I like to see statements like these:
“…Strong growth driven by livestock…” (Merck’s 3Q25 Financial Report for Animal Health)
“…Sales of Livestock products increased by 14% organically…” (Zoetis 3Q25 Financial Report)
“…10% Growth in Farm Animal business…” (Elanco 3Q25 Financial Reporting)
The importance of having a balanced animal species portfolio should be apparent for companies and investors in the animal health (AH) industry. Can you imagine what the stock market would be doing to the publicly traded animal health companies if it wasn’t for the livestock business shoring up both the top line and the bottom line?
In the past few years, so much emphasis was placed on the companion animal (CA) business, resulting in discussion about how the only growth in AH was in the CA space.
In fact, companies disinvested in the livestock market in many ways through reduction in R&D spending, downsizing commercial activities, and even divesting portfolios. Investors were bearish on both established companies and startups in livestock and capital investment in livestock was nearly impossible to secure. There was even discussion about spinning off the livestock business of the larger players!
Certainly, there was solid reasoning behind these strategies, but in my opinion, it is short-sighted. There are certain ‘constants’ in our business, and livestock animal health is one of them. It provides sustainable growth based on global population increases and the human desire for animal proteins.
In my view, we need more investment in innovation for livestock, and we know that livestock producers will pay for innovative products. The market will respond and be positive for companies or startups that are successful – and we will see more headlines like the ones above.
Paul Casady
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