Zoetis stock crumbled Friday after a Wall Street Journal report suggested the company's arthritis shots, Librela and Solensia, sickened dogs and cats.
The shots gained Food and Drug Administration approval in 2022 and 2023, respectively. They are the first antibody drugs for pets. They treat osteoarthritis by targeting a protein called nerve growth factor. But vets say that could exacerbate underlying nerve conditions or other medical problems.
Health regulators in the U.S. and Europe have reportedly received thousands of reports of side effects. But Zoetis says less than 1% of animals who've received a combined 18 million doses of Librela and Solensia have experienced side effects.
William Blair analyst Brandon Vazquez says these are not new concerns, and only 7% of vets in a March survey indicated they were dissatisfied with Librela's safety profile. Still, the negative headlines could slow uptake of Librela and Solensia.
"Simply put, if pet owners are researching Librela, they might now be directed to articles connecting these drugs to serious adverse events including death," he said in a report. "Whether these claims are correct will remain a matter of debate, but it might not matter if the noise is loud enough to hamper demand."
Zoetis stock sank 7.8% to 150 on today's stock market.
Zoetis Stock Hits A Low Point
Regulators aren't asking for any data outside of the normal requests following a new drug launch, Vazquez said. He noted Librela leads to fewer side effects than NSAIDs (nonsteroidal anti-inflammatory drugs), the only alternative to Librela for osteoarthritis in dogs.
"These dynamics could leave vets comfortable with recommending Librela, which is important given historical pet owner trust in vet recommendations," he said.
He kept his outperform rating on Zoetis stock.
Zoetis notes any medication can have side effects.
"Pet owners must work with their veterinarian to ensure that any product is right for their pet and that the risks and benefits are clear before starting treatment," the company said in an email to Investor's Business Daily.
Shares hit their lowest point since January 2023. Zoetis stock has trended down since late February, undercutting its 50-day and 200-day moving averages, MarketSurge.com shows.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
