June 28, 1999

Companies spent nearly $500 million in research and development for new animal health products and to maintain the effectiveness of existing products during 1998. The list includes pharmaceuticals, biologicals, feed additives, insecticides and diagnostics. Meanwhile, the Animal Health Institute reports that animal health product sales increased to $4.3 billion in 1998.

R&D spending in pharmaceutical preparations among AHI members totaled $267.2 million, an increase of 28% from 1997; 121 million was spent on biologicals, an increase of 19% over 1997; for feed additives, $54.6 million was spent, an increase of 26% form 1997; a total of $13.9 million was spent on insecticides, and $7.4 million was spent on diagnostics compared to $1.4 million in 1997.

AHI also reports that sales of animal health products in the United States totaled an estimated $4.3 billion in 1998, an increase of 18% year over year. Pharmaceutical sales increased 24% over 1997, feed additive sales declined by 5% compared to 1997 and biological sales increased 19% over 1997.