Background
Zoetis makes anti-infectives, vaccines, anti-parasite medications, as well as medicinal feed additives and other pharmaceutical and non-pharmaceutical products for the animal health industry.
About 65% of the company's sales are livestock related, and the other 35% come from healthcare for dogs, cats and horses.
"Make no mistake, animal health is a huge business," said Cramer.
According to Pfizer, just vaccines and medicines for animals represents a $22 billion market. And after the spin-off, Zoetis will be the largest manufacturer of animal health products on earth, with roughly a 19% market share.
"In many ways, designing medicines for animals is actually a better business than coming up with drugs for humans. You don't need to do as many clinical trials, which means your products get to market much more quickly," Cramer said.
"Also most animal health customers pay out-of-pocket, so the insurance companies have a lot less leverage over Zoetis when it comes to reimbursement," Cramer added.
"And you also have less competition from generic drugs in this space, another big positive," he said.
---------------------------------------------------------------------------------------------------------
More from Cramer:
Secret Bull Story Developing
Financial Crisis: As Cramer Warned, Fed Laughed
Worst Time of Year to Make Money
---------------------------------------------------------------------------------------------------------
0 comments:
Post a Comment