NEW YORK (TheStreet) -- Zoetis (ZTS) closed trading up 2.52% to $44.22 on Monday after the animal health medicines and vaccine manufacturer announced that it's purchasing a portfolio of drugs from Abbott Laboratories (ABT) for $255 million.
The portfolio the company purchased will be used mostly for surgical purposes in the company's companion animal business.
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Today's move comes one trading session after the company adopted a one year shareholder plan that acts as a poison pill following the revelation that activist investor Bill Ackman's Pershing Square hedge fund had purchased an 8.5% stake in the company.
On Friday the company said: "The plan is intended to protect shareholders and the company from any attempt to take control of the company that the board of directors determines is not in the best interest of shareholders and does not reflect the company's unique industry position and long term value. It is also designed to provide the board sufficient time to make fully informed decisions in response to any open market or other accumulation of share."
TheStreet Ratings team rates ZOETIS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZOETIS INC (ZTS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."