Vetoquinol corporate brochure 2017

IN 2016, THE ANIMAL HEALTH MARKET WENT THROUGH A SERIES OF UPHEAVALS, BUT VETOQUINOL PROVED PERFECTLY CAPABLE OF ADAPTING TO THE MAJOR MARKET TRENDS. DESPITE A GLOOMY ECONOMIC OUTLOOK IN EUROPE, STRONG PRESSURE TO REDUCE THE USE OF ANTIBIOTICS, AND EVER-STRICTER REGULATORY CONSTRAINTS, OUR TEAMS MANAGED TO ACHIEVE A LEVEL OF GROWTH HIGHER THAN THE MARKET AVERAGE (AT CONSTANT EXCHANGE RATES), AND VERY STRONG GROWTH IN TERMS OF OUR OPERATING INCOME. With the strength of its 2,100 employees around the world, their skills, and the actions it has set in motion, Vetoquinol is well placed to continue its growth in the market segments targeted as part of the Group’s strategy. Together we can achieve more each day We set up an R&D unit within our subsi- diary in Texas to accelerate the registra- tion and development of new products for that market, which is set to remain a priority in terms of organic growth and a prime target for external growth. The second remarkable event of the year is the increased build-up of pressure to reduce the use of antibiotics. In both its development of new products and its communications, our labora- tory has always worked to safeguard a therapeutic arsenal adapted to the needs of veterinarians and the reasonable use of such products. The reduction of “critically important” antibiotics (3rd and 4th generation fluoroquinolones and cephalosporins) has impacted our business, mainly in Europe (in particu- lar, brands such as Marbocyl ® , Forcyl ® , Aurizon ® , and Ceftiocyl ® ). Our wide range of first-line products partly com- pensates for this; particularly our more recent products, such as Tylucyl ® and Permacyl ® . Antibiotics aside, our business was bolstered by a good performance from our latest product, UpCard ® , as well as strong growth in the area of osteoar- throsis with our brands Flexadin ® and Cimalgex ® . The third important event of the year relates to the consolidation of our manufacturing base with the transfer of our activities from Belleville (Cana- da) and Pullman (United States) to the Princeville facility in Canada. We also closed the small-scale Armidale faci- lity in Australia, which was part of the Bioniche acquisition. A WORD FROM THE CEO Matthieu Frechin, Chief Executive Officer 3 The first highlight of the year is the success of our investment policy in the United States, the world’s biggest animal health market. The reinforce- ment of our sales network is bearing fruit, and our American subsidiary now leads the Group in terms of turnover. Although mainly involved in the com- panion animals segment, we have also increased our presence in the catt- le market, through our reproduction business and our flagship product Folltropin, the undisputed leader in that segment. Vetoquinol is well placed to continue its growth in the market segments targeted as part of the Group’s strategy