Forecasts 3%-5% organic operational revenue growth for 2026, led by parasiticides due to increased competition in dermatology; pain expected to return to growth in 2026.
Livestock segment has outperformed historical growth rates, with expectations to continue beating the market.
Price increases of 2%-3% are anticipated, with the remainder of growth from volume, consistent with historical trends.
Freight costs may be impacted by sustained high oil prices, but regional sales exposure is minimal.
Veterinary clinic spending remains strong despite fewer visits, driven by the humanization of pets and willingness to spend on acute care.
Millennials and Gen Z pet owners are sensitive to surprise costs, prompting clinics to develop new value propositions.
Brand loyalty is high, with strong reorder rates and customer satisfaction for key products like Apoquel, Cytopoint, and Simparica Trio.
Long-acting therapies, such as Cytopoint and pain products, are expected to extend franchise lifecycles and improve compliance.
New approvals anticipated for long-acting injectables and a new chemistry platform in diagnostics.
Renal, oncology, and cardiology franchises are in development, with renal seen as a $3-$4 billion market opportunity.
Expansion of total addressable markets is expected as diagnostic rates improve and new therapies become available.
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