Zoetis Announces Agreement to Acquire Basepaws, an Innovative Leader in Petcare Genetics, to Strengthen its Portfolio of Precision Animal Health Solutions

Rhea-AI Summary

Zoetis Inc. (NYSE:ZTS) announced the acquisition of Basepaws, a petcare genetics company known for its genetic testing and health risk assessments for cats. This strategic move aims to enhance Zoetis’ precision animal health portfolio and R&D capabilities, leveraging Basepaws’ extensive genomic and microbiome databases. Financial details of the acquisition were not disclosed. The partnership is expected to boost innovation in petcare, improving health management and overall quality of care for pets.

Positive

• Acquisition of Basepaws enhances Zoetis' precision animal health capabilities.
• Basepaws' genomic database will improve R&D efforts and inform future product development.
• Collaboration is likely to drive innovation in pet health management.

Negative

• None.

-- Basepaws’ database of feline genomics will enhance Zoetis’ R&D capabilities and inform future innovations from Zoetis

PARSIPPANY, N.J.--(BUSINESS WIRE)-- Zoetis Inc. (NYSE:ZTS) today announced an agreement to acquire Basepaws, a privately held petcare genetics company, which provides pet owners with genetic tests, analytics and early health risk assessments that can help manage the health, wellness and quality of care for their pets. The acquisition will advance Zoetis’ portfolio in the precision animal health space and will inform and shape its future pipeline of petcare innovations. Financial terms of the agreement are not being disclosed.

Basepaws helps pet owners and veterinarians understand an individual pet’s risk for disease and can lead to more meaningful engagements and increased likelihood of early detection and treatment of disease. (source: Zoetis)

As a pioneer in petcare genetics, Basepaws offers easy to use, genetic screening tools for the early detection of disease risk in pets, as well as individualized breed and health reports that can identify traits, biomarkers and potential hereditary conditions for pets. Basepaws helps pet owners and veterinarians understand an individual pet’s risk for disease and can lead to more meaningful engagements and increased likelihood of early detection and treatment of disease.

“The Basepaws team has done an amazing job demonstrating how genetic testing and data can improve how we care for the pets in our lives,” said Abhay Nayak, Executive Vice President of Strategy, Accelerated Growth Businesses and Commercial Development. “With the addition of Basepaws, Zoetis will continue to strengthen our portfolio of products for precision animal health, across genetics, diagnostics and data analytics for pets and livestock. We are also excited by how Basepaws’ feline genomic and microbiome database will help enhance our R&D capabilities and inform the future of our petcare pipeline.”

“Basepaws and Zoetis both consist of pet lovers with a passion for science, and our mission is to create better and longer lives for our pets through knowledge and data,” said Basepaws CEO Anna Skaya, who founded the company in 2017. “We look forward to expanding our business and the impact of our genetic products with the global scale and R&D experience of Zoetis, the world leader in animal health. We believe that together we can bring the benefits of a more proactive healthcare approach to pet parents around the world.”

Pioneering Petcare Genetics with Rich Science and a Start-up Mentality

Basepaws developed and markets a comprehensive DNA test for cats and the world’s first at-home oral health test for cats, with plans to expand into the dog market. Today, Basepaws’ genetic testing services are primarily marketed directly to pet owners in the U.S., and include its popular Breed + Health Cat DNA Test. Using its world-class feline genomic database, this test can estimate a cat’s genetic similarity to more than 21 breed types and 4 breed regions, and it provides results for over 115 known feline genetic markers — 65 markers for genetic health conditions and 50 markers for traits.

Basepaws also has one of the world’s largest feline genomic and oral microbiome databases, which is a rich resource to validate traits and health conditions for today’s cats, while also informing future research and development efforts and targets. Zoetis’ R&D organization has brought game-changing innovation to petcare over the last 10 years in dermatology, parasiticides and pain, and the Basepaws database will help refine and inform the company’s pipeline and future targets.

About Basepaws

Basepaws is a petcare genetics company that builds early detection health risk tests based on genetic and microbiome data. Basepaws is committed to companion animal health research, and it has the world’s first at-home genetic testing platform for cats. Founded in 2017 by Anna Skaya, the company is based in Los Angeles, CA. For more information, visit www.basepaws.com.

About Zoetis

As the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After 70 years innovating ways to predict, prevent, detect, and treat animal illness, Zoetis continues to stand by those raising and caring for animals worldwide – from livestock farmers to veterinarians and pet owners. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $7.8 billion in 2021 with approximately 12,100 employees. For more information, visit www.zoetis.com.

DISCLOSURE NOTICES

Forward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of Zoetis with respect to: expectations regarding the performance of acquired companies and our ability to integrate new businesses; expectations regarding the financial impact of acquisitions; business plans or prospects, future operating or financial performance, future guidance, future operating models; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development, expected timing of product launches; the impact of the coronavirus (COVID-19) global pandemic and any recovery therefrom on our business, supply chain, customers and employees; future use of cash, dividend payments and share repurchases; tax rate and tax regimes and any changes thereto; 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, 2021, 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. Such risks and uncertainties may be amplified by the COVID-19 global pandemic and its potential impact on the global economy and our business. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com, or on request from Zoetis.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20220606005978/en/

Media Contacts:

Bill Price

1-973-443-2742 (o)

William.price@zoetis.com

Kristen Seely

1-974-443-2777 (o)

Kristen.seely@zoetis.com

Anna Skaya

1-949-426-9229 (o)

anna@basepaws.com

Investor Contact

Steve Frank

1-973-822-7141

steve.frank@zoetis.com

Source: Zoetis Inc.

FAQ

What is the purpose of Zoetis' acquisition of Basepaws?

The acquisition aims to enhance Zoetis' precision animal health portfolio and R&D capabilities.

How does Basepaws contribute to Zoetis Inc.?

Basepaws provides genetic testing and health risk assessments, which will inform Zoetis' future innovations.

What are the financial terms of the Zoetis and Basepaws acquisition?

The financial terms of the agreement have not been disclosed.

What impact will the acquisition of Basepaws have on ZTS stock?

The acquisition is expected to positively impact ZTS by strengthening its product offerings and innovation in pet care.

When was the Basepaws acquisition announced by Zoetis?

The acquisition was announced on June 6, 2022.