Zoetis Stock Plummets 24.8% YTD: Here's What You Need to Know

Shares of Zoetis ZTS have plunged 24.8% year to date, amid mounting safety concerns surrounding its monoclonal antibody osteoarthritis (OA)pain therapies — Librela for dogs and Solensia for cats. With these companion-animal brands serving as major revenue pillars, the controversy has weighed on investor sentiment and contributed to sales declines over the past two quarters. The stock hit its 52-week low in November 2025 and continues to trade near that level.

In late 2024, the FDA raised concerns about Librela after reviewing post-approval adverse event reports in dogs, identifying neurologic effects such as ataxia, seizures, paresis, and recumbency, as well as urinary issues and, in some cases, death.

While the agency’s communication to veterinarians reflected a routine post-launch safety review, it underscored heightened scrutiny and the need for transparent reporting of adverse events to Zoetis or directly to the FDA. Zoetis noted that the FDA’s findings were consistent with its own monitoring and consequently announced a U.S. label update for Librela in February 2025 based on post-approval experience.

However, an analysis report published on a government website in May 2025 found significantly higher musculoskeletal adverse event reporting in dogs treated with Zoetis’ Librela compared with six other OA therapies. The review showed that issues such as ligament and tendon injuries, fractures, polyarthritis, musculoskeletal neoplasia, and septic arthritis were reported at roughly nine times the rate seen with comparator drugs.

An independent expert panel further concluded there was a strong suspicion of a causal link between Librela treatment and accelerated joint destruction. These findings reinforce the FDA’s earlier safety concerns and highlight the need for broader investigation and more intensive monitoring of dogs receiving Librela.

As a result, Librela and Solensia posted year-over-year sales declines in both the second and third quarters of 2025, prompting Zoetis to lower its full-year 2025 revenue outlook. The company cut its 2025 guidance to $9.4-$9.475 billion, down from the prior $9.45-$9.6 billion range, adding further pressure to the stock’s downward trajectory. ZTS, however, maintained its previously announced guidance for 2025 adjusted earnings in the band of $6.30-$6.40 per share.

Shares of Zoetis have plunged 29.9% in the past year compared with the industry’s 0.3% decline.

How Does ZTS Plan for a Rebound in 2026?

Despite pressure on its OA pain franchise, Zoetis is benefiting from robust momentum in the rest of its companion-animal lineup, comprising the parasiticides portfolio, including Simparica and Revolution franchises, the diagnostics and key dermatology portfolio, including Apoqueland Cytopoint, which continues to offset some of the weakness.

Apoquel is also approved as the first and only chewable treatment in the United States for controlling pruritus related to allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age. Earlier this year, the FDA approved a new indication for Zoetis’ flea, tick and heartworm combination product for dogs, Simparica Trio, to prevent flea tapeworm infections by targeting and killing vector fleas in treated dogs. With this approval, the triple combo drug is now the only canine combination parasiticide indicated to prevent flea tapeworm infections at the source by eliminating carrier fleas before they can transmit the parasite.

Zoetis has expanded its OA pain portfolio with the European Commission approvals of Lenivia for dogs and Portela for cats, both three-month, anti-NGF monoclonal antibody therapies that offer more convenient, extended-interval dosing. These long-acting options are designed to complement, not replace, the company’s existing monthly products, Librela and Solensia, giving veterinarians greater flexibility, improving adherence and broadening treatment uptake across a large and often underdiagnosed OA population.

Overall, Zoetis is paving the way for a potential 2026 rebound by leveraging strong growth across its parasiticides, dermatology and diagnostics portfolios while revitalizing its OA franchise with new long-acting therapies. Together with ongoing product expansions, these innovations position Zoetis to possibly restore momentum and drive more balanced, durable growth next year.

Zoetis Inc. Price and Consensus

Zoetis Inc. price-consensus-chart | Zoetis Inc. Quote

ZTS’ Zacks Rank and Stocks to Consider

Zoetis currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector include CorMedix CRMD, Arcutis Biotherapeutics ARQT and ADMA Biologics ADMA. While CRMD sports a Zacks Rank #1 (Strong Buy), ARQT and ADMA carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for CorMedix’s 2025 earnings per share (EPS) have increased from $1.83 to $2.87. EPS estimates for 2026 have moved up from $2.48 to $2.88 during the same period. CRMD stock has gained 6.4% in the past year.

CorMedix’s earnings beat estimates in each of the trailing four quarters, with an average surprise of 27.04%.

In the past 60 days, estimates for Arcutis Biotherapeutics’ loss per share have narrowed from 44 cents to 24 cents for 2025. During the same time, EPS estimates for 2026 have increased from 9 cents to 41 cents. In the past year, shares of ARQT have rallied 143.3%.

Arcutis Biotherapeutics’ earnings beat estimates in each of the trailing four quarters, the average surprise being 64.80%.

In the past 60 days, estimates for ADMA Biologics’ EPS have increased from 57 cents to 58 cents for 2025. During the same time, EPS estimates for 2026 have improved from 88 cents to 90 cents. In the past year, shares of ADMA have gained 2.1%.

ADMA Biologics’ earnings beat estimates in one of the trailing four quarters, matched once and missed the same on the remaining two occasions, with the average negative surprise being 3.01%.

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This article originally published on Zacks Investment Research (zacks.com).

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