Animal Pharms Top Tier Companies: 2007 Edition - Market Research Reports

Contents:

CHAPTER 1 INTRODUCTION 13
1.1 The world market for animal health products 13
1.1.1 Market shares by region 13
1.1.2 Market shares by product category 14
1.1.3 Market shares by species 16
1.2 The animal health products industry 16
1.2.1 Leading companies in the animal health sector 17
1.2.1.1 Industry sales rankings in 2006 18
1.2.1.2 Industry sales rankings in 2007 19
1.2.2 Industry profit levels 21
1.3 Currencies and exchange rates used in this report 23

SECTION A ANIMAL HEALTH MAJORS 25

CHAPTER 2 ALPHARMA 27
2.1 Company background 27
2.2 Animal health sales and operating profit 28
2.2.1 2005 performance 29
2.2.2 2006 performance 30
2.2.3 Interim 2007 performance 30
2.3 Geography of the business 30
2.3.1 US 31
2.3.2 International markets 31
2.4 Product portfolio 32
2.4.1 Antibiotics 33
2.4.2 Anticoccidials 34
2.4.3 Antibacterials 35
2.4.4 Other products 35
2.5 R&D 35
2.6 Strategy 36
2.7 Prospects 37

CHAPTER 3 BAYER 39
3.1 Company background 39
3.2 Animal health sales and earnings 40
3.2.1 2005 performance 41
3.2.2 2006 performance 41
3.2.3 Interim 2007 performance 42
3.3 Geography of the business 42
3.3.1 North America 43
3.3.2 Europe 43
3.3.3 Asia/Pacific 44
3.3.4 Latin America 45
3.4 Product portfolio 45
3.4.1 Antiparasitics 45
3.4.2 Antimicrobials 47
3.4.3 Other products 48
3.5 R&D 49
3.6 Strategy 50
3.7 Prospects 50

CHAPTER 4 BOEHRINGER INGELHEIM 53
4.1 Company background 53
4.2 Animal health sales 54
4.2.1 2005 performance 54
4.2.2 2006 performance 55
4.2.3 Interim 2007 performance 55
4.3 Geography of the business 55
4.3.1 Europe 56
4.3.2 North America 56
4.3.3 Other markets 57
4.4 Product portfolio 58
4.4.1 Pharmaceuticals 58
4.4.2 Biologicals 60
4.4.3 Other products 61
4.5 R&D 61
4.6 Strategy 62
4.7 Prospects 63

CHAPTER 5 CEVA 65
5.1 Company background 65
5.2 Animal health sales and earnings 65
5.2.1 2005 performance 66
5.2.2 2006 performance 67
5.2.3 Interim 2007 performance 67
5.3 Geography of the business 68
5.3.1 Europe 69
5.3.2 North America 69
5.3.3 International markets 70
5.4 Product portfolio 70
5.4.1 Companion animal products 71
5.4.2 Reproductive controls 72
5.4.3 Anti-infectives 73
5.4.4 Vaccines 73
5.4.5 Others 74
5.5 R&D 74
5.6 Strategy 75
5.7 Prospects 76

CHAPTER 6 ELANCO 77
6.1 Company background 77
6.2 Animal health sales and operating income 78
6.2.1 2005 performance 78
6.2.2 2006 performance 79
6.2.3 Interim 2007 performance 79
6.3 Geography of the business 80
6.3.1 US 80
6.3.2 International markets 81
6.4 Product portfolio 81
6.4.1 Tylosin 82
6.4.2 Tilmicosin 82
6.4.3 Monensin 83
6.4.4 Avilamycin 83
6.4.5 Ractopamine 83
6.4.6 Other products 84
6.5 R&D 85
6.6 Strategy 86
6.7 Prospects 87

CHAPTER 7 FORT DODGE 89
7.1 Company background 89
7.2 Animal health sales and operating profit 90
7.2.1 2005 performance 91
7.2.2 2006 performance 91
7.2.3 Interim 2007 performance 91
7.3 Geography of the business 92
7.3.1 US 92
7.3.2 International markets 93
7.4 Product portfolio 94
7.4.1 Biologicals 94
7.4.2 Antiparasitics 97
7.4.3 Other pharmaceuticals 98
7.5 R&D 99
7.6 Strategy 100
7.7 Prospects 101

CHAPTER 8 MERIAL 103
8.1 Company background 103
8.2 Animal health sales and operating income 104
8.2.1 2005 performance 104
8.2.2 2006 performance 105
8.2.3 Interim 2007 performance 105
8.3 Geography of the business 105
8.3.1 US 106
8.3.2 Europe 106
8.3.3 International 107
8.4 Product portfolio 108
8.4.1 Avermectins 109
8.4.2 Fipronil 111
8.4.3 Biologicals 112
8.4.4 Other products 114
8.5 R&D 115
8.6 Strategy 117
8.7 Prospects 117

CHAPTER 9 NOVARTIS 119
9.1 Company background 119
9.2 Animal health sales and operating profit 120
9.2.1 2005 performance 121
9.2.2 2006 performance 121
9.2.3 Interim 2007 performance 122
9.3 Geography of the business 122
9.3.1 North America 123
9.3.2 Europe 124
9.3.3 Other markets 125
9.4 Product portfolio 125
9.4.1 Antiparasitics 126
9.4.2 Anti-infectives 127
9.4.3 Other pharmaceuticals 128
9.4.4 Vaccines 130
9.5 R&D 130
9.6 Strategy 132
9.7 Prospects 132

CHAPTER 10 PFIZER 135
10.1 Company background 135
10.2 Animal health sales and operating profit 136
10.2.1 2005 performance 137
10.2.2 2006 performance 137
10.2.3 Interim 2007 performance 137
10.3 Geography of the business 138
10.3.1 US 139
10.3.2 International markets 139
10.4 Product portfolio 141
10.4.1 Anti-infectives 141
10.4.2 Antiparasitics 144
10.4.3 Vaccines 145
10.4.4 Other pharmaceuticals 148
10.5 R&D 149
10.6 Strategy 151
10.7 Prospects 152

CHAPTER 11 SCHERING-PLOUGH 153
11.1 Company background 153
11.2 Animal health sales and earnings 154
11.2.1 2005 performance 155
11.2.2 2006 performance 155
11.2.3 Interim 2007 performance 156
11.3 Geography of the business 156
11.3.1 US 157
11.3.2 Europe 158
11.3.3 Other markets 158
11.4 Product portfolio 159
11.4.1 Vaccines 159
11.4.2 Anti-infectives 161
11.4.3 Antiparasitics 162
11.4.4 Other products 163
11.5 R&D 164
11.6 Strategy 165
11.7 Prospects 165

CHAPTER 12 VETOQUINOL 167
12.1 Company background 167
12.2 Animal health sales and operating profit 168
12.2.1 2005 performance 168
12.2.2 2006 performance 169
12.2.3 Interim 2007 performance 169
12.3 Geography of the business 169
12.3.1 Europe 170
12.3.2 North America 171
12.3.3 Other markets 172
12.4 Product portfolio 172
12.4.1 Anti-infectives 173
12.4.2 Other pharmaceuticals 174
12.4.3 Other products 175
12.5 R&D 176
12.6 Strategy 177
12.7 Prospects 178

CHAPTER 13 VIRBAC 179
13.1 Company background 179
13.2 Animal health sales and operating profit 180
13.2.1 2005 performance 180
13.2.2 2006 performance 181
13.2.3 Interim 2007 performance 181
13.3 Geography of the business 182
13.3.1 Europe 182
13.3.2 North America 183
13.3.3 Other markets 184
13.4 Product portfolio 184
13.4.1 Antiparasitics 185
13.4.2 Anti-infectives 187
13.4.3 Biologicals 187
13.4.4 Other products 188
13.5 R&D 189
13.6 Strategy 190
13.7 Prospects 191

SECTION B OTHER SIGNIFICANT PLAYERS 193

CHAPTER 14 CENTRAL GARDEN & PET 195
14.1 Company background 195
14.2 Animal health business 196
14.3 Geography of the business 196
14.4 Product portfolio 196
14.5 Strategy 198
14.6 Prospects 198

CHAPTER 15 CHINA ANIMAL HUSBANDRY INDUSTRY CO. 201
15.1 Company background 201
15.2 Animal health sales 201
15.3 Geography of the business 202
15.4 Product portfolio 202
15.5 Strategy 203
15.6 Prospects 204

15.6 Prospects 204

CHAPTER 16 DAINIPPON SUMITOMO PHARMA 205
16.1 Company background 205
16.2 Animal health sales 206
16.3 Geography of the business 206
16.4 Product portfolio 207
16.5 Strategy 208
16.6 Prospects 209

CHAPTER 17 HESKA 211
17.1 Company background 211
17.2 Animal health sales and operating profit 211
17.3 Geography of the business 212
17.4 Product portfolio 213
17.5 Strategy 216
17.6 Prospects 216

CHAPTER 18 IDEXX 219
18.1 Company background 219
18.2 Animal health sales 220
18.3 Geography of the business 220
18.4 Product portfolio 221
18.5 Strategy 223
18.6 Prospects 224

CHAPTER 19 JANSSEN 225
19.1 Company background 225
19.2 Animal health sales 225
19.3 Geography of the business 225
19.4 Product portfolio 226
19.5 Strategy 227
19.6 Prospects 228

CHAPTER 20 KYORITSU SEIYAKU 229
20.1 Company background 229
20.2 Geography of the business 230
20.3 Product portfolio 230
20.4 Strategy 232
20.5 Prospects 232

CHAPTER 21 MEIJI SEIKA 233
21.1 Company background 233
21.2 Animal health sales 234
21.3 Geography of the business 234
21.4 Product portfolio 234
21.5 Strategy 235
21.6 Prospects 236

CHAPTER 22 MONSANTO 237
22.1 Company background 237
22.2 Animal health business 238
22.3 Geography of the business 238
22.4 Product portfolio 239
22.5 Strategy 239
22.6 Prospects 240

CHAPTER 23 NIPPON ZENYAKU 243
23.1 Animal health sales 243
23.2 Geography of the business 244
23.3 Product portfolio 244
23.4 Strategy 245
23.5 Prospects 245

CHAPTER 24 NORBROOK 247
24.1 Company background 247
24.2 Animal health sales 248
24.3 Geography of the business 248
24.4 Product portfolio 249
24.5 Strategy 250
24.6 Prospects 251

CHAPTER 25 ORION 253
25.1 Company background 253
25.2 Animal health business 254
25.3 Geography of the business 254
25.4 Product portfolio 255
25.5 Strategy 255
25.6 Prospects 256

CHAPTER 26 PHIBRO 257
26.1 Company background 257
26.2 Animal health business 258
26.3 Geography of the business 258
26.4 Product portfolio 259
26.5 Strategy 260
26.6 Prospects 261

CHAPTER 27 TEVA 263
27.1 Company background 263
27.2 Animal health sales 264
27.3 Geography of the business 264
27.4 Product portfolio 265
27.5 Strategy 266
27.6 Prospects 267

LIST OF TABLES
Table 1.1: Geography of the world market, 2006
Table 1.2: World market structure by product category, 2006
Table 1.3: World market structure by species, 2006
Table 1.4: Animal health industry sales rankings, 1996 and 2006
Table 1.5: Animal health company sales rankings, 2006
Table 1.6: Animal health company sales ranking forecasts, 2007
Table 1.7: Animal health company profit rankings, 2006
Table 1.8: Animal health company profit margins, 2002-2006
Table 2.1: Alpharmas revenues by division, 2006
Table 2.2: Alpharma animal health sales, 2002-2006
Table 2.3: Alpharma animal health income and margins, 2002-2006
Table 2.4: Alpharma first half sales, 2006 and 2007
Table 2.5: Alpharma animal health revenues by region, 2006
Table 2.6: Alpharmas major product sales, 2006
Table 3.1: Bayer sales by operating segment, 2006
Table 3.2: Bayer animal health sales, 2002-2006
Table 3.3: Bayer animal health earnings and margins
Table 3.4: Bayers first half sales, 2006-2007
Table 3.5: Bayer animal health sales by region, 2006
Table 4.1: Boehringer Ingelheim sales by business area, 2006
Table 4.2: BIV sales, 2002-2006
Table 4.3: BIV sales by region, 2006
Table 4.4: Sales of major BIV brands, 2006
Table 5.1: Ceva animal health sales, 2002-2006
Table 5.2: Ceva earnings and operating margins, 2002-2006
Table 5.3: Acquisitions completed by Ceva since 2000
Table 6.1: Elancos animal health sales, 2002-2006
Table 6.2: Elancos operating income and margin, 2002-2006
Table 6.3: Elancos interim 2007 sales performance
Table 6.4: Elancos US/international sales split, 2002-2006
Table 7.1: Wyeth sales by operating segment, 2006
Table 7.2: Fort Dodge animal health sales, 2002-2006
Table 7.3: Fort Dodge operating income and margins, 2002-2006
Table 7.4: Fort Dodge first half sales, 2006-2007
Table 7.5: Fort Dodge US/international sales split, 2002-2006
Table 7.6: Fort Dodge sales by species, 2006
Table 8.1: Merial animal health sales, 2002-2006
Table 8.2: Merial first half animal health sales, 2006 and 2007
Table 8.3: Merial sales by product category, 2006
Table 8.4: Merials avermectin revenues, 2002-2006
Table 8.5: Leading formulations in the Merial ivermectin range
Table 8.6: Fipronil sales, 2002-2006
Table 9.1: Novartis sales by operating segment, 2006 1
Table 9.2: Novartis animal health sales, 2002-2006
Table 9.3: Novartis animal health sales by region, 2006
Table 9.4: Novartis animal health sales by product segment, 2006
Table 10.1: Pfizer sales by operating segment, 2006
Table 10.2: Pfizer animal health sales, 2002-2006
Table 10.3: Pfizer animal health earnings and margins, 2002-2006
Table 10.4: Pfizer first half animal health sales, 2006 and 2007
Table 10.5: Pfizers US/international sales split, 2005 and 2006
Table 10.6: Pfizer animal health sales by species segment, 2005 and 2006
Table 10.7: Recent additions to the Pfizer anti-infectives range
Table 11.1: Schering-Plough sales by business sector, 2006
Table 11.2: SPAH sales, 2002-2006
Table 11.3: SPAH earnings and divisional margins, 2002-2006
Table 11.4: SPAH first half sales, 2006 and 2007
Table 11.5: SPAHs US/international sales split, 2005 and 2006
Table 11.6: Geography of the expanded SPAH business 1
Table 12.1: Vétoquinol sales, 2002-2006
Table 12.2: Vétoquinols first-half sales, 2006 and 2007
Table 12.3: Vétoquinol sales by region, 2006
Table 12.4: Vétoquinols key acquisitions
Table 12.5: Vétoquinol sales by product category, 2006
Table 13.1: Virbac animal health sales, 2002-2006
Table 13.2: Virbac first half sales, 2006 and 2007
Table 13.3: Virbac sales by region, 2006
Table 13.4: Virbac sales by product segment, 2006
Table 14.1: CG&P sales by operating segment, 2006
Table 15.1: CAHIC financial results, 2004-2006
Table 15.2: CAHIC sales by product segment, 2006
Table 16.1: DSP sales by operating segment, fiscal 2007
Table 16.2: DSP Animal Science sales, 2003-2007
Table 16.3: DSP Animal Science sales by product segment
Table 17.1: Heska earnings and income, 2002-2006
Table 17.2: Heska revenues, 2002-2006
Table 17.3: Heska revenues by geographic area
Table 17.4: Heska revenues by product category
Table 18.1: Idexx sales by operating segment, 2006
Table 18.2: Idexx sales by region, 2006
Table 18.3: Idexx companion animal rapid diagnostic assay sales
Table 18.4: Idexx veterinary pharmaceutical sales
Table 20.1: Kyoritsu Seiyaku animal health sales and growth rates
Table 22.1: Monsanto sales by operating segment, 2006
Table 23.1: NZK sales by product sector
Table 24.1: Norbrook sales and earnings, 2002-2006
Table 25.1: Orion sales by business sector, 2006
Table 25.2: Orions veterinary sedative sales, 2002-2006
Table 27.1: Teva sales by operating segment, 2006

Summary:

For over a decade now, Animal Pharm has published an annual Top 20 Companies report containing detailed profiles of leading businesses in the global animal health and nutrition products sector. During that time, the structure of the industry has altered significantly. Merger and acquisition deals have concentrated shares of the market increasingly in the hands of a few leading players, and have resulted in a clearer split between ownership of interests in the medicinal and nutritional segments of the industry. Over the same period, the expiry of patents on major molecules and new approaches to marketing animal health products have seen OTC sales channels increase in importance and generic manufacturers begin to play a more prominent role.

To reflect the changing nature of the industry, and to provide readers with a broader perspective, this edition of the report has been restructured. Pure animal nutrition businesses have been excluded, sharpening the focus of the study and enabling discussion of more companies that play a significant role in the core animal health market - a definition that spans veterinary pharmaceuticals, biologicals and medicinal feed additives. Defined along those lines, the global market for animal health products was worth almost US$18.6 billion in 2006. The introductory section of this study discusses the size, structure and recent development of the global market, and examines factors affecting market growth rates. It also includes an analysis of recent merger and acquisition activity in the sector, presents tabulated company sales rankings for 2006 and ranking forecasts for 2007, and assesses the comparative profitability of leading animal health businesses.

More than two-thirds of global market value was generated by 13 major animal health businesses in 2006. Schering-Ploughs pending acquisition of Intervet means that by the end of 2007, almost 70% of the market will be concentrated in the hands of 12 companies. SPs expanded animal health business will vie with Pfizer and Merial for outright leadership of the sector, with each of these three giants generating annual sales of more than US$2 billion. The combined market share held by the three leading players will be in excess of one-third.

The first group of profiles contained in the report includes all 12 of these animal health majors - companies that are involved in the development, manufacture and sale of animal health products, and that operate in most of the worlds leading national markets. Each profile describes the background and ownership of the relevant business and outlines its contribution to respective corporate sales. Recent performance is outlined through the presentation of five-year tabulated sales data (plus information on earnings where available) and descriptive text. The geography of the business is also analysed, while product portfolios are discussed in detail. An overview of research and development activity is presented, while each profile also includes an analysis of individual business strategies and commercial prospects for individual companies.

The second group of profiles includes 14 businesses that, while not classed as animal health majors, play a significant role in the sector. This miscellaneous grouping includes second tier companies such as Janssen and Orion, which boast track records in the discovery and development of proprietary animal health products, and Monsanto, which generates substantial revenues from a single product (its Posilac bovine somatotropin formulation). Leading representatives from the generic and OTC segments of the industry have also been included, along with high-profile players in Asia, some of which act as distributors in key markets that are difficult for multinationals to penetrate directly.

Financial information has been included in individual company profiles where available, but a ranking of the various businesses into a second-tier sales league has not been attempted. This is partly because of the difficulties involved in stripping out core animal health product sales from revenues generated in peripheral areas (laboratory equipment and disposables, pet food, etc.). Double-counting is also an issue, with Japanese companies in particular generating a substantial proportion of their reported revenues from the sale of multinational brands under licensing agreements with animal health majors. Contract manufacturing muddies the waters further, with some companies reporting revenues generated by toll-based production of products that are subsequently sold by third parties under their own labels, and that, similarly, are included in financial results posted by those companies.

Profiles in this section of the report include information on the background of individual businesses, plus an analysis of sales and recent revenue development. The geographical spread of each business is also discussed, product portfolios are analysed, and company strategies and prospects are assessed.

Information sources used to compile this study include the Informa newsletter, Animal Pharm World Animal Health and Nutrition News; a range of other trade press sources; company web sites, annual reports, presentations and other corporate information; personal contacts within the industry; and direct contact with individual companies.