Zoetis Inc. (NYSE: ZTS) entered into a definitive agreement to acquire Neogen Corporation’s animal genomics business for $160 million, subject to customary closing adjustments. The announcement was made on March 2, 2026.
The deal expands Zoetis’s precision animal health portfolio by adding genomics capabilities that serve more than 120 countries through five laboratories in the United States, Brazil, Australia, China and the United Kingdom, plus a Canadian office. Neogen’s genomics business operates a comprehensive genotyping platform that combines fixed array and sequencing technologies with software solutions, and it is a leader in U.S. beef and dairy genomics. The business generated approximately $90 million in sales during Neogen’s fiscal year 2025.
Zoetis said the acquisition will strengthen its position in livestock and companion‑animal genomics, providing predictive insights and individualized care for producers and veterinarians. "The addition of Neogen's genomics business strengthens our commitment to advancing animal health through innovation, data, and technology. As we continue to grow our leading innovative solutions in Precision Animal Health, this acquisition brings complementary capabilities that expand predictive insights and individualized care, enabling us to deliver added value to customers. Together, we are shaping the future of animal health, empowering customers with the tools they need to support healthier animals and sustainable livestock production globally," said Jamie Brannan, Chief Commercial Officer.
Zoetis’s Q4 2025 results—revenue of $2.4 billion, up 3 % year‑over‑year, and adjusted diluted EPS of $1.48, a beat of $0.08 over the $1.40 consensus—illustrate the strength of its precision animal health segment. Full‑year 2025 revenue of $9.5 billion, up 2 % reported and 6 % organic, and net income of $2.7 billion, up 8 % reported, set the stage for the 2026 guidance. For 2026, Zoetis projected revenue between $9.825 billion and $10.025 billion and adjusted diluted EPS between $7.00 and $7.10, reflecting confidence in continued growth and margin stability. "Meaningful progress across portfolio and pipeline," said CEO Kristin Peck, adding that the company expects 3‑5 % organic revenue growth and 3‑6 % adjusted net income growth for 2026.
Neogen’s president and CEO Mike Nassif said the sale was part of a strategic portfolio review that would allow the company to focus on its core food safety and animal safety markets, accelerate debt reduction, and improve profitability. "This transaction is part of the company's strategic portfolio review and allows the company to accelerate de‑leveraging and improve profitability going forward. Furthermore, this deal allows us to focus in areas where the company has the most significant competitive advantage and further leverage our core capabilities in food and animal safety. We are committed to a smooth transition for customers, employees and other stakeholders and believe the business is well positioned to thrive under Zoetis' ownership," Nassif said.
Zoetis declared a first‑quarter 2026 dividend of $0.53 per share, payable on March 3, 2026.
Investors responded positively to the announcement, reflecting confidence in Zoetis’s strategy to expand its precision animal health capabilities and its strong financial performance.
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