Zoetis' Osteoarthritis Med for Dogs Set to Deliver Significant Advantages In 2024, Analyst Says

Friday, the FDA approved Zoetis Inc's ZTS Librela (bedinvetmab) for the control of pain associated with osteoarthritis (OA) in dogs. 

Librela is the first and only once-monthly anti-NGF monoclonal antibody treatment for canine OA pain. 

It is approved as safe and effective in providing long-term control of OA pain symptoms in dogs.

The approval is in line with management's guidance for a first half of 2023 approval and should allow management to provide some early commentary on the product's launch at its May 25, 2023, investor day.

William Blair writes that January 2023 vet survey points to strong market demand for Librela in the U.S., with nearly half of the respondents indicating they were "very likely" to try Librela within three months of launch and 75% at least "somewhat likely" to try Librela in the first three months of launch. 

Further, the FDA estimates that at least 25% of dogs will be affected by OA in their lifetime, reinforcing the market opportunity for the new therapy. 

Zoetis is planning for a controlled launch of Librela to lay the groundwork for future support, so the analyst expects a gradual ramp through the year with more meaningful benefits in 2024.

Price Action: ZTS shares are down 1.20% at $184.00 on the last check Monday.