A new breed of pet health care company
Perrigo Company (PRGO), maker of generic over-the-counter drugs like Claritin, Sudafed and Nyquil, has bought its way into the pet industry by acquiring Sergeant's and PetArmor, adding two OTC flea & tick brands to its portfolio, plus a wide range of products for dogs, cats, birds and small animals.
Veterinary spending has increased steadily over the last decade, reaching $17 billion in 2011. These days, pet diagnostic and treatment options can cost thousands of dollars, and consumer demand for lower cost alternatives has skyrocketed.
Historically, pet trends mirror human trends, and preventive health, over-the-counter pet meds, and holistic therapies have thrived in this environment.
Capitalizing on this consumer demand should allow Perrigo to capture market share from Merial's established Frontline brand. But the company will also compete in other segments; its new range of pet products is wide and includes flea & tick sprays, powders, shampoos and home cleaners, skin & coat, ear and joint care therapies, pheromone-based collars, and toys and accessories.