In a thoughtful post on LinkedIn.com this week, Dr. Matt Salois, economist and president of Veterinary Study Groups, raised the question:  “Are we quietly headed for a veterinarian oversupply problem?”  He points out that the number of students enrolling in veterinary schools, and the subsequent number of graduates 4 years later, have grown by about 90% since the 1980’s, with much of the expansion occurring in the last 10 years.  Yet, except for the pandemic years (2020-2023), demand for veterinary services has not really kept pace.

It’s hard to think about a possible “oversupply” when we’ve seen a very tight veterinarian labor market the past few years and some are clamoring for more and more veterinary schools.

But is Salois onto something?  Over the last 15 years we’ve experienced both a very soft (2011-2013) and a very tight (2020-23) labor market for veterinarians.  A labor market study conducted by Brakke Consulting last year on behalf of AVMA projected that the current number of veterinary colleges was adequate to meet demand for at least the next 10 years.  Those projections were based on continued growth in the number of pets and veterinary demand, both of which have dipped in the past two years.

What does the future hold?  We’ll have fresh new data on this topic to share in our upcoming Brakke Industry Overview at VMX and WVC.  Please join us for more insights into veterinary supply and demand trends.  Hope to see you there.

John Volk, Senior Consultant
Chicago

Although this edition is officially the first newsletter of 2026, it also serves as the concluding issue for 2025. Continuing our annual tradition, this final edition of News & Notes provides a summary of the key events and developments from 2025 that we reported throughout the year. From acquisitions, mergers, company news, launches, approvals and deals, you’ll be reminded of what happened. You can find all the newsletters here if you’d like more detail on a noteworthy item.

This newsletter also features the Animal Health Stock Price Tracker, presenting data for the entire year of 2025. The table includes comparative stock price performance for 2024 and 2023, allowing readers to observe trends and volatility across several companies over the past three years.

Special recognition goes to three members of our team for their dedication and contributions. Dr. Lynn Fondon served as the editor of News & Notes for 25 years, consistently curating news items for our audience each week. After Lynn’s retirement this past summer, Dr. Christine Merle has skillfully assumed the role of editor. Amanda McDavid ensures that each edition is expertly compiled and delivered to readers every Friday. Their efforts have produced a well-respected and valuable newsletter for the industry.

We extend our gratitude to all our clients and customers, with the hope that our work has supported your business growth, profitability, and competitiveness. 

Thanks, are also due to the Brakke Consulting team, whose collective expertise and commitment have made this another successful year. Working alongside such knowledgeable industry professionals is truly a privilege.

Lastly, we appreciate our News & Notes readers and hope that our weekly updates have been a helpful resource in supporting your work and goals.

Bob Jones

Reading a commentary on equitable investment in the veterinary workforce reminded me that One Health encompasses animals, people, and our planet.  

Animals are fellow species sharing and being affected by genetic, environmental and behavioral forces just like us.   Which explains why, horses are now being looked at as natural models for cardiac adaptability as well as the gut-brain axis and why two neurosurgeons ( one from veterinary and one from human) teamed up for brain surgery on a dog recently.  My current dog, Tara, has introduced me to the remarkable service dog world as a volunteer for ICAN.  I have seen firsthand genetic effect on breeding and training, but also the life changing impact these dogs have on their primary trainers (incarcerated individuals) and ultimately their matched clients at graduation.    

I’m grateful to all species and am honored that I work in the wonderful world of animal health- I’ll end the year with my favorite quote about animals. 

“They are not brethren, they are not underlings. They are other nations, caught with ourselves in the net of life and time, fellow prisoners in the splendour and travail of the earth.”  From THE OUTERMOST HOUSE by Henry Beston 

Dr. Christine Merle 

At next year’s Industry Overviews at VMX and WVC, we will focus on innovation in animal health. Recent developments in human health highlight efforts to accelerate innovation by streamlining regulatory processes rather than relying solely on company-driven advances.

Two notable proposals have emerged: approving human products based on a single well-designed trial instead of two and reducing user fees for early-stage companies conducting U.S. clinical trials. While the first proposal has raised concerns, many believe it could foster innovation by making approvals faster and less costly. The second proposal relates to ongoing PDUFA negotiations, with operational details still under discussion. 

Encouragingly, these initiatives originate within the FDA. Human health industry groups are also contributing ideas, and our own animal health association (AHI) recently recommended regulatory reforms and process efficiencies for CVM. With ADUFA negotiations beginning next year, regulatory innovation in animal health may not be far behind 

Robert Jones

Throughout my career, I have closely examined innovation within the animal health sector. Recently, I have been considering how advancements and adoption of artificial intelligence (AI) could streamline the drug discovery process.

Many startups today emphasize their use of AI to improve efficiency, speed, and cost-effectiveness. What I am eager to understand is how AI can analyze massive datasets, clinical trial results, and genetic information to propose new drug candidates. This can lead to better predictive modeling, thereby reducing development timelines and associated costs.

This week, an Innovation webcast from Zoetis—the world’s largest animal health company—provided insight into practical AI applications in research and development. Dr. Robert Polzer, Executive Vice President and President of R&D at Zoetis, highlighted four key areas where AI is currently being utilized: target identification, candidate selection, clinical trial management, and report generation.

While Zoetis is targeting significant opportunities, could AI become a valuable tool for developing new treatments for orphan diseases and minor species? I hope so. Additionally, AI may help reduce animal testing, pave the way for veterinary precision medicine, and enable AI-driven computation of cross-species pharmacokinetics.

Despite concerns about AI fatigue, it appears that the journey is just beginning, and there is much more potential to be realized in the intersection of AI and Innovation.

Dr. Chuck Johnson

Have you ever attended a seminar expecting to focus on one topic, only to leave contemplating something entirely different?

Yesterday, I attended an event at the NC Biotechnology Center in Durham, NC, hosted by the College of Agriculture and Life Sciences at North Carolina State University. The event, titled “Emerging Research Showcase: AI and Precision Livestock Farming,” featured insightful presentations from industry leaders, faculty, and students. While I gained valuable knowledge about NCSU’s advancements in AI and robotics within pig, poultry, dairy, and beef cattle sectors, the experience provoked me to reflect on how we can effectively communicate with consumers about our food and animal health products in the future.

The presentation delivered by Dr. Katie Sanders, Assistant Professor and Extension Specialist, titled “Leveraging Science Communication and Engagement around the Use of AI for Animal Health,” prompted me to consider how consumers will access information in the future. Dr. Sanders highlighted the example of GMOs to illustrate a significant gap in public understanding: while 90% of scientists believe GMOs are safe, only 50% of consumers share that view.

My key takeaway is that animal health companies operating in the livestock, poultry, and companion animal sectors should control how Large Language Models—advanced AI systems—are trained on the safety and efficacy of their products. While “influence” may be more accurate than “control,” it’s important for these companies to recognize the shift from traditional online searches to conversational platforms like ChatGPT. Now is the time for animal health companies to consider their role in guiding the information that AI systems provide to consumers.

Bob Jones

It seems you can’t turn around these days without bumping into some information or opinion about AI – artificial intelligence.   Next week’s issue of Economist (published today) carries a cover story about the risk to the global economy if there’s a major correction to AI stocks, because of their “stratospheric share prices.”  “It would be one of the most predicted financial implosions in history,” according to Economist.  Then there’s debate about whether AI will take jobs away from humans, or whether it will make humans more productive. Or both.

AI is migrating into the veterinary profession in a myriad of ways.  It is already well established in medical records – converting recorded exam conversations into medical notes, a major time-saver.  It is being built into PIMS, the computer systems veterinarians use, to yield more and better management data.  AI-assisted technology is being developed to reads radiographs, or to prepare radiographs so veterinarians can make better, faster diagnoses.  There are other AI-powered diagnostic tools.  And one company has even announced an AI tool that can predict the likelihood of canine diseases as much as 6 years in advance, using clinical exams, environment, dog breed, and lifestyle. A major benefit, according to the company, is to “adjust treatment plans, exercise, or diet plans” to minimize the risk.   Sounds like the ultimate in preventive medicine.

Regardless of how AI evolves in veterinary medicine, I’m betting that it will play a much bigger role in helping veterinarians make better, faster decisions, than making the decisions for them.  Meanwhile, it seems prudent to not overload your portfolio with AI stocks, just in case.

John Volk

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 

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