Today's Veterinary Practice provides comprehensive information to keep every small animal practitioner up to date on companion animal medicine and surgery as well as practice building and management.
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tvpjournal.com | July/August 2015 | TodAy's VeTerinAry PrAcTice PrAcTice BUiLdinG 65 As a practice owner, it is easy to get lost in the day-to-day demands of running a small business, focusing only on issues that directly impact your practice. Much of the practice management content presented in the literature or at meetings mirrors this internal focus on issues specifc to the individual practice, such as: • Marketing and client communication • staff training and team management • Patient and client compliance. While these topics are valuable and certainly worth attention, veterinary services are part of an almost $60 billion marketplace that is rapidly changing and may continue to stay fuid in coming years. over the past 12 months, the animal health industry has seen many changes that impact how practices will operate, serve their clients, and make business decisions in the coming years. in this article, some of the most signifcant trends and events affecting the veterinary industry and, potentially, the practice itself are summarized. Many of these changes represent opportunities for practices to beneft from new offerings or advancements in service while others may introduce new competitive challenges. either way, changes to the industry as a whole are certain to bring changes to individual businesses. 1. AnimAl HeAltH As An investment one of the most visible, recent changes in the animal health industry is the fnancial sector's acknowledgement of animal health as an attractive investment opportunity. According to the American Pet Products Association, the animal health industry has grown 20% since 2010, far outpacing many other industries. 1 As a result, signifcant funds have been invested into companies focused exclusively on animal health products and services. While it was once standard for animal health businesses to be integrated into much larger human health parent companies, animal health companies capable of operating successfully as stand-alone entities have been emerging. The most publicized event of this type occurred in February 2013, when Pfzer spun out its animal health business into a new entity, Zoetis. This move garnered signifcant interest from the investment community and raised the profle of the animal health industry to broader markets. in late 2013, two more early-stage animal health therapeutic companies were successful in raising capital through an initial public offering in the stock market. Aratana Therapeutics (P eTX, nAsdAQ) and Kindred Biosciences, inc (Kin, nAsdAQ) raised $35 million and $53 million, respectively, to fund further development of animal therapeutics. in July 2014, Trupanion (TrUP, nAsdAQ) successfully raised over $73 million to expand their pet insurance platform. What Does it mean for the Practice? While one might assume that these events only impact large organizations, what happens to these companies, and others, will eventually Building Today's Veterinary Practice series The PracTiTioner's Guide To indusTry Trends Travis Meredith, DVM, MBA, Diplomate ACT Calico Group, Philadelphia, Pennsylvania The Building Today's Veterinary Practice series is dedicated to providing readers insight into issues and resources that support long-term practice growth. This installment provides a brief overview of recent business trends that affect the veterinary industry as a whole as well as individual veterinary clinicians and business owners. Read additional articles in this series by visiting tvpjournal.com.