Company’s entry into reference lab space adds to its increasing capabilities in diagnostics, a category of the animal health industry with approximately 10% compound annual revenue growth over the last three years1
PARSIPPANY, N.J. & MUKILTEO, Wash.--(BUSINESS WIRE)--Oct. 31, 2019--
Zoetis Inc. (NYSE:ZTS) today announced the completion of the acquisition of Phoenix Central Laboratory for Veterinarians, Inc. (Phoenix Lab), a full service veterinary reference laboratory company, after fulfilling all closing requirements. With the addition of reference laboratory services, Zoetis now can provide more comprehensive diagnostics products and services as an enhanced value to veterinarians in the U.S. Financial terms of the transaction are not being disclosed.
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. Phoenix Lab, founded in 1989 and headquartered near Seattle, serves veterinary clinics in 20 states, primarily in the Pacific Northwest, with complete clinical and anatomic pathology testing as well as microbiology, serology, hematology, chemistry, urinalysis and other diagnostic tests for canine, feline, avian and equine health needs.
Acquisition Complements Existing Diagnostics Capabilities
“Phoenix Lab brings Zoetis a reference laboratory highly valued by veterinarians for quality assurance and customer care,” said Kristin Peck, Executive Vice President and Group President, U.S. Operations, Business Development and Strategy for Zoetis. “This acquisition is a strong complement to other diagnostic testing capabilities at Zoetis, including VetScan®, WITNESS®, SERELISA® and AlphaTRAK®, and it will help us offer our customers even more comprehensive solutions across the continuum of care to predict, prevent, detect and treat disease in animals.”
“Zoetis and Phoenix Lab share a mutual commitment to support and advance the veterinary profession. I especially appreciate that Phoenix Lab was founded by veterinarians, for veterinarians, and I look forward to building on their 30 years of success to serve veterinarians’ complete diagnostics laboratory needs,” said Peck.
“At Phoenix Lab, we are extremely proud of our consistent track record in serving veterinarians’ diagnostic needs and the trusted relationships we have built with our customers,” said John Evans, Chief Executive Officer and President, Phoenix Lab. “Going forward, we are thrilled to join with Zoetis to offer our customers even more for their animal health needs.”
Veterinary Diagnostics: A Growing and Vital Category of Animal Health
The global veterinary diagnostics category, which includes reference laboratory and point-of-care diagnostics, is estimated to be $4 billion1, with compound annual growth of approximately 10% over the past three years1. Zoetis expects the diagnostics category to continue to grow faster than the animal health industry, with growth in the mid to high single digits; this growth is driven by international adoption of point-of-care diagnostic instruments due to pet owners’ increasing interest in pet wellness trends, rising medicalization rates, increasing standards of veterinary care and the convenience of in-clinic testing1.
In 2018, Zoetis acquired Abaxis, Inc. and its world-class portfolio of VetScan diagnostic instruments and rapid tests. Through this acquisition, Zoetis became a leader in the development, manufacture, and marketing of veterinary point of care diagnostic instruments and consumables.
Zoetis is the leading animal health company, dedicated to supporting its customers and their businesses. Building on more than 65 years of experience in animal health, Zoetis discovers, develops, manufactures and commercializes medicines, vaccines and diagnostic products, which are complemented by biodevices, genetic tests and a range of services. Zoetis serves veterinarians, livestock producers and people who raise and care for farm and companion animals with sales of its products in more than 100 countries. In 2018, the company generated annual revenue of $5.8 billion with approximately 10,000 employees. For more information, visit www.zoetis.com.
About Phoenix Lab
Phoenix Lab provides veterinary diagnostic services based out of Mukilteo, Wash., with a test menu and service offering including complete clinical and anatomic pathology testing as well as microbiology, serology, hematology, chemistry, and many other miscellaneous tests. For more information, visit www.PhoenixLab.com.
This press release contains forward-looking statements, which reflect the current views of Zoetis with respect to business plans or prospects, future operating or financial performance, future guidance, future operating models, expectations regarding products, expectations regarding the performance of acquired companies and our ability to integrate new businesses, expectations regarding the financial impact of acquisitions, future use of cash and dividend payments, tax rate and tax regimes, changes in the tax regimes and laws in other jurisdictions, and other future events.
These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, including in the sections thereof captioned “Forward-Looking Statements and Factors That May Affect Future Results” and “Item 1A. Risk Factors,” in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com, or on request from Zoetis.
1 Based on internal estimates and publicly available information.
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Source: Zoetis Inc.