Key facts
- Merck & Co.'s animal health unit agreed in June to buy poultry technology company Targan.
- Merck is also expanding an animal health products plant in Kansas at a cost of $895 million.
- Zoetis agreed in March to buy Neogen Corp.'s animal genomics division for $160 million.
- Elanco Animal Health acquired Netherlands-based AHV International, a dairy cow health specialist, in May.
- Elanco CEO Jeff Simmons projects 4% to 7% annual growth for the livestock category through the end of the decade.
- Elanco reported cattle revenue growth of 12% in a Friday statement on its financial results.
Animal health companies are putting billions of dollars into businesses that make cattle, pigs and poultry healthier for human consumption, O Globo reported on November 7, 2026, citing executives and recent transactions.
The report said a growing world population and shifts in consumer habits have raised protein consumption. In the United States, it said, demand has been reinforced by the use of weight-loss medicines and by the government's renewed emphasis on eating meat, opening opportunities for drugmakers and investors in farm animal health technology.
Roddy O'Neil, who leads the health care practice at investment bank Lincoln International, told O Globo that much deal activity lies ahead. "In the next 24 months, we will see a lot of movement in this sector. It is already happening. Protein consumption, protein prices: we have never seen anything like it," he said, according to the newspaper.
The report described the sector's role in keeping global food supply steady. Vaccines against poultry diseases, for example, can prevent producers from having to cull entire flocks, while wound treatments and antiparasitics for beef cattle help prevent tick and parasite infestations. Companies are also adding monitoring tools that identify when animals need care.
Several large transactions were announced in 2026. Merck & Co.'s animal health unit agreed in June to acquire poultry technology company Targan while proceeding with a $895 million expansion of an animal health products plant in Kansas. Elanco Animal Health bought Netherlands-based AHV International, which specializes in dairy cow health, in May. Zoetis agreed in March to buy Neogen Corp.'s animal genomics division for $160 million.
Abhay Nayak, who heads Zoetis's US operations, said there is enormous demand for protein and the industry is trying to meet it, according to the report. Elanco CEO Jeff Simmons said he sees livestock as the core of the animal health industry at least through the end of the decade and projects annual growth of 4% to 7% for the category in that period. Cattle remain Elanco's fastest-growing category, with revenue up 12% in 2026, according to a Friday statement on its financial results.
Livestock health has long been the most stable but lower-margin part of the industry compared with pet medicines. Dani Bendheim, CEO of Phibro Animal Health, told O Globo that products for food animals must be safe for the animals and for people who eat their meat, requiring longer development timelines and more complex regulation than the pet market, and therefore lower margins. "You cannot sell a $1,000 product for one-time use, as is done in the pet market," he said.