The pandemic has made several things clear. Hospitals do not need ANY of our products to practice quality medicine. We are invisible to this industry. With products no one needs, no one needs us. I guess I've known this for a while but lack of leadership and time off the road has made the obvious, obvious.
Distributor consolidation is complete, with only a few small regional Dist left. Manufacturer consolidation is much more consolidated than it used to be, but there are a number of third-tier companies like Ceva yet to be acquired or gutted. An OTC product line with 3 "me-too" Rx products isn't needed, and as soon as the Operating Profit does not meet with the Private Investors expectations, the company will be sold, or shed its sales force and sell through the OTC channel.
Why can companies like Dechra acquire products, companies, technology, innovation in the US but we seem completely unable or unwilling to support the US companion business? The poultry business seems to get support. Why are we being left to die on the vine?
Companies like Dechra, and virtually all of Ceva's competitors, are publicly traded stocks; Dechra is on the London stock exchange. Ceva gets funding from a group of private investors. The stock is privately held, and is not available on any stock exchange. If I'm a Private Investor, I want to have my money provide the highest return possible. A flea and tick product (that used to be the lifeblood of the company) that is all but dead, a line of OTC products, and 3 copycat Rx drugs do not provide the return desired. Why would I "water the weeds" with my money? The "company" so to speak, will not be "sold off", but the US Companion Animal portion of Ceva may be divested to provide a better overall return for the Private Investors. It is always about Operating Profit, not sales.
