Zoetis Shares Climb on FDA Nod for New Cattle Drug
Conditional approval for screwworm treatment Dectomax-CA1 opens a new revenue stream and addresses a key industry need, boosting investor confidence.
Zoetis Inc. (ZTS) shares saw a significant uptick, rising 2.4%, after the U.S. Food and Drug Administration (FDA) granted conditional approval for Dectomax-CA1. This injectable drug is the first of its kind for the prevention and treatment of New World screwworm in cattle, a development that addresses a critical need in the livestock industry.
The marks a milestone for both Zoetis and the cattle industry. Screwworm infestations can be devastating to herds, causing significant economic losses. The introduction of a dedicated treatment is expected to provide ranchers with a vital tool for protecting their livestock and preserving their financial stability.
Dectomax-CA1 contains doramectin, the same active ingredient found in the company's fully approved Dectomax Injectable. It is approved for a wide range of cattle, including beef cattle, young female dairy cattle, and pregnant cows. The treatment provides protection against reinfestation for up to 21 days, a crucial feature for herd management. Zoetis has indicated it expects to begin distributing the new treatment in the first half of 2026.
Wall Street has reacted positively to the development, which aligns with a generally bullish outlook on the company. show a consensus of 'Moderate Buy' to 'Strong Buy' for Zoetis stock. The average 12-month price target from analysts suggests a potential upside from its current trading price, reflecting confidence in the company's growth trajectory and product pipeline. This new approval is likely to reinforce that positive sentiment.
The approval of Dectomax-CA1 not only provides Zoetis with a new revenue stream but also solidifies its leadership position in the animal health sector. As the company prepares for the commercial launch, investors and industry stakeholders will be closely watching the market adoption of this innovative solution to a long-standing problem in cattle health.