The Western States Veterinary Conference in Las Vegas this week featured a vibrant atmosphere in the exhibit hall, with our Brakke Consulting team delivering another well-attended presentation on the state of animal health and the future of innovation. By the way, global growth of animal health companies last year might be greater than you think – probably over the 10-year CAGR of 5+%.  Although 2025 presented notable challenges in the companion animal segment, particularly with visits to veterinary clinics, livestock performance was strong, which we are happy for.  Our individual meetings, engagements with industry leaders, and interactions at the Veterinary Angel Network for Entrepreneurs (VANE) social event reflected a prevailing sense of optimism for 2026 — albeit a cautious one in certain views. There is renewed enthusiasm for innovation and strategic partnerships, alongside a growing acknowledgment of the comprehensive value of have both livestock and companion animal businesses in the portfolio of animal health companies. And we are eager to assist animal health companies of all scales, especially start-ups, to realize your objectives and milestones for 2026.

Dr. Alexis Nahama

Going to AHNTI in London? Reach out to connect with Brakke while you are there.

Mark Twain is credited to have said “The past does not repeat itself, but it rhymes.”

I recently returned from a trip to South Africa, a country halfway around the world, where currently the cattle and swine industries are fighting an economically devastating battle against Foot-and Mouth Disease (FMD). The spread has been country wide, even in the face of some vaccination efforts, animal movement control, and stringent bio-security measures. Recently the disease has also been diagnosed in Botswana and Zimbabwe, so it is a regional issue now.

A simple direct 16-hour flight brought me from Johannesburg South Africa to Newark and after passport formalities it was time to collect luggage and witnessing several hunters collecting gun cases, I struck up a conversation on where they hunted including within and around South Africa.

Soon we parted our way, some leaving the airport, while others to connecting gates. However, something was amiss,

during the late 2000s I travelled to Africa often and upon return all luggage was checked and boots were sanitized and put in plastic bags if one was not wearing them. At this airport, on this day, there was a glaring absence of biosecurity.

What has changed, only the odds. The risk of FMD entering the USA from Southern Africa in the late 2000s was significantly lower as the disease was contained to a small geographical area, but now it is widespread in cattle (beef and dairy), swine and wildlife, which increases the spillover risk.

As we are currently heavily focused on New World Screwworm, it would be worthwhile to be prepared for other risks as well including FMD.

Lourens Havenga 

Animal Health Market Trends in Brazil – 2026  
We are five weeks into 2026 and while most of North America and Europe are freezing, it is nice and hot here in Brazil, which in some ways, is a great way to describe the expectations of the Brazilian pet and veterinary business in 2026.  
 

This market in Brazil continues to expand in 2026 with expectations of growth in the 10% range, driven by the growing population of dogs and cats and the increasing role of pets as family members. According to industry associations such as SINDAN and Abinpet, demand for advanced veterinary services and premium nutrition is rising, reflecting consumers’ willingness to invest in quality care.  
 

Pet food producers highlight a shift toward functional diets, aiming to support longevity and disease prevention. Preventive medicine is also gaining ground, with vaccines, parasite control, and wellness check-ups becoming routine among urban households.  
 

Technology is reshaping veterinary practices: telemedicine platforms, wearable devices for health monitoring, and AI-assisted diagnostics are being adopted by clinics to improve efficiency and accessibility. The market also sees growth in pet insurance, offering financial security for owners, and expanding opportunities for service providers.  
 

For professionals and entrepreneurs, these trends signal a dynamic environment with opportunities in nutrition, digital health, and integrated veterinary services. If your business is not selling products and services in hot Brazil, which is about half of the Latin American market, you should be. We can help. 
 

Mauri Ronan Moreira DVM, MBA  

This week’s viewpoint is a video from Jeff Santosuosso, Senior Consultant, discussing the key factors to success for a startup. Click here to view the full video. 

This week I attended the VMX conference and was impressed, as always, by the attendance and the enthusiasm around our industry. I wasn’t so happy with the weather, but you can’t have it all!

At the Annual Brakke Industry Overview, attendees received an optimistic review of business performance in 2025. Notably, those in the livestock sector and those reporting in U.S. dollars who benefited from a favorable currency effect.

One thing that stood out was the Pet Care update from my colleague, John Volk, reporting on the continuing slowdown in veterinary practice activity in the US. Several factors contribute to this trend, including macroeconomic challenges and the significant increase in fees and costs, which are impacting pet owners’ decisions regarding veterinary care.

During the Leadership Series, my guest was Mr. Jamie Brannan, Chief Commercial Officer for Zoetis. He provided valuable insights into talent development, innovation, and other essential areas. With leaders like Jamie at the helm, there is strong reason to be confident in the future of animal health. For those who missed the overview, I encourage you to join us for our event in Las Vegas at the WVC.

Lastly, I attended the Feather in Her Cap Association’s dinner and awards. A fantastic evening dedicated to celebrating women in our industry and acknowledging their significant achievements.

My view is that our industry is in a strong position, marked by solid financial performance and dynamic leadership from both men and women. But we can never rest, as success is a journey, not an event!

Paul Casady

As Bob Seger said, “There I go, turn the page”, 2025 is behind us and hope springs eternal for 2026.

But let’s not completely turn our backs on 2025. The annual reporting cycle will begin in late January or early February. Our analysis of company performance shows that the industry will post mid-single digit revenue growth along the lines of historical rates. Despite the solid revenue growth, the investment returns for the publicly traded companies largely lagged benchmark indices. The S&P 500 and Dow Jones Industrials posted growth of 16% and 13%, respectively, whereas the Petcare ETF showed growth of only 1%.

Now, it should not be lost that the returns for the S&P 500 are dominated by the “Magnificent 7” stocks. While in total the S&P 500 posted growth of 15%, estimates indicate that the growth would be about half of that if you excluded the MAG 7, which is fueled by the investment in AI. Toward the end of 2025, the markets saw a rotation out of the MAG 7 into smaller stocks, especially as the interest rate environment continues to be more favorable.

Animal health company stocks should have a better year in 2026, especially those companies who are in the early stages of an innovation cycle. In fact, we will talk about company performance and innovation at our Industry Overview presentations at VMX and WVC. See you there.

Randy Freides

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