Zoetis to be completely separated from Pfizer

Zoetis, the former animal health business of Pfizer, is to be completely split off from its one-time parent company through an exchange offer.

With the newly-independent veterinary medicines firm having completed its initial public offering (IPO) in February 2013, Pfizer shareholders will be offered the chance to exchange all, some or none of their Pfizer investments for shares of Zoetis common stock owned by Pfizer.

This will mean that Pfizer will no longer retain any ownership of Zoetis, which has performed strongly since the February spin-out and is facing favourable market conditions.

Ian Read, Pfizer's chairman and chief executive officer, said the exchange offer will deliver value to Pfizer shareholders by reducing the number of its outstanding shares in a tax-efficient manner.

He added: "At the same time, we believe that this transaction better positions Pfizer to focus on our core business as an innovative biopharmaceutical company."

Zoetis now becomes one of the largest independent animal health businesses in the world, employing more than 9,300 people globally.