2009 Veterinary Survey
Ask the Experts: Results From Our Fifth Annual Veterinary
Healthcare Survey
To better understand key trends affecting the animal healthcare industry, we recently
conducted our fi fth annual survey of veterinary professionals at one of the
largest veterinary conferences in the world—the 2009 North American Veterinary
Conference (NAVC) in Orlando, Florida. Our survey focused primarily on trends in
the veterinary diagnostics and distribution markets, as these two sectors represent
key business segments for the veterinary healthcare companies in our coverage
universe. In total, we surveyed 1,012 veterinary professionals and students
from the United States and abroad. Key fi ndings include the following:
Long-Term Growth Outlook Remains Solid, but Broader Macroeconomic
Environment Is Weighing on Industry. Judging by our survey results, it appears
that the majority of veterinary professionals still view the industry as relatively
healthy; however, 37% of U.S.-based respondents indicated that overall pet
owner spending may decline in 2009 (above the 26% metric reported last year).
In our view, the deteriorating markets and weak economic/employment outlook
continue to drive a more cautious near-term view from veterinarians, with the
equine segment apparently under the most pressure.
Veterinarians Continue to Expect Increased Use of Diagnostic Laboratory
Testing Over the Coming Years. For the fi fth consecutive year, less than 2%
of our survey participants indicated that they expect a decline in the volume of
diagnostic testing over the next three to fi ve years. Rather, 79% of participants
believe that the industry will trend toward more, or signifi cantly more, testing in
the future. Moreover, this increased use of laboratory testing should benefi t providers
of both in-clinic diagnostic equipment and reference laboratory services,
as participants indicated that growth was likely in each category.
Veterinary Professionals Appear Pleased With Current Distributors, Equipment
Manufacturers, and Lab Services Providers. Survey results indicate that
our covered companies score well in customer-satisfaction ratings. For instance,
88% of U.S. respondents were satisfi ed with reference laboratory services from
IDEXX Laboratories and 89% were satisfi ed with VCA Antech; 87% were satisfi
ed with IDEXX’s diagnostic products; and 91%, 98%, and 87% were satisfi ed
with MWI’s, Patterson’s, and Henry Schein’s distribution services, respectively.
As such, we continue to believe that signifi cant market share shifts among existing
providers are unlikely (other than through consolidation). Instead, we believe
all providers likely will benefi t from the previously discussed trend of increased
spending on veterinary products and services as well as increased diagnostic
testing, although perhaps to a lesser extent than the prior few years.

Contents
Introduction and Methodology .....................................................................................3
Demographic Information .............................................................................................3
Ten Key Survey Conclusions .......................................................................................7
Ask the Experts, Part I: Veterinarians’ and Veterinary Technicians’ Views on the
State of the Veterinary Healthcare Market...................................................................9
Ask the Experts, Part II: Veterinarians’ and Veterinary Technicians’ Views on
Diagnostic Testing Services .......................................................................................14
Another Look at Chemistry Analyzers and Catalyst Dx...........................................30
Ask the Experts, Part III: Veterinarians’ and Veterinary Technicians’ Views on
Veterinary Distributors ................................................................................................34
Conclusions .................................................................................................................46
Public Company Profiles ............................................................................................47
Abaxis, Inc. ......................................................................................................47
Animal Health International, Inc. ...................................................................47
Henry Schein, Inc. ..........................................................................................48
Heska Corporation .........................................................................................49
IDEXX Laboratories, Inc. ................................................................................49
MWI Veterinary Supply, Inc. ...........................................................................50
Neogen Corporation .......................................................................................50
Pet DRx Corporation ......................................................................................51
PetMed Express, Inc. ......................................................................................51
VCA Antech, Inc. .............................................................................................52
Webster Veterinary Supply (a division of Patterson Companies, Inc.) .....53
Private Company Profiles ..........................................................................................53
Banfield, The Pet Hospital .............................................................................53
Best Friends Pet Care, Inc. ............................................................................54
Butler Animal Health Supply, LLC.................................................................54
Lextron Animal Health....................................................................................54
Midwest Veterinary Supply ............................................................................55
National Veterinary Associates (NVA) ..........................................................55
Professional Veterinary Products, Ltd. (PVP) ..............................................55
Vet Pharm, Inc. ................................................................................................56
VetCentric ........................................................................................................56
VETCO .............................................................................................................56
VetCor ..............................................................................................................57
Veterinary Pet Insurance (VPI) ......................................................................57
Vetstreet ..........................................................................................................57