Summary
Companion animals and all of the major livestock species are exposed to challenge from a broad range of parasites. Most compromise the health and wellbeing of animals directly, while some present broader risks by acting as vectors for other pathogens. In livestock, parasite infestations exert a major impact on levels of productivity and profitability. Losses inflicted on producers at a global level run to many billions of dollars (liver fluke infestation alone causes losses of an estimated $3 billion worldwide).
The main weapons available to farmers and companion animal owners in the fight against parasites are chemotherapeutic drugs which either kill parasite populations or prevent the development of immature parasites into adult forms. Demand for these products supports a global market worth almost $4.7 billion, making it the single most valuable sector of the animal health products market.
Chapter one of this report identifies the most significant parasites that affect major livestock and companion animal species, describes their impact on host animals and discusses the methods used to treat or control them. In chapter two, the products used to treat or control these parasites are discussed in more detail. The mode of action and spectrum of activity possessed by chemical classes and individual products is described, and examples from the class used widely in veterinary medicine are identified
Parasites that survive the application of these products are those with a natural tendency to resistance against the active ingredient or class in question. Over time, this results in the development of resistant populations. Drugs from different chemical classes are used in rotation programmes to slow the development of resistance, but the efficacy of some major antiparasitic groups against certain parasite species has nevertheless declined significantly as a result of resistance. This is driving the search for new chemical classes, and has also encouraged continued efforts to develop alternative parasite control methods, including immunological approaches. This work is also described in chapter two.
Chapter three of the report analyses the structure, recent development and future growth prospects of the world market for antiparasitic drugs, and profiles six key national markets that, together, generate two-thirds of global sales in the sector. Like the market as a whole, the dollar value of the antiparasitics market has been inflated recently by the weakness of the US currency. Nevertheless, it has been a major source of growth in real terms over the past 10 years - due in large part to the impact of new products commercialised in the companion animal ectoparasiticides segment, where Merial's market-leading Frontline brand now generates annual sales of almost $700 million.
While new products have boosted values in the companion animal ectoparasiticides segment, sales in other parts of the market have been affected by growing generic penetration of the market. Ivermectin has been the most popular target for generic manufacturers since Merial's patents on the molecule began to expire in major developed markets towards the end of the 1990s. Patents on several other leading antiparasitic brands have also expired during the past five years, however, and generic penetration of the antiparasitics market is set to increase further through the remainder of this decade as exclusivity periods for a number of other key products reach an end
With generic penetration expected to offset the impact of new drug launches in the sector, increases in market value will be dependent largely on broad economic conditions and the operating environment facing livestock producers in major markets. The further development of existing products, through the application of formulation and delivery technologies or the commercialisation of multi-ingredient treatments, will also help to bolster market values. Real growth across the antiparasitic sector as a whole will be limited in most major markets, however, and gains at global level are forecast at a modest 2.5% a year, with sales expected to total just under $5.3 billion in 2009
Just as a relatively small number of major markets generate major shares of the global antiparasitic sales total, so the sector is also dominated by a handful of companies. Merial alone realises annual sales of more than $1.1 billion in the antiparasitics market, giving it a share in the sector of almost 25%, while seven leading companies are responsible together for approximately 62% of global antiparasitic product sales. Chapter four of the report profiles the businesses of those seven leaders, analysing the product ranges on which their current market positions are based, and identifying areas in which their respective R&D programmes are likely to yield new products during the next five years.
While substantial shares of the market are concentrated in the hands of a few market leaders, the antiparasitics sector is becoming increasingly crowded as patents on major products expire. The range of companies attempting to cash in on new generic opportunities is extremely broad, but a few specialist generic manufacturers have emerged as major players in the sector. In addition to profiles of the market leaders, chapter four includes an analysis of five major generic players that have had a significant impact in the antiparasitic market, discussing individual company strategies and identifying their main interests in the antiparasitic products sector.
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