Replies to post #183878 on Biotech Values

[DewDiligence]

ZTS buys ABT’s animal-health business for $255M in cash:

http://finance.yahoo.com/news/zoetis-purchase-assets-abbott-animal-131500944.html

As is obvious from the price, animal-health was a very small part of ABT’s overall business.

[DewDiligence]

ZTS down slightly on lackluster 2015 guidance:

http://www.marketwatch.com/story/zoetis-shares-fall-further-after-downbeat-2015-outlook-2014-11-18

The company said at a meeting with investors that it expects full-year 2015 adjusted earnings per share in the range of $1.61 to $1.68, which was below the FactSet consensus analyst forecast of $1.72. The company also expects 2015 revenue of $4.85 billion to $4.95 billion, compared with analyst projections of $4.96 billion.

Earlier Tuesday, the company had announced a $500 million stock buyback program.

A $500M buyback authorization is chickenfeed for a company of ZTS’ size; if fully implemented, the buyback would reduce shares outstanding by about 2%.