Animalcare will continue to focus on delivering growth both organically and through selective acquisitions to accelerate its overarching strategy of becoming a leader in the European animal health market.

The Group’s core areas of strategic focus will be on:

Strategic ObjectiveDescriptionPerformanceFocus and goals for 2018
Initiating cross-selling
  • Initiate opportunities to cross-sell both Animalcare’s and Ecuphar’s products across existing customers and distribution channels
  • Ecuphar UK Sales transferred to Animalcare UK team
  • Contracts terminated with former Animalcare Distribution Partners in Germany, Spain, Portugal and Italy to allow direct sales through Ecuphar sales teams
  • Full portfolio of 50 licensed drugs, eight vaccines and over 100 care and nutraceuticals to be sold direct in seven countries and exported to 50 markets globally
  • Fully utilise 100 sales representatives and 28 agents across Europe New distribution partners in NZ and Taiwan established in 2017
  • Impact of successful cross-selling strategy to be seen in Q4 2018, with a meaningful impact on profit margins in 2019
  • Ramp up sales of full portfolio with new distribution partners in NZ and Taiwan, including Aqupharm and Isocare which have just gained regulatory approvals
  • Seeking additional regulatory approvals for our existing products in new territories
  • Appointed new distribution partners for territories not currently covered
  • Roll-out of Companion Animal Identification products beyond the UK
Implementing effective business integration
  • Combining product development activities, providing the technology and systems to drive product quality improvement programmes and by optimising the Enlarged Group’s supply chain
  • In-house product development pipeline projects to prioritise 17 projects to maximise return on investment
  • R&D Group consolidated with full audit of the regulatory, quality, technical support and product development
  • Focus on supply change management and the opportunity to leverage larger critical mass
  • Introduction of a scalable and cost- effective finance structure
  • Consolidation of export markets, through cancellation of former Animalcare distribution contracts in regions where the enlarged group sell directly
  • R&D consolidation to be completed and synergies delivered
  • Finalisation of new product development for launch in 2019
  • Group-wide introduction of common supply chain management systems to best manage stock and working capital
  • New finance structure to optimise tax efficiency and fulfil governance requirements
  • Further consolidation of distributors, suppliers and centralised export back office functions
  • Introduction of Group-wide communications and IT platforms
  • Align sales and marketing areas of excellence focusing on higher margin products
Developing relationships
  • Developing the Enlarged Group’s wider network of partnerships and strategic alliances in order to increase its exposure, as licensor and licensee, to global animal health leaders
  • The Enlarged group has a well-established footprint that will prove attractive to US / Asia companies seeking European market entry
  • First licensing agreement signed with US-based Nutramax
  • Distribution of Cosequin, a nutritional supplement for canine joint health
  • Four major projects are expected to be licensed-in for distribution
  • Further development of licensing partnerships to provide further growth
Identifying acquisitions
  • Leveraging its platform by identifying selective value-accretive acquisitions that can broaden the pan-European sales, marketing and distribution platform of the Enlarged Group
  • Acquisition of Ecuphar NV by Animalcare Group plc constituting a reverse takeover
  • Acquisition provides direct access to UK markets for the first time, in addition to Belgium, Spain, Portugal, Italy, Germany, and the Netherlands
  • Acquisitions pipeline identified
  • Currently looking at a number of opportunities although focus is on current integration
  • Areas of interest would include France, Ireland and Scandinavia
  • Acquisitions should have their own direct sales and own products to cross-sell, a pipeline of new products and be profitable and immediately earnings enhancing
Diversifying the Enlarged Group’s portfolio
  • Diversifying the Enlarged Group’s portfolio of products into additional therapeutic areas within the companion animal, as well as production animal and equine, markets
  • Product portfolio expanded to over 300 products including pharmaceuticals, vaccines, biocides and nutraceuticals
  • New products launched during 2017, including Acecare and Enrocare
  • The Group has a well-established development pipeline for new veterinary pharmaceutical products
  • One centralised registration was submitted in 2017
  • Further progress of the pipeline to continue
  • Continued registration of relevant new products through 2018
  • Expected launch of new products where registration has already been submitted
  • Ongoing progress with product improvement and maintenance projects
  • New registrations and launches for existing products in new territories
  • Focus on new areas such as surgery, pain relief, anti-inflammatories and vaccines
Broaden the Enlarged Group’s pipeline innovations
  • Continuing the shift towards broadening the Enlarged Group’s pipeline innovations to include novel therapies
  • We have reviewed and prioritised the pipeline on current development projects which will allow us to focus on novel developments in the future.
  • Further progress to broaden the product development pipeline to include novel therapies