It is fascinating what has happened in the last couple of years in the animal health industry, which runs to $22 billion a year for animal drugs and vaccines and is expected to grow at 5.7% compound annual rate, faster than the market for human medicines. Zoetis was spun off from Pfizer as the largest independent animal health company. M&A action in recent months is remixing the players once again. Next year, Novartis will be off of this list, and based on current revenues, Eli Lilly's Elanco should ascend to the number two position.
Animal health, which for decades was little more than a side business for big pharma companies, has emerged as a beacon of growth and an important profit driver in the industry. The rise of animal health as a growth engine has set off a flurry of dealmaking, attracted an influx of capital and created an increasingly dynamic marketplace for pet and livestock pharmaceuticals.
As more deal talk swirls, the burning question in the pharma world is whether animal health divisions are better off as stand-alone companies, focused exclusively on animal health, than as divisions of human-pharma organizations. It's a sensible question--animal health is fundamentally different from the human pharma business, with unique demands and complexities.
It's been a big couple of years for the animal health industry. The animal drug and vaccines market is running at $22 billion a year and expected to grow at 5.7% compound annual growth, faster than the market for human medicines. Zoetis was spun off from Pfizer into the largest stand alone animal health company in the world last year. Eli Lilly , which owns Elanco, recently agreed to buy Novartis animal health unit for $5.4 billion, which will catapult it into the second largest animal health business globally.
In a dynamic market like this there is lots to know and a need to discover it quickly. And we intend to be the go-to tool for you to do that. With FierceAnimalHealth, we will be keeping tabs on a slew of companies that are new to us and so we urge you to help us get to know you and to keep us apprised of the essential news in the industry.
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Eli Lilly's animal health business, Elanco, provides a bit of a bright spot in an otherwise weak earning report for its second quarter, with sales globally up more than 10%, while revenues across the entire company were up just 1%.
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