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

Expanding the horizon for veterinary services revenue and product sales 

It was not that long ago when some in our industry were claiming that we had too many veterinarians and that the ROI on pursuing a DVM or becoming a Veterinary Technician did not provide a reasonable return. How things have changed! 

There are many reasons behind the ‘turnaround’ but clearly a driver was the increasing demand for veterinary care for pets and livestock. And the positive pressure comes in many forms: change of lifestyle for practicing veterinarians, influx of corporate veterinary practice ownership, high demand for specialized food animal practitioners (i.e. Poultry veterinarians). 

We know that many people simply cannot afford certain services- nor do they have the ability to purchase necessary drugs for controlling disease or parasites. In the industry, we recognize that we reach saturation points(for example with flea and tick treatments) and as a result, simply battle it out for share. 

Recently states are looking at allowing veterinary technicians or other new roles (midlevel veterinary practitioner) to expand their scope of practice acting more as a ‘Physicians Assistant’- like in human medicine. Will this bring down costs and extend care? 

Would national licensing for veterinarians and veterinary technicians or decreased cost and time for foreign veterinary graduates to achieve licensure increase supply and service? 

Lastly, should we be more aggressive in the development and registration of generic drugs? Reducing costs and increasing affordability? 

In my view, we as an industry- along with the profession, need to think strategically together about how to expand the market for both veterinary service and product sales. It will certainly benefit all! 

Paul Casady 

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