In this article, we will take a detailed look at theTop 20 Animal Health Companies in the World with insights into the revenue generated in 2022. For a quick overview of the top 5 animal health companies, read our article Top 5Animal Health Companies in the World.
The animal health industry is in solid shape for continued growth despite global economic downturns in 2020 due to COVID-19. Medium to long-term livestock and companion animal market trends are essential in determining future market behaviors in the related animal health industry.
The global animal health market is expected to grow at a CAGR of 3.36% from 2023 to 2028, reaching US$45.2 billion by 2028. This growth is driven by several factors, including increasing number of pet owners and their desire for high-quality veterinary care, rising awareness of zoonotic diseases, and numerous technological advancements.
According to Bloomberg, the pet economy is expected to grow more than 50% in coming years, driven by spending on sophisticated drugs and treatments and pampering. The pandemic pet boom added 5 million new pets to U.S. households, a 4% increase. This surge in pet ownership is fueling the growth of the animal healthcare industry. Pet owners are increasingly willing to invest in their pets' health and well-being, leading to demand for more sophisticated drugs and treatments.
A Look into the Animal Healthcare Industry
Zoetis Inc. (NYSE: ZTS), the world's largest producer of medicine and vaccinations for pets and livestock, reported a solid second quarter of 2023. The company saw a 9% operational revenue growth and 12% operational adjusted net income growth. This was driven by a diverse portfolio across markets and species. Segment growth was more balanced this quarter, with 11% active growth internationally and 7% growth in the U.S. operations. The first half has primarily been as expected, with 6% operational revenue growth. However, Zoetis Inc. (NYSE: ZTS) expects more substantial growth in the year's second half, especially in its U.S. companion animal business.
Additionally, in livestock, which has grown 8% year-to-date on an operational basis, Zoetis anticipates unfavorable comparisons in the second half due to the timing of price decreases in Jackson in the U.S. last year and resumption of supply of several products after outages in the first half of 2022.
Elanco Animal Health, Inc. (NYSE:ELAN), a $4.5 billion market cap company, posted a loss of $78 million in its most recent financial year. However, analysts expect Elanco Animal Health, Inc. (NYSE:ELAN) to reach the break-even point in 2024 after incurring a final loss in 2023. This is good news for investors, as it suggests that Elanco Animal Health, Inc. (NYSE:ELAN) is on the right track.
Importance of R&D Investments in the Animal Healthcare Industry
Two leaders in the animal health sector, Kathy Turner of IDEXX Laboratories, Inc. (NASDAQ:IDXX) and Rob Kelly of Zoetis Inc. (NYSE:ZTS), believe that companies should continue to invest in R&D during the current economic downturn. They acknowledge that it will be difficult for all firms to maintain the same level of pre-COVID-19 spending, but they argue that R&D is essential to the industry's long-term success. European animal healthcare companies spend 8% of revenue on R&D, investing over €600 million annually in new product development.
Top 20 animal health companies in the world
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Methodology
To rank the top 20 animal health companies in the world, we sourced data from Pharma Shots and Fierce Pharma. We have mentioned annual revenue with each company.
ImmuCell Corp (NASDAQ:ICCC), an animal health company, develops, manufactures, and markets products that improve the health and productivity of dairy and beef cattle in the United States and internationally. However, the company's earnings have declined by an average of 10.5% per year over the past five years.
Swedish investment firm E.Q.T. proposes acquiring Dechra Pharmaceuticals in an all-cash deal worth £4.6 billion ($5 billion). This represents a premium of 51% on Dechra's closing stock price, making it one of the most significant potential UK take-private deals this year.
Animal Care Group Plc, a UK-based international veterinary pharmaceutical company, develops and markets prescription and over-the-counter products that improve animal health and well-being. The company operates in three categories: companion animals, equine and other, and production animals. Its essential product is Daxocox, a differentiated COX-2 inhibitor for treating chronic pain in dogs.
SeQuent has rapidly become India's leading animal health company, establishing a global niche with its unique business model. The company has grown from acquiring and integrating businesses in key international markets to successfully scaling and consolidating its operations.
KRKA d.d. shareholders have enjoyed a total shareholder return (TSR) of 30% over the past year, including dividends. This exceeds the company's five-year average T.S.R. of 21%, suggesting that investor sentiment is positive.
Virbac will continue accelerating in 2023 on two key dimensions: R&D and capital expenditures. Virbac plans to boost its R&D investment to around 8.5% of revenues in 2023 and increase its capital expenditure investments to approximately €100 million. This will help the company prepare for the future, accompany its growth, and increase its medium-term productivity.
According to the Q4 2022 Heska Corp (NASDAQ:HSKA) earnings call, the company had a strong Q4 in 2022, with solid execution, significant investment, and preparation for good momentum entering 2023. The company continued to gain market share, significantly improve gross margin, and deliver 15% to 18% growth in crucial subscription metrics. 2022 was an excellent year for Heska (NASDAQ:HSKA), with a solid performance in premium chemistry analyzer placements, up 28% in the fourth quarter year-over-year.
Norbrook, a leading global provider of veterinary pharmaceuticals, enhances the health of farm and companion animals through growth and innovation. The company aims to provide a balanced portfolio of products to its customers and end users, focusing on developing new veterinary products, being the first generic to market where possible, and differentiating its products through features and benefits.
Ourofino, a Brazilian veterinary pharmaceutical company, develops, produces, and sells veterinary drugs, vaccines, and other veterinary products for production and companion animals. In 2022, Ourofino's net revenue exceeded R$ 1 billion, a 15% increase over 2021. EBITDA reached R$ 207.2 million, a 20.1% increase over 2021.
Neogen Corp (NASDAQ:NEOG) experienced higher-than-normal input cost inflation in fiscal 2023, impacting operating results. While pricing actions mitigated some inflationary pressures, ongoing inflation could impact customer purchasing decisions and order patterns in fiscal 2024, albeit at a decreasing rate.
In 2022, Vetoquinol reported sales of €540m and net income of €63m from farm and pet animal healthcare products. Vetoquinol adopted its new strategic plan in 2022, setting its direction and roadmap for the next five years.
Eco Animal Health Group plc is a UK-based animal health company that develops, registers, and markets pharmaceutical products for global markets. Its patented drug, Aivlosin, is a macrolide antibiotic for treating respiratory and enteric diseases in pigs and poultry. The company also offers generic endectocides and other antiparasitic drugs, such as Ecomectin, Ecoheart, Ecotraz, and Ecomintic.
Phibro Animal Health Corp's (NASDAQ:PAHC) net sales increased 5% to $244.6 million in Q4 2022, while net income decreased 59% to $7.2 million. Despite the decline in net income, Phibro's sales growth of more than 20% in 2022 put it in the top tier of animal health companies.
In 2023, net sales of Orion are expected to be slightly higher than in 2022, excluding EUR 228m ODM-208 upfront payment (2022 net sales without ODM-208 upfront payment: EUR 1,113m).
IDEXX Laboratories, Inc. (NASDAQ:IDXX) reported strong financial results for Q2 of 2023, with revenue up 10% reported and 10% organic to $1.07 billion.
