As mentioned in last week’s viewpoint, several Brakke consultants including myself participated in the AHNTI conference in London.

The event saw strong attendance, drawing nearly all major animal health companies and much of their senior leadership. Additionally, a wide range of affiliated organizations—including CDMOs, suppliers, and consultants —were present. 

The central theme was ‘Innovation,’ explored through a variety of engaging speakers and panel discussions. While innovation is crucial for industry growth, regulatory agencies face ongoing challenges to keep pace and ensure timely approval of new advances to the market. Investment is also a key component, particularly for independent startups, yet there remains a significant shortage of venture capital funding available within animal health to support them. 

In my opinion, unless we improve regulatory processes and expand investment opportunities, innovation in animal health will remain more of a discussion point than a reality. 

Paul Casady 

It was my pleasure this week to join my Brakke colleagues and many global animal health industry leaders in London for Kisaco’s Animal Health & Nutrition Technology and Innovation Conference.

The quality and quantity of presentations and conversations highlighted the strength of the animal health industry and its many innovation opportunities ahead.

A particularly refreshing presentation was a conversation facilitated by Kristin Peck, CEO of Zoetis, and Dr. Timothy Shell, Director of the FDA’s Center for Veterinary Medicine (CVM). Dr. Shell shared his vision for reforming the CVM’s animal health approval process, noting that FDA interactions will play a key role in determining how future innovations reach the market.

He touched on several proposed changes—cautioning these are not formal guidance and likely require 3–5 years to implement:

• Reducing average approval time from 10 years to 5 years
• Tripling MUMS approvals from 2 to 6 per year, with a voucher program for expedited review
• Extending conditional approval from 5 to 7 years for chronic diseases and including the CMC section
• Updating the user fee program to enable shorter reviews with applicable fees
• Evolving residue and toxicology regulations
• Leveraging foreign agency data and approvals, while addressing regulatory gaps within set timelines
• Utilizing AI to accelerate administrative processes

In closing, Dr. Shell stated that the CVM is evolving and encouraged companies never to pause or delay projects without first consulting the agency. This collaboration will support the timely introduction of valuable animal health products for pets and livestock.

Chuck Johnson DVM, MBA

When does “how much” become “too much”, when it comes to spending money on your pets?  Said another way- what dollar amount might make you pause when it came to veterinary care of your pet?

In a recent post from the Pet Business Professor, he shared a graph on Petflation through January 2026, using 2019 prices as the base, the US CPI sits at 26.6%, Total Pet at 29.1% and Veterinary Services as the highest at 49.6%.  GULP… that’s almost twice of CPI but the visual is what is really striking. While most categories made steady regular treks upward the steep and continuing climb in veterinary is shocking.

You’ve all seen the data- veterinary visits are down, practices are feeling it.  For many pet owners the cost of care is a real challenge with a recent study of US Pet owners stating 7 in 10 owners skipped veterinary care this past year due to cost.

Financial conversations for anyone are never easy but recent studies show that disclosing personal financial information can alleviate anxiety.   Working as a veterinarian, I’m faced with financial discussions with clients regularly- I’ve never shied away from the conversation- but I have found myself taking a deep breath a bit more often lately because I’m brushing up on what would be my own personal “too much” more than ever before. I’m not sure where the answers and solutions will come from but I’m confident that this industry will be able to meet this challenge too.

Dr. Christine Merle

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