Zoetis (ZTS) 16 Feb 212020 Q4 Earnings call transcript

Welcome to the Fourth Quarter and Full Year 2020 Financial Results Conference Call and Webcast for Zoetis. Hosting the call today is Steve Frank, Vice President of Investor Relations for Zoetis. The presentation materials and additional financial tables are currently posted on the Investor Relations section of zoetis.com. The presentation slides can be managed by you, the viewer, and will not be forwarded automatically.

In addition, a replay of this call will be available approximately two hours after the conclusion of this call via dial-in information or on the Investor Relations section of zoetis.com. participants placed all mode. a time, this have in been listen-only At floor your for be following The opened questions will the presentation. is Steve [Operator floor It now to pleasure Instructions] turn over to Frank. my the Steve, you may begin.

and Kristin morning, our Good Chief Glenn I to fourth earnings and Thank Chief full today Executive you. XXXX by everyone, year joined David, our the Financial welcome Zoetis Officer. quarter Peck, am and call. Officer;

the statements call Investor remind I'll that slides are you website available this that differ will on actual section Before remarks we begin, projections. could and Relations presented the from our and of today on those results materially our include that forward-looking

list including, on Form to XX-Q. press to in a could today's Report description refer but that our and Annual forward-looking factors cause differ, SEC our on not statement For release results reports Form limited filings of you and XX-K certain I to our and the

will not the release A included our today these financial remarks comparable U.S. the also GAAP. financial financial XXXX. reconciliation to accordance certain measures GAAP press U.S. February accompany Accounting directly or tables in Accepted today, and to measures filing in earnings Our in Generally company's non-GAAP the X-K XX, prepared that which Principles, references were most of include is dated measures, with

turn We will over call the also cite with operational results Kristin. which exclude to the And that, impact of I foreign exchange.

your all loved Thank you, are and everyone. Steve. ones you morning, healthy. hope Good staying I

the with you of it are share continue for to times year But safety hope virus The new remembered will optimism the reaffirms essential many As our that resilience variants vaccinations and emerge. know, we of Zoetis portfolio than strengthening of the blockbusters regions, as health for experiencing challenges. nature categories. and XXXX the industry parasiticide reliable seven ahead. business, lines all and COVID-XX, adherence innovation better be our of protocols, for progress more and We days major COVID XX ensured colleagues' of cases across still safety our and launched but in also face driving and we're hard the maintained Trio. successfully colleagues product I combination in our kept Throughout my of triple continued and year, dedication animal we We diverse Simparica and personal supply eight in species product customers. the and successfully XXX our agility

pain several Solensia’s achieved Switzerland. cats, also osteoarthritis dogs the first long first antibodies and We with authorization ever in for other for in markets, acting authorization cats and and Union approvals European monoclonal Librela’s for in dogs for the

the that global February before in we We financial also in we continue platform European in last U.S. beginning the impact provided able do to in Vetscan build approval portfolio breakthrough our our Myco recombinant And was goals the to five cloud-based of on our we the vaccine pandemic diagnostics, coming that successfully the swine programs sharing veterinary delivered results important including reporting. line Imagyst, known. XXXX ESG continued the priorities all weeks. advancing And I at approval the in with metrics artificial Meanwhile, staying out where of Poulvac long-term in livestock with we forward finally, while progress look using our CircoMax the poultry, HVT-IBD made for advancing in to the our We in intelligence our to anchored this we guidance were and vector and vaccine vaccine the for Procerta with the purpose, We long-term ESG launched year, of set were clinics. sustainability, Union. of our

key operational X% dermatology we proposition, animal strength of products primarily business, value long-term growth the our of the on to our companion in full the X% For in our continued in based we revenue, generated year, part industry of the growth growth portfolio new than grew X%. XXXX once revenues again historical faster anticipated rates and than faster as for And China. and

As our net revenue. than faster value growing delivered adjusted of we on also income our part proposition,

For strong XX% discuss in XXXX. operations adapting quarter and give which pipeline delivered of us adjusted our our full strong performance drivers investments minute. generated and product our in operational a And Glenn we net year, growth confidence growth trends while new momentum We the launches. for in continuing pandemic, income these and results, within will fourth in

most acceleration in continue U.S., faster to than by diagnostics the expect ongoing outside China, continued in growing strength driven markets our revenue and of XXXX, care, market expansion We notably the pet penetration. in portfolio

pet market U.S. growth and antibodies operational Positive launch trends revenue continued the have animal the Growth X% And clinics rebounded XX% veterinary has near-term. based mid more companion Simparica of on average to monoclonal strength people shows in adoptions pets expect uptake care visits the their the in to expectations to growth wetness market per pandemic continue U.S. to visit faster outside our the should in the the the on are Data markets for key driving full in with increased guiding continued and are of spending increase. and the revenue during portfolio time XXXX. the significantly the than digits. to grow for of in We that single of year dermatology based Trio, we

positioned and the us as adoption to trends treatment we that the long-term, growth across these normalize in The the share diagnostics dermatology, should pandemic regimen for moderating parasiticide, continue, care eventually began workplace. shift innovative as vaccines the continued rates and people chronic our we portfolio curve. pain, see care specialty impacting have and well returned Over and

market, loss single still as COVID-XX XXXX, be of expect impact livestock at low products growth In the in digit from will number we of terms market of a exclusivity. felt experienced

grow from anti-infective we line as Draxxin, competition headwinds with increased in We expect product. wetness for market, our the the to face generic even leading

us of diversity exclusivity animal sales of the to livestock address innovations including our Longer-term, guidance. We invest are with and in product livestock swine maintain overall help our loss confident continue Draxxin will support that China, lifecycle we together innovation the agricultural data-driven to we for XXXX livestock will solutions. and can growth leverage portfolio, our strategies in

XXXX, we data progress innovative cultivating be future. five through building leading and championing will experience, against As in our on digital more enhancing driving high-performing organization growth, priorities; sustainable continue a we analytics, healthier, the customer a and

campaigns plans and use through other of of Revolution ongoing investment XX. new include Our the Plus the launch direct-to-consumer XXXX continuing globally. and other the as awareness the U.S. advertising and U.S. and ProHeart Simparica growth Trio as adoption parasiticide, increased in focus on in well for dermatology and of markets, growth Driving in successful disease

the remains customer expect time. treatments, to top this to increasing and growing annual on our focus market in us Our innovative sales for help loyalty billion which first $X we

As in launch Europe half in the advancing the and noted the XXXX, in and the first antibodies earlier, be investing monoclonal osteoarthritis for process of cats U.S. and in first of pain markets. the regulatory dogs we'll in other

While U.S. essential approvals in products safety at we the Solensia we remain of on XXXX. the Librela the and or U.S. receive believe unlikely submitted, for data approval in confident in we this efficacy based it we will these is point,

for this we animal data solutions through reviews digital more and And the we're conclusion, incredibly calls. our in success efficient of will during will regulatory individualized people our process on continuing finally, continue manufacturing you that producers. support XXXX. more on and work the and such and for and it sustainable guidance uncertainty updated XXXX, We continue face care FDA, I'm proud in future full what year with and development In great and to continued me operations confidence of accomplished keep to gives our inspections of

through over and The and the our leadership of and navigate industry, the passion diversity, of our but last innovation, what year. of and any from capitalize resilience and we essential As we global nature to us the ahead, recovery animal market challenge. pandemic agility see growth drove from comes the colleagues face the portfolio, optimism health on the opportunities

Now, fourth XXXX. for let results more me and full it quarter Glenn, speak the who hand guidance our to about year off will

income exceptional operationally X% and revenue on good $X.X adjusted range. reported on net net We high-end with XX% operationally adjusted a and guidance $X.X billion, Thank reported year you, a full another Kristin, increasing revenue billion and our had X% basis, both with the November Full grew morning, income X% year basis. of and everyone. exceeding of of year

revenue Going was of This pandemic. approximately acquisitions of key from from with deeper year $XXX U.S. bolstered expectations again and animal broad-based year revenue also companion year-over-year as performance, brought flat with generated saw for volume into to of of operational incremental line X%. the with X%, parasiticide of growth growing added XX% market by revenue led million XX%. $XXX innovation revenue while was growth portfolio contributing our of the which X% from full products X% Simparica key Performance Trio, Volume strong XX% our for our we operationally. in animal exceeded growth Sales portfolio consisted basis. the of and numbers, prior diversity and launch price the growing double a livestock to X% set and operational revenue contributed X% grew grew was our digits the The on with million. Simparica companion other to products, to international year. growth by the the We flat new dermatology from products

$XXX revenue continued demonstrated million XX% of key generating increasing market and COVID-XX livestock. strength created year. than portfolio growing versus million pandemic prior dermatology a Our XXXX, for environment in difficult The more $XXX operationally,

XXXX the China and strong XXXX. We consumption will growth return continues in margin growth XX% that encouraged from fever Operational driven global as patterns displayed to swine operating income normalize. net are in by and expansion. resiliency by African adjusted was modest the recovery we livestock mainly in optimistic revenue However, growth of remain and

on of the U.S. Companion X% terms and gaining in year. the growing operationally, in more the XX% declined increase results, X% of where and we grew of from dermatology on billion, products, Adjusted operationally quarter Simparica decline Now while of million line This X% is the from growth, of continued share revenue quarter, key quarter. same QX. period $X.X net in an flat growth parasiticide QX Operational generated the increase which and posted heartworm market $XXX adoption Companion than of in $XX from with million from grew the of revenue and in and Trio animal of of report includes a X% another from way operationally volume. X% moving led strong Volume X% livestock X% species with operationally a income to reported. tick the X% of in segment XX% the of flea, consisted acquisitions other products. an X% X% versus X% our from representing financial in sales animal basis. prior in new products, X% price products X%

Our Apoquel of key products, XX% key significant operational for the million of an with fourth the grew difficult quarter extremely quarter growth derm again last had representing and in in $XXX versus dermatology revenue, comparative Cytopoint year. XX% global which growth period

Our again visits wellness in the consumable continues revenue be year. positive diagnostics slowdown portfolio to The distancing earlier the revenue. growth expansion with reference and in lab for from made and restrictions following instrument catalyst growth in recovery to a double-digit contributions social

fall we weaker typically early the livestock cattle sales run we decline leading primary noted X% operational the the As was expect. a of quarter, fourth the driver quarter on for to fourth quarter of a the would quarter. call, hold into in portion our This earnings third previous in than cattle

of posted swine growth. remainder the portfolio, For livestock a quarter second the consecutive of

With rebuild China. from continue as Fever the in Swine African recovers the key herd in accounts market

grew business swine in the aquaculture partially along decline and quarter with high-single the in and cattle Our digits poultry. offset

XX% growth with on in products by revenue sales by Now revenue growing livestock companion to declining grew the quarter, segment XX%. XX% moving animal and U.S.

return investment by continue as well our well a of XX% companion Cytopoint. franchise, growth remain encouraged maintained clinic both animal therapeutic trends the extremely in XX%. driven the and $XX with at significant revenue up quarter, by quarter growth in For for investment. continued per sales portion and and direct-to-consumer new from We to QX an to and animal, good patient that growth segment We the on visit the with were of the key material Apoquel the growing Simparica the in products. future again see areas dermatology X% million of Key visits increasing in for vet as increase positive product came dermatology of advertising Companion sales as million. Simparica $XXX the a overall Trio patients performed sales category. quarter, were with the of sales growth Trio for market our in

for Companion are profitability, XX% instrumental of led in products. growth our into companion trends, U.S. QX pet diagnostics to in Poultry been adoption revenue vaccines from was franchise the livestock as again comparative consumables. observed growth. quarter animal the driving second Companion the every other premium of expectations. favorable the use ownership was driven result which X% segment again market have our an in point Key of and and while double the clinics. usage. expansion animal in cattle, feedlot. in their in Revenue care continue quarter. grew pricing declined scale operationally. expanded from they XX% and leading a products digit grew also of quarter in investment, our in such in QX as and series contributor Our our largely lockdown products growth of in Parasiticide summarize XX% was quarter, the vaccines the species franchise the X% animal, Swine by growth quarter. and to XX% in medicalization movement a posting China growth to operationally, our herds the reconciled a COVID-XX In in Italy in and investments and significant the farms Asia. and sales market straight by XX% revenue key quarter, for and pressure care total point animal in into Increased third Overall of arguably XXXX. further grew third declined grew animal quarter products attributed a XX% instruments more the of performance Trio. smaller rebuild The the portion a diagnostics innovation increase to negatively to and usage quarter product the resulted well we parasiticide line with dermatology China, UK, to increased a Simparica grew operationally livestock less large in quarter patients impacting livestock quarter as on pasture operationally. sales with the quarter business. support rotation and increased sales results Companion XX% a of which as driven revenue animal primarily sales had producer from of with of consumable operationally portfolio, Swine growing companion by excess down in declines in except companion pulled products. in swine the consecutive of strictest operations. rates earlier operationally strong were XX% grew of remaining grew growth once international international grew reduced in protocols. had the To U.S. return drove exceptionally to result accounts Brazil as XXX% operationally major

full despite poultry, XXXX, Brazil For Overall, in declined. except the COVID-XX. and species year delivered digit segment fourth double our quarter by strong modestly which results challenges presented International growth delivered all the

enabled geographies growth. and of products significant International again across diversity our be driver segment to a Our

discrete And adjusted very earnings. commitment our net annual In of adjusted to for the X% prior This growth benefits, our product on the of and and favorable adjusted than rest points of partially partially operating XX and Now EPS the costs, tax the important was our offset income net by dividend quarter campaigns diluted points faster recent XX% rate remain Return decrease Trio the for basis announced of operationally, compared to we the by quarter, T&E increased and driven offset quarter charges, moving grew other DTC impact the inventory mix and promotion XX.X%, adjusted resulting offset reported for finally P&L in increased has adjusted increases. expense mix to been income. operationally. from expenses price at XX in manufacturing or a from will favorable acquisitions XX% remain of freight a XX.X%, to elevated The future investment dividend December, basis continuing expense. investment savings. Apoquel, jurisdictional effective partially we the the growth the an advertising by fell with basis on resulting and – Simparica of net support year from by grow gross was tax margin Adjusted business. increase and

in resumed authorization. the program share In with repurchase $X.X our addition, under current remaining billion capacity January we of

XXXX, note to Now January. late the guidance exchange of moving foreign as on rates guidance please the for reflects

For XXXX, and we to $X.X are projecting billion revenue representing XX% between $X.XX operational X% growth. billion,

We foreign of points. XXXX are basis XXX expecting exchange favorability in approximately

continued Trio of the XXXX, be for XXXX companion animal allowing year of believe We which of in our growth expect well market strength strong as offerings, with health driver our anticipate parasiticide primary than diversed key faster further animal diagnostics companion Simparica for we in our We dynamics the products, will portfolio includes the to sales. which of remain market. expansion grow animal as will dermatology overall full

pace the moderate, per visit. spend accelerated of to that certain expect trends increased we While in XXXX such as

Our of primarily growth view expect sales growth balanced be will is more has We XXXX the relatively to by International that higher and patterns. return base for XXXX, consumption growth. livestock Geographically, company driven anticipate food normalized in our segments. to status between total global we future U.S. a

year. a the expect we touch believe guidance China markets. continued dermatology, emerging revenue will in expectations other billion full meaningful in for investments to and our XXXX. behind And upon the $X assumptions underpin continued we the growth. with I'd Beginning revenue meaningful that like our with for do franchise, competitive does growth and not exceed key entry assume However,

long-term having product not our compete and against for We We're about antibodies pain, in Trio. Simparica will Librela potential. with U.S. the to combination both blockbuster extremely XXXX Solensia excited monoclonal assume also triple the do launch in

currently half approval in the the EU other and receive both U.S. either products product in markets, to Kristin not launch year. However, the of mentioned, in this first we do international will expect as XXXX while

For expected P&L, expenses $X.XXX of between our of billion the and are sales of adjusted cost billion. is sales a SG&A remainder the is which consistent relatively of to revenue be be as for to $X.XX cost with expected the Adjusted XX%, approximately XXXX. percentage in year

diagnostics. on be XXXX expansion supporting focused million recent including in $XXX reference expense and product increase for primary expected the revenue key acquisitions, With is R&D and launches, other million of to innovation. cycle drivers expense, in interest $XXX future and lab and brands XXXX between as growth, we and for XXXX recent million remain to opportunities well increased over be increase the with new to $XXX expected investing driven and by pipeline lower approximately committed in deductions life interest Adjusted is therapies as as incomes income. interest Adjusted

X% Our adjusted XXXX. is in be XXXX effective representing to in favorable approximately non-recurring impact is XXXX income The expected tax $X.XX is billion, Adjusted to primarily the to be range of growth a in items of XX%. rate related that to to net for increase occurred XX%. expected operational of $X.XX discrete billion

proposition to the are acquisitions, reflects capital with investments net guidance the Our facilities elevated revenue be investments manufacturing, to capacity our technology Consistent increases opportunities. year capabilities anticipating when We're investing expenditures support than digital pipeline of in API, in XXXX as internal or information to well during with market and support value and in on growth. our support also data analytics. we'll recent income of as focused in support and sourcing XXXX, than future faster line we making faster revenue, growing to adjusted meaningful growing

reported EPS be to be $X.XX. $X.XX we Finally, range in adjusted of range to diluted and the the to $X.XX in $X.XX to EPS diluted expect of

was operational This we Trio anticipate largely the challenges. growth While of first another is be income. versus expectations, a towards a weighted do QX heavily and will X% we a to guidance year represented more the revenue set the To and exceptional comparison Simparica due year. sales full-year operational as half And COVID-XX. XXXX which represents delivered XX% growth of favorable full-year year in net and XXXX adjusted unique result summarize of growth

organically our elevated investment. faster income above adjusted XXXX of the and market for during grow ability times net grow to guidance revenue than Our even revenue highlights

circumstances. all Before over our unprecedented of accomplished I'd express amidst turning an we've like it I how colleagues Q&A, to and to proud of set am

long-term While is about we without the on be value be deliver no will proposition. shareholder New similar the Year XXXX, assurance there again faced in our that more excited cannot opportunity challenges to

things line Now to over questions. to hand I'll open for your operator Operator? the the

then And we Stifel. will our [Operator Jon go Block Instructions] question from take first Please ahead. with

on just Congrats great morning. both a upfront. Good I'll guys. XXXX. ask Thanks,

quarter, a what call despite companion XQ margins big were below it gross like For gross bit the again, flattish, next positive margins animal year despite you're like growth. makeshifts. seems a seems XXXX And guiding it,

So, then still of more companion the a in Glenn, bit can of a not we And a the performance? talk bit? that margin stick gross expanding are animal story? with Why about you And part long-term margin is seeing gross considering sort guidance. I'll

XXXX of guidance out gate. really Just big on the hummers

specifically You Can I out? components talked Trio number, you bit the other companion about $XXX million know plus safe talk companion. in call Trio you a Thanks, a it of guys. components animal through don't livestock little more? heard I assume of is versus to if but any

Jon. Sure,

look you relatively flat for the firstly, is expectation So XXXX. versus XXXX. It gross margin at

you with animal be as XXXX. mix we move the As mentioned, into will beneficial companion

the we're come margin, early life reached Some some in of full be Lowe's margins there lower labs, of in stage their scale. at the that, lower such particularly little to cycle will the labs, that investments labs, building until at those their is as of they reference making the a a areas which other offsets were we're operating

of offsets. some that's So the

of mix. terms animal there companion the in were some So positives

Some some offsets we’re terms longer in the other there areas. with making and of investing

would the of significant at animal as be in expect to XXXX we we from Trio as least XXXX. terms growth, specific growth of driver but not obviously in number contribution achieved for big on XXXX. We're a growth Trio, In of companion do be the putting to so we a what expect drivers

growth will Also in very into very in the do that'll we in portfolio. We growth for as drivers, $X exceed animal in that strong move we will we're portfolio that as expect with obviously year. rapid expect growth Brazil. in performance that in of the forward China We seeing expect into XX% and well the help that as our diagnostics, the one in markets, we dermatology growth In us performance we of companion XX% XXXX. as quarter fourth diagnostics XXXX, saw many also well. saw the as momentum that portfolio we with continued such quarter, billion strong So emerging be our strong and XXXX had operationally carry

So are those some animal the strong that are of factors the driving companion growth.

comes question Bank next of Please America. go Ryskin with from ahead. Our Michael

Hey, thanks, guys. I'm going to ask a two-parter. quick

the the the How does bit for market, is competition? be specifically First above well more patent digit going of your know expectations a on a some a pricing of you livestock the factor can you the mean, XXXX. launches where of potentially and growing and portfolio on you corn, just are And one Librela. Plus share? of But do companion sort Trio, second strength, be what sort And meaningful on you on taking? Are see And Draxxin. in lot for on and thoughts to sort you're to can on outlook term then markets, costs some and into but higher poultry also early Revolution from about but on market, headwind you to rest any expectation broader has just a do of question steps you line would commented that you how of off, expect and us commented on But starting comment on there? that input low tell the growth? and things up in rolled in just obviously, then little terms livestock, the XXXX? of completing I any the line see comments I just single in portfolio? producers pressuring And going you we've the animal market read swine. strong in on

Mike. Thanks,

than market think are few Draxxin, Again, probably more say starting So a will that think LOE the number a hasn't on of U.S. out in obviously would expected month, entrants few. months enter will it to is to Obviously, don't shake ago, this last. happened yet. but competitors market. I I so we we expecting a we the the

that share we we we expect expect number XX% of previously, that several expand we really macrolides to And drives therefore given XX% years. of to the what case will think do Draxxin, overall and said will lower the I price itself As don't believe to we large be that on be typically, a over market lose market about Draxxin In for expect the competitors, overall, to it is do different. the factor, partly really about but grow.

our some the info the going look Draxxin is And around We well costs. referenced all in come that expectation as the baked is guidance, of an strong in right from where we expect broad this is We technical. to portfolio, now do positioned to XX% you also said, think be there. to so livestock, expectation. we're a But down price XX% that to that if you is at broader

in heard return livestock expecting remarks, opening our we some growth, low you so overall. As to growth a are of in digit single

of led will lot U.S. in that And some sort be the of be of will that species, in the outside but a led U.S.

of that incredible XX% outside business reminder, some other our the U.S. and right of growth in As we're Brazil, seeing markets, and is China a livestock et now cetera.

some think do there. our diversity is livestock we of markets, we third given do some large in overall, Brazil, So at strength the a largest be second of in looking portfolio, we our see have, China, is market info market our U.S. but largest pressure, costs will the

range low will return over XXXX. single return believe it we overall X% growth the to in mid single the to digit X% medium So livestock will to to continue And believe do in we term. digit normal growth

broad the take sure want to you animal in companion on XXXX. So, Glenn, if I'm not incremental question the trends

Yes.

for It's So portfolio. breadth of remain really by animal trends companion our very driven the the will strong.

Trio our We’ll round from that such we're growth. other a see expect portfolio. in like diagnostics key that well rapidly, some talked for to XXXX, have as pain where in about we'll also very the markets. we in then be of Also derm Brazil. launch the portfolio, ProHeart Revolution from the to we antibodies markets like that products are from products out So lot as growth such contributor growing our is monoclonal China, seeing as Europe, a our Also Plus. growth other But animal portfolio; as XX, products companion markets there the

really of the see. by our are animal. that have And broadest with driven areas there to the companion that's So do leverage portfolio we fact able growth we that and customers. We're in many

And Cantor Louise from ahead. Chen with our go Please next question comes Fitzgerald.

for taking thanks my Hi, question.

factors pertains headwinds feed macro livestock you. that out what it that or the to see prices, So tailwinds as Thank are weather, there? see in you XXXX, any for Zoetis other you

Good from hear Louise. Sure, you. to

livestock As seeing from probably of XXXX the overall, from we're also see China significant maintaining expand that. hopeful the that China. signal will amount is We're which a dine in at a to out, other markets less going decent you macro the AFS sort herds. of than an industry growth driving send you'll be a in still the of trends to portion of increase recovery swine around world a sort as perspective. importing in is some look to

really And U.S. digit remain into see do guiding XXXX. low emerging the the see do of but some will but I markets, medium-term, XXXX leveraged we we info as with for both the of believe that's hit And we seeing were obviously mid to some sort was we return a the there. move you'll to at a be demand. mean back our we'll why costs, normalcy overall. et So the single of digit, significant in many sort believe an There in in of of where cetera, uptick obviously, single we markets factors, more technologies but we're in have do increase different of challenges producers, some

next our Wright Credit comes go Please And Suisse. Erin question ahead. with from

think multi-formulation how this second we meaningful still still about U.S. is they're is the we in How from approval guess that Thanks. at Do playing contributions legacy your curious one launch products parasiticide the under the the dynamics think across and this customer labs. countries confident had blockbuster Are strength line U.S.? of these how for historically are I'm expectations? should your with the [indiscernible] with all? question XXXX? out And in is approach in haven't that you about And my base. towards anticipate? your pain the cannibalization new be the impacting any you Pascal, in on or resonating should products you other I but them is be will in you Europe then year

Thanks, question heard second the Erin. labs, I can answer. which on I

the were on question. first You up in breaking digitizing

shot, out we it, think we more us let have I of give a what if comment missed can heard. or we and so some you less

to FDA a remarks year Solensia, now to And our EU with the labs, release, on to So approved if the eventual saw the you Brazil, and second sort Solensia mid-year. has the based continue have have in confident safety in in and of your the fact in on very monoclonal Switzerland. excited year the launching bit. But on And to the approval launching and first We starting the believe in out Switzerland. health. half this submitted were data in first U.S. Librela remain moved question we efficacy we and in antibody this our in be EU, the first that we approval the already do this half in and has approved on by approval of we timeline the expect animal this We of is Canada the do approval

all, Our and keep we'll little actually the the inspections, a to It's regulatory honestly you it for Cytopoint manufacturing regulatory changes missed We're question. know guess, through this process. Glenn, process. of at peak but us better, previous first it. I it we'll might making USDA. overall And We predict but don't product of try understood your bit continuing I continue different have slightly process some to work harder think to a is we was little updated. one a that and the sales

Yes.

our So, expectations. a very think Erin, with we're around our how We're offer variety of from customers. clinics. think And I how in going the that parasiticide our I of performance customers portfolio to our was they also sales with question Simparica well we that options franchise your breadth to best on we exceeded Trio veterinary growth want think in really performing for shows significant animals. And only in really the based able we that's year, with on in but $XXX the Not in the which exceed million Simparica, our saw treat saw in I the goals did the XXXX.

with Trio the XX% operationally Simparica the the grew patients benefited saw we overall we advertising driving into actually What Simparica. for that was So and clinic portfolio.

We also in saw XX a positive ProHeart growth very as well.

to So benefit very we parasiticides and our portfolio really portfolio. execute really the a the that think and the field well with breadth of able was colleagues

all? sorry back missed it get little queue. the we you, a Did question? that right, can your We All come digital. that bit in and look you about Was

next William Blair. John Please our take question from We'll go ahead. Kreger Okay. with

very much. thanks Hi,

a timing clinical follow-up far Just And on you how and the have pushed a might approval quick sense for do U.S. need to of data? the timeline maybe be? think additional Librela you the Do you in back collect Solensia

process. Yes. the through We and now. We're still great don't right have sense a regulatory working manufacturing

– also going We is FDA to inspections. require the

outside are facilities Our the U.S.

they're the able to bit uncertain. So exact when be a going of to timing do little is that

under would sense. So not hasn't approved confident we is process soon I we're approved. greater as we health forward, going go If new I but have CBM it calls be will remain which obviously with future a be to – as it And monoclonal be regular do a more again, have great specific don't more, happy eventually being we we'll to need very previously. we in did, unfortunately know But XXXX, we antibodies now. an animal given have We fair guidance. right to update expect that that in in don't what a through

different us. little a bit it's So for

the this we best at point. is know So this

question. focused It your the a Can to concentrated being Thank in about Are XXXX? any efforts for of investments you. maybe the plan results frame seems second really right then now you companion like livestock? with just being accelerate of And diagnostics we are animal? starting Great. there. Should sort the think

Sure.

on remains good For is very indicator of leading a on really companion animals. usage. We're which our placements, XXXX, pleased progress focus with our

had we quite saw, pleased you As double-digit consumable growth as we're which well, with.

we new there. platform. We're first obviously one. AI-powered the Imagyst for indications excited fecal, in its at indication, We're products, the additional that's looking As added look we've with

would also labs. reference there be piece last the So

expand continuing So U.S. we're our reference lab. to

five probably about this labs to three year. more we’re adding So

XX%, we a diagnostics It's across starting to a that our So that momentum believe see strong of is but the we're part some it. portfolio. at we're grows different really core pleased market parts of

as well placements consumables. both So as reference lab well as as

So progress space we to remain and the very are pleased there. over with committed our

next Westenberg Please from Securities. Guggenheim ahead. question comes David go our with And

year. it is questions thank for us little might very campaigns, benefit Can the give what any heartworm? mean, there's a get a do marketing much. trying new mentioned big share the synergies, basically, maybe on get of sense can tick you and or there and kind particularly there's maybe taking to question how then congrats flavor the bit taking is even grow what of tick? direct-to-consumer flavor you both to from? good market synergy? and in able just a the synergy category, you heartworm but a Is on is trying think of legacy legacy related And I flea to So second a this Hi. Trio. you some flea and you to be the And Trio a terms from I'm great the cost – where Thank just on is I of I'm sales market? on derm just component

Sure.

in Trio, increase in QX the an on starting see X%. share did we So of

in share coming a number taking are that's we from. of So places

is established with are maybe are about people well think the people category you think to doing over overall, in the share who Also where products poppies, gotten some we're the this I new it, space. poppies. of I competitors from And would in. new say, quite first moving counter new had If previously other think taking I we the

pleased I growth there we're think seeing say I share. and at overall, So our would strong

at If Prosecco the $XXX each look NexGard and you a two potential million day. the products are product, for the competitors

there's So remain in be under index you to we believe to continue honest significant parasiticide. We growth. with

for our DTCs this a derm? is when across we synergies a So we replace sense what see – the part overall except side. of continue Not significant you would From power Obviously, leveraging really leveraging get as we by is with a on cost power say, to spend I buying can are better growth there the both. between on just by has only to sense. that, But things other, the that, combined think affecting there DTC like clinic DTC see synergy beyond honestly the in the we bolts our strong and don't synergies maybe carry unless our one but buying

next go to Please Goldman Nathan go question can ahead. Sachs. we Now with from our Rich

launch and new I morning. of treat you Librela the lot like it pricing Solensia? be helpful. this would that's and Librela on a Thanks by varies out priced treatments curve to to of type treatment? for in chronic guess Hi, Kristin, products up level I existing there for questions. I'm good from of how the And will on the of what month sort that way it osteoarthritis here comment sure kind a be what a start, vets kind like your of kind on know think be of the U.S. for initial vets $XXX the can market? Obviously, market, relative demand looks just maybe pain. impressions are to any but do for

Sure.

a in a Librela different. for Solensia be the million think entering Librela slightly lifecycle market and will today. that's $XXX I the curve is

So established market. it's an

OA dogs the So for I people – in think ability are pain. their for already bringing

have of the profile I we patients So safety with efficacy think opportunity to Librela of the given the benefits the the product. number expand and compliance and

can think days we I increase therapy. also on

the your to also then it helps So us to market obviously and grow price point.

since a today. premium have market in the the it to price don't in of an It a approval don't we – U.S. at is the U.S. not the So priced even products on many have yet obviously, we is

that I going a has that today be And longer. a isn't little to really parts think fact do take there to world. the the Solensia a of is most going little bit is different the because market curve to in

and significant get treatment, a cats bring market, there have looks try in. about There's cats them U.S. million no market, it. been in the condition of cats cats by away, some have really ago medicalize encourage kind vet, had then It's XX% – a identified think the year their first to to pet not in was pain you to If really to of treat owners are these so – and We've XX% but of vets but them treat start what And that. bringing their but OA of build like and We aware you to focusing, us significant. that XX a have owners make conditions only cat, them started cat to to only getting really it's that.

can that markets think the both are significant we we grow So market.

you So our in a with at and dermatology Solensia is Apoquel more doing look Cytopoint. market. about that can success think with I creating And

as building last has assume early building be those Solensia of talking been than So we're curves XXXX would a will as markets. some much guidance year the we're and for over and curves I the the investing faster about Glenn of Librela of market. the But

our question Barclays. with from Prasad Balaji comes And Please next go ahead.

Good Hi. couple of results. A me. morning congratulations the and on from questions

are news to seems contingent illegal regulatory And year since on vaccines Firstly, be so and recovery livestock of recurrence being there used this ACF. China. of of the

in cycling want XXXX? impact to margins, on our and I have will not around diagnosis that this. dilutive in Second should operating to how Thanks. you that should the mix we the be on a we have so, the are considering in be heads understand what So re-hurting seeing for operating better you're And ground what Livestock looking the saw if we margins considering is Should XXXX. of offsets recovery? revenue that better?

Sure.

at and positive performance livestock so look we've China overall when China, you in So year. livestock, particularly in in seen this very

in a in in particularly of seeing And year see the China this larger premium African and the the herd that where recovery products. is we our continued use XXXX to our So more rebuild, from and products livestock grew China performance from accounts fever. accounts recovery we we expect we're swine strong in than continue perspective, multinational larger as XX%

in swine and XXXX our grew moving of for half China in very we XXX% of from second the very positive year growth in the XXXX. acceleration example, rapid in momentum we growth, China. really significant expect over into a swine seen we've And XXXX, So in particular in in

return increased in support our dermatology. SG&A, of growth of invest particularly In continuing for are saw XXXX. we'll look derm, terms seen to on a in very number pain at XXXX, things XXXX, investments continue we we've Trio investment to in as and investment of on continued that around as the and be plan couple into continuing a margins, move positive monoclonal Trio antibodies the well return that'll as Obviously, DTC that well areas R&D. positive of of the have very We've there on area really our And as as we in we investment A, we that investment there. an to operating as of as as well.

thing other and more isn't that the XXXX guidance, growing XX.X%. assumption In X% change and the consider revenue The reasons rate XX%; rapidly income overall of to one in between in which when to at rate is tax look was the XXXX. growing to – growing you XXXX, with our XX% income X%

approximately is XX%. XXXX for guidance Our

impact adjusted If our the faster, XX% net would tax the XX%. you actually growing so rate, be neutralize for X% to more income of

is tax of but degree. So we impact are seeing that margin expansion, the some the to rate diluting

next ahead. And with Schott Please go to we'll go Chris JPMorgan.

terms a bit years. maybe the the first, market talk, about COVID seems you on kind innovation of has been bit livestock side? in like dynamics Can lackluster of much. growth few so the Thanks It between Great. similar a and last

And innovation the margins. livestock should And up watching single mid bigger topic digit it be on question trends take are of back there? what side? was what a So to does then to of second get growth we the just some the following on

As a we sense seems a continue so into out. set about healthy Thanks playing very trying growth the lot ground? as these sustained looking new and of that window I'm we invested we to of as XXXX and XXXX? beyond, dynamics, expense longer-term go higher Or of as this groundwork top should about XXXX much. I many get you up to expansion get be thinking assuming should we line margin of a after be think launches been, that already guess, off start we how

Chris. Thanks

We the digits have a way. in been talking about the fact sustainable that mid-single to really get to

You're going need to innovation.

you're starting already I some are spaces think and coming. be where that see that will few there to

In the around there. space, digit. the launched This talking which more we We're first our is In first IBV. for million we about vaccine XXXX, market, looking a about. a in for been one market The U.S. launched is one $XXX vector have significant it’s double we launches for Newcastle. XXXX, growing

for and vector So which an of and growth of is us. we being species area faster do see technology the poultry, growing, one innovation

immunotherapies are also alternatives important antibiotics reasons. broadly are We for animals productive. to more going healthier two more and to there secondly, are think really One, be that

for So also it productivity increases producers.

a be have with think been working a which while will we've to partnership I So and for Colorado immunotherapies, important. on state develop

that's the I'll livestock think has where that on I we're the is I looking that's is in which right farming. to at farming now spaces of number the great testing, think a wave, purchased potential. other think and livestock focus genetic expansion. take We're growth margin herd we there there's sector important really immunotherapies, and at a more of second we really Glenn and see think let big The you're to medium-term precision also know, but probably probably leaders on care next space vectors, innovation question monitoring long-term across livestock, also the driver, I back-to-back PLA as going and precision animal genetic you individual

Yes.

consider. factors expenses, couple terms to there of in a long-term So of margin the are

flat the gross of making we of talked the some impact investments in with about XXXX, year the the labs, relatively that that on margin. also this Draxxin is for LOE mentioned some the margin of So we're gross reference of and drivers

XXXX impacts and expansion those in some So margin. as beyond we continued be will gross expect we of move would see into less than the little a to

overall In pace where would we the our of to that that that to obviously beyond get terms we be below things to grow XXXX, at T&E of COVID, able one-year when would will beyond expenses but operating normal back from normalizes, impact, revenue. expenses, continue be there a expect

established, So R&D somewhere to based on be we globally that infrastructure the able opportunities, revenue. vary in with that should we'll on inflation given we revenue. grow based and probably continue the between any to may line have grow but year SG&A That

there to would expect expansion on margin to continue an operating see we perspective. So overall

next David Our go will ahead. question come with Morgan from Risinger Stanley. Please

add And my Yes, very year let phenomenal on much. another thanks well. congrats as me

delays. monoclonal antibody So two respect questions I have approval the first to with

cats whether I clinical wasn't – the or it mentioned So there Kristin, wants manufacturing it's think quite FDA me for data because manufacturing questions, you are but and issues both clear had more manufacturing. dogs, to because whether

FDA on struggled to them So clarify years. market, And been from of if differentiated , drivers follow-ons just both several the R&D amazingly competitors, issues are, growth what products including they're you Zoetis’s blockbuster animal over clinical even top bring to has then could to companion whether manufacturing? or obviously second. Zoetis’s

you. And to help R&D Zoetis’s just Thank understand its so and considering from can competition? separation that, unique the the us you ability aspects maintain in

site. inspections Sure. Thanks really to they're it the of David. With antibodies regulatory and and is they're process the that Librela questions the working requiring and Solensia, regards monoclonal just through asking

asked the have we is but point doing at a for data, time the regulatory have process is saying. FDA, it's this been was clinical not some any the of we're the It at looking in Understandably so what products, that it's first with of I process So new so time both. of these first questions. types just they're they for number a still

new trying going through it I working just probably that. the really affecting do that we're So inspections, which manufacturing regulatory the just manage and COVID is little know definitely but bit, through review to is process a

we the what on It's With and partnership organization. between the at to I manufacturing point. been those for and saying this commercial what as this know early still insights think there's partnering process data Zoetis at taking point, products. we any issue to So and their and through you We're our think just not R&D, asked review I have with R&D, don't additional it's clinical regards are. any expectations to manufacturing R&D was the needs commercial is, develop customer working

be with really products bring be monoclonal market. to own thing antibodies. other we've partner able to manufacture the think We and well manufacturing able to is them done to those scale I

Apoquel. important in at level. As when strong got the in supplying manufacturing of which very the you the that the on journey some thought for think we've We scaling I and many challenges we products certainly launching investing capability, got hard up we our know is way about early of partnership, learned had

and rigorous and I think I perspective, scientists, eight disruptive Anything would commercial there add willingness we've they colleagues to doing. think obviously take been over been though We've but have managing I last those an So and we our it's process from our in think with that the risks our partnership invest years. technologies manufacturing R&D great you Glenn? the have and

Kristin. I think and Kristin that R&D. and well you marketplace, the and in said, doing that early between making it's key coming with very needs we've that said, capabilities sure are up been inter-connect able exactly talked the what commercial in here. manufacturing works We the I manufacture we're And Like about on extremely that. identifying the what solutions successful products think to

go Miner Company. from Please Kathy question come ahead. will next Our Cowen and with

you. morning. Good Thank

Thank clarify U.S.? cat you it on X other are time, one you've monoclonals. targeted for manufactured the outside the have cetera? the that? products, to just U.S.? The And at-site outside Can the one both when question the Is speak the have in the sales the just ones doing of the I to EU year. relates of launch drivers or is Can it monoclonals again we then intention needed to is question Is and you. being talk on behind both second talked about or question more the the you also it dog et either advantage of billion you the of second same derm an Is both this can at about approval. correct some , products. that where First the plant there about is markets, and inspections you

Sure.

Kathy, great to you. So of from hear first all

facilities different, on them inspections, going the same they handle and be I probably approval sales both outside ex-U.S. are question required are of still the dogs the they your in both believe both And derm can in are but different in U.S. or U.S. are remain they these to was second the There’s the prior outside our differently, outside number of gets under two-thirds the of for sales penetrated the around We the U.S. and they U.S. derm of U.S. outside U.S. in both manufacturing growth And but Secondly, but them, products are math they're the regulator for of we're U.S. think

hard the have we there’s now do is been specific. we get So mostly brand to advertising, has opportunity. U.S., able scale do significant outside historically It that been because direct-to-consumer

we just to investments XXXX. in the of for awareness doing time the are overall first make in One advertising direct-to-consumer going is disease

in the So we specific cannot really be but only are with we products. derm, brands,

So best hopefully can to you awareness there care. speak to their if a and the are encourage that treatments people you around and raise disease vet get

and to market. our The the that team think I they is faster, U.S. to why bringing the give pets investment who U.S., are aren't derm the million we our in need who getting treated tremendous one. direct-to-consumer advertising, one So X credit in. products awareness hoping continue are in are of a need reasons grow have getting start and International, In will grow but to products solution dogs, raising I our to more or more there pets still

So significant U.S., would we S start growth the from sure more there's growth still the last time U.S., growth international, growth but I'm of though in know growth in both. although would over do overall the and we've believe believe to I U decline the strong of still we we very for come potential expect there's out the we years, expect, seen to

with will Wilbur Raymond ahead. Please Elliot next question our And from go come James.

years where penetration term, term the side, about five expected. additional I more human little logs Then respect on the earlier Trio clinics health out, of Seems XX in or product you're rates? able of looking but dive additional sure thinking was maybe terms launch congratulations obviously at be a you cannibalization details just in in not around of longer uptake like originally strong you are Well, some on metrics if on you that's generally many longer mean terms Thanks. been to in those reach, Thanks. just have Good the wondering maybe one to the versus actually to Kristin, something performance just about challenging on could the less just the analogs year the the the obviously the of want if relative companion order XXX, than product. its first clinic if a applicable very with morning. helpful? just just think Simparica would to metrics around thoughts to animal respect year. of sales, bit But targeted product? with this year And market, the launching in launch more I with expectations of success launch in strong reasons year. How share first for

Sure. With Trio. lot the height a the regards at there's unique we the U.S. pandemic I to the would say launch of in launch. of the A, launched of Trio of characteristics

our we're penetration that to the sure QX, in launches. were of of penetrate people's and but all pleased goals. by slower end other compare QX that not to year I'm say would I clinics, We how reached to the we quite So

has given move get we has confidence the product outperformance we clinic, once the strong, were on the XXXX. patients within penetration gives been the really ability that our us good more share I was of really quite think our into So penetrated delay the And strong. our to been as

As Glenn expecting minutes we similar mentioned few are earlier, a a contribution.

sales For starters, had XXXX, reaching QX end it broader the we'll to have growth we We same a had able the a of continue goals pull by we'll also them that those that didn't year, think we to penetration wanted. the get clinics achieve the year, which we have with there. last where parasiticide through across with is pull just in we were great can We're seeing see we the at our also portfolio. but

about globally, the U.S. it's to use billion So significant here looked this shows XX% in globally were see And we animal pleased it you there's care, share a Simparica remind – X% under-penetrated I had an health would the beyond billion QX. the And we to I single in space, human works. space. opportunity but category Continuing grow. I'm with health to overall would continue continue We increase of Trio, $X is I us in that if not in biggest $X.X analog, in the to in herd say growth quite for at sure remain everybody

on we think we can take and grow So continue it to this share overall.

it looks like already not million competitors I'm So sure being health. products. biggest our with human But $XXX

got get share strong as to least ability I fair space. in continue to our at this think grow we've

question have Yes. the sales. is timing with terms and that in challenging of Obviously peak And of only becomes sales I add the thing, on peak What competition the for unknown. remains XXXX, timing of and the guidance be sales triple our impact overall current another the expect our could within peak combo for does not product. that will what U.S. the obviously to

go come Please next Navin UBS. our from question the And with ahead. will Jacob

can Navin you the specific in Jacob, in corporate – revenue margin of a that And average? in do to Thanks Sriker morning. questions. or earlier expect Thanks you then XXXX? you for this Hi, recur portfolio your this Can expect question, of adverse recur your for you on in impact XXXX the revenue quantify from impact is And good gross I this diagnostics very much. to taking cattle Nadipuram run? the couple just therapeutics have quantify fall difference negative this

Yes.

terms the seasonal fall that in early cattle impact between of impact for of QX. the XXXX, for and QX an So did year was the have run just that the not impact

in in think of very obviously in more QX, I occur performance seasonality you this the XXXX opposite in is the terms then the QX we of difficult, full on and that focus obviously impact. saw the year of but you saw predicting year, strong overall

diagnostics in don't therapeutic higher is key In gross by our say of provide margin therapeutic some area has obviously always we general gross business, specifically animal the species. overall business margin, we But or than diagnostic of our terms margins for by lower the areas. companion

our ahead. Jefferies. And question Please Steinberg will from come with next David go

increased there first in simply what it's were successful comments, XXXX visit. office? target to also such the expectations confidence was many there adoptions is said competition previously adoptions because million from I dollars you no are. for any asked Thanks. you durable is adoptions actually, murky, this around the question in you reverse back now the vaccinated, the how pet books, was do a around any when Glenn Trio last both gives how as adoptions people I and any most are And would a do Trio, in And in about back think for actually competition it potential think said final one tailwind, And just year, and just other pandemic, the but world half might there chance have you the there [indiscernible] be those it's two I dollars obviously I there first questions. go competition, your, they increased do were great per do the no not more data, visit and you X.X that the when in that year? said of is you think that previous you country, be your , you annual. have that competition I XXXX, competitors? could tailwinds curious, owners when Thanks. competitor the the increased to work, increase And you've of get launch a per out called this the think know such I

Sure. with typical million U.S. you year, million a X.X see adoptions. to pet regards in XXX are the adoption, about In pets there

a visits increase continue is we that an And we positive dramatically things, seeing XX% to change to increase a expect but that even think in in which XXXX. So in going isn't do are trend. we vet

see QX. we a vet in So in visits mentioned earlier, as Glenn increase did X%

continue. are We that expecting to

say there, pets maybe So don't to have between in like specific And continue I what a helpful. we're I were it'll be increase incremental adopted. the to it's seeing think are that XX% assume were going and do an think numbers, proportional We to somewhere I visits. would X% you see but, very

don't visit, it's with to believe still per it that which spend about grow. think We well to in going We be honest us was remain strong will asked incredibly You XXXX. strong you.

vet have I'm If do what in visit. of as see as clinic, both health revenue derm revenues with we visits, not our be by growth well sure growing expected overall one it's that frank, the in in mid-to-high the competitor clinics growth spend we'll you spend, but questions think a as in overall regards have We have competitors. space, now. at digits single look would we we've human you're of speaking With trio XXXX We expected is going like, strong year, a seen close there would to well. visibility total number to going to to to the competition. somewhere assuming the per in don't generally look year. get normal as has overall when on very normal a To on

us market, great haven't challenge they is So market couldn't is, a to way not renegotiate the and exactly we're try the in a have entering us. don't does not that sure who often of yet, with when what seen mean surprise think rumor accounts but we mill that, we competitor someone other which knowing the strategic than

want on. there So be, our we based it guidance but could what be to was clear

honestly would don't but both will just point are large not don't question well we So your and do these We in know, as they expecting have as specific any markets, knowledge. assume we at derm we this point, given come, do competition knowledge, as but to Trio really we are have when we XXXX. your point, And have specific this not on any competition. to at

guidance space. our assumption an include either not So for competition in did

Securities. go Please with from ahead. Truist next Gregg Gilbert Our question

Hi, seeing a trying you from an broadly the on diagnostics or think Thanks. mentioned Can what and going input degree inflation it? and about As rate price diagnostic on there's costs? that then up, back about plus. to catching element leapfrog of you thinks rate maybe growth or to XX% broadly there, sort by also the is your all? I if how Clearly field. strategy M&A, sort talk standpoint? about any building commodity of of influenced And are at a to Glenn, more competition potential but you're at the differentiate world you I'm key pressure least for upward Glenn, curious of signs there?

we driven quarter, diagnostics a like So the of growth in acquisitions did A had. that part XX% see that was you we said in reference the for of diagnostics. by lab the terms growth

was So that XX% quarter. around the XX% net organic of for growth diagnostics to in

the diagnostics we XXXX ways. system XXXX. Also, and SAP we So our better as throughout in growth that'll year, positive still very into integrated well quarter. business. a in momentum in carry infrastructure established diagnostics two move A, we fully the nice the a We think much for into us we core saw in

billing So are as well we to now able to terms provide phase one product customer our in of offerings. as

about The other that end connectivity had did in XX%. improving thing we made At bi-directional improvements of beginning at to year the to our the connectivity, that that XX%. significant we the significantly of throughout the year. we was the over increased We year,

that think the of innovation to bringing well very as images well. as XXXX, some we’re new as moving as establishes with we So we're well platform the

we embarking of we're continued reference as lab well think key on. we expansion as into are as XXXX, the some those So that the drivers move

about the excited we in very that see in diagnostics expect we're So growth XXXX. to

but costs else our of nothing input from key us that costs a we a continue of into some XXXX, freight guidance, manufacturing probably for had of that COVID-XX challenging. see perspective, significant Obviously because for is that in inflation the impact as particular XXXX particularly in of we and nothing elevated impact. embedded move terms In there's we will

call this be will time. There speakers additional further appears for or over to no remarks. I turn the closing to questions back at any the

for deliver you Thank Thanks today. continuing for much forward in customers keeping throughout your questions you. us. year and results updated the and the everybody your so look Zoetis our joining on continued to the innovations business interest and and expect. We to our that you Thanks

today's conclude you Thank this you. Thank program. participation. And for does your

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