Four years ago, I returned to clinical practice after two decades of non-clinical roles in animal health.  The main reason for me was to experience first-hand what has changed for veterinarians in practice.  Although some aspects have evolved, there are far more opportunities that still exist.

Consider these similarities between general practices in 2000 and today- including corporately owned.

• Most provide the exact same services as their nearest competitors
• Many have underutilized space and equipment
• There is little distinctiveness in their business models
• Continued use of practice management systems that are long overdue for modernization

Now add this double-edged sword…

• There are more FDA veterinary products now than in 2000 (even Google couldn’t tell me exactly how many)
• Establishing these new products within practices and with veterinarians has become increasingly expensive and challenging due to evolving marketing strategies and distribution challenges.

And for pet owners…

• Lack of connectivity between veterinary practices, specialists and pet owners is resulting in larger gaps in communication, patient care and overall health management
• Absence of national electronic prescribing may be preventing cost savings from generics and contributing to decreased adherence to prescribed medications
• Veterinarians’ knowledge gap may be widening despite their conscious effort to stay informed

We need more disruption in our industry, and it is unlikely to come from major players.  As editor of the newsletter, we get to highlight innovative, smaller organizations that are on the edge of discoveries and carving out new paths.  I am hopeful that their contributions will lead to practical, affordable solutions that will springboard veterinary practices into the next era of the profession.

Dr. Christine Merle

Transparency Wins: Why Early Disclosures Build Investor Confidence
In the world of due diligence, time is money and credibility is everything. One of the most common mistakes we see founders make is waiting too long to disclose risks. The reality is simple: the right investor or partner will always find out. How you manage that discovery defines the tone of the relationship and often determines whether a deal moves forward at all.

Early disclosure builds trust.
Being upfront about potential risks — whether regulatory hurdles, pending IP, or supplier dependencies — signals integrity. Sophisticated investors know every company has challenges; what they value is honesty and control. Transparent founders are perceived as lower risk because they demonstrate awareness and proactive management.

It accelerates the process.
Surprises slow deals. When investors uncover issues late, they must re-assess valuation, structure, or even internal approvals.

It frames the narrative on your terms.
When you disclose first, you control the story. You can explain the “why,” the “so what,” and—most importantly—the “what we’re doing about it.” If the investor uncovers the same point independently it can easily be misinterpreted as negligence or concealment.

It reveals alignment and problem-solving ability.
Sharing your risk-mitigation plan shows strategic discipline and resilience … qualities that distinguish strong operators from storytellers.

It enhances long-term relationships.
Good deals don’t end at signing. Transparency in diligence sets the tone for that future relationship — one based on confidence, not caution.

Early disclosures aren’t admissions of weakness; they are demonstrations of leadership. The smartest founders understand that credibility compounds better than capital — and both begin with clarity. At Brakke we help founders identify, disclose and mitigate strategic operational risks and get them ready for critical conversations!

Alexis Nahama

Expanding the horizon for veterinary services revenue and product sales 

It was not that long ago when some in our industry were claiming that we had too many veterinarians and that the ROI on pursuing a DVM or becoming a Veterinary Technician did not provide a reasonable return. How things have changed! 

There are many reasons behind the ‘turnaround’ but clearly a driver was the increasing demand for veterinary care for pets and livestock. And the positive pressure comes in many forms: change of lifestyle for practicing veterinarians, influx of corporate veterinary practice ownership, high demand for specialized food animal practitioners (i.e. Poultry veterinarians). 

We know that many people simply cannot afford certain services- nor do they have the ability to purchase necessary drugs for controlling disease or parasites. In the industry, we recognize that we reach saturation points(for example with flea and tick treatments) and as a result, simply battle it out for share. 

Recently states are looking at allowing veterinary technicians or other new roles (midlevel veterinary practitioner) to expand their scope of practice acting more as a ‘Physicians Assistant’- like in human medicine. Will this bring down costs and extend care? 

Would national licensing for veterinarians and veterinary technicians or decreased cost and time for foreign veterinary graduates to achieve licensure increase supply and service? 

Lastly, should we be more aggressive in the development and registration of generic drugs? Reducing costs and increasing affordability? 

In my view, we as an industry- along with the profession, need to think strategically together about how to expand the market for both veterinary service and product sales. It will certainly benefit all! 

Paul Casady 

September’s US unemployment data from the Bureau of Labor Statistics are not yet available due to the government shutdown, but through August 2025, the data seems to indicate that the unemployment rate is ticking up and that there are more job seekers than there are new job openings. What does this mean for hiring?

Brakke Consulting recently conducted the 2025 Hiring Survey, focusing specifically on the animal health sector. The results point to slight improvements despite the current turbulent employment environment. Notably, nearly two-thirds of respondents reported that their company achieved all its hiring objectives. Additionally, the average time to hire has improved slightly compared to last year. Nonetheless, when viewed over a longer period, the data reveals that the overall time required to fill positions has generally increased since the COVID-19 pandemic.

The survey also highlighted several hiring trends in our industry. These trends include employee turnover rates, the use of recruiters, time-to-hire metrics, the integration of video technology in recruiting processes, the use of “soft skills” assessments to evaluate candidate suitability, and the growing importance of employer branding.

Thanks to all who completed the survey. The full results will be shared via a webinar later this year for survey participants. If you’d like to attend, please contact me or Amanda McDavid.

Jeff Santosuosso

As we turn the page to October, it is baseball playoff time.  As a Met fan, I am left searching for a team to follow after a slow, painful 3 ½ month collapse into oblivion.  I know my friends who are Yankee fans will tell me there is plenty of room on the bandwagon but that will never happen.

In the companion animal space, there is so much focus on the parasiticide market but competition in the dermatology market is about to heat up in a big way.  According to Kristen Peck, the CEO of Zoetis, there are more than 20 million dogs that are under or untreated leaving a huge opportunity.

Zoetis built this market with their blockbuster products, Apoquel and Cytopoint.  Combined on a moving annual total basis, these products sell in excess of $1.7 billion globally and $1.1 billion in the US alone.  Elanco launched Zenrelia in September 2024 but faced challenges with label restrictions, but the   FDA recently approved a label odification lifting the label warning.  Soon, Merck will be entering the fray with Numelvi, the first 2nd generation JAK inhibitor.  Numelvi has been approved in the EU and should be approved in the US shortly.

The gloves are off and the competition is on.  The major animal health manufacturers are expanding sales teams, establishing marketing budgets to capture growth and market share in a growing and undertreated dermatology market.  Plenty of room on the dermatology bandwagon.

Randy Freides

I continue to think about the number of innovative products necessary to meet the expected growth of the animal health market over the next 10 years, especially given the generic parasiticides we expect to see on the market for dogs. When taken in the context of the ongoing discussion about reducing the necessity for animal testing in the FDA approval process, how will this impact future development plans?

Some of the expected benefits of less animal testing include:

• Reduced timeline and cost of approval, with some suggesting it could reduce time and/or cost by 20% or more
• Ethics and animal welfare resulting in fewer animals being needed for terminal studies
• Use of computational models and microphysiological systems to facilitate studies
• Overall expedited approval to support market growth
• Facilitate development and investment in medications that might not reach blockbuster status

Each of these comes with the challenge of how to manage any transition:

• Initial investment in technology
• Ensuring the necessary regulatory endpoints can be met from non-animal studies
• Having proven, reliable and consistent processes that are validated
• Accurate alternative methods that correctly quantify riskChaos of living through a change

There is no clear guidance for the animal health industry and most suspect this will be dealt with on the human side first. It is impossible to eliminate all animal studies for veterinary products. I think we can agree that adoption of new methods that can decrease the approval timelines and costs while ensuring the continued safety and efficacy of the medications will be good for future innovation.

Chuck Johnson  

Let’s talk about horses.  The equine industry is the most fascinating segment in the animal health industry.  In some ways it shares economic principals with the livestock industry.   But it also demonstrates the deep passion and emotionalism of the pet industry.  It is also the most complex segment of animal health with multiple unique product categories and brands.  Success here requires marketers to be very well informed.

Earlier in this newsletter We announced the sixth edition of the Brakke Equine Market MegaStudy, this time in collaboration with Trone Market Research.  This has become the go-to study of horse owner purchasing behavior, covering more than 15 product categories and more than  400 brands.  There is also a wealth of data on horse owner demographics and media usage.  I was the principal investigator for several of the equine studies.  The project leader this year is my colleague Dr. Chuck Johnson who is actually an equine vet.  I’m sure Dr. Johnson will bring many fresh insights to the study.  If you are involved in or interested in the horse market, you’ll find this study to be a practical and productive resource.

John Volk, Senior Consultant
Chicago

Since I graduated as a veterinarian in 1989, the profession in Brazil has evolved to a completely different dynamic in veterinary care.

Veterinary medicine for companion animals in Brazil is now marked by autonomy and specialization. According to Radar Vet 2025*, 72% of veterinarians now work independently—a sharp rise from 26% in 2021—reflecting growing demand for personalized care. Only 14% have formal employment contracts, and clinic owners dropped from 33% to 14%, highlighting the sector’s decentralization.

Specialized training has become essential: 66% of professionals already hold or are pursuing postgraduate degrees, with growing interest in nutrition, acupuncture, and complementary therapies. The pet ecosystem has expanded to include daycare, physiotherapy, rehabilitation, personalized nutrition, and alternative treatments. On average, dogs are referred to seven specialists and cats to five, demonstrating a collaborative approach to care.

Digital tools are reshaping how veterinarians connect with pet owners: social media is now key for education, client loyalty, and building trust. Looking at reducing costs for care, house-call veterinarians are growing in numbers, raising a new challenge for the industry to reach and communicate with them.

I am sure many of our News & Notes readers could grow or expand their business in Brazil and throughout Latin America.  Let us help you grow.  

Mauri Moreira
*newsletter COMAC – SINDAN 2025. 

It always seemed to me the week after Labor Day was more than the end of the summer here in the US. It was the time of the year when we had to get serious about forecasting full-year performance and start planning in earnest for the next year. I’ll bet some of you are working on your spreadsheets right now.

Let’s look at some publicly traded AH company performance metrics over the last 12 months (TTM) to help estimate what industry growth looks like this year and next. In this table are revenue growth rates and as an indicator of spending, SG&A expenses. These are as reported numbers, so the effects of exchange are not considered.

As our Industry Overview attendees know, we estimated currency corrected growth in 2024 at 6.7% and that the 10-year CAGR is 5.8%. If you consider the devaluation of the USD this year, which will likely cost about 2 points of total USD industry growth, it looks like another typical year in 2025 for industry revenue growth. Interestingly, where we have data, SG&A expense growth is higher than revenue growth in each company. Keep working on those spreadsheets. 

Bob Jones

Emotional Intelligence: The Element AI Can Fake but Can’t Replace!
At the KC Animal Health Corridor’s AH Summit this week, we heard a lot about AI and there seems to be some AI fatigue setting in.  Yes, AI is transforming business, offering powerful tools to analyze data, automate processes, and it will drive significant change across our industry. But when it comes to emotional intelligence, cultural sensitivity, and human connection, it still seems to fall short, especially in moments that demand deep empathy and nuanced judgment.

Take the example of a pet owner facing the painful decision to euthanize a beloved dog. AI might recognize this as a moment of grief, even generate comforting messages. But it can’t feel the complexity of guilt, shame, loyalty, relief and heartbreak that defines such a decision.

Similarly, in a global product launch, AI can suggest region-specific keywords or tailor messaging using sentiment analysis. But it won’t truly understand how a sales force in Japan may need more consensus-based tools, while teams in Brazil may thrive with spontaneous, relationship-driven pitches. A great person can navigate these differences, build trust across cultures, and adapt strategies in real time. That insight comes not from data, but from lived experience, empathy, and interpersonal skill.

The best business outcomes still rely on people who can connect with others in ways machines simply cannot. We have lots of data on the attributes veterinarian’s value in sales reps and we can’t help but say that it’s still all about people.

Empathy isn’t programmable … and that’s exactly what makes it powerful.

Alexis Nahama