Zoetis Completes Acquisition of Phoenix Lab

On Nov 1, 2019

Parsippany-based Zoetis Inc. announced the completion of the acquisition of Washington state-based Phoenix Central Laboratory for Veterinarians, Inc. (Phoenix Lab), a full service veterinary reference laboratory company, after fulfilling all closing requirements. With the addition of reference laboratory services, Zoetis now can provide more comprehensive diagnostics products and services as an enhanced value to veterinarians in the U.S. Financial terms of the transaction are not being disclosed.

Reference laboratories and point-of-care diagnostic testing are highly synergistic, offering veterinarians a single source for a full spectrum of tests, as well as access to the expertise of Board-certified specialists and pathologists to support test results. Phoenix Lab, founded in 1989 and headquartered near Seattle, serves veterinary clinics in 20 states, primarily in the Pacific Northwest, with complete clinical and anatomic pathology testing as well as microbiology, serology, hematology, chemistry, urinalysis and other diagnostic tests for canine, feline, avian and equine health needs.

Acquisition Complements Existing Diagnostics Capabilities

“Phoenix Lab brings Zoetis a reference laboratory highly valued by veterinarians for quality assurance and customer care,” said Kristin Peck, Executive Vice President and Group President, U.S. Operations, Business Development and Strategy for Zoetis. “This acquisition is a strong complement to other diagnostic testing capabilities at Zoetis, including VetScan®, WITNESS®, SERELISA® and AlphaTRAK®, and it will help us offer our customers even more comprehensive solutions across the continuum of care to predict, prevent, detect and treat disease in animals.”

“Zoetis and Phoenix Lab share a mutual commitment to support and advance the veterinary profession. I especially appreciate that Phoenix Lab was founded by veterinarians, for veterinarians, and I look forward to building on their 30 years of success to serve veterinarians’ complete diagnostics laboratory needs,” said Peck.

“At Phoenix Lab, we are extremely proud of our consistent track record in serving veterinarians’ diagnostic needs and the trusted relationships we have built with our customers,” said John Evans, Chief Executive Officer and President, Phoenix Lab. “Going forward, we are thrilled to join with Zoetis to offer our customers even more for their animal health needs.”

Veterinary Diagnostics: A Growing and Vital Category of Animal Health

The global veterinary diagnostics category, which includes reference laboratory and point-of-care diagnostics, is estimated to be $4 billion1, with compound annual growth of approximately 10% over the past three years1. Zoetis expects the diagnostics category to continue to grow faster than the animal health industry, with growth in the mid to high single digits; this growth is driven by international adoption of point-of-care diagnostic instruments due to pet owners’ increasing interest in pet wellness trends, rising medicalization rates, increasing standards of veterinary care and the convenience of in-clinic testing1.

In 2018, Zoetis acquired Abaxis, Inc. and its world-class portfolio of VetScan diagnostic instruments and rapid tests. Through this acquisition, Zoetis became a leader in the development, manufacture, and marketing of veterinary point of care diagnostic instruments and consumables.

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