Like a lot of our readers, I consider myself a free-market guy. Let the market decide, keep the government out of markets, and that free and open competition for consumers is good. So, when I read recent articles written about the United Kingdom’s Competition and Markets Authority (CMA) reforms or rules for the veterinary sector, my free-market radar went off.

The CMA’s investigation started almost three years ago and brought 56,000 responses, 45,000 from the public, 11,000 from those working in the veterinary industry. That’s massive. You can find the full report here.

What set the radar off for me was the price cap on prescriptions fees, which drove me to learn about the other ten reforms the CMA has imposed on the veterinary industry. I was sure that these reforms were all going to be bad, but after thinking about the reforms, I am not so sure. It seemed to me that most of the reforms were focused almost entirely on disclosure: price lists, written estimates, ownership transparency, comparison tools. A hardline free marketeer would tend to support most of those.

The report looked at the differences in pricing, satisfaction, and other things between large veterinary groups (LVGs, or corporate groups) and independent veterinarians, some of the differences are eye-opening. One of my observations here was about trust and how this has been impacted by the formation of LVGs, which I will address in the Viewpoint next week.

Bob Jones

In this week’s newsletter- BI announced the approval of a therapy for the treatment of insulin dysregulation in horses and ponies in Great Britain. A few weeks ago, we noted the publication of a peer-reviewed controlled trial in equine regenerative medicine for an allogenic equine umbilical cord connective tissue matrix. Could this be a sign of renewed interest in Equine product offerings?    As a horse woman for 30+ years l sure hope so.  Equine has long struggled finding a business unit home – should they be part of companion animal, reside with livestock or be a dedicated team of their own? From an R and D perspective the relatively low number of horse owning households (The American Pet Products Association 2025 survey lists it as 2 million households) and lack of recent and reliable number of horses make it extremely difficult to create financially justifiable market potential assumptions.  So for a long time, the equine health market has been seen somewhat of the wild west- with little need for traditional FDA product approvals or investments in solutions.  However there seems to be a bit of a shift, the American Horse Council’s 2023 Economic Impact of the Horse Industry gave us some insights – 6.6 million horses, segmenting them into sectors such as racing, recreation and competition and more recently the legitimizing of the regenerative medicine (PRP) and pain management modalities (Laser, Chiropractic, Massage) for humans.  While it will always be dwarfed to the broader markets of cats and dogs and livestock, equine shouldn’t be overlooked. Don’t let their numbers define the whole story.

Dr. Christine Merle, Editor

I couldn’t help but read the many tributes to Dolly Parton this week. I do not have any stories to tell about her other than she owned a small cottage in Solvang, California, which is in the Santa Ynez Valley where I grew up and where most of my family still lives. But the story of her life is amazing and something that we can learn from.   

We learned from these tributes how kind, considerate and generous she was to everyone, not just her fellow music and movie stars and not just at the end of her very successful career. She was that way her entire life. Dolly had what I consider to be the two keys to success: she was self-aware and was authentic. She was not born into wealth, her education stopped after finishing high school, maybe she was lucky, but she seemed to work hard, built wonderful relationships with people, and she clearly was able to recognize opportunities in the entertainment industry.  

But at the end of the day, Dolly Parton was a talented and genuine person – she knew who she was and never strayed from it. She was able to build trust and was as authentic as it gets. Her life is a reminder that knowing who you are, staying true to it, and treating people well may be among the most enduring foundations of success—in life and in business.  

Bob Jones, CEO 

Brazil, Latin America’s largest veterinary service market is also the most globally dynamic market and its being reshaped in real time. The window to get in early is narrowing. Markets that grow this fast don’t wait for latecomers. New challenges are emerging inside the veterinary profession, yes, but so are windows of opportunity that won’t stay open for long.

SINDAN, the animal health industry association, conducts the RadarVet survey to capture the profile of small-animal veterinarians in Brazil and track how it evolves over time. With competition intensifying — driven by a growing number of veterinary schools across the country — veterinary professionals are adapting fast. Three clear dimensions of change are already reshaping the small-animal veterinary market:

— Specialization beyond general practice. Surgery, dermatology, and anesthesiology stand out as three of the most sought-after specialties — and demand is only accelerating.
— Explosive growth in the number of veterinary establishments nationwide.
— A decisive shift toward contract-free work, with veterinarians increasingly practicing autonomously rather than being tied to a single clinic or hospital — upending the traditional employment model that investors have relied on to size this market.

And here’s the piece that should really catch an investor’s attention: a broader ecosystem is emerging around pet owners and their animals. Veterinarians are building support networks that offer products and services to dogs and cats treated as full-fledged family members — connecting owners to specialists in health, nutrition, and wellness. This isn’t a niche trend; it’s the next layer of value creation in the market, and it’s forming right now, ahead of where most capital is looking. Investors who wait for the data to be obvious will be buying at a very different price than those who act on what’s visible today.

Want to understand the Brazilian market as a gateway for investment before the window narrows further? Get in touch — let’s talk now.

Mauri Ronan Moreira
Senior Consultant, Brazil

When Paul Revere rode his horse to warn of the British arrival to spark the American Revolutionary War, the horse was a vital part of every aspect of the colonies.  As the new country forged its way, that dependency continued for another 175+ years until cars, roads (1910-1930’s) and mechanical farming (1940 – 1950’s) transitioned them to their current role in society.  In the 1920’s an estimated 25% or 5 to 6 million households owned horses. Today they represent approximately 2 million households; they dwarf the 71 million households that have dogs (according to the 2025 APPA National Pet Owner survey).

Horses once played a critical role in people’s lives, but innovation changed that- however that doesn’t necessarily mean that as a profession and an industry we should focus our time, efforts and most importantly financial investments on species that have the largest numbers or households. Investing in areas that meet a specific need/ niche offers larger opportunities than can be anticipated.  We are seeing some of those now (i.e. Dalan’s Bee Vaccine) and I hope we see more in the future.

Dr. Christine Merle

If you haven’t had a chance to provide feedback on the new look of the newsletter, we would love to hear from you. 

Supporting Early-Stage Animal Health Innovation

The launch of Elanco Ventures, along with recent investments by Veterinary Angel Network for Entrepreneurs (VANE), are a welcome boost for early-stage innovators in animal health. This stage is often one of the toughest points in a company’s journey, especially as the company moves beyond friends-and-family funding and begins to look for more substantial capital.

Investors like Digitalis and NovaQuest have helped lay an important foundation, but the industry still needs more capital focused on these earlier stages of development. Investment support at this stage can make a real difference in keeping new ideas moving forward through funding proof-of-principle and proof-of-concept work leading to new tools, solutions and products.

A stronger funding ecosystem from early to late stages, gives the animal health industry a better chance to keep growing and innovating over the long term.

Chuck Johnson- Senior Consultant

Brazil’s Growing Role in One Health Innovation

As the global animal health industry continues to seek innovative solutions to increasingly complex challenges, Brazil is emerging as a strategic center for biotechnology development and One Health advancement. The country’s unique combination of biodiversity, scientific expertise, agricultural leadership, and industrial scale creates an environment well-positioned to support innovation that benefits animals, human, and environmental health alike.

On June 22, industry leaders, investors, entrepreneurs, government representatives, and research institutions will gather in San Diego during BIO International 2026 for the Invest in Brazil | One Health Summit: From Science to Scalable Solutions. Organized by Abiquifi and ApexBrasil, with support from Brakke Consulting, the event will highlight opportunities for investment, collaboration, and international expansion within Brazil’s rapidly growing biotechnology ecosystem.

Brakke Consulting is proud to serve as a sponsor and participant in this important event. Through its work with global animal health companies, investors, and innovators, Brakke continues to support initiatives that foster growth, strategic partnerships, and the advancement of One Health solutions worldwide.

Brazil’s strengths extend beyond its role as a major producer of animal protein. The country offers a diverse research environment, expanding biotech capabilities, and a growing network of organizations focused on translating scientific discoveries into scalable commercial solutions. These assets are increasingly attracting attention from global stakeholders seeking new partnerships and innovation platforms.

Those interested in attending can learn more and register at: https://www.eventbrite.com.br/e/lnvest-in-brazil-i-one-health-summit-from-science-to-scalable-solutions-tickets-1989823578889?aff=o

As innovation becomes increasingly global, events such as this provide valuable opportunities to connect science, investment, and industry expertise while highlighting Brazil’s expanding role in shaping the future of One Health.

Mauri Ronan Moreira- Senior Consultant, Brazil

Click here to listen to Jeff Santosuosso’s Video Viewpoint regarding “Trends Influencing Millennials/GenZ and their Pets”.

A couple of my recent assignments have brought me into the big wide world of animal health, meaning emerging markets in Asia Pacific, Middle East, Africa, and Latin America. There you will find a different landscape for our industry, with different needs and drivers than what we sometimes overly focus on- that being the mature USA and European markets. (Note: Recently I saw that there is state bill being presented in Oregon that essentially outlaws hunting, fishing, and animal farming. Imagine presenting that to someone on the streets of Calcutta?)  

In emerging markets, you see a significant growth in pet care and spending. Innovation is still highly valued and generally does well when brought to these markets. But affordability is a big issue and finding ways to make products more available to larger populations will be one of the big opportunities for our industry.   

As for food animals, it is a big driver of growth- in these markets you have billions of mouths to feed that continue to be growing at a rate exceeding the mature market populations. Food availability, affordability, and security will forever be the dominate theme in this area. While we go into a Whole Foods, or Marks and Spencer and see ‘organic’, ‘free range’, ‘no hormones’ or ‘no antibiotics’ highlighted on the label- go into a store in Brazil or Indonesia and it’s a different choice operating: what’s available and what can I afford it? 

 The duality of these differing markets (mature vs. emerging) creates difficult choices for animal health companies on how to direct their strategic vision and choices. In my view, the ones that do it right will be the winners and the most sustainable. 

Paul Casady 

The recent announcement of Tractor Supply Company’s acquisition of VIP Petcare sets up a formidable challenger to Chewy’s veterinary ecosystem that they are building with their recent acquisitions of Modern Animal and Smart Equine with a few notable differences –Customer Positioning and the value of Brick and Mortar. 

Chewy positions themselves with premium care and service targeting consumers (especially Millennials and Gen Z) who treat their pets like children and are willing to spend more on them.  Tractor Supply, with 85 years in business, has positioned themselves as rural lifestyle retailer focused on low prices.  Two ends of the spectrum of pet care but data shows repeatedly that the income range of all pet owners tends to skew to the lower end of the range not the higher.  

Are the days of Brick and Mortar seeing a comeback?  Tractor Supply plans to grow to 3,200 stores by 2030- opening in rural and exurban communities. In addition, they continue to expand their smaller pet specialty stores, Petsense, in more urban/suburban areas. While Chewy will have some physical space with their veterinary clinics- they aren’t focused on providing retail services ( at least not yet). In addition, they are already being targeted by pet retail competitor Petsmart- calling out the advantages of in-store pickup- a benefit that Tractor Supply also offers. 

Not sure exactly how this will play out but one thing is for sure, it will make for some interesting times ahead. 

Dr. Christine Merle, Newsletter Editor