Zoetis
The world's largest veterinary pharmaceutical company, providing pet medications and complement to IDEXX in Fundsmith's portfolio
Zoetis
Overview
Zoetis is the world's largest veterinary pharmaceutical company, providing medications for pets and livestock. The company was originally part of Pfizer and was spun off in 2013. It operates in the animal health space, competing with other veterinary pharmaceutical and diagnostic companies.
Fundsmith's Thesis
Why They Bought It
Fundsmith started buying Zoetis as a new position, viewing it as complementary to their existing IDEXX holding (veterinary diagnostics).
Smith: "We started buying Zoetis, the biggest veterinary pharmaceutical company in the world. Quite an interesting complement to IDEXX. We like this area."
Recent Struggles
The company has struggled with side effects from one of its drugs, which created the attractive entry point.
Smith's Daughter as Veterinary Consultant
Smith revealed: "We asked our veterinary consultant — who's here tonight, and also happens to be my daughter — what she thought about it."
This reflects Fundsmith's practical approach to using domain expertise in their investment decisions.
The Animal Health Space
Two Fundsmith holdings in the animal health space:
- IDEXX — Veterinary diagnostics (blood machines, testing)
- Zoetis — Veterinary pharmaceuticals (medications)
Both benefit from:
- Pet humanization trend
- Increasing veterinary spending
- Aging pet population
Related Companies
Related Concepts
- moat — Durable competitive advantages in animal health
- quality-investing — High returns on capital in specialized niches