Zoetis is moving deeper into data-driven animal health with a deal that signals where the sector’s next growth race may be headed: not only in treatment and prevention, but in prediction.

In a March 2 company announcement, Zoetis said it has agreed to acquire Neogen’s animal genomics business for $160 million, subject to customary closing adjustments. The business serves customers in more than 120 countries through laboratories in the United States, Brazil, Australia, China and the United Kingdom, plus an office in Canada. 

For The Animal Economics, the significance goes beyond M&A volume. The transaction shows how major animal health players are trying to build stronger positions around precision animal health — using genomic technologies, sequencing and software tools to help customers make earlier, more informed decisions across both livestock and companion animals. Zoetis said the acquisition will expand its ability to deliver predictive insights and more individualized care across major species. 

That matters commercially because genomics is increasingly tied to three issues that are central to the animal health business case: productivity, health outcomes and sustainability. Neogen’s genomics unit is described by the companies as a leader in U.S. beef and dairy genomics, with testing platforms designed to generate scalable genetic data and support decisions on animal health and performance. 

The deal also highlights a growing divide in animal health strategy. While traditional portfolios still depend heavily on vaccines, pharmaceuticals and diagnostics, the next layer of competitive advantage is shifting toward data infrastructure. In that context, ownership of genomic testing capabilities can strengthen customer relationships much earlier in the production cycle, long before disease treatment decisions are made.

From Neogen’s side, the sale is part of a previously announced portfolio review aimed at simplifying the business and focusing on core strategic markets. Neogen said the genomics business generated approximately $90 million in fiscal 2025 sales, and that net proceeds are expected to be used mainly for debt reduction. 

Zoetis expects the transaction to close in the second half of calendar 2026, pending regulatory approvals and other customary closing conditions. Based on the company statements, this is not just an asset purchase; it is a clear sign that predictive biology is becoming a more important commercial pillar in global animal health. Source: Zoetis company release, with transaction details also confirmed in Neogen’s investor announcement.

Follow the link to read the article from Zoetis.