Current Status of Veterinary Biologicals and Opportunities and Challenges for the Future

The Animal Health market is now worth over $20Billion and continues to grow at a steady pace. Biologicals account for 25% of this business and have been increasing their share of the business by 1% per year. There are now 3 major companies who dominate the AH market with 43% of all sales. Along with the traditional biological products such as vaccines and diagnostics we are seeing an interest in genetic markers, biopharmaceuticals , stem cells and transgenic animals. New emerging diseases continue to pose a threat, such as the novel H1N1 virus and commercial companies have difficulty prioritizing these opportunities over more easily valued opportunities. With the average cost of bringing a new vaccine to the market at $10M, their appetite for high risk projects is limited. A major challenge for the AH industry is going to be to supply the increasing protein needs of our growing population and this is going to require a new revolution in technology including transgenic animals that grow more efficiently, are resistant to key diseases and have a reduced impact on our environment. The partnership between academic and industry groups will need to increase if we are to meet these challenges and gaining a better understanding of each others cultures is part of the way forward.