Zoetis Inc at Barclays Global Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Balaji Prasad - Barclays - Analyst : Thank you. So Wetteny, Zoetis recently reported Q4 results. Obviously, the stock did move a fair amount on -- around the results. But I would like to leave it to you for some opening remarks around what are the key points there? And what are you seeing in terms of investor focus and attention and what has changed?

Question: Balaji Prasad - Barclays - Analyst : Great. So outstanding 2024, how does that translate into priorities for Zoetis for 2025? And within the guidance that you gave out, what are the key pushes and pulls that you're seeing in Zoetis outlook? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 2:30PM, ZTS.N - Zoetis Inc at Barclays Global Healthcare Conference

Question: Balaji Prasad - Barclays - Analyst : Got it. Maybe digging a bit more into individual products. Let's start with Librela. Clearly, there is -- understandably, there's been an enormous amount of investor focus on this product. Last year, the discussion points around this change through the course of the year. But now post the wet letter that we posted, can you speak to how the veterinarians are responding to this to the wet letter and the label change? And are they understanding the product better and how to prescribe and users in the clinical practice?

Question: Balaji Prasad - Barclays - Analyst : Got it. That's a very helpful context, Wetteny. I think tapping into less than a single -- single-digit percentage penetration, you're double the global OEM market size in just two years.

Question: Balaji Prasad - Barclays - Analyst : And so I want to pass this down a bit at least in terms of numbers. I think there was a lot of focus around Q4 in terms of the fact that there seem to be no sequential growth between quarter to quarter. I was not sure if that's the right way to look at it. But maybe at a 2025 size, what -- how have you baked this into your guidance for 2025?

Question: Balaji Prasad - Barclays - Analyst : Okay. Great. Maybe on the pipeline side of OA, I mean, you recently mentioned that you are expecting a potential approval for a long-acting OA pain product. So can you provide a bit more details around this and possible timelines for this in the ramp? And when you think about this opportunity of 27 million dogs, what could fit into this category for this long-acting product? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 2:30PM, ZTS.N - Zoetis Inc at Barclays Global Healthcare Conference

Question: Balaji Prasad - Barclays - Analyst : Understood. And maybe just a quick question on the competitive side of things. I mean, I've been looking at this company and following the company now from 10 years as an investor and as a sell-side analyst. And clearly, what I've seen that is that you have like a 5- to 7-year lead in terms of innovation or sometimes even more over your closest competitors? And with the current information that you have inside you have, when do you expect some competitor activity into this space? Obviously, it's a very profitable space but monotonal.

Question: Balaji Prasad - Barclays - Analyst : Got it. Great. I think the entry of competitive products into each of your space with parasiticides, derm has been an overhang or a discussion topic over the last 1, 1.5 years. And you commented also upon another competitor product coming in in derm. So maybe it's a good sector to discuss that. So Mark, of course, announced that they are working on a next-generation product in derm. How are you thinking about when this product could come in? And second part of this question is, of course, Elanco's launch Zenrelia, what are you seeing in terms of initial activities in the field? What kind of feedback are you getting around it? And any change in the strategy at all on the derm side?

Question: Balaji Prasad - Barclays - Analyst : Got it. I have a few questions on parasiticides in the pipeline, but I'm going to jump back to the pipeline side of things. Because two years ago, we discussed renal, oncology, and cardiovascular as newer areas that you're focusing on, and you'll get products out into. I haven't seen much on REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 2:30PM, ZTS.N - Zoetis Inc at Barclays Global Healthcare Conference launch side there, but I would love to dig into each of these therapeutic segments. Think about what is the market opportunity for you and the potential timeline around each of these segments?

Question: Balaji Prasad - Barclays - Analyst : Got it. Wetteny with a few minutes left, I do want to touch upon the macro side of things, obviously, I think we can probably set FX aside, but but everything around tariffs and what it means to businesses which have major export revenues? And what are the other broad macro factors that's going to impact you or potentially could impact you this year?

Question: Balaji Prasad - Barclays - Analyst : Got it. Maybe a quick final question around the margin side of things. I mean clearly, MFA divestiture changes the margin profile for the company, expand on that. And as we think about margin improvement for 2025 and longer term, what are the pushes and pulls there?

Question: Balaji Prasad - Barclays - Analyst : Got it. Wetteny, thank you so much for your comments on (inaudible) Always great to have you at the conference, and I do wish you a very productive conference.

Question: Balaji Prasad - Barclays - Analyst : Yes. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 2:30PM, ZTS.N - Zoetis Inc at Barclays Global Healthcare Conference