The accompanying tables present an overview of the market cap-weighted
Global AnimalBiz Index, which includes 32 companies with market caps between $100 million to $10 billion US Dollars. The index excludes all big pharma and diversified healthcare giants which have animal health segments such as Schering-Plough (Intervet), Novartis, Pfizer, Merck + Sanofi-Aventis joint venture (
Merial ), Wyeth (Fort Dodge), and Eli Lilly (Elanco). These companies are excluded to make the index more leveraged to animal care as this segment typically represents only about 5% of their sales. The Global AnimalBiz Index has performed in-line with benchmark funds for the healthcare sector over the past year with a market cap weighted return of -8.1% and an equally-weighted return of -9.4% versus a -9.7% return for iShares S&P Global Healthcare (IXJ), -7.8% for the Healthcare Sector SPDR (XLV), and -16.5% for the S&P 500 SPDR (SPY).
The Global AnimalBiz Index includes companies involved in animal breeding, animal feeds + nutrition, animal health distribution, animal vaccines, pet retailers, veterinary services, veterinary medicines + diagnostics. The worldwide market for animal healthcare (therapeutics + diagnostics, excluding bulk feed and nutrition products) is expected to reach just under $20 billion in 2008 based on statistics by BCC research, experiencing growth of 26% from a level of $15.6 billion in 2003. Animal healthcare is dominated by several large and mega-cap global pharmaceutical companies, which either have distinct operating divisions from acquisitions or joint ventures focused on this niche area of pet and livestock medicine. Compared to the market for their human counterparts, the animal healthcare industry generally experiences less competition and requires fewer resources in the form of time and money for drug development.
$52.86 (09/04/08)
