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PARSIPPANY, N.J. - Zoetis Inc. announced that its Dectomax-CA1 Injectable has received conditional approval from the U.S. Food and Drug Administration as the first and only parasite control product for the prevention and treatment of New World screwworm (Cochliomyia hominivorax) infestations in cattle. The announcement comes from the animal health company that generated $9.4 billion in revenue last year and maintains an impressive 71% gross profit margin, according to InvestingPro data.
The approval applies to beef cattle, female dairy cattle less than 20 months of age, pregnant beef cows, newborn calves and bulls, and provides prevention of reinfestation for up to 21 days.
New World screwworm poses a significant threat to livestock health, with potential economic impacts to the U.S. agricultural economy estimated in the billions of dollars. For Zoetis, which InvestingPro analysis shows has maintained strong financial health and consistent profitability, this new product approval could further strengthen its market position. The company’s shares are currently trading near their 52-week low, potentially presenting an opportunity for investors interested in the animal health sector.
"New World screwworm has the potential to bring unprecedented economic and animal health harm to livestock producers," said Mike Lormore, Director of Cattle and Pork Technical Services at Zoetis.
The product is expected to be available in the first half of 2026, when producers and veterinarians will begin to see 250-milliliter and 500-milliliter bottles of Dectomax Injectable with a new label for Dectomax-CA1. The company noted that Dectomax-CA1 contains the same doramectin formulation as Dectomax Injectable.
The product has a 35-day pre-slaughter withdrawal period and should not be used in female dairy cattle 20 months of age or older or in calves processed for veal.
Zoetis emphasized that early detection and rapid response are critical for protecting animal health, encouraging producers to report suspicious wounds, maggots, or infestations to veterinarians or animal health officials. Want deeper insights into Zoetis’s financial health and growth potential? InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis through our comprehensive Pro Research Report.
The conditional approval was granted pending a full demonstration of effectiveness under NADA 141-616, according to the company’s press release statement.
In other recent news, Zoetis Inc. has received conditional approval from the U.S. Food and Drug Administration for its drug Dectomax-CA1, aimed at preventing and treating New World screwworm infestations in cattle. This marks the first approved drug in the U.S. for this purpose. Additionally, the European Medicines Agency’s Committee for Veterinary Medicinal Products has given a positive opinion on Zoetis’s Portela, a treatment for osteoarthritis pain in cats, potentially making it the first long-acting anti-nerve growth factor monoclonal antibody therapy for cats. In financial developments, Zoetis has entered a new five-year, $1.25 billion senior unsecured revolving credit facility, replacing its prior agreement. The company also announced an $1.85 billion senior notes offering, with maturities set for 2028 and 2035. Meanwhile, UBS has adjusted its price target for Zoetis to $165, down from $170, following the company’s mixed second-quarter results. UBS maintains a Neutral rating on the stock, indicating no significant change in its overall outlook.
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