 We surveyed 25 US veterinarians who treat a total of ~65,000 dogs and ~29,000 cats on various topics relevant for the industry, including trends and expectations for diagnostics, parasiticide, dermatology, and pain markets.

 Overall market dynamics remain healthy: Veterinarians are expecting to treat more dogs, run more tests and earn more money per visit in 2021

 Veterinarians expect to treat more dogs (+9% YoY) and run more diagnostic tests (+6% YoY) in 2021.

 Revenue per visit increased for most practices through the pandemic (+13% YoY in 2020), driven by higher diagnostic utilization and standard of care. Veterinarians see these trends persisting and expect revenue per visit to increase in 2021 (+11% YoY).

 Positive: ZTS, IDXX, ELAN, HSKA

 Parasiticide market dynamics:. Significant share gains ahead for oral products, ~35% of dogs still aren’t getting complete parasiticide coverage

 Unsurprisingly, most veterinarians favor newer-gen oral products and expect orals to continue gaining share in their practices over time (~68% in 2019 to ~85% in 2025) at the expense of both topicals and collars (which at this point are increasingly sold through non-vet channels).

 Veterinarians estimate ~10% of dogs won’t have any parasiticide coverage in 2021 and another ~25% only partial coverage, suggesting room for the parasiticide market to expand over time.

 Positive: ZTS

 Neutral/Negative: ELAN

 Simparica Trio: Very positive vet feedback thus far, participants see the product capturing ~40% of the oral parasiticide market by 2023 (vs ~17% of the dogs in their practice today).

 On the flea & tick (or flea & worm) side of the market, veterinarians see Simparica Trio take share from Bravecto, Trifexis and NexGard, with more limited impact on Credelio (low starting share).

 On the worm side of the market, veterinarians see a role for both Simparica Trio and ProHeart 12 with ZTS share coming primarily from HeartGard, followed by Interceptor Plus and TriHeart.

 Veterinarians see limited Simparica cannibalization, with only ~10% of Simparica Trio use coming from past Simparica users.

 While use of Trio was above overall market averages, survey results suggest a continued strong ramp for the product going forward

 Positive: ZTS

 Neutral/Negative: ELAN