ZTS is down 9% since high, almost back to levels before annoucment of Ackman's stake ($2b stake / 8.3% stake)
as we saw rumors of Valeant that could be interested in the name even with some bankers from the street were mentioning that there is a lack of synergies and its high valuation make the deal unlikely. Other rumors mentioned also before that Bayer could be interested by ZTS, these rumors came after Bayer announced plans to spin off its plastics unit to focus more on health care in mid-September and Bloomberg News reported that ZTS could be an attractive target for the diversified German company (after this Sanofi news could be take down and Sanofi maybe mentionned as a suitori) . And on 3Q14 earnings call, BMO Capital Markets’ Alec Arfaei wanted to know, since there have been a number of reports of possible buyers for ZTS and “this will become more of a factor [after June 2015]…how should we think about your position on being a target of a potential acquisition? ” Recall, ZTS was spun out from Pfizer in June 2013, making June 2015 the two-year anniversary that is widely held as the benchmark for when a tax-free spinoff can be acquired without incurring tax penalties. CEO Juan Ramon Alaix responded as one would expect, by defending ZTS’ value proposition as an independent company.
ZTS started to traded lower on the 9th after a Report on reuters quoting that Valeant Pharma is abandoning its acquisitions growth strategy for now to reduce debt, boost stock price. {http://reut.rs/1wK4z1B}
It looks now that Sanofi has also an interest in growing in the animal health business it's only €2.2b revenus ...
It could be interesting to keep an eye on that as rumors can re surface after this Sanofi / Bayer announcement
NEWS
Sanofi today announced that Merial, its animal health company, has reached an agreement with Bayer HealthCare to purchase two Bayer equine health products, Legend®/Hyonate® (hyaluronate sodium) and Marquis® (ponazuril).
Legend/Hyonate is an injectable solution that treats noninfectious joint dysfunction in horses; and Marquis Antiprotozoal Oral Paste is the first FDA-approved treatment for equine protozoal myeloencephalitis (EPM), a disease that affects the central nervous system in horses.
"We are pleased to add two top equine products to our global portfolio. Legend and Marquis are highly regarded by the horse community and further support our commitment to equine veterinarians, horse owners and trainers," said Merial CEO and Sanofi EVP Carsten Hellmann. "This addition is one example of our strategy to invest in business opportunities that enable us to deliver innovative solutions to veterinarians across animal species."
The purchase, expected to be finalized in early 2015, further broadens Merial's portfolio of leading products that improve the health and performance of horses. Legend/Hyonate is primarily sold in the US and Canada, but is available in more than 40 countries with the UK and Japan as important markets. Marquis is only sold in the US and Canada. Merial plans to make both products available to veterinarians in countries around the world. The acquisition is subject to customary closing conditions.
Merial is a global leader in advancing the health of pets, horses and production animals. The company's global equine portfolio currently includes products to treat and prevent Equine Gastric Ulcer Syndrome and to control parasites in horses, as well as vaccines to help prevent Equine West Nile Virus, Potomac Horse Fever, equine influenza, and rabies in horses. In October 2014, Merial launched its latest equine addition, with the EU approval of the updated equine influenza vaccine ProteqFlu®.