Ceva CEO Marc Prikazsky
Ceva Santé Animale wants to nab a spot in the top 5 of the animal health sector by 2020. The company has already made strides toward achieving this goal and now, it's moving one step closer with promising 2015 numbers driven by strong sales in its poultry business.
The Libourne, France-based company's revenues grew 12% to €857 million ($939 million), helping it clinch the number 7 spot on the list of top animal health businesses. Ceva's poultry business drove some of the double-digit gains, posting 24% growth thanks to strong demand for bird vaccines Vectormune ND and Transmune.
"2015 was another excellent year for Ceva Animal Health and is another important step forward in realizing our ambition to be in the global top 5 of our sector by 2020," Ceva CEO Marc Prikazsky said in a statement. "Looking ahead, we are in the process of making major acquisitions in key markets, such as the recent one in India and will continue our programme of investment in our production facilities."
Ceva recently snatched up Indian veterinary business Polchem to gain ground in the country's rapidly growing avian and dairy markets. Other animal health companies such as Zoetis ($ZTS) and Sanofi's ($SNY) Merial are also looking to get into the space. The pair recently struck a deal to market drugs and vaccines for dairy cattle in India.
But Ceva is trying to stay a step ahead of its competition. The company will leverage Polchem's local production, R&D facilities and infrastructure to expand its footprint in India. Ceva will also draw on the company's expertise to develop its poultry vaccines and ruminant products for the country's dairy and poultry market.
"India is a country too strategic to ignore, but we did not want to integrate our operations in this market before finding the right partner to assist us. Polchem shares our values and has the right team to bring our products to this important market," Prikazsky said.
Ceva is also looking to international markets for growth. The company plans to invest more than €80 million this year in global sites in countries including France, the U.S., Hungary, and China. And Ceva will funnel more than 10% of its turnover into R&D to develop new products.
"We already invest more than 10% of our turnover in research and development, and will continue to leverage our pipeline to deliver further significant product innovation across all sectors and in all markets," Prikazsky said.
- read the statement
Special Report: Top 10 animal health companies of 2013 – Ceva Santé Animale