Interview Synopsis

Animal health market – COVID-19 impact update

  • Multi Asset
  • Healthcare
  • North America

Pet sales and adoption have soared since the start of COVID-19 as lockdowns presented a seemingly opportune time to take on the responsibility and make the most of spending more time at home. Veterinary surgeries were forced to close and find COVID-19-safe ways to operate, catalysing the adoption of mobile medicine and telemedicine. The pandemic also hit animal food production and related supply chains. Third Bridge Forum interviewed a former VP at Ceva Animal Health LLC to discuss the impact of COVID-19 on the overall animal health industry, with a focus on production and companion markets.   

Coronavirus impact on pet ownership and animal health

As more people opted for over-the-counter medicines, clinics without internet pharmacy collaborations or the ability to ship prescription drugs “really felt that they missed out”, the specialist said. “There’s a bit of a shift going on, especially in one of the biggest markets that we have, which is flea and tick.”

Food production was rocked harder than the companion market, primarily due to the standstill across food services, and compounded by a lack of equipment to switch to consumer-based packaging. An interesting development, the Interview revealed, has been the increased collaboration between the consumer and industrial food segments, which have “started talking to each other”.   

Overall, the animal health industry has shown resilience in the face of COVID-19. “It’s a good time to look at animal health,” the expert said. Although there is strong potential for further growth, innovation will be required.  

In terms of pharmaceutical M&A, the A players are demonstrating “incredible horizontal growth into other services”, including precision medicine, ID and farming. To remain competitive, the B players — including Dechra Pharmaceuticals PLC, Ceva Animal Health LLC and Vetoquinol — will “have to make some moves”. The specialist also anticipates further consolidation but noted that the vertical consolidation of major players with money to “buy big” has passed. Further vertical integration will likely involve smaller players outside the US, he added. 

The Interview also discussed the industry’s regulatory outlook, competitive dynamics across the diagnostics space, distribution trends and the growing role of telemedicine. 

To access all the human insights in Third Bridge’s Animal health market – COVID-19 impact update Interview, click here to view the full transcript. 

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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