Animal health care company, Zoetis Inc (NYSE:ZTS) is doing extremely well according to activist investor Bill Ackman of Pershing Square, having agreed to add two members to the board to avoid a possible fight. During an interview on Bloomberg, the billionaire investor reiterated that everything is now on track as both parties share the same goals with regards to the company’s long-term prospect.
As part of the agreement between Pershing Square Investment team and Zoetis Inc (NYSE:ZTS), William Doyle is to join the company’s board as an appointee of Ackman with another member to be named later. Mr. Ackman is expected to take a far quieter approach with regards to Zoetis especially on the appointment of Doyle, who is to serve on the board’s corporate governance committee.
“We have had a very nice relationship with Zoetis and the board I think the board management shares all the same goals we have to make this more valuable more profitable company. I think they have done a very good job since the company was spun off, and I think there is a lot of potential,” said Mr. Ackman
There had been reports that Ackman was pushing Zoetis Inc (NYSE:ZTS) to trim its expenses. The company on its own continues to maintain that its costs can’t be compared to those of other drug makers with animal units as it continues to operate as a stand-alone company. Ackman on the interview reiterated that Zoetis Inc (NYSE:ZTS) remains focused on growing its culture in the animal health space instead of initiating cost cuts
“This is a business that was owned by Pfizer Inc. (NYSE:PFE) it was spun off and had to become and independent public company. It is more about building a culture and running a business but am limited to what I can say now by the board,” said Mr. Ackman.
On the acquisition of Abbott Laboratories (NYSE:ABT) Ackman said it sounded like a good investment that should make more sense going forward.
The high tax regime in the U.S according to Ackman is going to force more small pharmaceutical companies to sell their operations to foreign buyers who are expected to shift the company’s headquarters abroad. The move is expected to shield most of these companies from having to incur millions of dollars in taxes.
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