XML 31 R13.htm IDEA: XBRL DOCUMENT v3.22.0.1
Revenue
 12 Months Ended
Dec. 31, 2021
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue
A. Revenue from Product Sales
We offer a diversified portfolio of products which allows us to capitalize on local and regional customer needs. Generally, our products are promoted to veterinarians and livestock producers by our sales organization which includes sales representatives and technical and veterinary operations specialists, and then sold directly by us or through distributors, retailers or e-commerce outlets. The depth of our product portfolio enables us to address the varying needs of customers in different species and geographies. Many of our top-selling product lines are distributed across both of our operating segments, leveraging our R&D operations and manufacturing and supply chain network.
Over the course of our history, we have focused on developing a diverse portfolio of animal health products, including medicines, vaccines and diagnostics, complemented by biodevices, genetic tests and a range of services. We refer to all different brands of a particular product, or its dosage forms for all species, as a product line. We have approximately 300 comprehensive product lines, including products for both companion animals and livestock within each of our major product categories.
Our major product categories are:
•vaccines: biological preparations that help prevent diseases of the respiratory, gastrointestinal and reproductive tracts or induce a specific immune response;
•parasiticides: products that prevent or eliminate external and internal parasites such as fleas, ticks and worms;
•anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa;
•dermatology products: products that relieve itch associated with allergic conditions and atopic dermatitis;
•other pharmaceutical products: pain and sedation, antiemetic, reproductive, and oncology products;
•medicated feed additives: products added to animal feed that provide medicines to livestock; and
•animal health diagnostics: blood and urine analysis testing capabilities, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services and blood glucose monitors.
Our remaining revenue is derived from other non-pharmaceutical product categories, such as nutritionals and agribusiness, as well as products and services in biodevices, genetic tests and precision animal health.
Our companion animal products help extend and improve the quality of life for pets; increase convenience and compliance for pet owners; and help veterinarians improve the quality of their care and the efficiency of their businesses. Growth in the companion animal medicines, vaccines and diagnostics sector is driven by economic development, related increases in disposable income and increases in pet ownership and spending on pet care. Companion animals are also living longer, deepening the human-animal bond, receiving increased medical treatment and benefiting from advances in animal health medicine, vaccines and diagnostics.
Our livestock products primarily help prevent or treat diseases and conditions to allow veterinarians and producers to care for their animals and to enable the cost-effective production of safe, high-quality animal protein. Human population growth and increasing standards of living are important long-term growth drivers for our livestock products in three major ways. First, population growth and increasing standards of living drive demand for improved nutrition, particularly through increased consumption of animal protein. Second, population growth leads to greater natural resource constraints driving a need for enhanced productivity. Finally, as standards of living improve and the global chain faces increased scrutiny, there is more focus on food quality, safety, and reliability of supply.
The following tables present our revenue disaggregated by geographic area, species, and major product category:
Revenue by geographic area
Year Ended December 31,
(MILLIONS OF DOLLARS)202120202019
United States$4,042 $3,557 $3,203 
Australia259 207 196 
Brazil312 258 293 
Canada232 210 206 
Chile136 100 91 
China357 266 200 
France132 118 117 
Germany183 159 153 
Italy115 90 112 
Japan186 177 158 
Mexico133 116 117 
Spain128 112 114 
United Kingdom234 178 198 
Other developed markets467 388 370 
Other emerging markets778 656 647 
7,694 6,592 6,175 
Contract manufacturing & human health82 83 85 
Total Revenue$7,776 $6,675 $6,260 
Revenue exceeded $100 million in twelve countries outside the U.S. in 2021 and eleven countries outside the U.S. in 2020 and 2019. The U.S. was the only country to contribute more than 10% of total revenue in each year.
Revenue by major species
Year Ended December 31,
(MILLIONS OF DOLLARS)202120202019
U.S.
Companion animal$2,990 $2,391 $1,984 
Livestock1,052 1,166 1,219 
4,042 3,557 3,203 
International
Companion animal1,699 1,261 1,161 
Livestock1,953 1,774 1,811 
3,652 3,035 2,972 
Total
Companion animal4,689 3,652 3,145 
Livestock3,005 2,940 3,030 
Contract manufacturing & human health82 83 85 
Total Revenue$7,776 $6,675 $6,260 
Revenue by species
Year Ended December 31,
(MILLIONS OF DOLLARS)202120202019
Companion Animal:
Dogs and Cats$4,426 $3,437 $2,950 
Horses263 215 195 
4,689 3,652 3,145 
Livestock:
Cattle1,557 1,558 1,654 
Swine659 621 611 
Poultry507 537 559 
Fish187 148 134 
Sheep and other95 76 72 
3,005 2,940 3,030 
Contract manufacturing & human health82 83 85 
Total Revenue$7,776 $6,675 $6,260 
Revenue by product category
Year Ended December 31,
(MILLIONS OF DOLLARS)202120202019
Vaccines$1,673 $1,476 $1,483 
Parasiticides1,635 1,173 966 
Anti-infectives1,215 1,206 1,254 
Dermatology1,180 941 770 
Other pharmaceuticals966 821 780 
Medicated feed additives420 460 470 
Animal health diagnostics374 305 268 
Other non-pharmaceuticals231 210 184 
7,694 6,592 6,175 
Contract manufacturing & human health82 83 85 
Total Revenue$7,776 $6,675 $6,260 
B. Other Revenue Information
Significant Customers
We sell our companion animal products primarily to veterinarians who then sell the products to pet owners. We sell our livestock products primarily to veterinarians and livestock producers as well as third-party veterinary distributors, and retail outlets who generally sell the products to livestock producers. Sales to our largest customer, a U.S. veterinary distributor, represented approximately 14%, 14% and 15% of total revenue for 2021, 2020, and 2019, respectively.