Replies to post #156043 on Biotech Values

[DewDiligence]

Good point; the same could happen to such sales ex-US, to the extent that are still are any.

[DewDiligence]

ZTS—This is a minuscule concern, according to the ISI presentation. The risk, such as it is, does not stem from a possible regulatory ban (which no industry experts anticipate), but rather from the growing popularity of so-called organic meat—i.e. the stuff sold at places like Whole Foods. These products have a market share of about 1% in the US and something less than that elsewhere; thus, the organic market share could double, triple, or quadruple without having much effect on ZTS’ sales.

[DewDiligence]

ZTS is holding up well in light of the FDA’s “voluntary” ban on use of antibiotics for fattening livestock. The company has officially supported the FDA action and says it will not have a material effect on sales and earnings.

[DewDiligence]

ZTS +2.2% (a pretty big move for this stock). Evidently, the antibiotic issue than ‘biomaven’ raised in #msg-83957451 has been an overhang on the stock that has now been removed.

[DewDiligence]

(ZTS)—Perdue eliminates antibiotics in chicken-raising:

http://www.wsj.com/articles/perdue-farms-eliminated-all-antibiotics-from-its-chicken-supply-1475775456

Perdue, two years ago, stopped using on its chickens antibiotics that also are used to treat people. Now, the company has also stopped using antibiotics used only to treat animals…

When chickens get sick and need an antibiotic to cure them, Perdue’s farmers will treat the birds, but their meat will be sold as a low-cost commodity product rather than under Perdue’s brands…

According to ZTS’ recent MS webcast, only a small portion of the antibiotics ZTS (and other animal-health companies) sells are ones that are relevant to human health.