Animal health product sales up 5%

Animal health product sales up 5%

AHI reports that spending on animal health products increased 5% in 2012, and member companies invested $747m in R&D.

IN the U.S., spending on products used to protect the health of companion and farm animals increased 5% from 2011 to 2012 (not adjusting for inflation), totaling nearly $7.4 billion, according to the Animal Health Institute's (AHI) "Market Sales Report."

The three product categories for animal health products are: biologics, sales of which increased 3.7% in 2012; pharmaceuticals, with a sales increase of 5.0%, and feed additives, with an increase of 17.6%, AHI said Nov. 22. Since recession-generated sales declines in 2008 and 2009, sales of animal health products have steadily increased in the last three years.

"Animal medicines are used by veterinarians, pet owners and farmers to protect animal health, whether it's vaccines to prevent disease or pain medicines to ease the suffering of animals," AHI president and chief executive officer Alexander S. Mathews said. "The availability of animal medicines provides two main benefits to Americans. First, it allows our pets to live longer, healthier lives and improves our enjoyment of them. Second, these medicines help farmers produce a safer and healthier food supply."

The AHI report shows product sales in the three major product categories. Raw sales data were collected by CEESA, a nonprofit international association based in Belgium. CEESA collects sales data on the animal health market in Europe as well.

Total sales for the entire U.S. animal health product industry were calculated based on projections made by the U.S. Market Survey Work Group using CEESA data. Sales are for products priced at the manufacturer's level. CEESA reporting companies represent 87% of the U.S. animal health product industry.

 

Increased investments

AHI also reported that its member companies invested $747 million in 2012 on the discovery and development of new medicines for animals and the maintenance of existing products. That figure is a 4.6% increase over the previous year, according to AHI's latest "Research & Development Survey."

"Innovation is essential to keeping a pipeline of new products that are needed by veterinarians, livestock producers and pet owners to keep animals healthy," Mathews said. "This level of investment by our members demonstrates their commitment to innovation and to a steady supply of safe and effective medicines."

Data were collected and compiled by AHI. Research and development (R&D) spending is calculated according to the type of product manufactured by AHI's member firms: pharmaceuticals, biologics, feed additives, insecticides and diagnostics.

A compilation of surveys from the past three years showing trends in animal health product sales and R&D expenditures is available from AHI. The report includes combined sales figures of AHI members for ruminant, swine, poultry, small animal and equine products.

Sales totals for these species are broken down as feed additives, biologics and insecticides and pharmaceuticals. No further breakdown or tabulations are provided, although the report does track trends for the reported categories for 2010, 2011 and 2012.

Either report is available from AHI for $150 each. Copies can be ordered by contacting Marie Gilmore at [email protected] or (202) 637-2440.

AHI represents the manufacturers of animal health products — the pharmaceuticals, vaccines and feed additives used in modern food production and the medicines that keep pets healthy.

Volume:85 Issue:49

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