The pharmaceutical sector is often focused on therapies and treatments for humans, but there is another aspect of this market that has proved to significantly increase over time and offer a variety of developing prospects for larger pharma companies: the pharmaceutical pet industry.
Data from the P&S Market Research indicated the already lucrative global animal pharmaceutical market, valued at $12,614.3 million total in 2015, will increase at a compound annual growth rate (CAGR) of 7.7 percent by 2022. A BCC Research report found the market will be worth $69.4 billion by 2020.
“The increasing consumption of meat and milk, increasing zoonotic and food borne diseases, and increasing trend of pet adoption are the key factors driving the growth of the global market,” the P&S Market Research report’s description indicated.
Animal pharma sector could be worth $69.4 billion by 2020
“Among the different types of animal pharmaceutical products, the ectoparasiticides generated the largest revenue in the global animal pharmaceuticals market in 2015,” the report detailed. Pets amounted for the highest number of sales in the market.
North America and Europe took the top two spots when it came to the locations that spent the most on pharma products for animals. However, the data projects that during the researched time period, from 2016 to 2022, the Asia-Pacific market would experience the highest growth.
The report attributes this growth to the emerging location due to surging export of animal products in the region and an improvement of living conditions in China, India, and Indonesia which create a more compelling case for people to acquire pets to care for.
Companies working in this area
According to the data presented in the report, some of the largest public companies in this sector include: Merck (NYSE:MRK), Vetoquinol (EPA:VETO), Zoetis (NYSE:ZTS), Virbac (EPA:VIRP), Perrigo (NYSE:PRGO), Eli Lilly (NYSE:LLY), Sanofi (EPA:SAN) and Bayer AG (ETR:BAYN).
For investors looking for companies with a smaller market cap, InvestSnips provides a proper breakthrough of the large, mid, small and micro and nano-cap stocks in the animal health sector.
At time of market closing on July 17, Kindred has increased an impressive 84.71 percent year-to-date to $7.85, while PetMed has moved 70.26 percent to reach $39.28.
There have been 13 new animal drugs approved by the US Food and Drug Administration so far this year. Including treatments for cats, dogs, and livestock.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.