Specialist
Former Senior Scientific Executive at Parnell Veterinary Pharmaceuticals Holdings Ltd
Agenda
- Trends and developments relating to animal health CROs (contract research organisations) and CDMOs (contract development and manufacturing organisations), including regulatory shifts and complex therapeutics
- Convergence between animal health and human health outsourcing partners and margin profile comparison
- Consolidation and M&A, including in veterinary clinics and pharmaceuticals
- Developments in production animals vs companion animals, especially post-coronavirus
- Outlook for Q4 2021 and beyond – potential repurposing of human health drugs into animal health
Questions
1.
What developments have impacted animal health CROs [contract research organisations] and CDMOs [contract development and manufacturing organisations] since our previous Interview [see Animal Health Market – COVID-19 Impact Update – 27 August 2020]?
2.
What are the ripple effects of the trends you highlighted across contract research and manufacturing? You mentioned growth for pharmaceuticals and Zoetis.
3.
Regulatory pushes in Australia and New Zealand have propelled outsourced research growth in the human segment. To what extent are you noticing similar dynamics in animal health? What geographies would you monitor?
4.
Could you elaborate on where demand and supply are coming from in the industry? To what extent is the push towards complex therapeutics such as monoclonal antibodies propelling the demand or lack of supply?
5.
To what extent are animal and human health providers overlapping? Do you expect them to converge further, particularly given the human players may lack expertise in animal health?
6.
Could you elaborate on the margin differences between animal and human health? How have animal health margins trended historically?
7.
Do you expect a shift towards a better margin profile in animal health given the demand and underlying dynamics we’ve noted, particularly in companion animal products? To what extent could this improve?
8.
How do outsourcing rates differ across the board? How could they vary between tier 1 and tier 2 players, or between players such as Zoetis that rely heavily on internal R&D and counterparts such as Elanco that rely heavily on M&A?
9.
How are demand and supply trending in the CDMO market? Is there disproportionate demand across the board or from tier 1 or tier 2 players? What are the nuances in modalities such as injectables and orals?
10.
Could on you elaborate on your expectations for future consolidation, given we’re also noticing this in human health? What pace of consolidation do you anticipate to drive efficiencies in animal health, increase supply and resolve shortfalls?
11.
How are the largest players positioned and where are they growing? You’ve mentioned Argenta a couple of times.
12.
What’s your outlook on international growth? You touched on the reliance on ex-US manufacturing and how this discussion has broadened amid coronavirus. What developments, regulatory or otherwise, could shift the dynamics we’ve discussed?
13.
What’s your take on large animals, including production animals? We’ve touched on your growth expectations for companion animals, the impacts of the pandemic here and the overall strengthening of the pet-human bond.
14.
You said that the margin profile for animal health outsourcing differed from that for human health. Human health CDMOs and CROs are also continuing to expand into ancillary services such as software, laboratories and commercial capabilities. Is this happening in animal health? If not, could this shift happen in the near term?
15.
Could you elaborate on veterinary clinic consolidation and the impact of self-distribution in pharma, particularly for more innovative product categories such as dermatology for Zoetis? To what extent do you expect these trends to continue and impact animal health?
16.
Is there anything that we haven’t discussed that you think is important for us to understand about the industry? Could any underestimated or overlooked factors have a ripple effect?
17.
Could you elaborate on repurposing human health drugs into animal health? How much sense could this make given the lack of pet insurance in the US vs other, more mature geographies?
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