FEED Business Worldwide - March, 2011
Bedson seeks reinvention amid animal health industry's challenges
by Edward PANG & NG Zhongming
The global animal health products market, spanning veterinary pharmaceuticals, biologicals, and medicated feed additives, was worth US$17.4 billion in 2005, and has been estimated to increase in sales of up to almost US$21.7 billion in 2010.
To seize new profit and growth opportunities, it is essential for animal health companies to create new products or reinvent existing ones. Bedson, for one, has successfully adapted fosfomycin for animal use, and the company is also constantly upgrading its original product line.
Adapting existing products to create new solutions
Fosfomycin, a natural antibiotic that can be used to treat urinary tract infections, was originally destined for human use only, when it was first discovered in Spain in 1954. Thanks to the innovative efforts of Bedson S.A.'s co-founders, Dr. Arnaldo Colusi and Dr. Omar Romano, the company managed to adapt fosfomycin for use in the animal veterinary field in 1979.
To this day, fosfomycin remains an exclusive and revolutionary milestone for the company. "Bedson was the first laboratory worldwide to develop the use and application of fosfomycin for the veterinary industry. It filled an existing gap in the animal health pharmacopoeia," Dr. Romano said. Its introduction into the market brought precise and concrete answers to the immediate problems confronting the animal industry at that time.
According to Dr. Romano, creating such an innovation was possible due to Bedson's grounded, company policy of continuous research and development, accompanied by the latest technologies.
"No doubt, these key aspects will allow us to remain competitive in the years to come. A permanent search for safer and effective products is another aspect we cannot disregard, as it helps us direct our actions towards market trends," he said.
Gearing towards product excellence
Ironically, the animal health industry is now moving forward with a new trend: the reduction of the usage of antibiotics, in order to meet the consumer's constantly evolving demands for safer animal products. In response, Bedson is striving to improve on its key innovation strategies and future product developments, in order to create newer and better alternatives for achieving optimal gastrointestinal health for animals.
"When creating new products and solutions, it is very important to identify the final user of the product. In our case, the final users are animals," Dr. Romano said. "But due to the characteristic of our final users we cannot forget about humans, as they will be the consumers of animals treated with our products."
Among the main issues that need to be considered when developing such desired products, are withdrawal periods that have to be based on solid scientific research. In addition, due to the nature of the animal health industry, the company needs to constantly update itself on the latest regulatory issues. Regulations for animal products are constantly changing, and being up-to-date allows Bedson to save time when registering a new product. By working with a multidisciplinary network of education and research institutions, in-house Bedson Techinical Advisors, and DVMs in-charge of each animal farm, it allows for better diagnoses and subsequently, a better-designed programme that is tailor-made and flexible.
"Bedson has always focused on these particular issues and is continuously identifying new enhancements opportunities for old products. Original product lines have been upgraded and deeper research has been performed. As a result, new functions have been discovered, thus enlarging the list of uses and giving chances for Bedson to expand all over the world," Dr. Romano said.
"Markets with specific unmet needs have been reached and Bedson is now regarded as a company that provides premium and very effective products at competitive prices. This has contributed significantly to the growth that Bedson has been continuously experiencing since 1979," he said.
Synchronising priorities with market needs
Expanding into new overseas markets is not without its difficulties, however. One key hurdle for Bedson when it decided to export its products to other countries, was the need for higher investments to be made in logistics. "Failure in this aspect could have led to frustrations and economic losses," Dr. Romano explained. "We also had to hire the services of a customs broker with experience in forwarding pharmaceutical products."
A constant challenge that Bedson faces is the changing economic climate worldwide, and the potentially unstable political situation in many countries where Bedson has operations - such as the Philippines, Thailand, Indonesia, and Malaysia, where the company has a strong presence and good market penetration.
Another challenge in the animal health industry that Bedson is trying to overcome, is the low quality of available feed in the market. Dr. Romano sees this as an opportunity for the company to manufacture feed additives, but he understands that this will be a great hurdle due to the fact that competition will be very intense and competitive.
Despite these obstacles, Bedson still sees the Asian market as its top priority. It is currently seeking to introduce its products and gain market share in regions such as Vietnam, South Korea, Taiwan, and China. "We can clearly see that Asian markets are markets with great potential for our products and expanding our business in Asia is part of our global expansion strategy," Dr. Romano said.
Bedon's main focus is to align priorities to market needs. "If these converge, it means we are riding on the right wave. But when our priorities as a company start diverging from market needs, then we are in trouble," said Dr. Romano.
As Bedson progressed from a small laboratory to a global animal health company, how does the company stay synchronised to the needs of different customers? As Dr. Romano elaborated, "It is very important to listen to clients. Although we can gather good market research from all over the world, the most detailed information still comes from the end-user. We are very lucky to have excellent clients and distributors who know their markets better than anyone."
Moving forward, Bedson will leverage its core strength in staying flexible and understanding clients' needs – which means adapting and offering the best possible technical support to customers and prospects in new markets.
The above are excerpts, full versions are only available in FEED Business Worldwide. For subscriptions enquiries, e-mail membership@efeedlink.com