The market

The overall animal health pharmaceutical market was valued at £8.7 billion in 2005 (excluding the diagnostics market and including veterinary pharmaceuticals, biologicals and medicinal feed additives), with North America accounting for approximately 40.1% of the total market, followed by Western Europe 26.7%, the Far East 16.7%, Latin America 9.5 % and the rest of the World 7%. The market is divided into two distinct sectors: livestock animals and companion animals, which in 2005 made up approximately £5.3 billion and £3.4 billion of the animal health pharmaceutical market respectively.

As pets are living longer and owners are spending more on their pets’ healthcare, there is an increasing market opportunity to provide therapies for age related conditions in animals. In the US, pet care is the second fastest retail growth industry, worth approximately £20.5 billion in sales in 2007.  Consumer spending in the US for all animal products doubled between 1996 and 2006 and is expected to reach £26 billion by 2009.  Approximately 77% of dogs and 52% of cats were medicated in 2006, according to APPMA, an increase of approximately 20 percentage points for both dogs and cats since 1996.

Pharmaceutical products

Animal Health Pharmaceuticals currently has three products in late stage development.