Shares of Zoetis Inc (NYSE:ZTS) edged 1.1% lower to $129.72 in premarket trading on Monday after the animal health company revealed plans to acquire the animal genomics division of Neogen Corporation (NASDAQ:NEOG) in a deal valued at $160 million.
The transaction will give Zoetis access to Neogen’s genetic testing capabilities and data analytics platforms, which the company intends to use to enhance disease prediction and enable more tailored healthcare solutions for animals.
Neogen’s genomics business operates five laboratories located in the United States, Brazil, Australia, China and the United Kingdom, along with an additional office in Canada, serving customers across more than 120 countries worldwide.
Zoetis said the acquisition is expected to close during the second half of calendar year 2026, subject to customary conditions.
The company’s shares had gained approximately 4.2% during 2025 prior to Monday’s decline.