Representing the Manufacturers of Animal Medicines
National Office of Animal Health Ltd
3 Crossfield Chambers, Gladbeck Way, Enfield, Middlesex EN27HF
Tel: (+44) 020 83673131 Facsimile: (+44) 020 8363 1155
e-mail: a.glennon@noah.co.uk
PressRelease
20 May2003
2002 animalmedicine sales up on last year, but show longer term decline
Animal medicine sales for 2002 werejust over 389m, reports the National Office of Animal Health in its AnnualReport for last year. This compares with a figure of 358.9m for 2001.
On the surface the 2002 figureslook encouraging - but it should be remembered that the comparison is with theyear of foot and mouth, and of farmers not knowing if they were going to bekeeping their stock long enough to make it worthwhile to invest in preventivemedicine for their health. Now, as farms are restocking, particularly in the cattlesector, investment in animal health is being made again.
Pigs are a different story,however. Sales of pig vaccines and wormers have continued to drop, reflectingthe reduction in pig numbers over the period and the overall precarious stateof the UK pig industry. However, those that remain in business have made aconscious decision to stick things out and make their business work, sohopefully there will be a light at the end of the tunnel for them, at least.
Companion animal vaccine sales wereon the up - reflecting the Veterinary Product Committees affirmation in itsreport published in February 2002 that vaccination plays a very valuable rolein the prevention and control of the major infectious diseases in cats anddogs. But still the majority of theUKs cat and dog population are not regularly vaccinated and remain vulnerableto infection by preventable disease.
Cardiovascular products remainedstrong too, but wormers and flea products showed a slight decrease
Perhaps the most telling comparisonon all the figures is that of the overall 2002 performance compared to the lastfive years. The previous four years had seen a steady decline and 2002 is nowonly just only ahead of 1998! In realterms, taking RPI into consideration, UK turnover of animal medicines is now 7%lower than five years ago.
The continuing regulatory burdenthat is faced by the animal medicine industrymeans that growth is no longer driven by innovative medicines fromprimary research and development programmes, as it is simply too expensive toget most potential products, particularly those for food animals, through theregulatory process, said Mr Sketchley. It is primarily in the companion animalsectors where new products are still coming through.
Looking forward, the futuredirection for the animal medicines industry in the UK become clearer as theVeterinary Regulatory Review nears completion. This will be coupled with howGovernment implements the Marsh recommendations following its final report inDecember 2002, and of course, the Competition Commission Report. The supportgiven to the maintenance of the cascade system has been encouraging.
And, as the DEFRA proposal for anAnimal Health and Welfare Strategy gets converted into an actual strategy, wehope to see good preventive animal medicine, used responsibly, at the heart ofit. After all, animals need medicines too, said Mr Sketchley.
Notes for editors
1. For further informationcontact Phil Sketchley or Alison Glennon at NOAH on 020 8367 3131, or by email noah@noah.co.uk or look at the new Annual Report on the NOAH website www.noah.co.uk/papers/annualreport2003.pdf. Website section About NOAH - Facts andFigures gives further details on these figures.
2. The National Office ofAnimal Health was formed on 1 January 1986 to represent the UK companies whichresearch, develop, manufacture and market licensed animal health products. Theassociation has 36 corporate members and 13 associate members. In 2002 NOAH'smembers accounted for well over 90% of the 389 million UK animal health market
3. The cascade, set out inthe Medicines (Restrictions on the Administration of Veterinary MedicinalProducts) Amendment Regulations 1994, is a system to safeguard the health andwelfare of animals suffering from a condition where no licensed animal medicinetreatment exists, to allow a veterinary surgeon to prescribe products licensedfor another species or another indication, or if none is available, a humanmedicine or a specially prepared product. But, if an animal medicine licensedfor the particular species exists, that should be the product prescribed, as ithas been through rigorous safety, quality and efficacy evaluation to prove itssafety and effectiveness in a particular formulation, for a particular species.For food animals, no product can be given including an active ingredient withno Maximum Residue Limit (MRL).
4. The Governments formalresponse to the Independent Review of POM Dispensing by Veterinary Surgeons(the Marsh Report) was published in December 2002.
5. The CompetitionCommission's report on the supply of veterinary prescription only medicines waspublished in April 2003.