Replies to post #156246 on Biotech Values

[genisi]

Generic competition is a non-issue because there is no Hatch-Waxman-like framework for animal drugs and there is no involvement by third-party payers.

There's another important point that contributes to this 'non-issue generic competition'.
Easy quiz :)

[DewDiligence]

ZTS begins trading in 30-32 range. I will wait.

[DewDiligence]

ZTS—I ended up buying a starter position at $30.85 for the institutional portfolio I manage. Leverage on the SG&A and tax lines, as described in #msg-84068724, give me confidence that ZTS can increase (non-GAAP) EPS by 10%+ for several years to come, so the valuation seems reasonable, albeit not a screaming buy. I did not (yet) buy any shares for my personal account.

Did anyone else here buy shares?

[DewDiligence]

More color on ZTS spinoff from Bloomberg:

http://bloom.bg/Y1fWxH

Note that ZTS R&D has been separate from PFE R&D since 2003, so there is no material negative R&D synergy from the spinoff, as some have posited. Moreover, ZTS has a paid-up 7-year license to PFE’s chemical library.