Enhance the profitability
of livestock production
and ensure a safe, abundant
supply of animal protein
through a portfolio
of on-farm diagnostic products
Own the on-farm diagnostics space
Impact on a 2,000-cow dairy
Annual revenue
$10 million
Profit
$520,000
Cost of mastitis/year
$400,000
Value to producer
of AAD technology
$100,000
(19% of profits)
Source of return
Stemming productivity losses
Stemming quality bonus losses
Improved reproduction
Savings from reduced culling
Reduction in clinical mastitis
$52,338
$16,046
$15,785
$12,869
$9,138
Potential annual mastitis test
revenue to AAD = $26,000
3.25 of 6 tests per year at $4.00 modeled
- Easy to use
on-farm system
Uses ratios of white blood cell types
to identify infection
On-farm diagnostics is an attractive segment
4
• Mega-trends increase the need
– Global food needs increasing
– Regulations limit antibiotic use
– Milk quality is becoming more important
– Continued challenges with FDA and payers make
the animal space even more attractive
• No one owns the space
– Fragmented market of small labs
• Even IDEXX derives less than 7% of revenue
from production animals
– No focus on farm
• Strategically important for many