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

For years, regulations have tethered vets to in-person exams before prescribing, limiting the reach of virtual care. Now, the telehealth landscape is shifting—creating new opportunities for practices, manufacturers, and investors. 

Arizona, California, Idaho, District of Columbia, Florida, Idaho, New Jersey, Ohio, Virginia, and Vermont—currently allow vets to establish a VCPR (Veterinary-Client-Patient Relationship) via telemedicine. In 2024, Colorado advanced a ballot initiative, but it failed to qualify.   

Additionally, Chewy, Mars Veterinary Health, and Amazon are actively lobbying for expanded telehealth, investing heavily in policy advocacy and digital infrastructure. Their message is simple: telehealth can expand access to care, reduce friction for pet owners, and strengthen client loyalty. 

Key factors driving today’s telehealth push go beyond the obvious convenience and expanded reach to rural areas. Practices integrating virtual care report higher commitment to chronic disease monitoring, stronger engagement in preventive care, and improved compliance—particularly when pairing prescriptions with home delivery.  

State regulatory differences and prescribing restrictions continue to pose short-term challenges, while many veterinarians are concerned about clinical standards and liability when practicing virtually. Pricing models are also evolving, raising questions about pet owner’s willingness to pay. 

With telehealth shifting from a niche offering to an essential part of pet care, practices that embrace it —integrating it into practice workflows, client communication and product strategy—will be poised to capture growth and strengthen their role at the center of pet care. 

The writing on the wall should be clear…telehealth is here to stay and it’s a game-changer. 

 Richard Hayworth

Recent headwinds—such as declining veterinary clinic visits, widespread cost cutting, and reduced commitments from private equity and venture capital firms—are creating challenges for the animal health industry. Although cost-cutting measures may be warranted, they can lead to turmoil and unrest both within organizations and throughout the broader sector.  Private equity firms currently hold an estimated $2.5 trillion in uninvested capital, reflecting caution in the face of economic uncertainty.

Despite these challenges, our industry has a long history of stable growth and reliable returns. This track record raises an important question: Why wouldn’t investors want to be a part of such a resilient and essential field? As a community, we must ensure we are effectively communicating the value and potential of animal health, both within our organizations and to external investors. Having a well-thought-out, long-term strategy is essential, and companies should consistently advocate for the resources needed to maintain growth and innovation.

To support the sustainable health of our industry, we need ongoing investment—not just from animal health companies themselves, but also from outside investors. As leaders, we have a responsibility to do a better job of ‘selling’ our industry by highlighting its proven stability, profitability, and capacity for innovation. By focusing on these strengths and promoting a unified vision, we can attract sustained support, foster healthy growth, and ensure the vitality of animal health for years to come.

Paul Casady

Recent headwinds—such as declining veterinary clinic visits, widespread cost cutting, and reduced commitments from private equity and venture capital firms—are creating challenges for the animal health industry. Although cost-cutting measures may be warranted, they can lead to turmoil and unrest both within organizations and throughout the broader sector.  Private equity firms currently hold an estimated $2.5 trillion in uninvested capital, reflecting caution in the face of economic uncertainty.

Despite these challenges, our industry has a long history of stable growth and reliable returns. This track record raises an important question: Why wouldn’t investors want to be a part of such a resilient and essential field? As a community, we must ensure we are effectively communicating the value and potential of animal health, both within our organizations and to external investors. Having a well-thought-out, long-term strategy is essential, and companies should consistently advocate for the resources needed to maintain growth and innovation.

To support the sustainable health of our industry, we need ongoing investment—not just from animal health companies themselves, but also from outside investors. As leaders, we have a responsibility to do a better job of ‘selling’ our industry by highlighting its proven stability, profitability, and capacity for innovation. By focusing on these strengths and promoting a unified vision, we can attract sustained support, foster healthy growth, and ensure the vitality of animal health for years to come.

Paul Casady