Welcome to the Fourth Quarter and Full Year 2024 Financial Results Conference Call and Webcast for Zoetis. Hosting the call today is Steve Frank, Vice President of Investor Relations for Zoetis. The presentation materials and additional financial tables are currently posted on the Investor Relations section of zoetis.com. The presentation slides can be managed by you, the viewer, and will not be forwarded automatically. In addition, a replay of this call will be available approximately two hours after the conclusion of this call via dial-in or on the Investor Relations section of zoetis.com. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions] It is now my pleasure to turn the floor over to Steve Frank. Steve, you may begin.

Thank you, operator. Good morning, everyone, and welcome to the Zoetis fourth quarter and full year 2024 earnings call. I am joined today by Kristin Peck, our Chief Executive Officer, and Wetteny Joseph, our Chief Financial Officer. Before we begin, I'll remind you that the slides presented on this call are available on the Investor Relations section of our website, and that our remarks today will include forward-looking statements, and that actual results could differ materially from those projections. For a list and description of certain factors that could cause results to differ, I refer you to the forward-looking statements in today's press release and our SEC filings, including but not limited to, our annual report on Form 10-K and our reports on Form 10-Q. Our remarks today will also include references to certain financial measures which were not prepared in accordance with Generally Accepted Accounting Principles or US GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable US GAAP measures is included in the financial tables that accompany our earnings press release and the company's 8-K filing dated today, Thursday, February 13th, 2024. We also cite operational results, which exclude the impact of foreign exchange. With that, I will turn the call over to Kristin.

Thank you, Steve, and good morning, everyone. And welcome to our fourth quarter and full year 2024 earnings call. Today, thanks to the dedication of our purpose-driven colleagues, we reported an excellent full year result in line with the high end of our November guidance. We delivered double-digit operational revenue growth of 11%, highlighting the strength of our strategy and the enduring demand of our brand. And our relentless focus on execution drove broad-based growth across the business. In the US, revenue grew 11%, while internationally, we grew 10% operationally, marking significant revenue milestones even in a competitive landscape. Our ability to grow, defend, and launch products across markets, drove 14% operational revenue growth in our companion animal portfolio alongside solid 5% operational revenue growth for our livestock portfolio. Reflecting our commitment to shareholders, adjusted net income through 15% operationally. As we look ahead to 2025, we are confident that the drivers of our 2024 success are sustainable, positioning us for continued above-market growth in the mid to high single-digit range for this year and beyond. Our confidence is rooted in the diversity of our business model where multiple growth drivers powered by scientific innovation and commercial excellence work together to create and expand markets. This combination ensures that our market leading franchises deliver long, and in some cases decades long growth tailwinds with significant room for further expansion. While Wetteny will discuss the quarter, I want to highlight some of the drivers that will carry us into 2025. Our global Simparica franchise grew 28% operationally on the year, even amidst competition. This success is fueled by the ongoing shift for triple combination treatments, a market that has grown over 40% in the past 12 months. Currently valued at $2 billion, the global triple combination market pioneered and led by…

Thank you, Kristin. To echo your enthusiasm, 2024 was an excellent year. Our full year performance reflects broad-based revenue growth across segments, species, price, and volume. The foundation of our ability to continually outperform the animal health industry comes from the diversity of our portfolio and the channels and markets in which we lead. For the year, we posted revenue of $9.3 billion, growing 8% on a reported basis and 11% operationally, with 6% driven by price and 5% from volume. We raised our revenue guidance throughout the year and ultimately finished above the high end of our initial range. Adjusted net income grew 10% on a reported basis and 15% operationally to $2.7 billion. Global revenue growth was driven by our companion animal portfolio, which grew 14% operationally. Leading the way, our Simparica franchise posted $1.4 billion in revenue on the year, growing 28% operationally. Simparica Trio exceeded $1 billion in revenue globally. Simparica Trio remains the number one selling canine parasiticide in the US and a trusted choice for vets and pet owners. As Kristin mentioned, triple combination treatments are the fastest growing segment in animal health and are less than 40% of prescription treatments, signaling significant room for continued growth. In OA pain, we continue to see increased adoption. Librela and Solensia reported combined revenue of $581 million globally for the year, growing 80% operationally. Over a decade since our first launch, our key dermatology franchise posted operational growth of 17%, generating $1.6 billion in revenue. We remain steadfast in our confidence to grow the franchise in the face of competition, and we delivered strong double-digit growth balanced across both Apoquel and Cytopoint. We expect continued market expansion, driven by higher compliance and new patient growth, as we have highlighted that a significant portion of this market…

[Operator Instructions] We'll take our first question from Michael Ryskin with Bank of America. Please go ahead.

Great. Thanks for taking the question, guys. I've got two related ones. I'll sneak them in together. So first, Wetteny in your prepared remarks, you sort of said you have a range of assumptions for new market entrants and market conditions in the guide. I want to dive into that. There's a lot of competition in the market this year that you already have one on the market for derm. There's a second major Apoquel competitor expected this summer. So explicitly, could you sort of walk us through what you're factoring into the guide? Whether it's in terms of color for growth for those products? You kind of gave some broad comments on growth expectations, but also just sort of incremental headwinds from competition and how that could play out? And then tied to that, I guess, are you taking on any incremental investments to support your major brands, derm, combo parasiticides, in terms of go-to-market strategy, commercial efforts, maybe in terms of bundling products together, alternative channels? Just sort of how are you adjusting that in the face of some of that growing competition? Thank you.

Thank you, Mike. Happy to take the question on competition. Look, first of all, we have delivered an outstanding 2024 with 11% growth operationally at revenue of 15% adjusted income. If you look across our key major franchises, we delivered double-digit growth across all three of those major franchises in derm. And we're -- in the context of derm, more than a decade in, we're delivering 17% operational growth. Actually, as we usually do with our guidance as we start the year, we take into consideration a number of factors. We have multiple sources of growth. And while we're not providing individual product guidance, what we're saying is these three major franchise areas, we expect to drive double-digit growth for us in 2025, and we see the underlying trends that drove our performance in 2024, carry us into 2025 with momentum. Now, in terms of competition, we are factoring in various scenarios in terms of what competition might look like. In the case of derm, we expect those -- that to be in the second half of the year, again, not providing individual guidance on derm specifically, but certainly, long term, we expect to continue to drive substantial growth in these categories. If you look at derm, for example, we're estimating 20 million dogs globally that are not treated or undertreated. We're treating about 12 million today with Apoquel and Cytopoint, there's still 7 million that are on other therapies like steroids, for example, another 13 that are not getting a prescription choice. So clearly, the opportunity that remains here is actually pretty vast and that gives us a lot of confidence in terms of our long-term growth. In terms of investments, look, I think you've seen us do this quite well. At the same time, we are leveraging other investments we made in our field force, et cetera, to drive operational leverage through the P&L. In the case of putting support behind our key brands, whether it's DTC, whether it's education of veterinarians, et cetera, that's something we have demonstrated an ability to do, and they have great returns for us when we do that. We have significant measurements that shows that. And those are areas that we are factoring into our guidance from a spend standpoint.

Thank you. We'll turn our next question from Erin Wright with Morgan Stanley. Please go ahead.

Great. Thanks. I want to dig a little bit more into Librela. Just can you speak to how vets are responding following the vet letter and label change? Like, has that helped them in terms of understanding kind of how to prescribe? And you mentioned it's not linear, but how do we think about US Librela contributions in terms of what's embedded in the guide for 2025? And just to confirm, the long-acting and other pipeline products are not embedded in your guidance for this year? And then just the last one, just on the margin improvement year-to-year in 2025, can you talk a little bit about what's driving that in terms of the mix shift with the MFA divestiture or anything else to call out? Thanks.

Thanks, Erin. I'll take Librela questions and let Wetteny take the margin question. A quick answer, no. No new products are included. The long actings are not included in the guidance, as I think Wetteny managed -- mentioned. Look, we're really pleased with the launch of Librela, with $581 million in sales across Librela and Solensia and 80% growth on the year. We're really pleased. It is the most successful launch in history, as we've mentioned. It's also now the fourth largest product for Zoetis with 25 million doses. 40% of dogs suffer from OA. And what we really see as we look forward is continued growth in this category. We did get the Dear Vet letter, which helped best understand what the update in adverse events were using real-world data. And we obviously showed you the label that we implemented based on that. And I think that really underscores our commitment for transparency, which we've been doing all along with regards to the adverse events. I would highlight that there were no contraindications, no warnings and no precautions in that label, but we're really pleased to be able to share that with veterinarians, consistent with our purpose and consistent with our commitment. And I think veterinarians have found that quite helpful. That label, as we had mentioned to you many times, is -- we expected it to be consistent with our label in international, where we continue to be driving growth, as you saw throughout 2024. So the US label looks largely like a label in Europe or Canada, and we really look forward to continuing to grow this franchise. Wetteny, do you want to take the second question on margin?

Sure. Before I get to the margin, maybe just one more point I'll make on Librela. You asked about how we factored that into our guidance. Clearly, we combined the three major franchise areas, and we're calling double-digit growth across those. As you've seen in Librela, even after three years in the market outside the US and Europe, we delivered 33% growth in Librela in the third year. So we are expecting annual growth to be strong to robust across these franchises, across the OA pain as we go forward, even if we're not giving specific guidance on individual products. On margins, you're right, MFA divestiture is accretive to our gross margins and our bottom-line margins as well. In addition to that, we have mix as we see more of our growth driven by companion animal products that drives favorable mix for us from a margin standpoint as well. And from a price, as we've said consistently, we are expecting to see price be above the 2% to 3% that we've typically done historically, but below the 6% we did this year or nearly 5% we did the prior year. Part of that is lower contribution from some of these hyperinflationary markets that we saw in the prior year is why you see that, but still, we're taking price and therefore, that's contributing to our margins. One of the offsets as we've seen with the US dollar strength over the last number of years is FX. And we do see that being an offset in addition to increased manufacturing costs that we have. But net-net -- and on the FX side, it's about 50 basis points headwind at the gross margin level.

Thank you. We'll take our next question from Jon Block with Stifel. Please go ahead.

Thanks, guys. Good morning. Just, Wetteny, any thoughts on the revenue cadence for 2025? Arguably competition will pick up in some key areas. You called it out, but that's more back part of the year. You got arguably an easy comp in the fourth quarter. So curious on the cadence. And then, just for R&D, flat year-over-year, you walked through some of that. Is this sort of a new beginning for you guys where this can be considered a more leverageable, call it, line item going forward? Thanks.

Yeah. So, look, Jon, first, on the revenue cadence, as I mentioned, the most important aspect here is we look at the trends that are driving our business and demand across our products and the momentum we had in 2024, we see that entering into 2025. So that gives us a lot of confidence, and that's baked into our guidance here. As I said on the earlier question, we are factoring a number of scenarios around new entrants that may come in, and those are more so in the back half of the year. So that would imply a stronger first versus second half. I wouldn't necessarily call out an easy comp in Q4 from an organic operational perspective, maybe from a reported perspective given the divestiture of MFA. As I said in the prepared commentary, when you factor out the MFA, it's a 9% operational growth -- organic operational growth quarter for us. And then we had the comps from the prior year where we launched both Librela and Apoquel Chew in the fourth quarter of the prior year. When you add that into consideration, the growth rate in the fourth quarter is above 10%. And so I think that's a solid quarter, and I wouldn't call that an easy come necessarily as we look at 2025. In terms of R&D, look, we're very pleased with the progress that we're seeing across the pipeline, and we showcased those with the updates we provided last month at the JPMorgan conference. We tend to let the pipeline drive where the investment is and not necessarily deliberately drive that as a leverageable component. Now we did say two years ago almost at Investor Day, we expected the R&D line to grow above revenue for some time. And then it would sort of move back towards sort of top line revenue growth rate, and we're seeing that. But I think that's more of a factor of where the pipeline is, certainly, as major items go through certain cycles in development, they tend to drive more spend. And then as they get on the other side of that, it's not as much. So that will ebb and flow from time to time, but we don't look at that necessarily as a leverageable line item that we're deliberately moving because the long-term delivery of our innovation drives where we drive investments there.

Thank you. We'll take our next question from Brandon Vazquez with William Blair. Please go ahead.

Hi, this is Russell Yuen on for Brandon Vazquez. Thanks for taking the question. So, looking at a high level, are you guys able to give us any sense as we go into 2025 on how the entire pet population is kind of trending? Now that we're past COVID years, are we back to normal growth rates and growing year-over-year? Or if not, is there anything we kind of need to keep in mind for the backdrop to get a normalized growth rate? I know we sometimes hear about a lagging effect from weak macro, where pets are not replaced as they die. So, kind of just curious on what you're seeing? Thanks.

Sure. What we continue to see is the strength of the human-animal bond and that relationship. If you look back to historical numbers, normally, there's not significant changes in the number of pets. The only one exception, obviously, in the last 12 years was COVID. But we're expecting the pet population to remain relatively stable. That's what it's done historically. I think what's really changed and what's driving the fundamental growth of the industry is the fact that the human animal bond makes animal health essential and very resilient. 86% of pet owners would spend whatever it takes. And those incremental pets that were adopted during COVID are aging. And as they age, they're going to get more diseases of -- chronic diseases, et cetera. So we see very strong fundamental drivers with more millennials and Gen Z adopting pets, their relationship with those pets. They're delaying having kids, if they're having kids, and those pets are important parts of their family's life. And they're making sure that those pets are taken care of. So we see very strong growth drivers based on the human animal bond based who's adopting those pets as well as an aging pet population. So we think those are fundamental drivers that Zoetis’ innovation and commercial excellence will only emphasize more.

Thank you. We'll take our next question from Balaji Prasad with Barclays. Please go ahead.

Hi, good morning. A couple of questions for me. Firstly, Wetteny, you clarified that none of the expected approvals within the next 12 months have been factored into the guidance. Curious to understand, maybe excluding FX, what are the upside risk to guidance that you can see from here? And on the same line of the three buckets of approvals on drivers, as you can describe that for -- is there any way to quantify the approval though in the second bucket in the 12 to 36 months, what the TAM for these approvals are and what are the investments into this? Thanks.

Sure. Look, in terms of confirming that we have not factored in new approvals, and that's consistent with how we have approached guidance historically. So those are not in here. We did highlight how much FX headwind we see at the top line, roughly $250 million, given where spot rates are. And as a reminder, we do not forecast FX. So the quantification we're providing is strictly off of the current spot rates versus what the average rates were through 2024. In terms of upside, look, I think we have a very diverse portfolio and our diversity stems across geography, across our products, et cetera. You saw us deliver across our three major franchises in companion animal, all three had double-digit growth, and double-digit growth in terms of volumes as well. So I think the underlying trends here are strong as we enter into 2025, we could not be more pleased. Of course, the factors that we put in, in terms of where competitive entrants might come in could be a factor that might move us in any direction in terms of the timing of those and what some of the short-term sort of dynamics might be around those. And those are the things that might move us one way or the other, which is why we provide a range in our guidance. But we're very, very excited about how we're entering the year and the demand profile that we're seeing across our products and the opportunities we have before us.

I can pick up the second question on the TAM for the new product categories. I mean I wanted to start with, we have more drivers of growth to improve the standard of care than any other company. And we -- as we talked about in our pipeline, we have multiple blockbusters. And at JPMorgan, we discussed what the totable addressable market for some of these new therapies would be. To your point, in the 12 to 36 months window, we have chronic kidney disease products. And as we mentioned, that's a $3 billion to $4 billion market. We also mentioned oncology, and that's a $1.2 billion to $1.7 billion market. And then in the longer term, we were also talking about cardiology. I also just want to double click for a second on the long-acting portfolio because I really think these are going to be significant growth drivers. There's a lot of people who can make it in every month. So, it will both increase compliance, which will grow the market as well as meet a lot of pet owners who just, the monthly too much for them, and they would be much more convenient to come in four times a year versus 12 times a year. So, we really think as we look at potential approvals, approval every year for the next several years and really more drivers of growth for the short, medium and long term for the company, we remain really excited about the potential unmet needs that we can address.

Thank you. We'll take our next question from Chris Schott with JPMorgan. Please go ahead.

Great. Thanks so much for the questions. Just two for me. First on Librela. Is there any updates in terms of how you're seeing veterinarians approach patient selection as you think about severe patients versus moderate? Is it still skewed more towards severe? Are you starting to make progress on the moderate side? And the second question was on Simparica Trio, obviously, very healthy growth in 2024. Just any pushes and pulls we should think about for that product specifically in '25? Thank you.

Sure. With regards to Librela, we continue to see, in Europe, more of our patients be mild to moderate. And that trend has continued in the US, the beginning part of the launch, we were seeing more severe. They are moving more into moderate again, you get to know the product better. So that will be a key focus of the growth in the US as we move more into the moderate patients. We continue to do blind studies with veterinarians, and they continue to be very satisfied with the product, and they continue to intend to prescribe. And I think the more we do and get those into moderate patients, we will see continued growth there. With regards to assumptions in Trio, we had a phenomenal across the Simparica franchise year. Trio is now exceeding $1 billion. It is the number one seller in the US. And it's been on the market for years. Even with significant competition, we saw about a 28% growth. I think what's important to really remind people is there's still significant growth in this category today. We've got 50% of puppies, which means 50% of puppies are still not on a triple combination. We think that will continue to grow the market. We think also, as you have more and more people on auto ship, once you start a parasiticide, you're very unlikely to switch. So, this is a very sticky category. So even as we see new competition, we continue to believe just as we did when we [Technical Difficulty] and we could continue to grow this market and grow our share. And I think we continue to demonstrate our ability to do that.

Thank you. We'll take our next question from Glen Santangelo with Jefferies. Please go ahead.

Hi, thanks for taking my question. Hey, Wetteny, I just wanted to follow up on some of the comments you made with respect to the organic growth. If you look at the sort of pricing expectation you're building into your assumption this year, I think you said it would be better than your 2% to 3% normalized expectation. So, with sort of half of the operational growth coming from pricing, it seems like you're assuming some modest slowdown on the volume side, and just sort of given that you expect significant double-digit growth in your three major franchises, I guess maybe talk about if either you or Kristin can talk about maybe some of the other areas of the portfolio where you may be seeing some levels of deceleration in volume and maybe that's just some level of conservatism you're building into your guidance? Thanks.

Sure. Happy to do that. As I said, our pricing expectations for 2025 are a bit north of our historical 2% to 3%, but below the 6% we planted in 2024 and roughly 4.5% to 5% the prior two years. So that is certainly a consideration. One other thing I will remind you is we saw livestock growth in 2024 at roughly 5%. And if you take the MFA divestiture out, it's actually 6% on 2024, we are calling 2% to 4%, which is what the industry growth rate is from a livestock standpoint. Again, I will repeat this point, which is really, really important. The underlying trends that we see driving demand for our products are entering into 2025. And so that gives us a lot of confidence in what we're going to see, which is a double-digit volume growth across these major franchises in 2024. We are factoring a certain competition in there. And so depending on how you look at the range, the 6% to 8%, if taking what I'm saying on price, at the lower end of the range, yes, you would have slightly more price than volume. At the higher end of the range, you would actually have a balance between price and volume, which is what you saw from us excluding hyperinflationary markets in 2024. So that feels about the same is what we're seeing in 2025, depending on where you fall in the range that we're providing on guidance.

Thank you. We'll take our next question from Navann Ty with BNP Paribas. Please go ahead.

Hi, good morning. I have two questions, please. The first one on Librela, if you -- can you discuss any expected impact of the US label changes, if any, on the transition to the moderate population in the US? And then my second question is on innovation. If you can comment on the blockbuster potential of the expected approvals that you have listed? Thank you.

Sure. We were very pleased to implement the new label. We think it helps vets understand the latest data on real-world adverse events. We've continued to be incredibly transparent throughout with regards to what we were seeing in other markets, and we shared that data. So we really see this as just helping vets better understand. It's consistent with what we have been sharing with them all along. So we don't really think it changes the trajectory much. We think what we're seeing in the US is more moderate patients and continuing to grow that market. And as I mentioned before, the surveys we're doing with vets, they are satisfied with the product, and they continue to have an intent to prescribe. What we're really seeing is just the impact it's making on improving the quality of life for so many pets. So, we really see continued growth overall in that. And with your second question on the multiple blockbusters, we're really seeing, as we talked about the total addressable market for some of these new unmet needs being very significant. The one I'd really focus on the largest is obviously chronic kidney disease. That's both for dogs and for cats, and there really are no treatment today. And we expanded the size of the total addressable market from our Investor Day. And that was really about better understanding the molecules that we have today and really how they're going to meet that unmet medical need. But also importantly, increases and improvements in diagnostics to be able to better diagnose animals to make sure that we're getting the right patient population aligned with the potential of the product. So, we're very excited as we look at chronic kidney disease, oncology as well as cardiology to really meet new unmet medical needs that the market has really been looking at. And as I mentioned before, we have more drivers of growth for the short, medium and long term to improve the standard of care.

Thank you. We'll take our next question from Steve Scala with TD Securities. Please go ahead.

Thank you. This is Chris LoBianco on for Steve Scala. We just had a question on the pipeline -- risk-adjusted, the pipeline opportunities with renal and oncology, have these assets generated pivotal data yet? And does Zoetis have multiple shots on goal, i.e., multiple late-stage assets for each of these opportunities? And could these products be placed at a premium compared to Zoetis' current [indiscernible] pain products? Thank you.

Sure. We don't give specific information with regard to our modules in animal health. So the guidance that we provided with regards to product launching is the guidance that we've got.

Thank you. We'll go next to Andrea Alfonso with UBS. Please go ahead.

Yes. Hi, good morning. Thank you so much for taking my question. I specifically wanted to ask about the dermatology franchise and how you're thinking about your positioning in 2025 from a pricing versus mix standpoint in light of competitive entries? And have you had to amplify some of your education and awareness efforts around efficacy relatively? And then I guess finally, what's sort of your view on kind of the mix shift between Cytopoint and Apoquel? Thank you so much.

Sure. We are very excited for the performance of dermatology in 2024 with 17% growth with a $1.64 billion portfolio. Importantly, even with competition in Q4, we had 11% revenue growth. And we really are seeing growth in this market overall. I think Wetteny mentioned in his remarks before, we're seeing this market grow 11%. We think by 2028, it will grow to $2.5 billion. And there are 20 million dogs that still remain untreated or undertreated that we can still focus on. So we see growth here in a few areas. First, higher compliance, getting more animals on autoship. Obviously, looking at long-acting portfolio coming as well, we see that as potentially improving compliance and really going after the undertreated dogs today as well as the untreated dog. So we see significant continued growth here for the overall market, even with competition. What we continue to see in other franchises and in other categories is with new competition, you have new awareness and we continue to grow the category overall.

Yeah. I will just add, from a pricing standpoint, we don't provide product-specific pricing considerations, but I would remind you, in 2024 we saw 17% operational growth and double-digit volume growth despite robust price here. So we do believe there's opportunity given the remaining untreated pets in this space and opportunity to continue to grow. In terms of the balance, look, we see strong demand for both products. If you look at Cytopoint and Apoquel, Cytopoint in the clinic is preferred, both from a compliance standpoint and having the volume through the clinic. Apoquel, in alternative channels, when you combine both retail and home delivery, that total is about 40% of our Apoquel volume, and you're seeing that convenience factor, the compliance that that drives drive significant growth as well. So in '24, we actually saw a balanced growth between the two, which is very, very encouraging as we go into 2025.

Thank you. We'll go next to Daniel Clark with Leerink Partners. Please go ahead.

Great. Thank you. Just wanted to drill down a little bit on the figure that 50% of puppies are on a triple combo parasiticide. What are the different pushes and pulls that you think could maybe drive that number higher? And how are you thinking about that for 2025?

Sure. Again, we think awareness and growth. If you look at it right now, the triple combination therapy still is less than 40% overall, and it's growing at 40%. So we think that you'll continue to see the more you add new puppies, the more they're on. And once they go on, they're very unlikely to go off. So, we really are excited to see this growth. And what we continue to see is new entrants enter, it only brings more attention to triple combinations, which is the fastest growing segment of parasiticides overall. And the triple market today is $2 billion. And we're expecting, as we mentioned before, to grow to $4.5 billion by 2028. So, we just see the natural growth here. And as someone who was [first to here] (ph), we've had four years and the additional three years on the market ahead of anybody else, we see really that lead making a big difference in continuing to grow our share and to grow the market overall.

And there are no further questions at this time. I'll turn it to Kristin for closing remarks.

Okay. Great. As always, thank you, everyone, for your questions, and importantly, for your continued interest in Zoetis. As you heard today, we are extremely pleased with our excellent performance in 2024 and eager to really build on this momentum as we move into 2025. We remain confident in the steady demand for our diverse and our innovative portfolio, which continues to deliver value to our customers and to advance animal health globally. And we're driven by our purpose to advance care for animals, and we remain focused on executing our strategy and filling confidence in our stakeholders and reinforcing our unwavering commitment to our value proposition. We look forward to keeping you updated on our progress as the year progresses. Thanks, everybody.

Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any time.