Virbac Group

A.1.1. Virbac does not recognise antimicrobial resistance (AMR) or the sale of antibiotics for non-therapeutic use in food-producing animals (FPA) as a material financial risk for the business in the company’s 2024 Annual Report. As part of its double materiality assessment, the company does now recognise AMR and the release of antibiotics into the environment as a direct impact driver of biodiversity loss, and that the widespread use of antibiotics in animals could create an increased risk of resistant bacteria in populations, but it does not connect this to financial risk. A.1.2. On its website, the company states that it does not carry out research into new antibiotic molecules and focuses instead on vaccines. It has, however, continued to launch antibiotic products, stating in 2023 that one of its major launches was Tulissin, a tulathromycin-based injectable solution in Thailand, Taiwan and South Africa. Tulathromycin is defined by the WHO as a Critically Important Antimicrobial (CIA) which the WHO recommends should not be used for growth promotion, disease prevention in the absence of clinical diagnosis, or to control the dissemination of a diagnosed disease within a group. In 2023, the company reported that sales in its farm animal segment in France was “progressing thanks to injectable antibiotics”, however it is unclear if this increase in antibiotic sales was a part of the company strategy. In its 2024 Annual Report, the company discloses that it is investing in developing alternatives such as vaccines, immunostimulants, and biocides. It is unclear how much revenue is derived from these alternatives and whether this is increasing. The percentage of its total revenue from the sales of bovine antibiotics (7 % in 2024, 7.7% in 2023, 7.1% in 2022, 7.6% in 2021, 7,3% in 2020) and pig/poultry antibiotics (2.3% in 2024, 2.5% in 2023, 2.6% in 2022, 3.3% in 2021, 3.6% in 2020) has reduced slightly from 2020 but it is unclear if this is part of a strategy to reduce its exposure to the sale of antimicrobials. A.1.3. Virbac provides a partial breakdown of its revenue from antibiotics. The company reports that its revenue from antibiotics for pigs and poultry amounts to €32.4 million and revenue from bovine antibiotics amounts to €97 million in 2024. These are not broken down by geography or WHO category. The company does not disclose the revenue from its antibiotics for aquaculture.

A.2.1 Virbac does not have a responsible sales and marketing strategy that explicitly addresses how antibiotics should be marketed and sold. A.2.2. The company has not publicly considered voluntarily removing indications for growth promotion and prophylaxis from the labels of antibiotics, where not required by law. In South Africa, Virbac continues to sell Promote®, for improving the rate of mass gain and feed efficiency in pigs, layer birds and broilers. This product contains tylosin which is considered a CIA by the WHO. A.2.3 It is unclear from the public disclosures who is responsible for the company's strategy around the sale and marketing of antimicrobials. A.2.4. The company does not disclose if sales incentives are tied to the volumes of antibiotics sold.

B.1.1. While the company does recognise that the release of antibiotics into the environment throughout the value chain leads to AMR, it does not specifically disclose how it manages antibiotic residues entering the environment in its manufacturing effluent. As before, the company does not disclose evidence that it is monitoring levels of active pharmaceutical ingredients in wastewater to ensure they align with the predicted no effect concentrations outlined in either the WHO’s ‘Guidance on Wastewater and Solid Waste Management for Manufacturing of Antibiotics’ or the AMR Industry Alliance’s ‘Manufacturing Standard.’ B.1.2. The company does not disclose a specific strategy for managing antibiotic residues in the environment from its manufacturing. B.1.3. Third parties are required to comply with the company's environmental, social and business ethics outlined in its code of conduct and business charter. The company states that it regularly audits and inspects suppliers to ensure compliance with its ESG standards. The Code of Conduct refers to restricting discharges by reducing ordinary and hazardous waste, however, it does not mention antimicrobial effluents specifically. It is therefore unclear to investors if monitoring antimicrobial effluent is part of its supplier requirements. B.1.4. The company discloses it has 12 of its own manufacturing sites across Australia, Chile, France, India, Japan, Mexico, New Zealand, South Africa, Taiwan, USA, Uruguay, and Vietnam. It also has nearly 1000 suppliers of raw materials and nearly 220 suppliers of finished goods.

C.1.1. On its website, the company states that it is investing in alternatives to antibiotics, highlighting its focus on vaccines. In the 2024 AR, the company states that it is ‘developing new drugs that are consistent with the sensible use of antibiotics’ which include focusing on the development and production of vaccines as well as its partnership programs that aim to develop immunostimulants, micronutrients, biocides, some of which it states may be able to replace antibiotics or reduce their use. This has not changed from the previous phase of the engagement. C.1.2. The company does not provide a breakdown of products considered to be alternatives to antibiotics, though it is clear it has some exposure. It does not provide information on how effectively the vaccines, immunostimulants, micronutrients or biocides that it is developing reduce antibiotic use. C.1.3. The company does not disclose a breakdown of its revenue from alternatives. The company provides the revenue from its ‘other ruminants products’ and ‘other pig/poultry products’, which exclude parasiticides and antibiotics, however, the company does not define ‘other’ making it unclear what is included in this.

C.2.1. As, before, in its 2025 Press Pack, the company highlights its two priority areas for innovating responsibly. These include animal studies and reducing antibiotic use through developing prevention methods, especially vaccination. Virbac does not disclose the proportion of R&D spend that goes towards alternatives to antibiotics, but the company did report that it has allocated 31.6% of its R&D expenditure to vaccines and biology. This has increased from 26% reported in its 2023 Press Pack. Additionally, in the company’s 2024 Annual Report, Virbac disclosed a commitment to allocate 8.6% of its revenue (before R&D tax credit) into research, development, and learning. This has increased from 8.3% in its 2022 Annual Report. C.2.2. In 2024, the company acquired Sasaeah, an animal health subsidiary of ORIX Corporation, which generates annual revenues of about €75 ($81.3) million, 50% of which is generated by vaccines. In June 2024, Virbac finalized its acquisition of Globion, a leading Indian poultry vaccines specialist, by purchasing the remaining minority shares and bringing its stake to 100%. In 2021, the company acquired Centrovet, which produces oral vaccines for salmon. It is not clear if these vaccines could be considered alternatives to antibiotics. C.2.3. Virbac does not disclose details of its marketing spend for alternatives to antibiotics.

D.1.1. Virbac states that it has developed TEAMBIOTICS, a program aimed at informing, educating and supporting veterinarians and farmers worldwide in the responsible use of antibiotics. This appears to have been running for a number of years, although the exact launch date is unclear. The program supports ‘reasoned use’ and encourages ‘targeted treatments for farm animals, often associated with diagnostic tests for more precise prescriptions’. While this is positive, the program does not appear to provide education on antibiotic use in alignment with WHO guidelines. Virbac has a general statement about encouraging farming practices that favour prevention and individualised treatment. Virbac also continues to highlight that it is focused on the production of vaccines to reduce the use of antibiotics and has initiated several partnership programs to advance the development of innovative products to reduce/replace antibiotic use. D.1.2. In its 2024 Annual report, as part of its double materiality assessment, the company now recognises antibiotic resistance as a direct driver of biodiversity loss. Virbac does not, however, disclose any evidence of stewardship efforts to improve surveillance in the environment or reduce antibiotic residues entering the environment from farms outside of encouraging disease prevention and its focus on developing alternatives. When discussing its treatment offerings in general, the company states that it looks for routes of administration that have less of an impact on the environment, as well as ways to reduce dosages.

D.2.1. Virbac does not provide any information on its lobbying and political expenditure. It lists organisations that it states it uses to monitor regulations. These include IMV in France (Syndicat de l’industrie du médicament vétérinaire), NOAH in the United Kingdom (National Office of Animal Health), BfT in Germany (Bundesverband für Tiergesundheit e.V.), AnimalhealthEurope, or AHI (Animal health institute) in the United States and HealthforAnimals.