Human-like medications are increasingly being prescribed by vets for pets.

• Historically, there has been a gap between drug development and treatment options for both human and animal health, despite some overlap.
• With the increase in pet ownership and the demand for new treatments, animal medicine companies such as Zoetis have expanded into new drug and healthcare sectors.
• On Wednesday, CNBC named Zoetis CEO Kristin Peck to the Changemakers list, and the company recently received approval for the first monoclonal antibody pain treatment for cats and dogs.

Weight loss drugs provide insight into the differences between human and animal medicine and vaccine industries.

Since their introduction in 2023, Ozempic, Wegovy, Mounjaro, and Zepbound have experienced a surge in popularity, making it difficult for their manufacturers, including Novo Nordisk and Eli Lilly, to meet the demand. Other drug companies, such as Pfizer and Merck, have announced their plans to enter the market, which is projected to be worth tens of billions of dollars in the next decade. Meanwhile, small pharmaceutical companies are competing for a share in this lucrative sector of healthcare.

In 2014, the first medication intended to treat obesity in dogs was withdrawn from the market because it did not generate enough interest.

"CEO Kristin Peck, who was named CEO in 2020 and included in the inaugural CNBC Changemakers list on Wednesday, stated, "I believe I was one of the few individuals with a dog on it, and I'll sound terrible when I explain why." She added, "I don't believe many people wanted their dogs to receive weight loss medication because if your dog is overweight, it's likely due to a lack of exercise and excessive feeding.""

Historically, dogs and pets have been considered man's best friend. However, pet pharmaceuticals have not always lived up to this reputation, and many pets received only tick or flea collars as their only form of preventive medicine, aside from necessary vet visits.

Animal medicine is becoming more aligned with human medicine, as both pet owners and the pharmaceutical industry have undergone a shift in mentality, according to Peck.

"Peck stated that younger generations view their pets differently than older generations. In the past, dogs and cats were kept outside, but now they are often kept indoors, even in beds and can replace children. Pets now have strollers, backpacks, and outfits."

In 2013, when Pfizer spun off its animal health business to create Zoetis, about 65% of the company's business was related to livestock. However, this has changed now, with 64% of the company's revenue coming from products for companion animals like cats and dogs.

Peck has maintained the company's focus on innovation by introducing new products in the pet industry.

In 2022, the company generated over $1.3 billion in revenue from dermatology-related dog and cat drugs, compared to just $1 million in 2013. The top product in this category is Apoquel, which is used to treat dogs with allergic itches and dermatitis.

"When we announced our plans for dermatology, the response was that dogs don't require dermatology, they can just take some Benadryl if they itch. However, we believed we could establish a market, and now our dermatology sales have exceeded $1.3 billion. If you had told me this was possible five or six years ago, I would have considered it insane."

Zoetis' success in animal health is attributed to the Pfizer spinoff, which allowed the company to prioritize its goals for both animal and human health. "Our focus is solely on our one customer, and we consider their needs every day and with every dollar we spend, whether it's on R&D, commercial, or manufacturing," said Peck.

The treatment of osteoarthritis pain in dogs and cats is the next product that Zoetis and Peck are betting on to become a $1 billion franchise.

In May, the FDA approved Librela, a monoclonal antibody treatment that can control OA pain symptoms in dogs, improving their mobility and quality of life. According to Zoetis, 40% of dogs exhibit signs of OA, including difficulty going up or down stairs, hesitation to jump, limping after exercise, and becoming more withdrawn.

For the first time, monoclonal antibody treatments, which have gained popularity for treating human illnesses, have been approved for cats to treat pet osteoarthritis pain.

""Demonstrating that pet owners are willing to pay for a valuable product is a bold, large capital decision, as you cannot make a monoclonal antibody for dogs in a human health facility and must outlay capital during clinical trials," Peck said."

Peck stated that while Zoetis is concentrating on linking human and animal health product development, the company is also striving to address the distinctive aspects, such as the diagnostic procedure.

"Individuals with osteoarthritis visit the doctor to receive medication, which enables them to lead a healthier, longer, and more fulfilling life, according to Peck. However, if someone has osteoarthritis in their hip but does not exhibit a limp, it is similar to assuming that a dog does not have osteoarthritis because it is not limping."

In June 2022, Zoetis spent over $50 million to acquire Basepaws, a pet care genetics company that specializes in DNA testing for dogs and cats related to health and disease risk detection.

"Genetics and biomarkers will enable us to diagnose diseases and improve the quality of life of animals who cannot communicate their feelings."

AI technology is being used by Zoetis to help cat owners diagnose osteoarthritis issues in their pets.

Zoetis will continue to prioritize innovative solutions for animal health, drawing inspiration from human health while also charting its own course to address the distinctive challenges of caring for cats and dogs.

Could there now be an Ozempic for dogs and cats that works?

While the company is investigating GLP-1s for treating pet diabetes, weight loss is not a primary concern. The main priorities are addressing challenges in cardiology, oncology, and kidney disease.

""Our work with genetic markers could provide a more targeted solution for treating pet obesity, which has been successful in human health. The same technologies used in humans could also be applied to animals, and vice versa," she said."