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Agrimarketing : July August 2008
July/August 2008 ¦ AgriMarketing 57 COVER STORY NOVARTIS ANIMAL HEALTH JOINS THE $1 BILLION CLUB by Lynn Henderson, Editorial Director Editor’s note: In 1997, I traveled to Greensboro, NC, and met with executives of the newly formed Novartis Seeds (now Syngenta) group. There was a lot of activity in their building that day as movers were hauling in office equipment. I was told Novartis was making strategic invest-ments in its U.S. Animal Health unit and had taken over a suite in the building for its 30 employees. Following is an account of the group’s achievements in the past decade. P ropelled by new products, strategic acquisitions and mar- ket share increases, Novartis Animal Health cracked into the exclusive $1 billion club in global annual revenues in 2007. With its U.S. headquarters in Greensboro, NC, this relative new- comer to the U.S. animal health busi- ness now ranks as the industry’s fifth largest, up from the number eight position in 2005. Novartis Animal Health U.S., Inc. has 800 employees based in the U.S. Globally, the organi- zation operates research and develop- ment sites around the world, located in Basel and St. Aubin, Switzerland; Yarrandoo, Australia; Larchwood, IA; Greensboro, NC, and Prince Edward Island, Victoria Canada. Novartis Animal Health is a busi- ness unit within the $38.1 billion (2007) Novartis organization that is headquartered in Basel, Switzerland. The Animal Health group is part of the Novartis $5.4 billion (2007) Con- sumer Health Division, which also includes Ciba Vision (contact lens and other eye care) and over-the- counter (marketing familiar brands such as Bufferin, Desenex, Doan’s, Excedrin, ExLax, Maalox, No-Doz and Theraflu). The original formation of Novartis Animal Health was with legacy company Ciba-Geigy, when its researchers discovered an active ingredient that showed potential in controlling fleas in dogs and cats in the early 1980s. In 1996, Ciba-Geigy merged with Sandoz and was renamed Novartis. In 2000, Novartis merged with Zeneca and spun off its crop protection busi- ness unit, now named Syngenta, creat- ing the health care-focused Novartis (see timeline, page 59). Today, 60% of the company’s global business is in the companion (pet) animal market with strong growth coming from its developing livestock business. Because of the complexity and uniqueness of each market and its product mix, Novartis has formed a business unit for each. COMPANION ANIMAL BUSINESS Dr. Fabian Kausche is Vice President of Sales for the Companion Animal Business for the Novartis U.S. animal health operations. A native of Ger- many, he received a Doctor Medici- nae Veterinariae degree from Hannover Veterinary School , then came to the U.S. where he received a Master’s of Science at Iowa State University . He also was a Post Doc- torate Associate at the National Animal Disease Center in Ames, IA. Asked to describe the pet care business, an estimated $34 billion annual market in the U.S. with $9 bil- lion in veterinarian care, Kausche says the company’s companion animal product line falls into four categories: • Parasiticides — for internal and external parasite control in cats and canines. Products include Sen- tinel and Interceptor Flavor Tabs, Program, and Capstar. • Pain treatment — Canine products include Deramaxx (arthritis), Ade- quan Canine (joints), Percorten-V (Addison’s disease), Clomicalm (separation anxiety). • Dermatology — Atopica for canine skin allergies. • Surgical devices — Novartis is the authorized veterinary distributor (more on page 58) Novartis Animal Health now has over 800 employees in the U.S., many working from its headquarters building in Greensboro, NC. (Inset) The Novartis Animal Health research facility in the far northwestern Iowa town of Larchwood, IA.
CAMA 2008 Canada