Innovation Innovation Innovation

As we find ourselves in a more buoyant veterinary market are we looking to identify where there will be opportunity in the future? As we do several questions arise. Will there be further consolidation in the industry? Are there any new innovative molecules on the horizon? Will other channel involvement (Pharmacy and other outlets) affect Vet practice business? What areas can I improve my practice to give me a return in the next year?

Let’s have a think about some of the above speculating, as always, on what the future may hold. Further consolidation is likely in an industry that is experiencing devaluation of markets due to generic competition. Generic competition traditionally drives down expenditure on original research and development and so the spiral continues. The likelihood of the delivery of a significant new molecule or the development of a significant new market segment in the next 5 years seems low at present.

Having said that, the market growth appears to be consistent at the present time, the economy is relatively stable and high street spending is buoyant. Market conditions are therefore good and this is reflected in the volume of products sold at the practice level. This would appear attractive to new investors looking to enter a different market area. However we need to look in more depth at the reality of the “growth” that we are seeing. Once you take out the price increases and the look at the real volume growth it is not that exciting (exciting double digit growth is usually allied to new molecule introduction into large market area such as flea treatments). However with a significant increase in the price of the market leading flea preparation and new premium priced products launched into this market we can expect to see financial growth here but be aware that it may well mask the real situation.

The talk of the flea market nicely introduces the subject of the involvement of other channels in the supply of veterinary products. With the regulators now looking at this and the vaccine and wormer market in the review of classification we may expect to see movement here. Currently there is some transition to other outlets in the UK but this is not happening to a significant level as yet. There is an increase in the sourcing of products from the Internet Pharmacies which can be expected to continue to increase steadily. Veterinary Practice still has the upper hand in the ability to offer the complete service from diagnosis to treatment to sale of products and accurate advice. What is interesting to note is the huge potential for growth if, the products in this segment were used correctly, in other words increasing owner compliance and therefore increasing the doses used. There are a number of methods which practices can use to improve the compliance in these areas of preventative medicine which are currently underutilised. There appears to be a lot of talk about compliance there needs to be some action and as a supply chain partner we are looking for new services to be able to offer to help in this area.

With annual changes to legislation, further controls being placed on the supply of medicines and policing of current policy there has to be a clear strategy for complying with the regulation while still providing the client with the level of service and value for money that the profession has always provided. Part of the need therefore is to continually create awareness of the standards of care and the improvements that practices are making on a daily basis to the facilities and range of services that are being improved.

In line with our customers we are continually improving our facilities and services and this year is no exception. With additions to the sales team and additions to the range of services now available from NVS we hope to appeal to all customers in the marketplace. We would welcome anyone to come and visit the offices at Stoke-on-Trent to see the operation and better understand how we make our daily deliveries to your practice.