Zoetis (ZTS): Cytopoint Accretive to Top Line - BMO

BMO Capital analyst, Alex Arfei, reiterated his Outperform rating on shares of Zoetis Inc. (NYSE: ZTS) after the USDA granted Zoetis a full license for its anti IL-31 antibody (now called Cytopoint) for the treatment of Atopic Dermatitis (AD).

The analyst believes that Cytopoint and Apoquel are complementary. Since cannibalization is unlikely, Cytopoint should further strengthen Zoetis' leadership in the large AD market. The analyst is forecasting that the Apoquel + Cytopoint franchise will generate $340MM in 2017 and growing to $400MM by 2020.

The price target stays at $59 for now but the analyst thinks there can be upside to that level.

For an analyst ratings summary and ratings history on Zoetis Inc. click here. For more ratings news on Zoetis Inc. click here.

Shares of Zoetis Inc. closed at $53.12 yesterday.

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