Animal Health Companies Increase Research And Development Investments In 2004 - Animal Health Institute member companies spent $556 million in 2004 to research and develop potential new products and to ensure the safety and effectiveness of existing products, according to AHI’s latest Research and Development Survey.

Data were collected and compiled by the Animal Health Institute. R&D spending is calculated according to the type of product manufactured by AHI’s member firms: pharmaceuticals, biologics, insecticides and diagnostics.

“Keeping animals healthy is important to keeping people healthy, and strong research and development programs are necessary to maintain a supply of new and innovative animal health products for veterinarians, farmers, ranchers and pet owners,” said AHI President and CEO Alexander S. Mathews. “These products keep our pets healthy and happy and contribute to food safety by enabling animal producers to keep animals healthy. In addition, continued research is necessary to enable animal health companies to provide responses to new, emerging disease threats.”

The 2004 total represents an increase of nearly 8 percent over 2003. The increased investment in research and development is proportionate to the trend in overall industry sales. Expenditures within categories also track with sales figures: increased money for research in biologics and pharmaceuticals and less for feed additives.

The entire increase in investment in 2004 over 2003 was for the development of new products rather than the maintenance of existing products. AHI members were asked to report innovative research, or investments in the search for new animal health products, and maintenance research, or revenue spent in support of existing products. In 2004, innovative research expenditures were reported at $481 million, representing 86 percent of total R & D spending. The remaining 14 percent, or $75 million, went toward defensive research.

A compilation of surveys from the past three years showing trends in animal health products sales and research and development expenditures is available from AHI. The report includes combined sales figures of AHI members for ruminant, swine, poultry, small animals and equine products.

Sales totals for these species are broken down as feed additives, biologics and insecticides, and pharmaceuticals. No further breakdown or tabulations are provided, although the report does track trends for the reported categories for 2002, 2003 and 2004. The report is $150 USD: copies can be ordered by calling Marie Gilmore at the Animal Health Institute at (202) 637-2440. AHI represents the manufacturers of animal health products – the pharmaceuticals, vaccines and feed additives used in modern food production, and the medicines that keep pets healthy.

Source: Animal Health Institute - 2nd August 2005