Specialist
Former VP at Ceva Animal Health LLC
Agenda
- Animal health supply chain overview – manufacturers, distributors and diagnostics firms
- Impact of the absence of school and office food service programs
- Coronavirus impact on pet ownership and veterinary consolidation outlook
- H2 2020 outlook, including analysis of precision medicine in the veterinary sector
Questions
1.
What is your assessment of the key developments and impacts from the coronavirus pandemic on the animal health industry? How have production and companion animal markets been affected?
2.
You mentioned some operational considerations of a shift in consumer demand from restaurants to supermarkets. Could you opine on how that played out from a cost perspective for some of these producers? What might that operational shift be like when the situation normalises?
3.
You mentioned some concerns regarding potential school reopenings and folks returning to offices. What other criteria should we be monitoring as we try and estimate the impact it might have on the food animal industry?
4.
Could you offer your updated expectations for how discretionary and emergency veterinary demand for companion animal services will trend? As a result of the pandemic, have we seen any shifts in veterinary production? For example, we’ve heard commentary that veterinarians are able to see more pets given social distancing guidelines.
5.
What do you expect from the competitive dynamics in the diagnostics industry? What are you hoping for or what should we monitor from Zoetis’s expansion efforts here?
6.
You implied that much of Zoetis’s diagnostic play would be geared towards taking share from others. What are your growth expectations for Zoetis in this category? Who is most susceptible to potentially losing share as Zoetis continues to grow both in the general diagnostics industry, but also in the reference laboratory space?
7.
Do you have any commentary on the distribution sector? Thinking of players such as Patterson and Covetrus’ overall positioning. How are all of these players and their respective market shares playing out?
8.
There has been an increase in demand for online prescription management and pharmacy services. What would you expect demand to be moving forward like given a potential bolus of patients purchasing these services at the beginning of the pandemic?
9.
You mentioned that this industry has performed surprisingly well during the pandemic. Do you expect this uptick or strong demand being more so a pent-up demand? Do you believe that owners might be catering more to their pets when they work from home? What might happen once everyone goes back to work?
10.
You mentioned Zoetis and its overall expanding capabilities. Do you expect any other pharmaceutical companies to try to make similar plays? What are your overall expectations for M&A in this sector for the mid- to-long term?
11.
What is your regulatory outlook for the industry, thinking of pharmacy services, of the overall treatment sector, the telemedicine sector? Have you noticed a significant shift in regulation?
12.
Is there anything else that we haven’t had a chance to touch on today that you think is important when assessing the overall animal health industry?
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