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Pfizer seeking to expand animal health business

Thu Sep 16, 2010 3:30 PM EDT
health, us, pfizer, animal-health
Linda A. Johnson, AP Business Writer
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NEW YORK — Pfizer Inc., the world's biggest seller of drugs for people, now is looking to make more bucks from Fido, Fifi and farm animals.

The company is developing drugs for new animal diseases, pushing into the growing market for pet medicine in emerging markets and working with livestock farmers to use its genetic tests to reduce costs and produce top-quality meat.

Despite that strategy, Pfizer will be bumped from its position as the top animal health company by revenue when a planned joint venture of rivals gets approved by regulators, probably early next year. Merck & Co. and Sanofi-Aventis SA are combining their animal health businesses into what will be called Merial-Intervet. It is expected to initially have about 28 percent of the $19 billion-a-year global animal health market.

Pfizer's president of animal health, Juan Ramon Alaix, is unfazed, saying his unit will remain first in innovation, with a $300 million research budget, and first in service to veterinarians and farmers.

"We have the portfolio to become the provider of preference," he told reporters at a meeting Thursday.

Pfizer beefed up its animal health product line with last October's $68 billion purchase of drugmaker Wyeth, including its Fort Dodge veterinary medicine business. That should boost Pfizer to about a 20 percent share of the market.

Last year, its animal health business had $2.8 billion in sales. This year, sales hit $1.7 billion in the first six months.

The global market is expected to continue growing at 4 percent to 6 percent annually for the next few years, fueled by trends such as a growing elderly population wanting pets and the middle class in emerging markets eating more meat.

Pfizer, aiming to grow more quickly, has been snapping up niche animal health businesses. One makes a vaccine for laying chickens — injected while they're still incubating eggs — against various diseases. Another sells vaccines to prevent infections in farmed fish such as salmon and tilapia, which are forced through narrow channels where they can be stopped one by one for a shot.

It's also developed the drug Palladia, the first cancer medicine specifically for dogs, and it has a new partnership with the American Kennel Club to research dog diseases and treatments.

A key growth area will be using genetic tests to help farmers make more money.

"It's a very important space for the future," Ramon said. "It's very exciting, very novel."

Already, Pfizer is the top provider of genetic testing services for cattle, mainly in the U.S., Australia and New Zealand, and it also offers the service for sheep in the latter two countries.

Farmers provide a hair or blood sample from an animal. Pfizer lab workers then look for genetic signs that a particular animal will produce tender or nicely marbled meat, that it will be resistant to livestock diseases, that it will grow quickly on a particular diet or that it will be especially fertile.

Besides using the information to decide which animals to breed, testing can help farmers reduce their expenses by using the most cost-effective feed and using fewer vaccines and antibiotics in disease-resistant animals. In addition, farmers producing the choicest beef cuts could command higher prices.

Ramon said testing is 80 percent accurate and improving.

Pfizer plans to expand the service to Europe, Asia and Latin America. It also aims to make genetic tests that would let people learn whether newly acquired pets are susceptible to health problems so owners can take preventive steps.

© 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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  • Public Discussion (13)
R Northcutt

So, I guess they are running out of people to convince they will die if they don't take their drugs. It terrifies me that they are planning to introduce even more drugs into our food supplies, all while proclaiming this will be great. How many years of real research has been done on any of these new drugs? What will be the long term consequences on the people who use the products from these animals? The hormones they were putting in dairy cows was linked to early puberty in girls, some as young as 5! Enough already. Stop screwing with our food supplies and our bodies by coming up with more chemicals, which most of the time doesn't even cure the problem, it just "treats" it and causes more problems, which of course needs more drugs. Thank you for allowing my rant, but this whole issue really gets to me. I do not mind the genetic testing, which the farmers can then use to selectively breed their animals, to get the traits they are looking for.

    Reply#1 - Fri Sep 17, 2010 2:34 AM EDT
    Rational Poster

    Please provide a little more detail regarding your comment on "The hormones THEY are putting in dairy cows". Who are they? What hormones?

      #1.1 - Fri Sep 17, 2010 6:28 PM EDT
      Reply
      R Northcutt

      The dairy industry a few years back were feeding their cows BSE, a growth hormone to make the cows lactate earlier ( at a younger age) so that the cows would be more productive. They may have ended this (I hope so). They gave no thought to how this might affect the people who were using their products.

        Reply#2 - Sat Sep 18, 2010 12:51 AM EDT
        Rational Poster

        Northcutt - Be careful in what you post. We all have a responsibility to further rational dialogue and cut down on the mis-information.

        BSE is NOT a hormone fed to dairy cows - it is a fatal neuro disease in cattle known as mad-cow disease which can transfer to humans if they eat diseased brain or spinal cord tissue from a sick animal. The first case of BSE in the U.S. was in 2003 and since then survellance was stepped up and it is not an issue for U.S. ranchers and consumers today.

        You are confusing it with BST or BGH - Bovine Growth Hormone. BGH is a naturally occuring hormone in lactating cows. Cows produce their own BGH. BGH is NOT fed. There is a product on the market, Posilac, that can be injected into dairy cows to raise their BGH levels. Cows eat among other things for energy. The BGH helps to direct how that energy gets used (the scientific term is partitioned - where it goes). Energy can be used for locomotion, basic bodily functions, milk or fat. BGH directs more energy to milk and away from body fat - so the cows produce more milk.

        The FDA has determined that milk from BGH injected cows and non-BGH cows are essentially the same. Not related to earlier pubescent girls which most studies believe is associated with better nutrition or even too many calories resulting in over-weight girls at earlier ages and earlier sexual maturity.

          #2.1 - Sat Sep 18, 2010 1:05 PM EDT
          Reply
          R Northcutt

          Sorry bout that, I got my acronyms mixed up, I need to proofread I guess. Whether or not cows naturally produce it, injecting them with more than they make naturally has consequences. If not for the people, then for the cows themselves. I do not trust the FDA, in its current state to determine much of anything. As for the BSE (mad-cow syndrome) that too happened from food animals being fed an unnatural diet. And I am glad that they have it under control.

            Reply#3 - Sat Sep 18, 2010 10:31 PM EDT
            Rational Poster

            You say that injecting cows with BST (aka GBH) has "consequences" for the cows. My concern is that a reader that is not knowledgable in these things could interpret your "consequences" to be negative which I believe would be a misinterpretation of the industry's experience. The consequences of BST injection is that the cow gives more milk and puts less fat on her back. BST, then, is a management tool for the farmer to evaluate his cows periodically and decide what is best. A cow in good or over fat condition is given BST so she gives more milk rather than getting fatter.

              #3.1 - Sat Sep 18, 2010 10:44 PM EDT
              Reply
              R Northcutt

              I know that my neighbor stopped giving it to his cows because while it increased milk production, it decreased the number of years that the cow could give milk at all. Maybe his experience was a fluke, but he wasn't to happy with that result.

                Reply#4 - Sun Sep 19, 2010 12:03 AM EDT
                R Northcutt

                I think I got off topic though, I am very leery of any more tinkering with our food supplies, whether it be animal or vegetable. The law of unintended consequences comes to mind. I have a very low opinion of the big pharmaceutical companies, they are more interested in profits than they are the well being of people, and I guess you can add animals to that now. Maybe I would have a better opinion of them if they were actually creating cures for diseases, instead of treatments that keep people tied to them for life.

                • 1 vote
                Reply#5 - Sun Sep 19, 2010 12:17 AM EDT
                Rational Poster

                I think you impose guilt on pharmaceutical companies that may not be factual. These companies are made up of mothers and fathers just like you and me. Some employees that I have met have a deep passion for improving life for people and animals. Of course, these companies must focus on profit or they won't be around to conduct the reseach. Profit comes from bringing value to the marketplace. I fear you have a bias (not sure why) that it makes little difference what I think/say. Thanks for the dialogue however. I do appreciate it.

                  #5.1 - Sun Sep 19, 2010 12:42 AM EDT
                  Jerseygirl1978

                  Rational Poster: I hear your side and you make some good points. But when someone has an illness that has no cure and you are not provided proper treatment and real relief, it becomes quite frustrating to "wait for a cure" while your health and well being is hanging in the balance. And when medication prices are sky high, it kind of puts a bad taste in your mouth. From the way your comments read, it seems as though you may be healthy, and if so, I am happy to hear that and you are fortunate. But some of us aren't so fortunate. I hope you can respect our position...

                  • 1 vote
                  #5.2 - Tue Sep 21, 2010 4:08 PM EDT
                  Reply
                  R Northcutt

                  I am sure most of the people who work in the labs are decent people. It is the business part that I have a problem with. Yes, some profit is necessary to get the research done, but when I have to pay $145.00 for 30 pills that I know probably costs the manufacturer less than the bottle they are placed in to make, it makes me very suspicious of their motives. And then the medicine isn't a cure, only a treatment which has side effects of it's own, for which they want me to buy even more medicine to treat. When was the last time they actually cured anything? They keep saying "we're working on a cure", or a "cure is around the corner". Even most of the "new" drugs they have came out with in recent years are just tweaked formulas of older drugs, or get pulled off the market.

                    Reply#6 - Sun Sep 19, 2010 3:49 AM EDT
                    Rational Poster

                    I don't believe that you are being fair. In my nutrition class in college in 1974, the prof said that the room used to have many doors to exit - scarlet fever, yellow fever, diptheria, polio, tetnus, cancer and heart disease. He said, "Today, most of those doors have been boarded up and now you can exit via cancer or heart disease." Northcutt - life expectancy in your and my lifetime has ballooned. When Social Security was passed, few people lived long enough to reach an age to collect. Today, average lifespand in the U.S. is approaching 80. On my dad's side, I have bad genes for high BP & high cholestrol. I have been treating since I was thirty and I am ever so thankful for companies like Pfizer (Lipitor) and the makers of the four BP meds that I take. Beginning as a teenager, I had averaged three migranes (muscle tension types) per week with about one every two weeks turning into vomiting, etc. When I started a certain BP med, they essentially went away.

                    As for cost, drups are like software CD's. It costs almost nothing to run the disc. The real cost is developing the software. Same with the drugs that you take. The cost is developing and perfecting (and getting all the tests done to satisfy the FDA) each of the drugs plus amortizing all the costs in developing drugs that did not pan out or get approved.

                      #6.1 - Sun Sep 19, 2010 2:46 PM EDT
                      Jerseygirl1978

                      R Northcutt: Being that I am on many medications and can't afford some, I understand what you mean. Some new drugs are tweaked versions of older drugs and many medications cause horrible side effects. You take one medicine for one thing and then that medicine causes a problem that you need to take another medicine for. It's a vicous cycle. I hope that there are more cures coming down the pike, because there are a lot of people (me included)who are waiting and would like to have a better quality of life and whose lives are deteriorating while we wait for a cure... that may or may not be coming.

                      • 1 vote
                      #6.2 - Tue Sep 21, 2010 3:55 PM EDT
                      Reply
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