Texas screwworm case lifts Zoetis and Elanco animal‑health stocks

A confirmed case of New World screwworm in Texas livestock has drawn investor attention to animal‑health biotech firms. Shares of Zoetis rose almost 4% and Elanco Animal Health gained about 2% by mid‑day trade in New York, while options activity on the two stocks surged to roughly twenty times their normal daily volume, dominated by call contracts.

Zoetis previously received conditional FDA approval for an injectable treatment that both treats and prevents reinfestation by the parasite, and the agency later granted emergency‑use authorization for an over‑the‑counter version. Analysts note that the parasite already circulates in tens of thousands of animals in Mexico, expanding the sanitary risk to U.S. herds and suggesting growing demand for approved control products.

The heightened trading activity reflects market expectations that the outbreak could drive increased sales of these approved treatments, while futures on cattle have also risen modestly following the news.