Insights
Animal Health and M&A
August 11, 2019
The animal pharmaceutical market isn’t as heavily regulated as human pharmaceuticals, and as a result, is a more attractive industry. Traditionally the market was dominated by divisions of large pharma companies. However, this has changed over the last few years. The sector has seen significant changes following Pfizer’s 2013 spin-off of its animal health business, now known as Zoetis. This helped inspire the spin-off of Eli Lilley’s animal health business and then later in the year, Bayer announced it would leave the industry.
Because of these changes, we have seen substantial consolidation in the animal health space, with the number of transactions in the industry more than doubling since Pfizer’s spin-off in 2013 to 2018 – and due to the number of deals already completed this year, we expect another increase in deal volume.
Furthermore, the global animal health market was valued at $45B last year, and industry experts expect to see a compound annual growth rate of 5% leading to 2026. The market is being driven by a rise in food-borne diseases, and as result companies are making more of an effort to control these diseases. Furthermore, this prevalence has led to businesses producing more advanced vaccines and pharmaceuticals.
Additionally, the market is being driven by a significant increase in pet ownership - with pet owners over the last few years spending more than ever. The number of companion animals increases with income levels and the percentage of smaller families. This is a result of pet owners, particularly millennials humanising their pets, and becoming more willing to invest heavily in their pet's health and well-being.
Key Industry Trends
· Better Surveillance of Disease: Through portable devices and technologies, such as smartphone/tablet apps and ‘smart ear tags.’
· Emphasis on Animal Welfare: Owners are putting more emphasis on both pets and livestock to maintain health and quality of life.
· Public and Private Collaboration: Recent prevention of the bluetongue and Schmallenberg diseases in animals are prime examples of collaboration between the two sectors.
· More Treatments Available: The range of treatments has increased over recent years, with a range of treatments for even minor species, such as fish.
We Are Ready When You Are.
Call Benchmark International today and speak with one of our analyst about your company's exit or growth strategies.
Share This Post
Categories
Get These Insights Delivered Directly To Your Email
Explore our curated collection today and stay ahead of the curve in M&A.
Related Posts
Why Negotiating the Tough Stuff Upfront in a Letter of Intent is Crucial in M&A TransactionsWhen you're selling your business, the most challenging negotiations are the ones that often get pushed aside, but they are the ones that should be tackled upfront. The ESOP Advantage in M&A: What Buyers and Sellers Need to KnowESOPs have a special place in the business world. There's a bit of mystery around them as they are outside of typical business structures, and many need to understand how they work, much less their role in an M&A transaction. Some ESOPs seeking to sell are curious if they can do so with an ESOP in place. Others looking to buy or be bought out by an ESOP aren't sure of the proceedings. Fortunately, Benchmark has managed both situations and can navigate deals with these added layers of complexity.