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Revenue
 3 Months Ended
Mar. 31, 2025
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue
4. 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 research and development (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.
On October 31, 2024, we completed the divestiture of our medicated feed additive product portfolio, certain water soluble products and related assets, and, as a result, our major product categories no longer include the category of medicated feed additives. See Note 5. Divestitures.
Our major product categories are:
•parasiticides: products that prevent or eliminate external and internal parasites such as fleas, ticks, lice and worms;
•vaccines: biological preparations that help prevent diseases of the respiratory, gastrointestinal and reproductive tracts or induce a specific immune response;
•dermatology: products that relieve itch associated with allergic conditions and atopic dermatitis;
•anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa;
•pain and sedation: products that alleviate pain, primarily associated with osteoarthritis and postoperative pain;
•other pharmaceutical: antiemetic, reproductive and oncology products; and
•animal health diagnostics: testing and analysis of blood, urine and other animal samples and related products and services, 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, 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 food 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
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20252024
United States$1,183 $1,163 
Australia75 73 
Brazil88 101 
Canada67 61 
Chile34 31 
China60 76 
France40 41 
Germany51 51 
Italy29 28 
Japan36 37 
Mexico37 44 
Spain33 32 
United Kingdom77 77 
Other developed markets133 127 
Other emerging markets248 228 
2,191 2,170 
Contract manufacturing & human health29 20 
Total Revenue$2,220 $2,190 
Revenue by major species
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20252024
U.S.
Companion animal$973 $898 
Livestock210 265 
1,183 1,163 
International
Companion animal573 552 
Livestock435 455 
1,008 1,007 
Total
Companion animal1,546 1,450 
Livestock645 720 
Contract manufacturing & human health29 20 
Total Revenue$2,220 $2,190 
Revenue by species
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20252024
Companion Animal:
Dogs and Cats$1,481 $1,384 
Horses65 66 
1,546 1,450 
Livestock:
Cattle358 391 
Swine111 127 
Poultry106 139 
Fish53 45 
Sheep and other17 18 
645 720 
Contract manufacturing & human health29 20 
Total Revenue$2,220 $2,190 
Revenue by major product category
Three Months Ended
March 31,
(MILLIONS OF DOLLARS)20252024
Parasiticides$562 $504 
Vaccines447 452 
Dermatology390 363 
Anti-infectives249 281 
Pain and sedation210 194 
Other pharmaceutical159 156 
Animal health diagnostics103 82 
Other non-pharmaceutical66 61 
Medicated feed additives5 77 
2,191 2,170 
Contract manufacturing & human health29 20 
Total Revenue$2,220 $2,190 
B. Revenue from Contracts with Customers
Contract liabilities reflected within Other current liabilities as of December 31, 2024 and 2023, and subsequently recognized as revenue during each of the first three months of 2025 and 2024 were $4 million and $2 million, respectively. Contract liabilities as of March 31, 2025 and December 31, 2024 were $17 million and $18 million, respectively.
Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of March 31, 2025 is not material.