2. Each year, Americans spend approximately $14.4 billion
on prescription drugs to treat their pets when they become
ill or injured. Pharmaceutical companies focused on
human medicines have always done brisk business in the
veterinary market, although most of their work has been
for livestock. Now, veterans of the biotech industry have
begun to apply their research to the aliments of domestic
pets.
The business realities of the veterinary market offer
advantages and disadvantages to the new companies
popping up in the wake of successful human-focused
biotech firms.

3. Generally, even a particularly successful drug
for animals will gross far fewer profits than a
major drug for people, but the cost of
developing veterinary medicine is significantly
lower. Innovative new biotech companies are
also taking advantage of the development of
human drugs, many of which either are tested
on pets, occasionally showing greater success
than in human trials, or could be extended for
use in pets, as with the monoclonal antibodies
that have revolutionized cancer treatment in
humans.