Research
Interview Synopsis

Animal health CRO & CDMO update – market trends & 2022 outlook

  • Private Equity
  • Healthcare
  • Global

“I think we see the continuing trend of increased expenditure in the pet space”, a former senior scientific executive from Parnell Veterinary Pharmaceuticals Holdings Ltd told Third Bridge Forum, in an Interview that also explored how trends in the pet and animal agriculture industries are affecting the contract research organisation (CRO) and contract development and manufacturing (CDMO) segments.

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Among such influences, the specialist highlighted the fact that pet ownership exploded during the pandemic. As such, “there are more pets receiving more care, spending more money, and at higher price points throughout the segment.” Looking to the commercial side, “we continue to see tremendous consolidation, in both merger and acquisition, on the pharmaceutical level [and] the diagnostic level.”

Consequently, “the success in animal health has gotten many players to look at their portfolio, and look at how they create differentiation and value.” One of the ways to achieve such innovation, the specialist explained, is through external expertise and perspective. In addition, this can solve the issue of finding specialisation across various species categories, as well as the various regulatory requirements found in global markets.

Supply and demand in this industry is focused in two areas. The first is monoclonals, with just a few approved in animal health: “The appeal of monoclonals to have more specific therapy, safer therapy, at a higher price point, and putting some of this therapy back in the control of a veterinarian is pretty compelling.” The second is cellular therapies, “where, again, there’s interest in how do we expand that therapeutic area into animals, whether it be pets or horses.”

The conversation moved on to consolidation, with the specialist highlighting two trends that could shape future developments. One of these was repatriating production closer to markets in light of COVID-19-induced supply-chain disruption. “More and more companies are looking for domestic space, whether in Europe or the US, where they can manufacture.”

Other topics included the market for large animals, outsourcing rates and the larger players’ positioning.

To access all the human insights from Third Bridge Forum’s Animal health CRO & CDMO update – market trends & 2022 outlook Interview, click here to view the full transcript.

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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