The veterinary healthcare market is booming with the increase in farm animal and companion animals around the world and in this market Zoetis, Merck and Merialare the top contenders vying for top bucks and market share globally. But, will they be able to retain their position in the near future? A valid question considering the fact that a French company, by the name Virbac S.A. is making its way to the top day by day and is evolving rapidly to become a serious threat to the animal healthcare organizations on the top shelf, especially the likes of the top 3 players in the market currently. Virbac, currently 8th in the table of leading animal healthcare organizations, is at a stage where their market activity is comparatively higher compared to the likes of Merck and Merial. Their vision of providing veterinary services all around the globe has been their driving force in their stride up the market ladder. They have been constantly innovating in their approach towards catering the needs of the animal healthcare market. Virbac S.A. only deals in animal health products and has an extensive global reach, with nearly 70% of their work force outside France. The APAC and Latin American markets have been in key focus and this strategy has worked out favourably for Virbac. In spite of the unfavourable economic conditions in Europe during 2013, Virbac generated revenue of $1 billion and operating profits of 6.9% over the previous year, thanks to the business in Latin America and Asia Pacific.
Merck having to cut their budget for expenses by $2.5 billion and also their work force by 8500 employees and Merial losing 5.3% revenue as compared to the year 2012. Virbac has been performing well during the same period. Having considerable market share in the Latin American and APAC region they have managed to not only stay in the game but also turn profitable when their bigger competition has been finding the going tough. Their mergers and acquisition activity has also been commendable. They have recently acquired the US veterinary segment of Eli Lily (previously marketed by Novartis), the veterinary segment ofPfizer in Australia, the Uruguayan animal healthcare organization Santa Elena(one of the top veterinary healthcare companies in the South America). Virbac has also acquired the services of the company Centrovet, an aquaculture company which is the market leader in Chile which has made them the market leader in aquaculture globally. Also having acquired the services of Stockguard (New Zealand) they have expanded their dairy and cattle market globally as well.
Agreements with the Taiwanese vaccine manufacturing company Schweitzer Biotech Company (SBC) has been an instrumental factor in acting as a commercial platform for their expansion plans in the Asian market. It can be said that Virbac is doing almost everything right which a lot of other firms in the market are struggling to do, with the aim of expanding their market share. These factors point to the fact that Virbac.S.A. A is well and truly here to stay and their commitment and focus is driving the company to do well and more when the other competitors in the market struggle to hold on to their spot. It can be expected that within the next half a decade or so is going to give some of its more illustrious competitors a run for their money.