Zoetis Inc. (ZTS - Free Report) announced that Kristin Peck will succeed Juan Ramón Alaix as the chief executive officer (CEO), effective Jan 1, 2020, as the latter will retire by the end of the year.
Alaix has been Zoetis’ CEO since its formation in 2012 and will continue to act as an advisor on the leadership transition through Dec 31, 2020.
Currently, Peck is the executive vice president and group president of U.S. Operations, Business Development and Strategy. She too has been a member of the executive leadership team since the company’s formation and has played a key role in its growth trajectory. She previously served as Pfizer’s (PFE - Free Report) executive vice president of Worldwide Business Development and Innovation, as part of the company’s Executive Leadership Team.
It remains to be seen how this transition impacts the business.
Zoetis is a leader in the animal health business with a wide portfolio. The company’s performance has been stellar in the year so far, backed by growth in new parasiticide products and vaccines, a solid dermatology portfolio, and the addition of Abaxis’ diagnostics platform. Livestock product sales too returned to growth in the second quarter.
Key dermatology products like Apoquel and Cytopoint, new products such as Simparica and Stronghold Plus, and increased medicalization rates in key international markets should propel further growth. Notably, the European Commission (EC) recently granted marketing authorization to Simparica Trio (sarolaner/moxidectin/pyrantel) chewable tablets, a once-monthly triple combination antiparasitic medication for dogs with or at risk from mixed external and internal parasitic infestations. The approval should strengthen the company’s market-leading parasiticide portfolio for companion animals.
Per Zoetis, the global canine parasiticides market is worth more than $4 billion and the largest therapeutic category in medicines for dogs.
The FDA earlier approved ProHeart 12 (moxidectin), the industry’s only once-yearly injection to prevent heartworm disease in dogs aged 12 months or older. Zoetis expanded its Fostera swine vaccine franchise in the second quarter with approvals of different formulations in new geographies. These should boost further growth.
Meanwhile, the animal health business has been in focus. Elanco Animal Health (ELAN - Free Report) recently inked a definitive agreement to acquire Bayer’s (BAYRY - Free Report) Animal Health business for $7.6 billion.
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