NEW YORK (TheStreet) -- Zoetis (ZTS) shares are down 0.5% to $44 on Tuesday after the animal health medicine and vaccine manufacturer announced its $500 million share buyback program before the opening bell today.
This announcement comes one day after the company announced that it was purchasing a portfolio of drugs from Abbott Laboratories (ABT) for $255 million, and both moves come in the wake of activist investor Bill Ackman's revelation of a $2 billion, 8.5%, stake in the company.
The company adopted a poison pill shareholder plan on Friday following Ackman's announcement, designed to insulate it against any activism on his part. "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," the company said.
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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: