VETOQUINOL Corporate brochure 2007 (year 2007)

Activity report 2007 / The market #23 3. A global market worth nearly 18 billion dollars in 2007 The global animal health market is split into two main areas. • The first area comprises North America and Western Europe, i.e. 2/3 of the developed, mature international market. It is characterised by strong growth, particularly in the “companion animals” sector. • The second area is Asia-Pacific, South America and Eastern Europe. These make up the developing markets, characterised by the growing need for animal protein and the emerging companion animals market. The Rest of the World totals less than 3% of the world animal health market i.e. 0.5 billion dollars. If we compare Vétoquinol’s turnover with the size of the world market, including only the therapeutic fields and areas where the Group has chosen to operate, its relevant market share is about 5%. A GROWING MARKET As a yearly average from 2008 to 2012, volume growth is expected to reach 2.2% in volume (source: Vetnosis-2008), with an upward trend (+0.4 point in relation to estimates from the previous year for 2007-2011). A MARKET OF PROFESSIONALS Animal health is closely linked to the protection of human health, so it is governed by manufacturing, scientific and environmental legislation and regulations which are constantly changing, becoming more and more rigorous and complex. Fifteen international groups, the largest of whom are pharmaceutical companies operating in both human and animal health, hold 80% of the world market. The remaining 20% are owned by a myriad of local players who are looking to make alliances now or in future, in view of increasingly heavy investments. The animal health market is becoming more and more specialised. This trend will reinforce the role of veterinarians who are pivotal in the prescription process. WORLD MARKET BY GEOGRAPHIC AREA 36% Europe 34% North America 15% Asia - Pacific 12% Latin America 3% Rest of the world WORLD MARKET BY THERAPEUTIC CATEGORY 29% Antiparasitic agents 23% Vaccines 20% Other 16% Anti-infectives 12% Medicinal feed additives Source : Vetnosis - 2008 Source : Vetnosis - 2008