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Zoetis (ZTS) Acquires ZNLabs to Bolster Diagnostics Portfolio

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Zoetis, Inc (ZTS - Free Report) announced the acquisition of ZNLabs, a full-service veterinary clinical reference laboratory company with a network of labs across the United States.

This laboratory company is founded by veterinarians who are seeking to revolutionize reference laboratory services for companion animals. The company has differentiated itself by offering a simple test menu and fast results with friendly service and no contracts.

The acquisition will strengthen Zoetis’ portfolio, expand its diagnostics footprint and enhance its value proposition to veterinary customers.

The financial terms of the transaction were not disclosed.

The company earlier acquired Phoenix Lab, a full-service veterinary reference laboratory company, to enter the reference laboratory services market.

Zoetis has been making acquisitions in recent times to broaden the portfolio.

Per the company, reference laboratories and point-of-care diagnostic testing are highly synergistic, offering veterinarians a single source for a full spectrum of tests, as well as access to the expertise of Board-certified specialists and pathologists to support test results.

In 2018, Zoetis acquired Abaxis. The deal fortified the company’s presence in the veterinary diagnostics space of the animal health market. With this acquisition, Zoetis gained access to Abaxis’ VetScan portfolio of benchtop and handheld diagnostic instruments and consumables. The company can now provide a broader range of veterinary diagnostics products, leveraging its global scale and direct customer relationships. It expects the veterinary diagnostics category to continue to grow faster than the animal health industry.

Zoetis’ stock has surged 40% year to date compared with the industry’s growth of 8.6%.

 

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.

Zacks Rank and Another Stock to Consider

Zoetis currently has a Zacks Rank #2 (Buy).

Another top-ranked stock in the healthcare sector is Jazz Pharmaceuticals Inc. (JAZZ - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Jazz’s earnings per share estimates have increased to $15.81 from $14.99 for 2019 in the past 30 days.

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