Phibro Animal Health Corporation

A.1.1. Phibro continues to acknowledge that the sale of antibiotics is a material portion of its business, but does not clarify the proportion of revenue generated specifically by antibiotics. Medicated Feed Additives (MFAs), which include antibiotics, anticoccidials, and other products accounted for 67% of animal health revenue in FY2025, (60% in 2024, 59% in 2023, 60% in 2022). Phibro continues to recognise that increased government regulations or bans on the use of antibiotics, including those on imported goods, changing consumer preferences, or inclusion of its products on rating lists for antimicrobials from organisations such as the World Health Organization (WHO), could present a material risk to its business. Phibro does not recognise AMR as a material risk. A.1.2 Phibro does not publicly disclose a strategy to reduce its exposure to the sale of antibiotics. Notably, in FY2025, global sales of antibacterials, anticoccidials and other products significantly increased to $646 million from $421 million in FY2024. This is likely due to the recently acquired product portfolio from Zoetis which included 3 antibacterials and 8 anticoccidials. It is unclear what proportion of this increase was from the sale of antibacterials specifically. Phibro continues to provide a high-level statement that it is looking to develop additional products for its companion animal sector but does not provide any targets to reduce its exposure to antibiotics. Rather than acknowledging the risk of AMR, the company continues to actively campaign that the US Food and Drug Administration (FDA) removes streptogramins (a class of antibiotic found in its MFA Stafac®) from its list of medically important antibiotics (MIA), recognising that inclusion on this list could reduce its sales of this product. As a company that predominately sells food animal products (FAP), Phibro remains more vulnerable than its peers to the risks associated with antibiotic misuse and overuse in animal agriculture. Continued failure to recognise the extent of these risks, coupled with a lack of strategic diversification away from antibiotics, could leave Phibro poorly positioned to transition towards a more secure FAP portfolio. A.1.3 As in previous reporting cycles, Phibro breaks down its revenue by segment, intended species, geography, and product type but does not disclose revenue specifically from antibiotics. 2025 net sales are segmented by species as follows: 36% Poultry, 14% Dairy, 16% Cattle, 11% Swine, and 23% Other, which includes but is not limited to aquaculture and other animal species. The US remains the company’s main market, with 57% of net sales generated in the US, 23% in Latin America and Canada, 12% Europe, Middle East and Africa and 7% in Asia Pacific. The company discloses that it generated $646 million (67% of its total animal health revenue) from the global sale of MFAs and other products in 2025 (60% in 2024, 59% in 2023). Phibro’s largest business segment by species remains poultry, with MFAs and other products for the poultry industry accounting for 40% of sales in 2025 (43% in 2024, 44% in 2023). Phibro’s core MFA product portfolio continues to include three medically important antibiotics (MIAs) as defined by the WHO (oxytetracycline, virginiamycin, and neomycin). Neo-Terramycin remains one of Phibro’s top five best-selling antibiotics. It is composed of two antibiotics, oxytetracyline and neomycin which are respectively classified by the World Health Organization (WHO) as highly important and critically important antimicrobials (CIAs), meaning they are the sole or limited treatment available for human use. Neo-Terramycin is sold by Phibro as a medicated feed additive (MFA), allowing it to be mixed directly into animal feed and used prophylactically. The WHO advises against the use of CIAs, even for controlling the spread of a ‘clinically diagnosed infectious disease identified within a group of food-producing animals.’ Manufacturing Neo-Terramycin as an MFA goes against the WHO’s recommendations and increases the risk of AMR.

A.2.1. As before, Phibro continues to refer to responsible antibiotic use in its 2024 ESG report but it does not define this. A.2.2. In 2017, Phibro aligned with the FDA and the animal pharmaceutical industry to voluntarily remove growth promotion claims from its medically important antibiotics (MIAs) in the US, where 44% of its animal health revenue is generated. Phibro has not removed indications for prophylactic use from its products containing MIA. The company also reports aligning with antibiotic regulations in the countries where it operates. It can, therefore, be assumed that Phibro has removed indications for growth promotion from its MFAs sold in China and indications for both growth promotion and prophylaxis from all antibiotics sold in the EU. Phibro continues, however, to sell MIA for growth promotion in countries such as Brazil where this is still legal. A.2.3. Phibro does not disclose who would be responsible for overseeing and enforcing a company strategy for the responsible sales and marketing of antibiotics. A.2.4. Phibro does not disclose if sales team KPIs are linked to the volume of antibiotics sold.

B.1.1 Phibro does not disclose details of its environmental health, and safety (EHS) strategy, and does not disclose any details suggesting it is taking measures to ensure wastewater discharges of antibiotic effluent remain at safe levels. Phibro aims to comply with current Good Manufacturing Practice (cGMP) standards and local regulations for its own manufacturing sites, however, the company continues to acknowledge this is not always possible. B.1.2. Phibro does not disclose whether it has an EHS strategy for antibiotic residues that applies to its third-party manufacturers. B.1.3. The company has not provided details on how it ensures best practice compliance at its own manufacturing sites, third-party suppliers or waste management facilities outside of internal audits and site visits. B.1.4. The company discloses that it manufactures active pharmaceuticals for certain antimicrobial products in Brazil, United States, Italy and China. Phibro continues to source certain active pharmaceutical ingredients from contract manufacturing organisations (CMOs) in China and India, which are then formulated into final dosage form in Phibro-owned facilities and contract facilities in Argentina, Australia, Brazil, Canada, China, Israel, Malaysia, Mexico, South Africa, United Kingdom and the United States. In 2024 Phibro completed its acquisition of Zoetis’ Medicated Feed Additive Product Portfolio and Certain Water-Soluble Products. The acquisition included, six manufacturing sites in the U.S., Italy and China.

C.1.1 Phibro offers a selection of products that could potentially reduce the need for antibiotic use, such as vaccines and nutritional products. However, the company does not specifically categorise any of its products as alternatives to antibiotics or provide a definition. This limits investors’ ability to measure the year-on-year growth of Phibro’s alternatives portfolio. C.1.2 Phibro does not report on the percentage of its portfolio that could reduce the need for antibiotics. However, it does offer vaccines, vaccine delivery systems and nutritional products, that have been linked to disease prevention and, therefore, a reduced need for antibiotics. The company states that it markets more than 25 vaccines globally, however, it is unclear how many of these could specifically contribute to reduced antibiotic use. Phibro also continues to manufacture three lines of autogenous vaccines for viral and bacterial diseases. Autogenous vaccines can be custom-made to contain antigens specific to each farm. The company highlights that customers who used its autogenous vaccine effective against Streptococcus suis and Actinobacillus suis for piglets reported improvements in the health, animal welfare and economic performance of the herds, and reduced mortality. It does not state if the vaccines specifically reduced antibiotic use. The company offers a portable electronic vaccination device and software that ensures proper delivery of vaccines and provides health management information. Although Phibro does not recognise this as a potential alternative to antibiotics, improved vaccination delivery and increased health information could reduce the need for antibiotics. Additionally, the company highlights its nutritional product, Magni-Phi, stating that animals fed this product showed an improved response to coccidiosis vaccines, reduced salmonella shedding and reduced clostridia counts. As before, despite offering several alternative products, these do not appear to be part of a strategic decision to reduce exposure to antibiotics. Phibro does not provide any information on how effective these products are at reducing antimicrobial use specifically. The company does highlight how increased sales of vaccines across animal health companies have mirrored reductions in antibiotic sales. C.1.3. Phibro does not indicate what percentage of its product portfolio can be classified as alternatives to antibiotics nor provide a breakdown of revenue from this category. It reports its vaccine revenue, which totalled $137m in 2025, accounting for 14% of total animal health revenue. This total revenue from vaccines increased by 13% compared with FY24.

C.2.1. In FY25, Phibro invested $23.7m ($29m in FY24) in research and development. The company does not disclose what percentage of this is directed towards developing products that could reduce the need for antibiotics. Phibro states that its animal health research and development activities include, amongst others, vaccine development and nutritional specialties. Phibro has five Antibiotic Stewardship principles, which include investing in the development of products for prevention and treatment. The company does not disclose its research spending on this, making it difficult for investors to understand the extent to which they are prioritising these as part of a move away from antibiotics. C2.2. In 2024, Phibro acquired Zoetis’ Medicated Feed Additive Product Portfolio but has not stated that this includes research and development facilities. While Zoetis has previously been developing products that reduce the need for antibiotics, such as vaccines, it is unclear if this part of the business was included in the acquisition. C.2.3. Phibro does not disclose what percentage of marketing spend is spent on alternatives to antibiotics.

D.1.1. Phibro continues to highlight its five principles of antibiotic stewardship in its ESG report. As part of this, Phibro provides high-level disclosures regarding its antimicrobial stewardship activities. This includes protecting animal health and welfare in a unified One Health approach, developing and offering preventative products, using antibiotics judiciously and responsibly, promoting disease prevention, and increasing knowledge transparency through its Phibro Academy. It is unclear how the company specifically defines and supports responsible antibiotic use, as in its recent ESG report, the company only highlights the general achievements of the HealthforAnimals members outlined in the “Roadmap to Reducing the Need for Antibiotics”. The Phibro Academy includes one course looking at solutions to reduce the need for antibiotics in poultry through digestive health and another on managing gastrointestinal disease in antibiotic-free broiler production. These courses help educate farmers about themes related to reduced antibiotic use. Phibro does not appear to have recently increased its course offering related to antibiotic stewardship. In 2023, Phibro also released six ‘You Herd Right’ podcast episodes related to best practices and strategies to consider when feeding and managing dairy cows. It is unclear how many of these episodes discuss topics that specifically help to reduce antibiotic use. In its recent 2024 ESG report Phibro no longer highlighted its ‘Explore Animal Health’ website as contributing to its ‘knowledge transparency’ approach however, this website is still linked to Phibro’s website under its ‘animal health approach’. The website emphasizes that removing shared class antibiotics from veterinarians' toolkits could have negative consequences to animal health. The WHO suggests that antimicrobials classified as Highest Priority Critically Important Antimicrobials (HPCIAs) should not be used in food producing animals. D.1.2. The company does not disclose whether it supports AMR stewardship efforts to improve AMR surveillance or reduce antibiotic residues entering the environment from farms.

D.2.1. Phibro only discloses its lobbying spend where legally required. It does not publish this in its annual reporting. The company does not disclose any policies governing how it conducts lobbying and political expenditures related to antibiotics and AMR or disclose the topics it lobbys on. Phibro is a member of the trade association HealthforAnimals.