Zoetis Inc., an animal health company announced that Solensia, its treatment of osteoarthritis, has been granted marketing authorization from the European Commission.
Specifically, Zoetis’ (ZTS) Solensia is developed as a therapy to relieve osteoarthritis pain in cats. Osteoarthritis has a high prevalence rate in cats affecting about 40%. It can generate pain and may reduce quality of life if gone untreated.
Catherine Knupp, EVP and R&D President at Zoetis said, “At Zoetis, our monoclonal antibody research continues to advance the care of animals and our platform allows us to explore new therapeutic areas for the management of diseases with high prevalence and high unmet needs.”
Solensia is differentiated from present treatment alternatives on the market by targeting nerve growth factor. The treatment has a monthly frequency and is administered by a veterinarian via an injection.
The animal health company commented that 76% of cat owners noted continued improvement in signs of pain upon treating their pets with Solensia . (See Zoetis stock analysis on TipRanks)
On Feb. 17 Credit Suisse analyst Erin Wright lifted the price target on Zoetis stock to $203 (27% upside potential) from $197 and reiterated a Buy rating. Wright also raised the 2021 earnings forecast to $4.41 “reflecting stronger revenue growth, partially offset by lower operating margin expansion, reflecting previously expected headwinds related to Draxxin competition and commercial initiatives.” Draxxin is an antibiotic used for treating pneumonia in cattle.
The rest of the Street has a Moderate Buy consensus rating on the stock based on 2 Buys and 1 Hold. The average analyst price target of $201.50 implies about 26% upside potential from current levels. The stock has gained about 11% over the past year.
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