Zoetis plans to expand its therapeutic areas to renal, cardiac and oncological treatments

New therapeutic areas, including renal, oncology and cardiology, are part of Zoetis’ expansion plans, according to CEO Kristin Peck’s speech at the 23rd Annual Morgan Stanley Global Healthcare Conference. The company anticipates major product approvals annually for the next 2 years in these 3 areas, as well as an important market opportunity.

“As we think beyond the osteoarthritis and derm, chronic kidney disease and renal is the single largest opportunity in animal health,” says Peck. “It’s a $3 billion (€2.6B) to $4 billion (€3.4B) market. Based on what we know today, it could be even larger. It’s a category where there’s really no treatment for dogs or for cats,” she adds.

For the next quarter, Zoetis expects to launch a new long-acting pain product for osteoarthritis in its international markets, potentially in the US, pending regulatory approval.

In Q2 2025, the firm reported revenue of $2.5 billion (€2.1B) and net income of $718 million (€612.5M), or $1.61 (€1.37) per diluted share, representing increases of 15% and 18%, respectively.

For FY2025, the company raised its revenue guidance from $9.45 billion (€8.1B) to $9.6 billion (€8.2B), with organic operational revenue growth of 6.5% to 8%, following a “strong” first-half performance and a pipeline of business launches to deliver further development.

Growth drivers

As the company eyes significant expansion, it is also keeping track of growth drivers for the business next year, including parasiticide, dermatology and pain.

“In the case of parasiticides, triple combinations, for example, those are just about 40% to 45% of the prescribed oral medications today, growing at 40% last year. Clearly, there is [significantly] more room to expand in that space,” says Zoetis’ CFO, Wetteny Joseph.

In terms of dermatology, Zoetis currently treats about 12 million animals globally, under 7 million in the US. “We have 20 million more to go after that are either undertreated or not treated at all. These are animals that are seeing a vet on a regular basis, so they are medicalized pets who are not using our products,” Joseph adds.

Osteoarthritis pain is also a major growth driver, as most animals with this condition remain untreated. “Osteoarthritis pain, even more so, where you have 27 million in the US alone that have osteoarthritis that are medicalized, only 9 million being treated, and we only have 1 million today,” he says.

“If you look at the franchises where we’re in right now, we have more remaining market opportunities to capture than what we’re treating today in every category,” he adds.

Price strategy

Meanwhile, the company is also reviewing its pricing strategy, targeting around 4% price increases this year, which is above the historical rates of 2% to 3% seen in 2023 and 2024.

“Price is an element that we go into each year, evaluating how much price in which market, which products, the value that we bring, the innovation that we continue to bring, position us to continue to take price,” he says.