Zoetis

Zoetis enjoys multiple, mutually reinforcing moats. Intangible assets and brand trust with veterinarians drive repeat prescribing and clinic-level loyalty, aided by a diversified portfolio across eight core species and seven categories.

Global regulatory expertise, a large IP estate, and complex biologics manufacturing raise barriers to entry, particularly for monoclonal antibodies and vaccines. Efficient scale through a direct-to-vet commercial model in 45 countries supports local execution and pricing discipline.

While network effects are limited, switching costs emerge from training, protocols, and inventory pathways inside clinics. Risks to moat durability include loss of exclusivity on legacy products, reputational or regulatory shocks to newer biologics, and intensifying competition in dermatology and parasiticides.

Recent examples underscore both sides: brand loyalty often outlasts exclusivity, yet Draxxin faced meaningful generic erosion; Elanco and Merck are pressing into dermatology with new JAK inhibitors. Overall we judge the moat as durable and multi-sourced.