Feburary 4, 2014
Ceva Santé Animale: Driven by Innovation
Founded in 1999 and operating in 43 nations, France's Ceva Santé Animale is one of the fastest growing of the top 10 animal health companies. Dr Sylvain Comte, Ceva's corporate marketing director for poultry and head of poultry franchise shares how innovation drives the company's success.
Ceva headquarter in Libourne, France
What are some industry trends that have affected Ceva and other animal health companies?The increased size of production units has resulted in the need for simpler administration to a large number of birds, through simpler technology, processes and equipment. The risk of disease challenge, which affects flock performance, also increases along with the increased scale of production. Hence there is a greater need for animal health solutions to be cost-effective, with high returns on investment (ROI).
On the technology-front, new equipment for vaccine administration is now available, which impacts process and production; and vaccination is moving to the hatchery. Moreover, technological advances in production have seen the introduction of one single shot for two or three types of vaccines; and new-generation vaccines such as immune complex and vector vaccines are now made available.
How do solutions provided by Ceva address concerns of poultry producers?
The industry is very open to innovation and changes in processes. Major poultry-producing companies tell us they are actively looking for more innovation and process improvements. They want to see new tools and approaches, specialised support and staff education, as well as simplified management.
All successful businesses listen to their customers, so we attempt to deliver what they want. We have been introducing new tools, not limited to vaccines, but also vaccination equipment and processes of vaccination. We also provide training to both Ceva customers and staff to ensure correct implementation of in-ovo vaccination, embryo-diagnosis, egg quality and machine conditions in order to achieve the desired result. Importantly, we work with customers to simplify management process.
What are Ceva's key success factors?
We try to keep the strong values of a small company or community, listening and being close to our customers and being flexible in the way that we operate and develop our business. One of our key values is innovation, supported by our global network of research and development centres in the United States, Canada, Europe, Japan, China, Brazil, and Mexico.
In addition, our operations are reinforced by the continuous interaction between R&D and field. Our 'Campuses' house research, commercial and industrial teams at the same sites in Hungary, the United States, Canada, Mexico, Brazil, Argentina and recently in China, together with a team of Japanese researchers. This set-up allows Ceva staff to combine the skills within their teams with those of a large number of partners - governments, international health organisations and universities involved in the livestock sector.
Does Ceva's focus on zoonoses set you apart from your competitors?
No, not really. Many of our competitors also play a vital role in the control of zoonoses. Our mission "Together, beyond animal health" recognises how important it is to adopt a "One Health" approach, which highlights that the health of animals, humans and the planet are inextricably linked.
If we state that these things are important to our company, then we need to invest and act so that we can reach this aim. We hope that our work is helping control Avian Influenza, Salmonella, Q-fever, Brucellosis, Trypanosomiasis (sleeping sickness) in the world, and we will continue to deliver real results to our customers. However, we are also proud of the work that the entire animal health industry does to ultimately protect human health.
What is the company's R&D strategy?
Our strategy is to build on biotechnology, or vector technology to simplify vaccination and to simplify processes. Structurally, our R&D centre in the United States develops new products but also develops autogenous (customised) vaccines for the US market. To support field sales and marketing, we allocate part of R&D resources to scientific studies, continuing with trials even after market authorisation, especially in the United States and Hungary and also for the upcoming centre in China.
What are Ceva's most significant technological milestones?
We are the leader in Immuno complex and vector vaccine technology. Vectormune® is currently the broadest and most complete range of vector vaccines available on the market. These vector vaccines provide the major immunogenic proteins to block viruses, giving higher levels of protection that lasts for the life of the bird, regardless of the level of maternal immunity.
Vectormune® vaccines use either Marek's Disease virus or Fowl Pox viruses to express key protective antigens against Newcastle Disease (Vectormune® ND), Avian Influenza (Vectormune® AI), Laryngothacheitis (Vectormune® FP LT and Vectormune® LT) and Mycoplasma (Vectormune® FP MG).
In addition, Transmune® IBD is the leader in Gumboro vaccination of broilers with the largest number of broilers vaccinated.
In 2008, we acquired Desvac in France, the leader in spray, intramuscular and subcutaneous applications and vaccination equipment. Later in 2013, we formed a strategic alliance with Ecat, a frontrunner in poultry automation technology and in ovo vaccination. These two partnerships allow us to further enlarge our portfolio and increase our technological competitiveness.
How do these products align with your R&D strategy?
Perfect Pair (Transmune® IBD & Vectormune® ND) is a unique combination on the market that protects birds against two major diseases - Newcastle and Gumboro through a single combined dose of vaccines administered in the hatchery, in-ovo or subcutaneously.
Ceva Biomune R&D laboratory in Lenexa, Kansas, United States
It provides an exceptional solution for producers: on the one hand it allows them to benefit from hatchery vaccination for a larger number of diseases, and on the other they follow a simplified vaccination process by limiting the number of field vaccinations while improving protection of the birds.
It provides an exceptional solution for producers: on the one hand it allows them to benefit from hatchery vaccination for a larger number of diseases, and on the other they follow a simplified vaccination process by limiting the number of field vaccinations while improving protection of the birds.
In addition, Cevac Ibird live attenuated infectious bronchitis (IB 793B type) vaccine is applied through an entirely new automated spray cabinet at hatchery on day 1 and requires no booster, which will both simplify vaccine handling and ensure high-quality vaccine administration.
The combination of Perfect Pair and Cevac IBird®, along with specific vaccination equipment and services for process control, allows a broader move towards hatchery vaccination, especially for broiler producers. It reduces the number of field applications, and in some cases no field applications are needed. The combined benefits of these two products for producers are: simplified process (less field vaccination), better process control gained via easier management of vaccine administration and improved protection of their birds.
What is the company's supply chain strategy?
Our six poultry vaccine production sites are in Kansas City in the United States, Budapest in Hungary, Beijing in China, Guelph in Canada, Cuernavaca in Mexico and Campinas in Brazil. The largest is in Budapest, Hungary, followed by the one in the United States. These production centres are specialised, based on strategic products. They are small autonomous entities with the ability to deliver on time.
How would you describe Ceva's market position in the poultry business?
Globally, Ceva is the third largest supplier of poultry vaccines and has been the fastest growing for some time. As this field is highly specialised, there are few players in the market and the market is therefore challenging.
In a recent survey we conducted, the 30 largest broiler producers represent 24% of global broiler production in 2013. With growing worldwide demand for poultry products, this species will soon become the world's largest source of animal protein, thus increasing the field for animal health companies and allowing new players to enter the market.
How quickly is Ceva growing relative to the world poultry market?
In the first half of 2013, global growth was driven by the poultry vaccine, services and equipment offer spearheaded by the "Perfect Pair" of Transmune® IBD, and Vectormune® ND, which together allow vaccination against the three major diseases in the hatchery for the first time.
In the next three to five years, we are expecting double-digit growth to outpace the growth of the market.
How does Ceva maintain its growth?
Ceva currently has a technical edge in so far as we have 15 new technology vaccines registered, compared to our closest competitor which has two. However, we know that they are working hard to close this gap, so it is important that we focus on our future innovation.
Regionally, 85% of the growth in the world's middle class, or an equivalent of 3 billion people, will be in China and Southeast Asia, according to recent OECD statistics. As they become wealthier, the new generation in these regions will eat more poultry meat and we intend to be there to grow with them. In China, for instance, our presence through Ceva Huadu and Ceva Hengtong improves our ability to introduce new products and better serve our Chinese customers.
Ceva Huadu in Beijing, China
