sector.

Explore 9 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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