ANIMAL HEALTH

Animal health industry essentials.  
A vibrant, growing industry at a crossroads of opportunity.

The Animal Health Industry is a $60bn sector that provides therapeutic products and veterinary medicines to improve the lives of animals.
An increasing demand for protein for farm animals as well as a growing pet population and emergence of new diseases secures the need for new and effective health solutions.

However, the Animal Health industry has experienced high levels of change. Consolidation has led to the top 10 Animal Health companies now holding over 75% of global sales. Meanwhile ancillary companies in food, nutrition and digital health are developing products and technologies with legitimate health benefits, adding roughly another $60bn in size. 

At Stonehaven Consulting, we study changing influences on key value-drivers and work with our clients to develop new business models and winning strategies.

Customer Transformation Challenges

We see several challenges in making transformational change.

Declining R&D pipeline
Consolidation led by divestment of Human Health Pharma has reduced access to human R&D. Even the largest Animal Health players do not have the R&D scope to go it alone and must rely on sourcing innovation
Aging portfolios
A lowering of R&D productivity has resulted in mature product portfolios - most leading A H products have been on the market for well over a decade - limiting the growth potential of life cycle strategies.
Declining R&D pipeline
Consolidation led by divestment of Animal Health businesses by Human Health Pharma has reduced access to human R&D. Even the largest Animal Health players do not have the R&D scope to go it alone and must rely on sourcing innovation.
Aging portfolios
Increasing time to market and a perceived lowering of R&D productivity has resulted in mature product portfolios - most leading AH products have been on the market for well over a decade - limiting the growth potential through innovation with increasing emphasis on life cycle strategies.
Declining R&D pipeline
Consolidation led by divestment of Human Health Pharma has reduced access to human R&D. Even the largest Animal Health players do not have the R&D scope to go it alone and must rely on sourcing innovation
Aging portfolios
A lowering of R&D productivity has resulted in mature product portfolios - most leading A H products have been on the market for well over a decade - limiting the growth potential of life cycle strategies.
Changing M&A landscape
The traditional strategy for generating growth from large scale acquisitions is becoming more difficult for leading AH players with less availability of suitable assets. in addition, consolidation among downstream food companies is shifting influence in the value chain. 
Increased competition
Animal Health is experiencing increased competitive intensity driven by Regulatory factors and increasing generics, forcing larger players to consider their own generic programs and defensive strategies.
Changing M&A landscape
The traditional strategy for generating growth from large scale acquisitions is becoming more difficult for leading AH players. in addition, consolidation among downstream food companies is shifting influence in the value chain. 
Increased competition
Animal Health is experiencing increased competitive intensity driven by Regulatory factors and increasing generics, forcing larger players to consider their own generic programs and defensive strategies.
Changing M&A landscape
The traditional strategy for generating growth from large scale acquisitions is becoming more difficult for leading AH players. in addition, consolidation among downstream food companies is shifting influence in the value chain. 
Increased competition
Animal Health is experiencing increased competitive intensity driven by Regulatory factors and increasing generics, forcing larger players to consider their own generic programs and defensive strategies.

Opportunities

Our view of top success factors for the Animal Health industry.

Changing M&A landscape
The traditional strategy for generating growth from large scale acquisitions is becoming more difficult for leading AH players. in addition, consolidation among downstream food companies is shifting influence in the value chain.
Increased competition
Animal Health is experiencing increased competitive intensity driven by Regulatory factors and increasing generics, forcing larger players to consider their own generic programs and defensive strategies.
Changing M&A landscape
The traditional strategy for generating growth from large scale acquisitions is becoming more difficult for leading AH players. in addition, consolidation among downstream food companies is shifting influence in the value chain. 
Increased competition
Animal Health is experiencing increased competitive intensity driven by Regulatory factors and increasing generics, forcing larger players to consider their own generic programs and defensive strategies.
Commercial excellence
Improving capabilities by optimising operations and improving processes. Companies developing winning strategies and investing in brand building can win market share to achieve species/product specific leadership.
Embracing digital
The Internet of Things, Precision Livestock Farming and focus on Big Data promises to deliver great value to Animal Health. Forming smart collaborations to build or access platforms is key to monetising digital applications.
Commercial excellence
Improving capabilities by optimising operations and improving processes. Companies developing winning strategy and investing in brand building can win market share to achieve species/product specific leadership.
Embracing digital
The Internet of Things, Precision Livestock Farming and focus on Big Data promises to deliver great value to Animal Health. Forming smart collaborations to build or access platforms is key to monetising digital applications.

Choosing the right direction?

Recent changes have brought the industry to a crossroads - setting strategic direction and making informed decisions are essential for capturing opportunity and ensuring long-term success.
Stonehaven Consulting are uniquely positioned to support this effort by offering world-class consultancy skills on a bedrock of industry knowledge and experience.
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Companion Animal Health

Companion animal - largely represented by cats, dogs, and horses - account for $12bn in therapeutic sales. The companion animal market has experienced consistent growth in recent years. We see three major trends that support future growth in this segment.

Growing Pet Population
More pets, living longer and experiencing age-related diseases.
Humanization of Pets
Love for our pets is increasing health awareness and spend per pet.
Digital Revolution
Sensor technology and smart data personalising healthcare.
These trends encourage a shift in focus from vaccines and parasiticides to novel, speciality treatments in order to meet future needs. 

Our Role
The Stonehaven team have consulted clients in all areas of companion animal health from vaccines and parasiticides to novel therapeutics and new technology in all stages of development.

Our extensive knowledge, insights, and network in Companion Animal Health help us to develop winning strategy and create opportunities for companies large and small.

Farm Animal Health

Farm animals - largely represented by cattle, swine and poultry - account for $18 billion in sales of medicines and vaccines used to treat and prevent disease. Farms are producing more from less whilst fish farming offers opportunities for expansion. We see three major trends that support ongoing growth in this sector. 

Demand for Protein
Growing population and rising incomes increasing demand for meat and dairy.
Antibiotic Free
Growing, mounting pressure across the value chain for antibiotic-free food. 
Emerging Markets
New territories, new diseases, new class of nutritional health products. 
These trends encourage a shift in focus from vaccines and parasiticides to novel, speciality treatments in order to meet future needs.

Our Role
Our team at Stonehaven have a vast experience in consulting clients in a range of sectors covering Farm Animal Health, covering all product groups, technologies and species.

We welcome the opportunity of working with companies of all sizes and in all stages of development in Farm Animal Health to develop value-based strategies and create growth.

Key Contacts

George Gunn
Founder & Partner
Matthias Hofer
Managing Partner
Juerg Baggenstoss
Partner
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