An Overview Of The Pet Medication Industry

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An Overview of thePet Medication IndustryWho and What are WeTalking About? Paul David Pion, DVM, DACVIM(Cardiology)Veterinary Information Network

Why Me? never worked in eitherdrug manufacturing or distribution former academic and researcher co-founder of VeterinaryInformation Network (VIN) For Veterinarians Subscription-based No advertising or sponsorship Medicine & Information Generation / Quality / Delivery

Why Me? FTC learned of VIN when theyfound articles by the VINNews Service (news.vin.com)investigating veterinary drugdiversion for the gray market.

Disclosures I am pro-veterinarian pro-pet owner pro-patient pro-fairness pro-informed choice

ersePet MedicationOur Information EconomyInformationInformationManufacturers DistributorsInformationConsumers- Wholesale- Retail

torsPet MedicationOur Information EconomyInformationInformationManufacturers DistributorsInformationConsumers-Product Manufacturers-Product arians ---- Drug Retailers-Veterinary Schools .Big Box-Pet Owners-Publishers-Authors-Speakers

Pet MedicationOur Information EconomyInformationInformationManufacturers thics?-Stake?

Pet MedicationOur Information EconomyInformationInformationManufacturers Safety

Pet MedicationOur Information EconomyInformationInformationManufacturers ce

Pet Medication MarketSize and Make-up Bigger than a breadbox (8 to 10 billion dollars?) small compared to human biopharmaceuticals US animal health including pet and non-pet species so pet market is even smallerHuman Pfizer: Novartis: Pfizer NovartisAnimal23.7B vs 1.38B17.8B vs 1.30B ?- ncial/financial2011.pdf - p. 18- s/novartis-annual-report-2011-en.pdf - p.17, 52

Pet Medication MarketSize and Make-up MEGA-PRODUCTS – continual use Flea and Tick Prevention – OTC (EPA) Heartworm Prevention – Rx (FDA) Everything else – OTC and Rx short-term use – e.g. antibiotics chronic need is usually moreattractive/profitable is it worth seeking approval?

Pet Medication MarketSize and Make-up What else do we need to know? a large percentage of medicationsprescribed by veterinarians are NOT“LABELED” for the patient species same medications (and formulations) you and yourgrandmother are taking. indications, safety, dose, drug interactionsoften differ from grandma Information source / standard of practice literature / conferences

Pet Medication MarketSize and Make-up Growth trends and future projections? ?

Pet Medication MarketThe Supply Chain

Pet Medication MarketBut wait, there’s more VetCentric VetsFirstChoice VetSource?The SecondGray Zone Phantominventory Virtualtransactions

Pet Medication MarketConsumer Purchasing Patterns?

Pet Medication MarketVeterinary Reaction / ThoughtsBayer comes “out”XXXXRest remain “in”XX XDangerXXX XXXXXRIP

Pet Medication MarketA Chain Reaction or How toMarket?

Pet Medication MarketA Brilliant Marketing Plan Direct to consumer too expensive Promise veterinarians exclusive“these products need your expertise” Demand distributor exclusivityHow toMarket? Happy/hero/dependent veterinarians Happy clientsWIN?LOSE?DRAW? Once brand established - Gray mkt Expands market, price not muchlower, but larger volume Big box entry- end-game or oops? Trust in veterinarians damaged? Veterinary practices suffer from“undercharging” for services

Cantor’s Law of thePreservation of IgnoranceA false conclusion, oncearrived at and widelyaccepted is not easilydislodged and the less it isunderstood, the moretenaciously it is held

Questionsare the ONLYanswers

Veterinary Information Network . pro-pet owner pro-patient pro-fairness pro-informed choice . Our Information Economy . US animal health including pet and non-pet species so pet mar

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