2002 animal medicine sales up on last year, but show longer term decline

Animal medicine sales for 2002 were just over £389m, reports the National Office of Animal Health in its Annual Report for last year. This compares with a figure of £359m for 2001.

On the surface the 2002 figures look encouraging - but it should be remembered that the comparison is with the year of foot and mouth, and of farmers not knowing if they were going to be keeping their stock long enough to make it worthwhile to invest in preventive medicine for their health. Now, as farms are restocking, particularly in the cattle sector, investment in animal health is being made again.

Pigs are a different story, however. Sales of pig vaccines and wormers have continued to drop, reflecting the reduction in pig numbers over the period and the overall precarious state of the UK pig industry. “However, those that remain in business have made a conscious decision to stick things out and make their business work, so hopefully there will be a light at the end of the tunnel for them, at least.”

Companion animal vaccine sales were on the up - reflecting the Veterinary Product Committee’s affirmation in its report published in February 2002 that “vaccination plays a very valuable role in the prevention and control of the major infectious diseases in cats and dogs.” But still the majority of the UK’s cat and dog population are not regularly vaccinated and remain vulnerable to infection by preventable disease.

Cardiovascular products remained strong too, but wormers and flea products showed a slight decrease.

Perhaps the most telling comparison on all the figures is that of the overall 2002 performance compared to the last five years. The previous four years had seen a steady decline and 2002 is now only just only ahead of 1998! In real terms, taking RPI into consideration, UK turnover of animal medicines is now 7% lower than five years ago.

“The continuing regulatory burden that is faced by the animal medicine industry means that growth is no longer driven by innovative medicines from primary research and development programmes, as it is simply too expensive to get most potential products, particularly those for food animals, through the regulatory process,” said Mr Sketchley. It is primarily in the companion animal sectors where new products are still coming through.

Looking forward, the future direction for the animal medicines industry in the UK become clearer as the Veterinary Regulatory Review nears completion. This will be coupled with how Government implements the Marsh recommendations following its final report in December 2002, and of course, the Competition Commission Report. The support given to the maintenance of the cascade system has been encouraging.

“And, as the DEFRA proposal for an Animal Health and Welfare Strategy gets converted into an actual strategy, we hope to see good preventive animal medicine, used responsibly, at the heart of it. After all, animals need medicines too,” said Mr Sketchley.

20 May 2003

Notes for Editors

1. For further information contact Phil Sketchley or Alison Glennon at NOAH, tel. +44 (0)20 8367 313, or go to 'Facts and Figures'.

2. The National Office of Animal Health was formed on 1 January 1986 to represent the UK companies which research, develop, manufacture and market licensed animal health products. The association has 36 corporate members and 13 associate members. In 2002 NOAH's members accounted for well over 90% of the £389 million UK animal health market.

3. The cascade, set out in the Medicines (Restrictions on the Administration of Veterinary Medicinal Products) Amendment Regulations 1994, is a system to safeguard the health and welfare of animals suffering from a condition where no licensed animal medicine treatment exists, to allow a veterinary surgeon to prescribe products licensed for another species or another indication, or if none is available, a human medicine or a specially prepared product. But, if an animal medicine licensed for the particular species exists, that should be the product prescribed, as it has been through rigorous safety, quality and efficacy evaluation to prove its safety and effectiveness in a particular formulation, for a particular species. For food animals, no product can be given including an active ingredient with no Maximum Residue Limit (MRL).

4. The Government’s formal response to the Independent Review of POM Dispensing by Veterinary Surgeons (the Marsh Report) was published in December 2002.

5. The Competition Commission's report on the supply of veterinary prescription only medicines was published in April 2003.