By Michael Calia
Zoetis Inc., the animal-health products maker at the center of
the latest round of pharmaceutical deal talk, said Tuesday that its
board has approved a $500 million share-buyback program.
The company's shares, which have risen 19% so far this month,
were inactive at $44.23 premarket.
The announcement comes a day after the company disclosed a deal
to buy Abbott Laboratories's animal-health business for $255
million and about a week after the disclosure that activist
investor William Ackman had taken a stake of about $2 billion in
Zoetis.
Last week, Zoetis adopted a so-called poison pill plan, which is
used to ward off potential takeovers, although the company didn't
mention Mr. Ackman's Pershing Square Capital Management LP.
The Wall Street Journal had reported that Mr. Ackman might push
the company to sell itself to a larger company, such as Valeant
Pharmaceuticals International Inc. The report also said Mr. Ackman
was working with Sachem Head Capital Management LP, another
activist firm.
Zoetis--a Pfizer Inc. spinoff which makes vaccines and medicine
for household pets and livestock--generated $4.6 billion in sales
last year, making it the biggest player in the animal-health
industry.
The deal with Abbott would expand Zoetis's diagnostics business
as more people are having their pets treated for diseases such as
diabetes and cancer.
Write to Michael Calia at michael.calia@wsj.com
Access Investor Kit for Valeant Pharmaceuticals International,
Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=CA91911K1021
Access Investor Kit for Abbott Laboratories
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0028241000
Access Investor Kit for Pfizer Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US7170811035
Subscribe to WSJ: http://online.wsj.com?mod=djnwires