Coloradoans recently voted in favor of a Veterinary Professional Associate (VPA) position, with responsibility and authorization between a licensed technician and a veterinarian.

I attended one of the liveliest panel discussions on this very topic during a recent conference. Both pro and con voices were passionate and well-informed. The bill’s origin centers around a perceived (short-term?) imbalance between veterinary care demand and supply. By creating a hybrid position, the bill’s supporters seek to supplement veterinary care without requiring the time and expense of earning a veterinary degree. That said, the VPA can make medical recommendations only under the direct supervision of a licensed veterinarian.

The issue runs much deeper than that. Questions abound related to surgical procedures, unforeseen circumstances within patient care, the establishment of a VCPR, pay rates, and more. Virtually all accreditation and regulation fall under a state licensing board. VPAs would be no different, which raises issues of interstate reciprocity.

What’s certain is livelier debate. A recent study conducted by Brakke Consulting on behalf of AVMA demonstrated that rather than a true shortage of veterinarians, the industry’s recent tight labor market now easing, the equilibrium comprising a basic tenet of economics.

Jeff Santosuosso

In last week’s viewpoint, Lynn Fondon discussed how the veterinarian profession needs to look beyond price and fee increases to maintain revenue growth.  I totally agree.  Volume increases is critical to drive growth.  This not only holds true for veterinarians but also for animal health companies.

First quarter earnings reports are right around the corner.  With visits  to veterinary clinics continuing to decline it will be interesting to see how 1Q25 revenues will be impacted.  Those companies riding a wave of innovation in the companion animal business including Zoetis and Elanco may fare better than companies with aging product lines.

The latest wave of innovation fueling growth in companion animals is also geared toward driving patients back to the clinic for treatment, especially for monoclonal antibodies to address pain and dermatological conditions along with injectable parasiticides (expected in the next 12-18 months in the US).  And we will not be surprised to see livestock perform well this year.

In the long run, volume growth is more important than raising prices because it drives sustainable revenue and market share gains – and it also has an impact on margin expansion.  While raising prices has a significant and short-term impact on profitability, companies run the risk of a strong competitive response, of having weak commercial capabilities to support higher prices or of having customers decide not to purchase.

Randy Freides

This week’s news items included a white paper from data analytics company Vetsource that indicates that vet visits are down, and revenue growth at clinics is slowing. The profession benefitted from a surge in demand for veterinary care during the pandemic, as well as post-pandemic price increases that were above inflation rates. It appears that the near future may not be quite as rosy for veterinary practices.

Pet owners are no doubt feeling squeezed between higher vet costs and current economic headwinds, and this is unlikely to improve in the short term. A “state of the profession” address by the AVMA’s chief economist at the recent Western Veterinary Conference reinforced this assertion, citing economic indicators that point to a potential recession.

Decisions on wellness care for pets have been particularly impacted: the Vetsource data showed that wellness visits declined in 2024 (non-wellness, or sick, visits were stable). Additionally, parasiticide purchases were down, both in number of patients purchasing and in months of protection dispensed. Some of the decline may be due to pet owners switching to purchasing products from retail channels, but it may also reflect cost-cutting choices.

The veterinary profession will need to look beyond price and fee increases to maintain revenue growth. Industry partners, it’s time to step up and support veterinary practices in their efforts to drive pet owners to visit their veterinarian, for both wellness care and product purchases.

Lynn Fondon

Last week’s newsletter contained an announcement about Brown Food’s UnReal Milk, lab-made whole cow milk.  It may be instructive to review the status of plant-based meat.

When introduced, plant-based meat was viewed as a major disruptor of the meat industry.  Companies claimed it would displace animal protein in the not-too-distant future ¬ a major threat to the livestock and poultry industries.  BeyondMeat went public in 2019 and soon hit a high of $239.  Sales of plant-based meat substitutes climbed to $1.3 billion in 2020 with forecasts to hit $10 billion or even $20 billion within a few years.  It didn’t pan out that way.  Category sales have been plummeting and today are probably under $500 million.  BeyondMeat stock hovers around $3.  Many stock analysts have stopped covering the company and the sector.

What happened?  It turns out that it costs a lot more to manufacture plant-based meat than to produce beef, pork and chicken.  Non-meat meat also created complications for fast food restaurants because of the need to inventory and serve a completely different, additional line of burger and nugget products.  And ersatz meat really isn’t healthier.  The protein is lower in quality, the products are higher in sodium, and calories are similar.  Perhaps even more important, manufacturers haven’t been able to match the umami, or savoriness, of meat.  So the products are pretty much relegated to the vegan and vegetarian segments of the market, which are tiny.  Consequently, the animal health industry doesn’t have to worry about cattle, swine and chicken production declining after all.

 John Volk

It’s time to go on a diet.  I have always believed for us in the animal health industry, the first quarter is the toughest to get through – the caloric intake always exceeds the caloric output.  The big tradeshow, conference and sales meeting season starts right after Christmas and New Year holiday feasting.  We’ll have fewer excuses now to get out after work and burn off calories…Daylight savings time starts Sunday for those of us in the USA.

It’s also time to say thank you.  Thank you to all of you that attended our 2025 Animal Health Industry Overviews at VMX and WVC this year.  We are not sure how many Overviews Brakke Consulting has given over the years, but we are sure that this was the best attended ever.  And for that we are grateful.  I’d also like to thank our presenting consultants, John Volk, Darrell Klug and Mike McGinley, Randy Freides for tallying up the numbers and Amanda McDavid for organizing everything from start to finish.  And I’d like to thank Paul Casady for organizing two great panel sessions and the panelists, Dr. Jay Price, CEO SVP+MVP, Jeff Simmons, CEO of Elanco, Jesper Nordengaard, CEO Dechra and Tammi Lesser, Sr VP Sales & Marketing, Antech.

If you missed it, let us know – we recorded the WVC session.  And if you have topics to suggest for us to cover at next year’s Industry Overview, please let us know.  Thanks again and time to burn some calories.

 Bob Jones

INNOVATION and PARTNERSHIPS: the key message at Animal Health and Nutrition Innovation Conference, London

Attending the recent AHNTI conference in London, it was great to catch up with old friends, but also to meet new innovators. The overall spirit was very positive in both the pet and food animal spaces.

This year’s major topic was Artificial Intelligence (AI) and several speakers commented on the potential benefits this could bring to our industry.

What became very apparent, is that several leading companies are looking more and more towards the innovative entrepreneur, to bring growth to their companies via partnerships. This method definitely cuts down the time to market as they simply screen proven concepts that require investment getting the product or service or technology to market.

Navigating the early development phase and especially funding for the early startup, was flagged as a challenging area, stifling growth.

Another trend observed, was the increased interest from Human Biopharma companies, looking at entering the pet space with either focused therapeutic vaccines or monoclonal antibody technologies. These companies have done their homework and were well aware of the different challenges and different pricing structures in our industry.

Brakke consulting had several interactions with clients and potential clients and we will be assisting them in several areas, ranging from finding potential partners, testing the market to gain clear understanding of where and how their product offering will fit into the USA market as well as finding target areas to launch products into. Yet another partnership to drive value from an innovator!

Lourens Havenga
Paul Casady

The Smartphone Revolution: How “Buy Now” Changed Shopping Forever

Buying pet products used to require planning—lists, trips to multiple stores, and weekend shopping runs. Before 2010, a gap existed between deciding to buy and actually making the purchase. The effort often led to forgotten orders, second-guessing, or abandoning the purchase altogether.

Then came smartphones, and everything changed.

By 2010, shopping on mobile was clunky, but by 2012, smartphone adoption surpassed 50% of U.S. adults, pushing retailers to optimize mobile shopping. Pet owners no longer had to wait to order—if they saw a product at a friend’s house, got a vet’s recommendation, or ran out of food, they could buy it instantly.

Between 2013-2015, mobile shopping exploded. Chewy, Amazon, and pet retailers refined their apps, making it effortless to compare prices, check reviews, and tap “Buy Now.” Apple Pay and one-click checkout made shopping seamless. Instant gratification became the norm.

The COVID-19 pandemic accelerated this trend. With lockdowns restricting access to vet clinics and pet stores, owners turned to mobile shopping for essentials. Companies like Chewy and Amazon thrived, while brick-and-mortar retailers scrambled to keep up. Even after restrictions lifted, the convenience of mobile shopping remained a habit.

Today, if a product isn’t available for purchase the moment a pet owner decides, another brand or retailer will win the sale. Consumers expect frictionless shopping and fast delivery. Businesses must adapt to this shift, and the 2024 Brakke Home Delivery Study offers crucial insights into pet owners’ evolving habits.

Smartphones didn’t just change how we shop—they raised expectations permanently. In a world where instant access drives action, being available now isn’t just an advantage—it’s essential.

Richard Hayworth

As we enter the new year and rush of conferences, product launches, new hires, and more, let’s talk about employer brand. Recruitrics, a major recruitment marketing firm says, “Employer branding became more important than ever this year as competition for top talent intensified.”

As we shift from Baby Boomers to Gen Z, we should shift our priorities and messaging. Beyond compensation, Gen Zs value meaningful work and a supportive culture. “65% … won’t apply for a job if the employer’s values aren’t aligned with theirs.”

Authenticity is the new watchword. With the omnipresence of digital communications, personalized authenticity wins the day.

How to address this megatrend? “Regularly update your company’s social media, career site, and other platforms with stories about your employees, workplace diversity, and community engagement … Present a well-rounded, appealing picture of your organization that will resonate with your target talent.” Focus on employees’ feelings and experiences, stressing well-being and mental health. Use video liberally, particularly in team member testimonials. Where possible personalize messages, aligning your culture with candidates’ backgrounds. With a definitive mission for animal health, our industry enjoys an enviable position. Leverage it.

Remember, we’re selling more than buying! Brakke Consulting can help.

Jeff Santosuosso

It was great to see many of our News & Notes subscribers at the VMX conference in Orlando this week and we are very grateful to those that attended the 2025 Animal Health Industry Overview on Monday afternoon.  This was the best attended session we have ever had, so thanks to all of you for your support.

As I walked the exhibition hall and talked to the exhibitors, everyone seemed to be positive about 2025, especially those with new products to launch.  Elanco’s combination parasiticide, Credlio Quattro was launched and the company was taking orders, along with recently approved Zenrelia for atopic dermatitis.  There was some buzz around Merck’s injectable Bravecto parasiticide and possible dermatology product later in the year.

Another notable launch was IDEXX’s new lymphoma early detection test – IDEXX Cancer Dx – notable for its affordability and ability to expand on to other cancers.  There was some talk about Zoetis’s Librela for canine OA pain, but my sense is that veterinarians are simply learning how to use it – my 10-year-old athletic Labrador retriever is doing fantastic after his third injection.

We will hold our Industry Overview at WVC in Las Vegas on March 3rd, so if you missed the one in Orlando, you still have a chance to attend.  Hope to see you there.

Bob Jones

Last week, the annual JP Morgan annual healthcare conference concluded.  Many of the top human and animal health companies presented their future visions to the investing community.  Zoetis and Elanco were front and center and Merck mentioned its animal health business as part of its human health presentation.

I took a few minutes to look at the pipeline focus and products highlighted in these presentations.  The pipelines are heavily concentrated on the companion animal segment.  Therapeutic areas of focus in the pipelines include osteoarthritis/pain, renal disease, oncology, cardiology, dermatology and the next generation of parasiticides.  Many of the pipeline products are monoclonal antibodies, injectable products and focused on long-acting formulations.  What does this mean for the livestock segment?  Maybe it’s just a lack of visibility into livestock pipeline products but it certainly seems that the R&D focus is on the segment of the market providing the highest growth rates.

It will be interesting to see how the overall market evolves with the next wave of innovation.  These new therapies that are primarily delivered via injections will drive patients back to the veterinary clinic.  Will there be a bifurcation of the prescription market with Chewy/Amazon/PetMeds focusing on oral prescription and OTC products and veterinarians focusing on injectables and vaccines?

We will talk about innovation at the Brakke Consulting annual Industry Overview presentation at both VMX and WVC – hope to see you there.

Randy Freides