Shifts in sources of capital & innovation

03.27.2025

Ownership of the industry’s value has shifted decisively. The estimated valuation of the top 10 Animal Health companies grew 2.6x in a decade, from USD 55bn in 2013 to USD 143bn in 2023 – and where that value sits has changed completely. Pharma conglomerates held 63% of it in 2013; by 2023 they held just 28%, with 72% in the hands of standalone Animal Health companies.

That shift triggered a surge in external innovation. There are now 500+ Animal Health start-ups globally, concentrated in pharma (32%), diagnostics and devices (20%) and services (19%), with nutrition at 15% and genomics at 5%.

And those start-ups have become acquisition targets for established players. KindredBio went to Elanco for USD 444mn in 2021. PetMedix went to Zoetis for USD 235mn in 2023, alongside adivo. 2024 brought three more: Invetx to Dechra for USD 520mn, Saiba Animal Health to Boehringer Ingelheim, and ScoutBio to Ceva.

Capital is consolidating into standalone players. Innovation is increasingly bought rather than built.

For more on how ownership shifted, see our ownership shift analysis, or read the latest Animal Health Industry Report.

#AnimalHealth #Innovation #MandA #Startups #VentureCapital