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Breakingviews: Betting the farm

Friday, Dec 13, 2013 - 02:51

Dec. 13 - Antony Currie and Robert Cyran discuss why animal health is now a big business – and what the allure is for pharma companies to spin off, sell or merge these divisions.

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Because you've pets noted that paying for medicine doesn't come cheap. Pro Syrian -- licking its a spate of deals that have happened may be happening in the space of animal health which. We never talk about but it's it's a pretty big business it's a big business and getting bigger. It actually kind of in the sweet spot for these companies because he's become a backward kind of you develop an antibiotic and what you know works in animals senate collectively unite could have said that -- Clinton -- the thoughts and yeah exactly big names illegally but they would fluid. To help all the -- that's for humans and what -- -- -- worked animals there if they sell to farmers tea. But it turns out that it's now become a better business because you can do studies really quickly. An animal populations growing quickly as as people get richer and the -- they tend to eat more animals and they have more animals as pets right plus -- sales of better and in this business it isn't in its current lot it's about a tenth of the size of human medicine from us his company's. And what they're doing out as the companies are realizing they can get a better multiple avenues Pfizer last year they spun off there out there and -- this it is. They spun it off. And this is done very well it's the other companies saying maybe we should do that -- to companies like stock is up so I just yet. And the artist is now looking at the same thing they're wondering whether they should maybe on spin it off -- American exchange for assets or may be solitude business and certainly right next -- in northern -- NC I think you're gonna see similar things because you can combine these businesses save a lot of money all these companies and he's gonna seem to have. Decent little businesses. In the that maybe a -- Derek -- they've been asked to catch bits of bad by the time likable funny what couldn't -- yet they put together more valuable or face in the laughter shareholders department valuable -- you saw -- and -- -- shareholders as well saying someone you gonna give us some kind of been having most farms started then. Not that well past -- pretty -- over the past decade. And you've seen with Pfizer for instance it because what these companies -- debate there the whole game was to a acquire other companies and become bigger and that didn't really work out for for various reasons aren't. However the company Pfizer when he started breaking up the shares have done really well cities seeing other companies under similar pressure a sign that that these good cash Cal's. -- speech and also and it is recession hasn't looked some signatures to chokes our global long that the Mets this locally summing it -- -- -- big 'cause that's why there's that it could be a good. Trading ventures instead insanity for instance as a big animal health care Friday. The problem is that it it could be anti trust issue we're not sure and the other question is you know with misery to the status when it spun off wasn't a problem. And well that's a recess and kidneys have so those looking to do the deals and will be -- with mold breaking you next week.

Breakingviews: Betting the farm

Friday, Dec 13, 2013 - 02:51

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