The expansion should add up to 30 jobs in Lincoln once the 19,000-square-foot addition is done in 2014.
Zoetis was spun off from Pfizer Inc. earlier this year. The company already employs more than 500 at its Lincoln plant.
Zoetis spokesman Bill Price says this project will allow the Lincoln plant to take over production of Synovex. That product is a growth hormone for beef cattle.
The Madison, N.J., based Zoetis is the world’s biggest maker of medicines for pets and farm animals.