Biotech Letter Archives

The White Knight of Biopharma

After a week of dissatisfying earnings reports from huge biopharmaceutical firms like Amgen (AMGN), Bristol-Myers Squibb (BMY), Eli Lilly (LLY), Gilead Sciences (GILD), and Merck (MRK), one company has managed to buck the trend: Pfizer (PFE).

In its first quarter earnings report for 2021, Pfizer reported adjusted diluted earnings of 93 cents per share, surpassing the earlier experts’ estimate of 77 cents.

Even its reported revenue exceeded the earlier predictions of $13.4 billion, raking in $14.6 billion during the period instead.

Aside from those, Pfizer also massively boosted its projected revenue from the COVID-19 vaccine it developed with BioNTech (BNTX).

Pfizer’s COVID-19 vaccine is slated for approval to be used for 12- to 15-year-olds by next week.

On top of these, the company expects data from its third COVID-19 vaccine candidate. This recent trial is for a booster dose, which could have results by early July and possibly a full emergency approval later on the same month.

The company now estimates $26 billion in sales for the vaccine, which is notably up from its $15 billion projection in February 2021.

Pfizer is also confident in its capacity to manufacture at least 3 billion doses of the COVID-19 vaccine in 2022, with the company already negotiating agreements with countries for their 2022 supply and beyond.

While the huge boost in the company’s COVID-19 vaccine sales expectations definitely grabs headlines, Pfizer’s base business brought in notable results as well.

Apart from the vaccine, the company’s operational growth in the first quarter was mostly driven by the sales from its blood clot treatment Eliquis, which went up by 25% operationally.

Sales of its heart drug Vyndagel soared by 88%, while its cancer drug Xeljanz jumped 18%.

One of the most notable moves from Pfizer is spinning off its off-patent drug division, Upjohn, to form a new company with generic drug developer Mylan, called Viatris (VTRS).

This decision would rid Pfizer of several well-known products, such as Viagra, Lyrica, Lipitor, Celebrex, and Chantix, which were responsible for roughly 15% of its total revenues.

However, sales for these items fell by 30% in the first nine months of 2020 alone—a chronically falling performance since 2017.

By eliminating the products that no longer hold any exclusivity rights and signing them off to Viatris, Pfizer can focus on developing and marketing new and innovative treatments.

So far, this strategy has started to bear fruit.

At the moment, Pfizer has several attractive assets in its pipeline. One of them is non-small cell lung cancer (NSCLC) treatment Lorbrena, which could become one of the highest-selling products in the oncology market.

Lorbrena is estimated to grow to over $40 billion each year by the mid-2020s.

At this point, the drug is in its registration phase and was granted a priority-review status. That means approval is on the horizon in the not-so-distant future.

Other potential blockbuster oncology assets include prostate cancer drug Xtandi, NSCLC treatment Bavencio, and breast cancer medication Ibrance.

All these are in late-stage trials, which means they should be available to market soon.

In total, Pfizer currently has at least 33 drugs queued in either Phase 3 trials or registration. The list includes vaccine candidates, immunology treatments, and, of course, oncology assets.

While Pfizer lost Upjohn in 2020, it gained a new partner in GlaxoSmithKline (GSK). The two companies decided to merge their consumer healthcare programs.

This made them the biggest provider of non-prescription drugs across the globe.

By shedding its sluggishly growing assets, Pfizer managed to develop its culture into one that concentrates on developing and marketing new and innovative products.

Additionally, the company’s current portfolio holds several growing products with the potential for expansion.

Given all these changes, Pfizer raised its financial guidance for 2021 as well.

For this year, the company now estimates adjusted diluted earnings to be valued between $3.55 and $3.65 per share compared to the previous range of $3.10 to $3.20 per share.

In terms of its full-year revenue, the company raised it from its estimate between $59.4 billion and $61.4 billion to $70.50 billion and $72.5 billion.

In terms of its projected revenue compound annual growth rate, Pfizer reconfirmed that it could deliver at least 6% through 2025 and a double-digit growth on its bottom line.

Remarkably, this is still not taking into consideration its COVID-19 vaccine.

If you pull out the revenues from its COVID-19 vaccine, then the company’s projected EPS growth for 2021 is at 15%.

Adding the vaccine into the equation gives us an impressive 41% increase in its EPS.

If you consider the wild card that is Pfizer’s COVID-19 vaccine, which would include a price increase coupled with the possibility of booster shots administered annually, and combine it with its base business, then it’s easy to see how the company’s growth could be turbocharged in the next few years.

May 6, 2021/by Mad Hedge Fund Trader

May 4, 2021

Biotech Letter

Mad Hedge Biotech & Healthcare Letter
May 4, 2021
Fiat Lux

FEATURED TRADE:

(A BAD NEWS BUY STOCK)
(AZN), (PFE), (BNTX), (MRNA), (JNJ)

May 4, 2021/by Mad Hedge Fund Trader

A Bad News Buy Stock

Biotech Letter

Along with Pfizer (PFE), BioNTech (BNTX), and Moderna (MRNA), one of the biggest potential winners in the COVID-19 vaccine race is AstraZeneca (AZN).

While the company did manage to develop a vaccine nearly as fast as the others, its product is now suffering the same fate as Johnson & Johnson’s (JNJ) candidate and is getting bogged down by blood clotting issues.

As if that isn’t enough, AstraZeneca’s plan to use its diabetes drug Farxiga as another potential COVID-19 treatment also flopped.

Needless to say, it looks like not a lot of things are going well for AstraZeneca in the past months.

Looking at its fundamentals though, it’s worth noting that AstraZeneca stock might just be one of those rare prime candidates for being bad news buys.

After all, the company never really had plans to profit from its COVID-19 vaccine venture. In fact, AstraZeneca has long announced that it would sell its vaccine at cost. Hence, any bad news from the vaccine won’t really affect the company’s sales.

For years, AstraZeneca has been focused on creating a hyper-growth product lineup in several of the pharmaceutical industry’s most profitable submarkets.

In fact, the Phase 3 advanced pipeline candidates of the company are some of the most promising candidates in the industry, with these soon-to-be-launched drugs already generating 24% growth in revenue as early as 2017.

Not including cancer, there are at least 2.1 billion people globally who suffer from various chronic diseases. That accounts for over 25% of the entire human population, thereby representing a massive and lucrative addressable market--the very same market that AstraZeneca has been targeting.

In the years to come, AstraZeneca is projected to release at least six blockbuster drugs—each one of them estimated to rake in more than $1.3 billion in sales annually.

At the moment, one of the company’s major growth drivers is its oncology franchise, which has an early-stage pipeline anticipated to rake in roughly $1.3 billion each year by 2026.

In particular, AstraZeneca’s recently released cancer drugs Imfinzi and Tagrisso are well-positioned to dominate the segment thanks to their leading efficacy when it comes to hard-to-treat cancer types.

Meanwhile, other sub-sectors are expected to contribute $2.65 billion annually.

So far, AstraZeneca operates in more than 70 countries, ensuring its presence in practically all potential addressable markets.

In China alone, the company’s new product sales have risen by 68%, while the rest of the emerging markets recorded 56% growth.

Despite the negative publicity of its COVID-19 vaccine recently, AstraZeneca still managed to report positive data for its first quarter earnings.

Within this period, the company generated $7.2 billion in revenue, which is 15% more than its earnings during the same time last year. Its earnings per share rose by 100% to reach $1.19, while its core earnings were up 55%.

This is a welcome surprise, especially since analysts predicted $0.75 per share for the company.

The rise in AstraZeneca’s stock performance was driven mostly by its best-selling drugs, including Tagrisso with $1.15 billion in sales in the first quarter of 2021 alone and showing off a 17% jump year-over-year.

Even with the failed COVID-19 treatment, the diabetes drug Fargixa soared this quarter with $625 million, indicating a 54% increase from its previous performance during the same period.

More importantly, AstraZeneca has been consistently paying investors a dividend since it started doing it 20 years ago—a trend that’s expected to continue since the company is poised to become one of the fastest growing businesses in the world with 15% growth annually.

Given its pipeline programs and current portfolio of products, AstraZeneca is on track to continue its hypergrowth through 2023. At this pace, we can expect an estimated 105% in total returns and compound annual growth rate returns at 30.2%.

Currently, AstraZeneca stock is experiencing some turbulence due to the bad news linked to its COVID-19 vaccine. Now would be the best time to buy the dips on the bad news.

May 4, 2021/by Mad Hedge Fund Trader

April 29, 2021

Biotech Letter

Mad Hedge Biotech & Healthcare Letter
April 29, 2021
Fiat Lux

FEATURED TRADE:

(A CANCER PLAY OFF THE BEATEN PATH)
(NVCR), (MRK), (ISRG)

April 29, 2021/by Mad Hedge Fund Trader

A Cancer Play Off the Beaten Path

Biotech Letter

How can you surprise the world? More often than not, a revolutionary solution comes from an unconventional idea that initially gets mocked for its ridiculousness.

Over time though, this very same idea gains traction and the masses gradually see its value.

In the biotechnology world, this came in the form of a physicist searching for a novel approach to battle cancer.

This is how Novocure (NVCR) came to life.

When we look at cancer and how it’s treated, we think about the traditional pharmaceutical companies and their treatments, including radiation, drugs, and surgery.

Novocure has been forging its own unique track in the field of oncology.

The company’s technique is groundbreaking, presenting a different approach from the various forms of chemotherapy proposed.

It’s not even close to the trend of coming with new lines of drugs like Merck (MRK) with Keytruda.

Novocure uses a device, which it calls Optune.

This is worn over a cancer patient’s head. The device then generates an electric field that can help beat cancer. Sounds like a science fiction idea, doesn’t it?

While some call it absurd, Novocure’s idea is actually remarkable.

In layman’s terms, the premise is that cells are held together through an electric charge.

The goal is to blast solid cell tumor cancers using a specific currency to disrupt the charge, thereby inhibiting the tumor’s capability to stay together.

Basically, Novocure uses electro-fields to break up the cell division process that leads to the growth and spread of cancer.

By not letting the tumor replicate, Novocure’s device is dramatically boosting the patient’s capacity to battle the disease.

This therapy is called “Tumor Treating Fields” (TTFields).

While TTFields are definitely promising, these cannot replace traditional therapies. Rather, these are expected to be used alongside or in combination with other treatments, particularly chemotherapies and other direct targeted medications.

Founded in 2000, Novocure received its first FDA approval in 2011.

At the time, the New Jersey-based company developed TTFields for glioblastoma, which is an extremely aggressive type of cancer that originates in the brain and has a very low survival rate.

Since then, the company has been working to expand its regulatory footprint.

Recently, Novocure received FDA approvals for the expanded use of TTFields to cover more cases of glioblastoma.

It also has the green light for mesothelioma, which is typically caused by asbestos and affects the lining of the lungs and chest wall.

Novocure also has late-stage trials for therapies geared towards non-small cell lung cancer, pancreatic cancer, brain metastasis, and ovarian cancer.

Aside from inhibiting tumor cells from replicating, TTFields can also stop DNA damage, induce cell regeneration or autophagy, decrease cell migration, and trigger immune responses.

In terms of collaborators, Novocure has attracted the attention of Merck. While not much is known about their partnership, the two companies have been linked in some projects, including abdominal cancer therapies.

Reviewing the company’s pipeline and track record, it’s reasonable to say that Novocure is a growth stock.

However, its fundamentals are much stronger compared to other companies that are in the early stages.

Novocure’s revenues have steadily increased annually, driven by a series of growth levers.

One of them is its increased market share, with more and more patients using the therapy.

Another is the growing number of use cases for TTFields, with the company expanding to apply the treatment to other cancers. Lastly, there are new geographies to be tapped.

Since 2016, the company’s revenues have grown from only $82.9 million annually to an impressive $494 million in 2020.

In fact, 2020 was a good year for Novocure, showing off a 41% revenue growth since 2019. For 2021, the company is estimated to record at least a 21% increase in its profits.

Two factors could play key roles in achieving this goal.

The first is that the company has finally reached the point of profitability. While its R&D expenses rose due to the new case approvals, Novocure still managed to rake in a positive net income last year. Plus, the company has been rapidly boosting its operating cash flow.

The second is that Novocure has been conscientious in ensuring that its balance sheet remains fairly clean.

In an effort to raise funds, the company has decided to issue equity. While it does have roughly $430 million in gross debt, Novocure investors should see more cash flow thanks to the accelerated stamp of approval the company received for its TTFields therapy.

While growth investors are used to seeing this kind of movement, the objective is to turn the corner and earn a profit eventually.

Hence, it’s promising to see Novocure moving in that direction earlier than anticipated.

At this point, Novocure is the only company offering this treatment. This means it has no direct competitor in the market.

Needless to say, every use case of TTFields that earns approval amplifies Novocure’s total addressable market.

In terms of growth trajectory, the most similar company I can compare Novocure to is Intuitive Surgical (ISRG).

In 2010, ISG’s share price was in the $90 range. By 2021, the company has been trading at roughly $750 per share.

Based on its performance so far, Novocure flashes a similar potential just in a different vertical. In fact, Novocure is estimated to trade at roughly $600 per share or higher by 2025.

April 29, 2021/by Mad Hedge Fund Trader

April 27, 2021

Biotech Letter

Mad Hedge Biotech & Healthcare Letter
April 27, 2021
Fiat Lux

FEATURED TRADE:

(THE FUTURE OF MEDICINE)
(CRSP), (VRTX), (EDIT), (NTLA), (PFE), (NVS), (GILD), (RHHBY),
(BMRN), (QURE), (SGMO), (CLLS), (ALLO), (BEAM)

April 27, 2021/by Mad Hedge Fund Trader

The Future of Medicine

Biotech Letter

Winning the Nobel Prize in 2020 provided biotechnology companies more traction on Wall Street.

The victory led to commercializing the 2012 discovery, Crispr-Cas9, at breakneck speed, with gene editing companies like CRISPR Therapeutics (CRSP), Editas Medicine (EDIT), and Intellia Therapeutics (NTLA) gaining considerable boost in their values.

Since then, the total market value for the products of these three has more than doubled in recent months to reach $23 billion.

Basically, Crispr-Cas9 functions like molecular scissors.

What makes this technology incredible is that Crispr-Cas9 can classify a single address out of 3 billion letters within the genome by using only a particular sequence. With this, we can repair thousands of genetic conditions and even offer more potent ways to battle cancer.

The market favorite among the gene editing companies so far is CRISPR Therapeutics, with $8.72 billion in market capitalization.

In comparison, Editas has $2.76 billion while Intellia Therapeutics has $4.15 billion.

CRISPR Therapeutics is currently working on a treatment that would implant tumor-targeting immune cells in cancer patients. The company is also prioritizing therapies that could edit cells to treat diabetes.

So far, it has made significant progress in developing treatments for a genetic disorder called sickle cell.

In the US alone, at least 100,000 people suffer from sickle cell disease, with 4,000 more born every year. Conservatively, we can estimate at least 3,000 patients availing of this one-time treatment at over $1.6 million a pop.

To date, CRISPR Therapeutics has five candidates under clinical trials for diseases like B-thalassemia, sickle cell disease, and other regenerative conditions.

It has four more queued, which target diabetes, cystic fibrosis, and Duchenne muscular dystrophy.

Compared to its rivals in the space, it’s clear that CRISPR Therapeutics is ahead when it comes to product development and trials.

Two of its candidates, transfusion-dependent beta thalassemia treatment CTX001 and sickle cell disease therapy CTX110, have already been submitted for clinical tests for safety and efficacy.

Recently, Vertex (VRTX) boosted its 2015 agreement with CRISPR Therapeutics by 10%, with the deal reaching $900 million upfront to push for quicker results in developing CTX001.

This is a crucial move for Vertex, but more so for CRISPR Therapeutics as CTX001 holds a highly lucrative addressable market.

The additional funding significantly widened the gap between the Vertex-CRISPR team and bluebird bio (BLUE) in the race to launch a new gene editing therapy targeting sickle cell disease and beta thalassemia.

To sustain its growth, CRISPR Therapeutics’ strategy is to develop drugs that only require mid-level complexity but can rake in generous financial rewards.

This is a similar tactic used by bigger and more established biotechnology companies like Pfizer (PFE), Novartis (NVS), and Gilead Sciences (GILD).

Evidently, this strategy is a great way to ensure cash flow.

Aside from its earning from the commercialization of these products, CRISPR Therapeutics can also attract larger companies to buy the intellectual property of their breakthrough treatments.

After all, startups generally get 100% premiums in contracts with Big Pharma.

Good examples of this are Novartis that bought AveXis and Roche’s (RHHBY) purchase of Spark Therapeutics.

The Roche-Spark agreement led to the first-ever FDA-approved treatment since gene therapy trials started in the 1990s. It was for the genetic blindness therapy Luxturna, which received the green light in 2017.

The second approved treatment was a muscle-wasting disease therapy Zolgensma, which was the fruit of the Novartis-Avexis acquisition.

Both conditions are rare, but the financial rewards are impressive.

At $2 million for each treatment, Zolgensma sales reached $1.2 billion annually. At the rate the therapy is selling, Novartis estimates that Zolgensma will surpass the $2 billion mark in 2021.

Novartis and Roche aren’t the only ones partnering with smaller gene editing companies.

Pfizer has been working with biotechnology companies BioMarin Pharmaceutics (BMRN) and UniQure (QURE) to develop a treatment for blood-clotting disorder hemophilia.

The COVID-19 frontrunner is also collaborating with Sarepta Therapeutics (SRPT) to come up with a treatment for Duchenne muscular dystrophy.

Gene editing has also served as the foundation for several biotechnology companies out there today like Sangamo Therapeutics (SGMO), Cellectis (CLLS), and Allogene Therapeutics (ALLO).

The market size for gene editing treatments is estimated to be worth $11.2 billion by 2025, with the number rising between $15.79 billion to $18.1 billion by 2027.

This puts the compounded annual growth rate of this sector to be at least roughly 17%.

While this is already groundbreaking with only a handful of companies knowing how to utilize the technology, the gene editing world has come up with a more advanced technique than Crispr-Cas9.

The technology is founded on the “base editing” or “prime editing” technique, which is the simplest type of gene editing that alters only one DNA letter.

So far, one company holds exclusive rights to this technology: Beam Therapeutics (BEAM).

When the technology became public, Beam stock has increased sixfold since its IPO in February 2020.

This latest development can resolve thousands of genetic diseases. However, it still requires further trials since “base editing” can also trigger damaging responses from the body.

Overall, I think CRISPR Therapeutics is the safest among these high-risk stocks.

The data from two of its candidates, CTX001 and CTX110, are incredibly promising. Plus, the added funding from Vertex boosts the confidence of investors that regulatory approval is well on its way.

The company is also capitalizing on the surging price of its stock and investing aggressively across different rare disease programs.

While the company has yet to be considered a major force in the biotechnology world, the potential multiple successes of its products could generate a company worth hundreds of billions.

This potential alone offers an investing opportunity with a substantial asymmetric advantage for its current share price.

However, bear in mind that the stock is still a risk and should be played as a long-term investment. Hence, you should buy on dips.

crispr

April 27, 2021/by Mad Hedge Fund Trader

April 22, 2021

Biotech Letter

Mad Hedge Biotech & Healthcare Letter
April 22, 2021
Fiat Lux

FEATURED TRADE:

(THE PFIZER OF ANIMAL HEALTHCARE IMPRESSES WITH GROWTH DRIVERS)
(ZTS), (PFE), (ELAN), (IDXX)

April 22, 2021/by Mad Hedge Fund Trader

The Pfizer of Animal Healthcare Impresses with Growth Drivers

Biotech Letter

The World Health Organization has yet to offer definitive proof that animals can infect humans with COVID-19.

However, there had been cases where humans infected the animals, including tigers, minks, lions, and domestic cats and dogs.

This might seem insane to some since we’re not even done vaccinating humans yet, but it definitely presents a large and potentially lucrative market.

Recently, Russia launched the first and only registered COVID-19 vaccine for animals, Carnivac-Cov.

Not to be outshone, Zoetis (ZTS), the leader in animal healthcare in the United States, also started working on its own COVID-19 vaccine.

In fact, Zoetis has already commenced testing its candidate on some great apes at San Diego Zoo earlier this month.

So far, the company administered two vaccine shots to three gorillas, four orangutans, and six bonobos.

Zoetis’ efforts date back to last year when news broke that dogs and cats in Hong Kong were also getting infected with COVID-19.

While the USDA has not yet approved the vaccines for dogs and cats, the organization is leaning towards giving the green light for minks.

As it turns out, minks are extremely susceptible to COVID-19, so vulnerable that Denmark actually ordered a mass culling of millions after an outbreak in November 2020.

To date, several zoos have already reached out to Zoetis to avail of its experimental COVID-19 vaccine.

Considering that all these started with the cross-species transmission, experts are also hoping to learn more about it with the help of the company to prevent future pandemics.

Zoetis is ideally positioned to lead this charge since it’s the frontrunner in the pharmaceutical sector for pets and livestock.

This company used to be a branch of Pfizer (PFE), but was later spun off in 2012 to stand on its own.

In terms of competitors, the two most relatable companies to Zoetis are Elanco Animal Health (ELAN) and IDEXX Laboratories (IDXX).

Both offer virtually the same products, but Zoetis is the biggest among the three with approximately $75 billion in market capitalization.

In comparison, IDXX has roughly $41.55 billion, while ELAN has $13.61 billion.

Knowing that there’s more than a single way to expand its business, Zoetis has been favoring acquisitions as one of its growth options.

In the past years, Zoetis has been on a buying spree, making no less than eight acquisitions so far.

Half of these are geared towards veterinary diagnostics, with the intention of dominating the fastest-growing sector of the animal healthcare industry.

All its recent acquisitions put Zoetis directly in competition with IDEXX, which is currently the undisputed leader in the veterinary diagnostics space.

To show the disparity of their current standing, IDEXX raked in $2.4 billion in revenue from diagnostics in 2020, while Zoetis only generated $305 million.

Needless to say, Zoetis has a lot of catching up to do.

Zoetis initiated its venture with a splashy $2 billion acquisition of Abaxis in 2018, which provided the ex-Pfizer company with a powerful foundation in the diagnostics sector.

This was immediately followed by a $35 million deal to buy ZNLabs in 2019. In that same year, Zoetis bought Phoenix Lab for $150 million and then continued its streak to acquire Ethos Diagnostic Science in 2020.

Apart from its venture in the diagnostics space, Zoetis has been working on bolt-on acquisitions to enhance its operations.

A good example is its $140 million acquisition of Performance Livestock Analytics in 2020, which added a software platform that Zoetis could market to farmers to help them make their farms more efficient.=

Another one is its $20 million deal with Fish Vet Group, which basically created the same platform as Performance Livestock Analytics but modified it for fish producers.

Looking at Zoetis’ acquisitions, the company is clearly building a diverse portfolio of products that go beyond pharmaceuticals.

It’s evident that it aims to enhance its leverage on tangential businesses like diagnostics and even farm management.

While these new revenue sources are definitely interesting, they’re not moving the needle just yet. Zoetis is still primarily relying on its sales of pet and livestock drugs.

Aside from developing a COVID-19 vaccine, Zoetis has been working on a strong drug pipeline.

Despite separating from Pfizer, the strategies it implemented in building its extensive and diverse portfolio of blockbuster products pretty much follow the same path and trajectory as its previous parent company.

For context, “blockbuster” drug is any product that generates a minimum of $100 million in sales annually.

Using this metric, Zoetis holds an impressive lineup of 13 blockbuster products.

In 2020, Zoetis released a “triple threat” product called Simparica Trio, which can protect dogs from heartworms, eliminate ticks and fleas, and treat and prevent hookworms and roundworms.

This is the first-ever product that offers combined protection for all three—fleas, heartworms, and ticks—in a single treatment.

Despite the financial impact of the pandemic, Simparica Trio still raked in an impressive $150 million in its first year.

Reviewing its future product pipelines, Zoetis has two more potential blockbusters slated this year: Librela and Solensia. These two will also be the first-of-a-kind treatments for osteoarthritis in cats and dogs.

Delving deeper, Zoetis holds No. 1 spot in the companion animals or pets, fish, and livestock cattle segments. It ranks No. 2 in the swine market and No. 3 in the poultry sector.

In total, Zoetis has more than 300 product lines launched in the market, and the company still has more lined up for release soon.

Akin to Pfizer’s approach, Zoetis’ style is to dominate in select core markets, developing numerous blockbuster brands that generate billions every year.

Admittedly, the human healthcare market is substantially more profitable than its animal counterpart, but for Zoetis, this also represents significantly less competition from other drug developers.

At this point, Zoetis is not only in a strong position in the animal healthcare industry, but also dominating in a market that still has incredible room for growth.

In 2020, the total pet industry market was estimated to be worth $99 billion in the United States alone.

More importantly, this segment is projected to climb in the mid-single digits in the next few years.

A key approach in Zoetis’ growth is its strategy to develop and sustain a product pipeline with an average lifespan or age of at least 30 years.

The company also constantly launches new drugs and announces enhancements to their current products.

These are seen in the over 1,100 new products and improvements Zoetis has introduced over the past five years.

Judging from the company’s performance and future plans, it’s reasonable to expect a $200 price target for Zoetis over the next 12 months, which would indicate about 26.50% upside potential based on the current trading levels.

Taking into consideration the potential 5% downside risk, shares could pull back to reach $153 before starting to rebound again.

Meanwhile, the highest price target for Zoetis could be $210.

Overall, I believe Zoetis is a stable company with strong upside potential in the next months, and growth investors would be remiss to ignore the achievements of this company.