“Market for veterinary drugs expected to grow rapidly”

Need to design a new distribution network

Seung-Hwan (SH) Jung, General Manager at MSD Animal Health Korea

Leads sales in Poultry, Swine, Aquaculture, Ruminants…will also focus on Korea’s companion animals market

Plans to differentiate distribution networks for specialty and OTC drugs..."We will design our distribution network based on Korean local law.”

Seung-Hwan (SH) Jung, General Manager at MSD Animal Health Korea

“MSD Animal Health Korea’s clients are animals.

 

We believe that the drug distribution channels for animals should be carefully designed to contribute to the health of animals in Korea.

 

Supplying our products to animals that need them quickly, sufficiently, and safely is the biggest principle in designing our domestic distribution network.

 

Seung-Hwan (SH) Jung, General Manager at MSD Animal Health Korea, emphasized so to reporters about the company’s plans for supplying veterinary drugs in Korea.

 

Over the years, MSD Animal Health Korea has launched various new products and provided technical support to meet the needs on-site.

 

In doing so, the company has prevented and treated diseases in economic and farm animals and contributed to improving the productivity of farmers and the health and welfare of companion animals in Korea.

 

MSD Animal Health Korea's flagship products include the ‘Porcilis PVC M Vaccine,’ which prevents the Porcine Circo Virus (PCV) and M.hyo, and the ‘Prime Pac PRRS Vaccine,’ which prevents Porcine Reproductive and Respiratory Syndrome in the swine industry; ‘Exzolt,’ a parasiticide for chickens that eliminates mites; ‘Nobilis SG9R Vaccine,’ which prevents chicken typhoid.

 

The company also has ‘Bravecto,’ which prevents ectoparasites in pets, and ‘Caninsulin,’ the only insulin for pets in Korea.

 

“The global veterinary drug market is estimated to be around USD 45.8 billion in 2023, of which our sales recorded USD 5.6 billion,’ said Jung.

 

“The animal health sector is generally divided into ruminants, poultry, swine, aquaculture, and companion animals, and MSD Animal Health is the global sales leader in four of these five categories, except for companion animals.” In Korea, the veterinary drug market is estimated to be worth around KRW 1.4 trillion, with two-thirds of the market being domestically produced and one-third being imported.

 

MSD Animal Health Korea generated sales of KRW 45 billion last year.

 

‘Our main business areas in Korea are swine, poultry, and companion animals,’ says Jung.

 

In terms of total sales, the swine and poultry division accounts for the largest share, but we are also expecting rapid growth in the companion animal and livestock sectors.” “Due to issues such as superbugs, most developed countries, including Korea, have banned the addition of growth-promoting antibiotics to feed, and it is becoming increasingly difficult to use therapeutic antibiotics in livestock,’ he explained.

 

’Personally, I see this as a positive change that is in line with the concept of One Health, which has a common goal of seeking animal and human health.

 

As a result, I believe the veterinary drug industry is also shifting towards prevention rather than treatment, promoting the use of vaccines rather than antibiotics.’ Jung also sees much growth potential in the domestic animal health market.

 

With the rise in the number of people living with companion animals, the demand for animal healthcare has been growing along with the market.

 

“The sector has been growing at an average annual growth rate of 10% with the rising demand for pet healthcare,” said Jung.

 

“The scale of the swine and poultry industry is also large compared to Korea’s population.

 

In particular, consumer demand is shifting to seeking safe animal products from the abundance of animal products in the past.

 

We believe that the use of veterinary drugs to prevent diseases and promote animal welfare in farm animals, including food poisoning and zoonotic diseases, will continue to increase.” Various channels such as veterinary hospitals and pharmacies...”We plan to distribute ETCs and OTCs separately” MSD Animal Health Korea plans to utilize various distribution channels such as veterinary clinics and pharmacies.

 

The veterinary drug market is being developed similarly to that of human drugs such as digestive and diabetes diseases, using various channels.

 

And many pharmaceutical companies, including MSD Animal Health Korea, are looking to enter the field.

 

“The specialization of veterinary drugs is predictable in the same way as the changes we have seen in human medicines,” said Jung, “and we interpret this as a favorable change for our business because we own many products that are unique to MSD Animal Health that other companies do not have.” ‘MSD Animal Health employees around the world are sensitive to changes in the market and disease outbreaks, and these changes are immediately reported to R&D at headquarters, resulting in new products being developed to respond quickly to changes in the market as well as diseases.

 

We expect this strength to persist.’ MSD Animal Health's mission is ‘The science of healthier animals’.

 

At the end of the day, Jung says, MSD's customers are animals, and providing products for healthy animals is the company's number one goal.

 

“We are considering carefully designing the distribution channels of our medicines to contribute to animal health,” said Jung.

 

“The overarching principle of our distribution network design is to get our products to the animals that need them quickly, sufficiently, and safely.” ‘We plan to establish different distribution networks for specialized and over-the-counter products.

 

We will design a new distribution network in the future based on domestic laws.’