(AOF) – Vetoquinol, a laboratory specializing in animal health, wanted to provide some additional information on the strategy implemented and its prospects. The two previous strategic plans enabled Vetoquinol to move from a laboratory mainly specializing in anti-infectives to a multi-specialist with a targeted range of “Essential” products.
Between 2011 and 2021, this strategy of focus has enabled it to increase the number of products exceeding 5 million in turnover, to multiply by nearly 2 its turnover and to grow by more than 600 basis points its profitability, reaching even in 2021, an exceptional year, an Ebitda margin of 22.9%. “Ambition 2026” continues and accentuates the changes made by the two previous plans by focusing it even more on the markets and products that are the most promising.
This plan is based on three major axes: the priority development of international brands, by favoring three animal species (dogs, cats and cattle), certain therapeutic segments and the most important of the markets in which the laboratory is established, the development of the customer at the heart of the offer and, finally, the promotion and reinforcement of cultural differences.
In terms of financial performance, this plan aims for average revenue growth above that of the market and a high level of profitability, within an Ebitda margin corridor of around 20%.
This notion of corridor is essential because the results of this plan will be progressive and not linear. Its implementation is reflected in particular by an increase in R&D and marketing expenses linked to the launch of new global brands. A special effort will also be continued in Brazil to bring it into line with the group’s overall performance level. Investments will increase from a historical annual average of 15 million euros to 25 million euros over the next three years.
“More generally, animal health is affected like most other sectors by the consequences of the Ukrainian crisis and high inflation. A certain number of expenses are expected to increase, including personnel expenses and energy costs as well as the costs of raw materials The rise in energy prices should have a limited effect on the laboratory’s accounts given their weight. Due to the volatility of the context, forecasts are difficult to make in this area, and the laboratory will not publish any. not,” a statement said.
AOF – LEARN MORE
An inevitable race for new blockbusters
The patent for Merck’s star product, the cancer drug Keytruda, which accounts for more than 35% of its sales, expires in 2028. Despite the loss, since 2019, of the patents for its three star products (Avastin, Herceptine, Rituxan) Roche was able to renew its portfolio by bringing new molecules to market. However, the discovery and launch of new drugs are increasingly expensive. AstraZeneca spends about $6 billion a year on R&D in a pharmaceutical industry where the life of a patent only lasts ten to fifteen years. This leads laboratories to withdraw from certain activities. Thus J&J, Pfizer, GSK and, no doubt, Novartis soon prefer to refocus on specialty drugs and abandon any ancillary activity.