Vetoquinol SA

A.1.1. In its 2024 Universal Registration Document, Vetoquinol acknowledges regulatory risks related to antibiotics, noting that AMR-related regulation is reducing anti-infective sales in Europe. However, the company does not identify antimicrobial resistance (AMR) itself as a material risk, nor does it acknowledge its potential contribution to AMR in animals, humans, or the environment. A.1.2. Vetoquinol reiterates its ethical commitment to the rational use of antibiotics and highlights that vaccines are the main growth driver in Europe, its most significant market, as antibiotic sales decline. However, it does not disclose a formal strategy to reduce its exposure to antibiotic use. The company continues to focus on a range of products referred to as its “Essentials,” which it states have strong growth potential. In 2024, Essential Products accounted for 61% of revenue, up from 59% in 2023. Notably, four out of the five Essential Products within the livestock segment contain medically important antibiotics (MIAs). A.1.3. No revenue breakdown is provided by species, WHO classification, geography, or application method. The company only makes general references to anti-infectives as part of its portfolio. Although Vetoquinol acknowledges a decline in antibiotic market sales from anti-infectives in its 2024 Universal Registration Document, it does not provide quantitative disclosures for its antibiotic portfolio. This lack of transparency prevents investors from assessing the company’s exposure to antibiotics or determining whether this exposure is changing year over year.

A.2.1. The company promotes “rational” or “judicious” use of antibiotics but does not define these terms or explain how they translate into marketing strategy. No examples of differentiated approaches across markets are disclosed. A.2.2. The company explicitly rejects antibiotic use for growth promotion. However, there is no evidence that prophylactic indications have been removed from product labels. A.2.3. Sales oversight is delegated to territory directors, but no central compliance mechanism or disciplinary actions are disclosed. It is unclear from public disclosure who is responsible for oversight of the responsible sale and marketing of antibiotics. A.2.4. The company does not disclose whether antibiotic sales are linked to incentives or responsible-use KPIs. In 2024, the Sales and Marketing division was the largest within the company, accounting for 46% of the total workforce. This suggests that Vetoquinol continues to allocate a significant proportion of its resources to the marketing of its products.

B.1.1. In its 2024 Universal Registration Document, Vetoquinol recognizes water as a fundamental element of its value chain and now identifies the discharge of residues of active pharmaceutical substances in effluents—including antibiotics—as a potential impact associated with water use. However, while the company references increased monitoring of discharges, advanced wastewater treatment processes (such as per-ozonation) and demonstrates awareness of environmental risks, it has not adopted predicted no-effect concentration (PNEC) standards or explicitly stated that it manages antibiotic residues in effluents. Vetoquinol states that it is establishing management structures at both group and industrial site levels to prepare its infrastructure to address environmental challenges related to the preservation of water resources. B.1.2. In its 2024 Universal Registration Document, the company states that it rarely manufactures active ingredients itself, and it remains unclear whether antibiotics are produced in-house or exclusively by third parties. For products for which it lacks in-house technical capabilities, Vetoquinol relies on subcontractors, which are monitored and audited to ensure a level of compliance equivalent to that of its own sites. However, there is no reference to the management of antibiotic residues or to oversight of external waste treatment plants. While Vetoquinol indicates that subcontractors are required to meet the same compliance standards as its own facilities, it does not specify how these standards address the management of antibiotic residues. B.1.3. In its 2024 Universal Registration Document, Vetoquinol states that it has established HSE management structures at both group level and industrial site level, including local HSE structures. The company also indicates that the Group HSE team conducts regular safety and environmental audits across its production facilities. However, unlike before, the company does not disclose the number of HSE audits conducted in the past year. The company also does not disclose how instances of non-compliance are addressed. While Vetoquinol reports on the number of critical suppliers responding to its EHS compliance questionnaires, it does not explain how EHS compliance is monitored at third-party manufacturers or external waste treatment facilities. The company also describes its quality control procedures which it states include water, air and environmental compliance. These appear to cover both its own and suppliers manufacturing lines. Vetoquinol does not describe how it handles incidences of non-compliance. B.1.4. In its 2024 Universal Registration Document, Vetoquinol discloses information on its own manufacturing locations in France, Poland, Brazil, and Canada. However, the company does not disclose the locations of third-party manufacturers or suppliers involved in the production of antibiotics.

C.1.1. Vetoquinol does not define what it considers to be alternatives to antibiotics, however, on its website, the company highlights its antibiotic discs that can be used to test the sensitivity of bacterial strains and Forcyl® a Single Injection Short Acting AntiBiotic which it states minimises the risk of developing antibiotic-resistant bacteria. In its 2024 Universal Registration Document the company also discloses that it is involved in research projects aimed at identifying alternatives to antibiotics and is developing rapid diagnostic tools to optimise antibiotic use in veterinary medicine. It does not provide further detail on the nature, scope, or outcomes of these initiatives. C.1.2. The company does not disclose the proportion of its product portfolio that is classified as alternatives to antibiotics, nor does it assess the effectiveness of such alternatives in reducing antibiotic use. C.1.3. Vetoquinol has not yet updated its reporting to provide disclosure of revenue from alternatives. This prevents investors from being able to monitor changes in exposure year-over-year. Moreover, no information on revenue from vaccines or diagnostics is available to provide an idea of what their revenue from alternatives to antibiotics may be. The company does, however, again allude to increasing its exposure to vaccines through increased sales in its livestock business segment in Europe in its 2024 Universal Registration Document.

C.2.1. In 2024, Vetoquinol allocated 8.1% of its revenue to R&D, compared to 7.6% in 2023. The company does not disclose its R&D priorities but states that it has initiated research programmes to develop alternatives to antibiotics. C.2.2. Vetoquinol has made no new acquisitions of companies developing alternatives to antibiotics. C.2.3. The company provides no disclosure on the marketing spend for alternatives to antibiotics, nor for antibiotics.

D.1.1. Vetoquinol was involved in a three-year collaborative research project – Yellow Pearl – with the French National Institute for Agricultural Research and public research teams from French veterinary schools. The project focused on antibiotic use and the effects it has on public health, addressing the key question ‘Is it possible to establish treatment protocols that limit the adverse effects of antibiotic therapies while retaining their effectiveness?’ Additionally, on its website, the company lists a range of services it offers to help fight infection, which includes providing antibiotics discs to test the sensitivity of bacterial strains, regularly publishing updates on the sensitivity of bacterial strains to antibiotics, organising training sessions dedicated to antibiotics, promoting the proper use of antibiotics, and offering audits to manage microbial pressure in clinics and on farms. D.1.2. The company has carried out epidemic monitoring at the European level for over 20 years. However, the company has not provided any updated disclosure since its 2021 Universal Registration Document that provides evidence that it has expanded this to cover a wider geographical region or to release the data gathered through its monitoring programme.

D.2.1. No information was found regarding lobbying policies or political expenditure related to antibiotics or AMR. As a result, the company’s position on antibiotics and AMR remains unclear. Vetoquinol does disclose that it is a member of the industry organisation HealthforAnimals and International Federation for Animal Health Europe. It is also an associate member of the Pharmaceutical Supply Chain Initiative (PSCI).