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Folie 1


Market- and Customer-Centric Approach to Meet the Challenge ... Endecto, Pain, Geriatrics, Diets. IFAH, 12th June 2008. Margaret Fairhurst # 13. Product Push ... – PowerPoint PPT presentation

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Title: Folie 1

IFAH-Europe Conference
  • Animal health solutions for the future
  • Margaret Fairhurst
  • Brussels, June 12th 2008

Newest trends in development of medicines for
companion animals
Market- and Customer-Centric Approach to Meet the
Product- / RD-driven Approach
Market-driven Approach
CAP Primary Market Snapshot
  • Europe (info from FEDIAF, 2007)
  • 62m households own a pet
  • 60m cats 57m dogs
  • Total petcare industry worth US5.3bn
  • USA (Info from APPMA pet census, 2007/8)
  • 63 of households own a pet 71.7m homes
  • 88.3m cats 74.8m dogs
  • Total petcare industry estimated at 43.4bn -
    10.3bn spent on supplies OTC medicines
  • Australia (Info from Australian Companion Animal
    Council, 2006)
  • 63 of households own a pet, 53 own a cat or dog
    4.0m homes
  • 2.43m cats 3.75m dogs
  • Total petcare industry worth AU4.62bn - 1.06m
    spent on vet services and products

Global CAP Market 4.3 bn. 4.9 CAGR 2007 2011
Concentrated market (species/regions/segments)
continues to offer attractive growth
perspectives and high profitability
  • High growth rates in the range of 4.6, will grow
    the market from 4.1 (2006) to EUR6.9 billion in
    2018. Limited impact by economical fluctuations
    in highly developed markets.
  • Parasiticides with share of 48 dominating
    segment. NID segment (21) with over proportional
    growth perspective to become no.2 segment long
    term. Anti-infectives (11)/Biologicals (16) at
    moderate growth rates.
  • Regionally concentrated market Top, NA/EU4/ANZ
    80. Developing markets in LA (BR/ME) and AP
    (CH/IN), latter still based on very low market
  • Steadily but only moderate increasing
    Dog/Cat/Horse population. Dog at 62 market
    value most important target animal, Cat (21)
    with increasing importance due to higher
    spending/cat. Horse rather limited potential (9)
    and dominated by USA.

CAP Market
Seg- ments
CAP market dominated by parasiticides value 2.1
  • Parasiticides business important source of income
    for veterinary clinics, though not a focus for
    veterinarians (un- scientific) while vet
    decides on product purchase, vet nurses and
    receptionists partly influence pet owners
    product choice
  • Besides veterinary clinics and depending on the
    local regulatory classification, parasiticides
    can be purchased in OTC channels (e.g pet
    shops, on-line, pharmacies …)
  • Strong pull-effect in this field due to
    increasing know-how of pet owners and heavy
    DTC-investments by the industry in selected
  • Increasing competition and high product
    satisfaction is leading to difficulty in product

Others 5
Antiinfectives 12
Pharmaco- logicals 19
Biologicals 17
Endo 17 706
Source Country Market Survey 2006
Endecto 6 224
Ecto 25 1,003
5.8 CAGR 2007 2011

AI market value 0.5 bn.
  • Under increasing regulatory pressure
  • Market characterized by increasing
    product, communication and positioning
  • Despite trend of increasing RD risks that limit
    availability of new compounds, Convenia
    (Pfizer) was recently launched (convenient, long
    acting formulation 2 weeks)

Source Country Market Survey 2006
CAP Market 2006 by Segments (in EUR million)

3.0 CAGR 2007 2011
Pharmacologicals value 0.8 bn.
Others 5
Pharmaco- logicals 19 762
Antiinfectives 12
  • Above average growth
  • Pain- and CHF indications represent now 50 of
    the market
  • Both sub-segments did not exist 3 years ago
  • Similar growth expected when innovative products
    for geriatric indications become available
  • New areas renal, behaviour, cancer

Biologicals 17
Endo 17
Source Country Market Survey 2006
Endecto 6
Ecto 25
CAP Market 2006 by Segments (in EUR million)
4.9 CAGR 2007 2011
Biologicals value 0.7 bn.
Others 5
Pharmaco- logicals 19
Antiinfectives 12
  • Important daily business for the Veterinarian
  • Decreasing vaccination frequency. Further fuelled
    by new vaccines with 3 year immunoprotection

Biologicals 17 679
Endo 17
Source Country Market Survey 2006
Endecto 6
Ecto 25
CAP Market 2006 by Segments (in EUR million)
Bio 4.1 CAGR 2007 2011
Market Drivers
  • Spread of diseases/parasites as a result of
    climatic changes and improved diagnostic
    techniques combined with growing owner acceptance
    of preventative medicine and routine checks
  • Increased human-animal bond, longer pet life span
    and modern communication media amplifies interest
    and trend towards higher knowledge and propensity
    to spend of owners regarding pet healthcare
  • Market growth in PARA and AI segments due to new
    competition (RD-driven and generic) will be
    partially offset by price erosion
  • Pet owners sourcing other channels for
    information and purchase in addition to the
    traditional vet clinic regarding pet care (i.e.
    breeders, pet shops, internet, pharmacies)

Market Opportunities - safety, protection, care,
security -
  • (Earlier) Diagnosis and increased disease
    awareness combined with greater willingness for
    pet health expenditure may lead to larger number
    of users, higher treatment frequency and better
    compliance in existing markets (esp. in the PARA
  • Development of highly innovative solutions for
    new indications (e.g. spin-off human medicine
    such as cancer or CHF) and new technologies (e.g.
    slow release, disease prevention), especially in
    the NID segment, results in CAP market increase
  • Pet Owners eagerness/interest to actively obtain
    pet health care information provides opportunity
    for direct industry-pet owner interaction (e.g.
    via internet platform)
  • Increased influence of non-traditional channels
    will promote access and convenience for the
    customer to purchase as well as acquire
    information and services

The Human-Animal Bond Key driver for the
Companion Animal Industry
No industrial Pet Food No Veterinary Care
Low to medium quality Pet Food Basic Veterinary
Premium to high quality Pet Food Life cycle
Food Frequent visits of Vet
Diet Food Treatment of geriatric diseases Does
Africa Parts of China and Latin America
Parts of China and Latin America Eastern
Europe Asean
Western Europe Eastern Europe Australia,
Japan North America
North America Japan Western Europe
Growth in classical segments Parasiticides,
Growth in innovative segments Endecto, Pain,
Geriatrics, Diets
Evolution path
Strategic Shift

Today, U.S. Pet Owners Are More Independent and
Proactive, Gathering Information from a
Variety of Sources to Make Decisions
Primary Pet Owner Influencers
Source Bayer Advantage Family Brand Demand
Discovery Groups (2007) TCG Analysis
Target Audiences
  • FAP

A new communications landscape
Traditional media landscape
Digital media landscape
Brands must now effectively harness both.
Core Segments in RD
RD Investment approx. 9 of turnover
Major Market Needs
Pharma- cologicals
Tickicide New chemical entity Insecticides Ac
aricides Resistance-breaking products
Special attention to Wide efficacy spectrum
Low residues Low application frequency Ease
of application
Long acting Ease of application Target animal