The Vetalytix Report
VETERINARY PRACTICE DATA POINTS FROM THE SECOND QUARTER OF 2018
Welcome to the Vetalytix Report for the second quarter of 2018. In our last issue, we reported that the first quarter of 2018 proved to be challenging for many veterinarians around the country as revealed by decreases in product consumption across numerous categories. With record cold and snow taking a toll on business, many regions of the country were significantly more impacted than others.
Mid-Atlantic
For the second quarter in a row, veterinary business metrics for the Mid-Atlantic States were below average compared to broader market dynamics. Clinical volume was up 1% compared to the second quarter of 2017, but below the national average of 3%. While lagging national trends, the small positive growth represents a 3% swing from the -1.7% observed in Q1.
Some of the challenges in this region can be attributed to a shift in wellness care as both canine and feline core vaccine volumes were again negative compared to prior year and below the national averages. Canine Influenza volume, a value that varies significantly depending on the prevalence of clinical outbreaks, was increased significantly from the second quarter of 2017.
Procedural volume was off from Q2 2017, although less impacted than the effects observed nationally.
In the case of flea & tick preventives, the data suggests a decrease in the volume in the second quarter, although no more significant than the effects seen more broadly.
| Middle Atlantic | Q2 2018 | Q2 2018 National |
| Vet Consumption Index (Overall Clinical Volume) | 1% | 3% |
| Canine Core Vacc Doses | -1.3% | 1.6% |
| Canine Flu Vacc Doses | 33.6% | -18.6% |
| Feline Core Vacc Doses | -0.1% | 3.3% |
| Advanced Procedural Volume (Inhalant Anesth. Dynamics) | -11.4% | -14.7% |
| Flea Tick Doses | -8.1% | -8.3% |
Great Lakes
Veterinary business metrics for the East North Central states (Great Lakes) were consistent with broader national trends suggesting continued stability in this regional market. Overall clinical volume was up 2% compared to the second quarter of 2017, slightly behind the national average but ahead of the growth observed in Q1.
Canine and feline core vaccine volumes, which were both mildly negative compared to prior year, showed above average growth during the spring months. Canine Influenza dose utilization was also increased vs. prior year, consistent to the broader adoption of this antigen as a critical component of vaccination protocols.
Procedural volume and flea & tick dose volume were both off from Q2 2017, but not significantly less impacted than the effects observed nationally.
| East North Central (Great Lakes) | Q2 2018 | Q2 2018 National |
| Vet Consumption Index (Overall Clinical Volume) | 2% | 3% |
| Canine Core Vacc Doses | 2.6% | 1.6% |
| Canine Flu Vacc Doses | 9.2% | -18.6% |
| Feline Core Vacc Doses | 6.3% | 3.3% |
| Advanced Procedural Volume (Inhalant Anesth. Dynamics) | -16.2% | -14.7% |
| Flea Tick Doses | -8.6% | -8.3% |
Mountain States
For the second quarter in a row, overall veterinary business metrics for the Mountain States were positive compared to broader national trends. Overall clinical volume was up almost 6% compared to the second quarter of 2017, double the growth rate observed on a national scale.
Canine and feline core vaccine volumes were both positive with canine core doses up 7.4% compared to Q2 2017 values and feline doses showing positive growth at almost 5%.
Canine Influenza volume continued to show tremendous growth, far outpacing the national averages.
Procedural volume, although negative, was less impacted than other areas of the country compared to Q2 2017.
Flea & tick dose volume recovered significantly during the second quarter, up almost 15% compared to the same period in 2017.
| Mountain | Q2 2018 | Q2 2018 National |
| Vet Consumption Index (Overall Clinical Volume) | 6% | 3% |
| Canine Core Vacc Doses | 7.4% | 1.6% |
| Canine Flu Vacc Doses | 114.2% | -18.6% |
| Feline Core Vacc Doses | 4.8% | 3.3% |
| Advanced Procedural Volume (Inhalant Anesth. Dynamics) | -10.2% | -14.7% |
| Flea Tick Doses | 14.7% | -8.3% |
Pacific
In the second quarter of 2018, the Pacific states continued to observe positive business metrics compared to other parts of the country. Overall clinical volume was up almost 4% compared to the first quarter of 2017, still outpacing the national average, but slightly lower than the 4.8% growth observed in Q1.
Canine and feline core vaccine volumes, both relatively ahead of the broader market in Q1, appeared to have slowed somewhat in Q2 with canine core volumes down 2.2% and feline core volumes slightly positive at 1.7%.
Canine Influenza utilization appears to still be exploding, up significantly from the second quarter of 2017, and far outpacing adoption rates on a national scale.
Procedural volume, although negative, was less impacted than other areas of the country compared to 2017.
Flea & tick dose volume was still off from Q2 2017, but not as impacted than the effects observed nationally.
| Pacific | Q2 2018 | Q2 2018 National |
| Vet Consumption Index (Overall Clinical Volume) | 4% | 3% |
| Canine Core Vacc Doses | -2.2% | 1.6% |
| Canine Flu Vacc Doses | 197.3% | -18.6% |
| Feline Core Vacc Doses | 1.7% | 3.3% |
| Advanced Procedural Volume (Inhalant Anesth. Dynamics) | -8.5% | -14.7% |
| Flea Tick Doses | -0.6% | -8.3% |
Summary
For the second quarter in a row, data reveals that the markets (and market dynamics) for veterinary medicine are very different depending on what part of the country you’re in. As a result, veterinary practices, and the challenges they face, are just as diverse.
Data from the second quarter of 2018 suggests better overall market conditions for veterinary practices compared to the tepid start observed in Q1. Some categories, such as overall clinical volume, appear to show marked improvements across the board compared to the disappointing results seen in many regions during Q1. Other categories, such as flea & tick dose volumes, continue to show challenges for the second quarter, suggesting broader issues may be impacting the veterinary practice as a channel.
But there’s no doubt that some areas have significantly more challenges to face while others have positive dynamics to build off of for the remainder of 2018. Understanding these dynamics, and the role they play in your market, can provide insight into better meeting the needs of your veterinary practice customers.
About Vetalytix
Vetalytix is the industry’s largest repository of localized economic insight, regulatory compliance resources and pharmacy support tools, all of which are designed to help the stand alone veterinary practice compete in today’s challenging economy. Sponsored by numerous stakeholders of animal health distribution and manufacturing, Vetalytix is an open community for all veterinarians and their teams to access.
Vetalytix pairs aggregated companion animal sales information with an active practice owner to uncover insights to change the way they operate. Ultimately, practice ownership is small business ownership, and the more access an owner has to the market around them, the better they can meet the needs of their clients and patients.
To see more detailed information related to your local market, please go to www.vetalytix.com to learn more.
