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Together, beyond animal health

Annual
report
2017

Ceva Annual Report 2017 1


Summary
4 Editorial
22 Ceva in 2017
66 Together, beyond
animal health
92 Financial report

Froment du Léon cattle, winner of the


French national prize awarded by Ceva
and the Fondation du Patrimoine.
2 Ceva Annual Report 2017
Ceva Annual Report 2017 3
Editorial

2017
a breakthrough year,
better serving our customers
and their animals
The year 2017 will be an outstanding one in Ceva’s history: it was the year our sales broke the symbolic
€1 billion barrier, confirming our position as the sixth largest animal health company in the world.
This step was more than simply symbolic: the company’s performance this year proved the robustness
of our business model and opened up new horizons by increasing our investment capacity.

Ceva’s business grew by 20% overall, with two-thirds than 1,000 new colleagues. I am particularly proud of
of this growth attributable to our acquisition of a number our knowhow and work in achieving this .
of companies in 2016: Hertape Inovo, Brazil, Polchem,
Nevertheless, these good results were also driven by
India, Biovac, France and Ebvac in China, as well as the
organic growth, achieving an historic 9% increase
purchase of a number of ex-Merial products.
(at constant scope and exchange rates).
This included a number of swine vaccines - Circovac®, To round off these excellent results, our operating profit
Parvoruvax ®, Parvovax ® and Progressis ®, which rose by 30%, as we worked together on a number of
reinforced our existing range, allowing us to build on projects designed to improve our business efficiency.
the experience we have acquired in vaccinology,
especially in poultry. Our 2017 result was particularly pleasing as we posted
good results across the company: our 4 species teams,
The fact that these acquisitions were able to bear fruit 2 pharmaceutical and biological units, R&D, industrial
in 2017 was largely thanks to the commitment of our and logistics teams and geographical regions, all worked
teams, which allowed us to successfully integrate more together to achieve this.

4 Ceva Annual Report 2017


Ceva Annual Report 2017 5
Editorial

6
global company
€ 1. 1
billion
sales
+1000 +20 % new employees worldwide growth

As in previous years, we also launched a number of It was a year that saw our biggest products continue
innovative new products: to make progress throughout the world. 15 of them,
compared to 12 last year, have now passed the
FELISCRATCH by FELIWAY®, designed to control
threshold of €10 million in sales.
unwanted cat scratching.
Ultimately 2017 illustrates our constant focus on
Zeleris®, which successfully combines an antibiotic
finding new ways to meet our customers’ expectations,
not used in human medicine with an anti-inflam-
while also working to improve the quality of our
matory, for the treatment of bovine respiratory disease
services.
and pain management.
This is what prompted us to have our hatchery
Circovac®, which protects piglets from the PCV2 virus,
vaccination program, the C.H.I.C.K program,
one of the most important diseases affecting swine.
independently, quality approved by Bureau Veritas,
This product is marketed in synergy with Hyogen®, a
a global leader in Testing, Inspection and Certification.
vaccine against mycoplasma infections, developed
by our own teams. We were pleased to see the It was also the basis for our significant investments
completion of the registration of Circovac® in China, in our industrial facilities, with the aim of improving
by far the world’s largest swine market. efficiency in three ways: industrial performance,

6 Ceva Annual Report 2017


employee workplace well-being and respect for the Our commitment to preventive medicine, through
environment. improved vaccination programs and the more recent
addition of bespoke, autogenous vaccine solutions.
The world is changing very rapidly. It is changing in
a technological sense, with the advent of big data Our co-organization of a seminar on animal welfare
and artificial intelligence. As a result, we implemented held as part of the celebrations for the 250th anniversary
the Quantum program, designed to expand and of the National Veterinary School of Alfort, Paris and
secure the management of our data, so as to optimize as a result, the publication of important new insights.
decision-making processes.
These were all responsible, pragmatic actions, deeply
The world is also changing ethically, with growing rooted in our vision, which motivates us to act
concern for the welfare of animals. That’s an issue that “Together” in the service of human and animal health
has always been of the greatest importance to us, as - which are bound inextricably to one another.
evidenced by:
In this respect, the radical changes taking place in
Our co-founding and support of the World Veterinary
our world can only encourage us to go further.
Association’s new Global Animal Welfare Awards,
They are bringing together the work of human, public
which aim to recognize and reward veterinarians who
and veterinary health professionals to build effective
have provided outstanding and exemplary welfare-re-
solutions to real problems, whilst also better unders-
lated services to animal owners, hostels, fellow
tanding their complexity. These new challenges
veterinarians, and the general public.
provide us with a real opportunity to push ourselves
Our activities in the understanding of behaviour, using to innovate together.
pheromones to improve the well-being of companion
animals. As long as our endeavours are designed to meet both
our customers’ expectations and demonstrate the
Our establishment of integrated antibiotherapy greatest respect for animal welfare, we will continue
support programs. to succeed.

Ceva Annual Report 2017 7


Editorial

Bordelaise cattle awarded French national prize


by Ceva and the Fondation du Patrimoine.

Animal welfare, a complex question


which gives veterinarians new
responsibilities
The question of animal welfare is a delicate issue, as it generates a great deal of emotion, which
sometimes gives rise to simplistic positions and tends to set different types of agriculture against
each other. To feed human beings, in quantity and quality, to maintain the equilibrium of the soil and
conserve biodiversity, we need to be able to draw upon all the different forms of livestock farming:
both large and smaller scale.

Despite all their diversity, animal welfare needs to be pivotal to them all. Respect for animals is an essential pre-requisite
of human-animal relationships. In this context, veterinarians have a crucial role to play. Animal well-being begins
with the preservation of animal health, for, like human beings, they are also subject to diseases and the suffering
caused by them. For all these reasons and to mark the 250th anniversary of the ENVA (National Veterinary School of
Alfort), Ceva co-organized a seminar entitled ‘Animal welfare and society’ 1. It brought together actors from many
different backgrounds involved in these issues: producers, veterinarians, social scientists and two former ministers.
We are pleased to thank all the participants for the quality of the discussions that were held. The contributions below
provide a summary of the ideas put forward at the seminar. They allow us to look at this issue in a new light, without
caricature, and to undertake everyday actions to place animal welfare at the heart of our activities.

1 With the support of AALEENA (Alumni Association of the National School of Administration), the AAEAEA (Association of Alumni and friends of the Alfort School)
and the RSPV (Veterinary Public Health Network), to all of whom we extend our thanks.

8 Ceva Annual Report 2017


An ancestral and The concept of animal welfare
foundational relationship is a difficult one to grasp
Since the dawn of humanity, humans have learned to Should we talk about well-being, or of “‘well-treatment”’?
live in close contact with animals. A very strong feeling Moreover, by using the word animal in the singular, we group
has arisen from this long cohabitation, one that goes far all animals into the same category. But our relationships with
beyond their exploitation or use. Whether we look at them are very different. In these conditions, how can this
archeology, ethnology, mythology, literature, or art, we concept be expressed in the field? On what basis? Using what
see that this feeling, forged from childhood, is steeped criteria?
in fascination, affection and fear. This explains the major
«The concept of well-being does pose major problems, first
role that animals have in our imagination. They participate
of all technically because what we are measuring today is the
in the construction of our identities and consequently
absence of unwell-being. As far as I’m concerned - though
in the equilibrium of our societies.
there must be many here who feel the same - there are lots
of times when I’m not exactly unwell, but I’m not entirely sure
that I’m well either.» - Patrick Pageat
Humans and animals -
there are a thousand
stories there. A thousand Science has changed
ancient stories: the hunter people’s perceptions of
and his dog, the farmer animals. We’ve realized
and his pigs, consumption that they are able to feel
(...). Today, people try to reduce them all to emotions (...) and as a
one story - that of the executioner and the result, that allowed us
victim. It is a huge simplification of all our to really move forwards. It wasn’t so much
histories... that the old practices were abusive, just that
Francis Wolff, Professor Emeritus of Philosophy at the Ecole Normale there were criteria of animal welfare that
Supérieure in Paris were not being sufficiently considered.
Luc Mounier, Professor of Zootechnics and Animal Welfare. VetAgro Sup,
Veterinary Campus of Lyon
The dog is no longer a
wolf. Domestic animals «Good measures and proper conduct already consist in
are not captive or enslaved making distinctions; they mean realizing that we have
species by man; they are different duties toward animals, who live in a different way,
species that have been whether at our service, or for our emotional exchanges, or
capable of evolving over because they are part of our environment, which we need
time to share the human ecological niche. to protect.» - Francis Wolff

Patrick Pageat, Head of the Semiochemical Identification and Analogue


Design Department (DISCA)

Ceva Annual Report 2017 9


Editorial

The extreme media attention The issue of animal welfare


given to animal welfare is set in a social context,
issues may sometimes give which is very paradoxical.
rise to shortcuts in reasoning The vast majority of the population is sensitive to it.
that may be both unfounded Better animal welfare, on the other hand, has a cost

and prejudicial, such as


attached to it that consumers must be ready to pay.
And we live in a world where more than 800 million
those that assert that animal people have far from enough to eat...

welfare is incompatible with «91% of respondents interviewed feel concerned about


large-scale farming. animal welfare.» - Survey carried out on France
sponsored by Ceva Animal Health in 2016
The production requirements of farming operations
do not clash with respect for animals. And the size of However: «We discussed animal welfare, and, quite
farming operations does not predetermine the quality fortunately, talked about the well-being of producers
of care, which depends first and foremost on the animal as well. The two are bound together .... By the continual
farming practices implemented. Its evaluation must pressure to reduce prices ... we, for sure, put in peril
then be made in the field, on the basis of sound animal farmer producers , their survival, and also put in peril
indicators: the good health of the animal, its ability to animal welfare.» - Opening remarks
express ecological needs, - needs that differ greatly
from one species to another.
The key role of veterinarians
Agriculture has and health professionals
evolved. Large-scale
animal production is Animal welfare means taking into account the
seen as synonymous health of animals and their potential for expressing
with less good species-specific behaviour. That is why veterina-
rians have a major role to play in connection with
conditions. I claim this issue. They not only have to diagnose and
the contrary. I lived in Cantal, where prescribe; they also have a role in informing owners
we had a family farm (...). swine and public authorities, to guarantee that animals
rearing took place outdoors even when receive the respect to which they are entitled.
it was less than 10°C; the sows had
chapping on their udders and backs...
Taking “small is beautiful”
too far has led us to simply consider
modern animal husbandry as bad and
lose touch with what it really is.
Christiane Lambert, Swine producer and President of the FNSEA

«To say that a cow needs to graze and go out is true. To


say that a pig does not need to go out is also true. A pig
does not have the same needs as a cow.» - Luc Mounier

10 Ceva Annual Report 2017


91%
of respondents feel concerned
about animal welfare
Survey sponsored by Ceva in France in 2016

“I think veterinarians have a major role to play in These considerations


protecting animals. Because we know that they have should convince us that
feelings, and that they have been at our service for
hundreds, even thousands of years. The role of the
the living world depends
veterinarian is to ensure that their health and on millions of
well-being are taken into account, for the benefit of interactions among
animals and of society.” - René Carlson, Immediate thousands of beings,
past President, WVA who exchange and cooperate in order to
Whereas it is now scientifically proven that animals are
survive, and thus nourish one another.
endowed, at different levels, with intelligence and feeling2, This is an unavoidable reality; there is no
researchers are now discovering that plants3 too are able escaping it.
to communicate and develop cooperative behaviours, Marc Prikazsky, Chairman & CEO of Ceva
and therefore, apparently have intelligence and feeling.
The sensitive character of animals, and perhaps of
plants, in this context, means we should match our
2 J-C. Ameisein, Dans la lumière et les ombres, [in light and shadow]
Fayard/seuil, 2011 need to eat with the greatest respect for all living
3 La Recherche, in September 2017, report on a publication by beings, seeking to mitigate all suffering, in condemning
C. Hettenhausen et al, 2017, Max Planck Institute all forms of cruelty and abuse.

Ceva Annual Report 2017 11


Editorial

Ceva continues its investment


drive to have “state of the art”
production facilities around
the world
Libourne pharmaceutical
plant

Since its creation, Ceva has been one of the fastest growing animal health companies. To keep up with
this dynamic growth and provide its customers with products that meet the highest quality standards,
on time, the company makes massive investments in its production facilities each year. In 2017, our
teams set in motion four major construction projects, 3 at our French pharmaceutical sites in Libourne,
Laval and Loudéac and last but not least at our European vaccine production centre in Budapest,
Hungary.
Ceva has also benefited from the «Factories of the Future» programme developed by the medium-sized
companies business club (ETI), in our home region of Nouvelle-Aquitaine, France. This approach aims to make
companies more efficient in three areas: industrial performance, employee workplace well-being, and respect
for the environment.

12 Ceva Annual Report 2017


Loudéac - Brittany
Furthering our ambition to become a leader
in dermatological topicals
The Group invested €7 million to transfer the There are two main elements to this investment:
production of its companion animals dermatological A technical part, involving the construction of a new
topicals range DOUXO® for the European market to 2,000 m² building that will allow the production of
our Brittany facility. Adding the production of this 1.3 million vials annually.
range to Feliway and Adaptil® manufacture reinforces An organizational component, establishing a real
the site’s position as the major centre of production collaborative inter-site centre for our pharmaceutical
for companion animal products and non-sterile business and our Loudéac/Laval teams.
liquids. The building is scheduled to be completed in May 2018.

Ceva Annual Report 2017 13


Editorial

Libourne - Nouvelle-Aquitaine
a new investment to better serve our customers
and strengthen our regional roots
By investing € 8.5 million, the group will provide increased The new building will facilitate flows on the site by
storage capacities for pharmaceuticals and vaccines locating the production areas closer to the various
while improving the movement and flow on the site. storage areas: the finished products can thus be
The new 2,600 m2 industrial building will be equipped transferred directly to distribution without requiring
with dynamic racks, the modular nature of which will external transport.
provide maximized storage capacity equivalent to
The delivery is scheduled for November 2018. Ceva
6,000 pallets. It will include:
has also initiated a study to reorganize the whole
A cold storage area for finished and semi-finished products, Libourne site in order to improve our employees’
with 850 m² of surface area and a height of 15 metres working conditions and bring teams closer together,
An ambient temperature storage area for storing by providing the conditions for more fruitful
packaging materials collaborative work.

14 Ceva Annual Report 2017


Laval - Pays-de-la-Loire
New facilities to provide support to the innovative
dynamics of our Ceva Sogeval campus

Although Ceva is constantly growing, the company It includes:


intends to maintain its agility and flexibility. That is the
An R&D laboratory and a “Fab Lab” to experiment with
thinking that motivated our development of the notion
new technologies, such as 3D printing
of a campus: a campus is a local skills hub based on
specific expertise for one or more markets, working at A collaborative work area gathering the campus’ teams
the service of the group’s strategy. as well as the companion animal teams, with a strong
customer-focused orientation (creation of an amphi-
In order to create in Laval a global center of expertise
theater for visitors, a showroom dedicated to product
dedicated to companion animals Ceva will invest € 25
display and companion animal).
million between 2014 and 2020.
The campus conception is the product of an in-depth
€7.5 million is dedicated to building a new ultramodern
reflection, followed by a collaborative and fun project
3,600 m2 campus that includes a 1,000 m2 Quality
programme that involved all the teams. The building
Control Laboratory.
will be delivered in April 2018 and all activities will be
This project addresses 3 of our priorities: to boost progressively transferred to the new site through the
innovation, bring us closer to our customers, and summer of 2018.
facilitate collaborative work.

Ceva Annual Report 2017 15


Editorial

Ceva Phylaxia
European centre for vaccine
production completes a
“Full Circle of Innovation”
The Ceva Phylaxia Campus has a long history in known. The company will relocate production of these
Hungary, having been present for more than 100 years. vaccines to the new facility by 2019, bringing swine
Today, the campus lies at the center of a global vaccine production back to the center of a plant that in 1912
network with Budapest being Ceva’s single largest R&D began as the Phylaxia Serum Producing Company,
and production center. Over 95% of current production producing the first vaccine against classical swine fever.
is exported to countries around the world.
Part of the new production facility will also be dedicated
In July 2017, Ceva opened a completely new facility, to producing new technology vaccines used in poultry
adding 3900 m2 to the existing campus at a cost of hatcheries. These vaccines use a virus strain named
€ 25 million creating some 60 new jobs. after József Marek, a veterinary scientist who worked
Ceva Phylaxia’s recent growth has largely been driven at Phylaxia, ensuring that his innovation will continue
by the production of poultry vaccines but at the end to have impact through the billions of doses of vaccine
of 2016, Ceva acquired a number of key swine vaccines, that will be produced in the new facility and used by
from the ex-Merial range, Circovac®, being the best poultry producers throughout the world.

16 Ceva Annual Report 2017


Ceva invests in its Hungarian state
of the art vaccine plant to support
“Innovation with impact”
growth plan

Ceva Annual Report 2017 17


Geographic review

Brazil
In 2017, Ceva Brazil successfully integrated Hertape
Saude Animale Ltda and Inova Biotecnologia Saude
Animale Ltda. The acquisition of these businesses
in late 2016 was our largest ever acquisition and
enabled Ceva’s entry into the strategically important
global foot-and-mouth vaccine market.

Another notable achievement during the year


was the successful introduction to the market
of CEVAC® IBras®, the first vaccine specifically
targeted at controlling the Brazilian variant of Strong sales during 2017 of CEVAC® Transmune IBD, Ceva’s first
avian infectious bronchitis virus (IBV). immune complex vaccine against infectious bursal disease,
enabled this key product to achieve around 70%
of market share.
This marked the culmination of an 8-year,
Euro 3.5 million vaccine development Finally, early results from the new marketing
programme. An effective vaccine against campaign for Leish-TecC® were encouraging.
IBV has been long awaited by the Brazilian Leish-TecC® is a new generation vaccine against
poultry industry and this important new visceral leishmaniasis, which can be transmitted
addition to Ceva’s range looks set to from infected dogs to people via biting sand flies
become the company’s main product in the country. causing serious disease and even death.
Fernando Luiz de Mori, Ceva Brazil country manager

Spain
Ceva Spain achieved the best performance of any of the Ceva subsidiaries in 2017: sales grew by 33% with equally strong profit
growth and more than 90% of turnover concentrated on the company’s strategic products – these are its most important and
innovative products that really distinguish Ceva from its competitors.

The 2017 results are due to the hard work done over the previous years – building teams,
finding the right leaders, aligning with Ceva’s strategy, developing the right business
models for each business unit and providing excellent administrative support. It includes
significant achievements in all the business units: in ruminants we achieved 20% growth
even in a declining market and reinforced our position as leader in reproduction; in poultry
we developed real partnerships with the key accounts through the full implementation of
the C.H.I.C.K. Program; in the very competitive swine sector we integrated new vaccines into our range and
developed a new team able to deliver our innovative products and services. Finally, the companion animal
figures speak for themselves, in just four years we have increased turnover fourfold.
Alex Martino, Ceva Spain country manager

18 Ceva Annual Report 2017


Turkey
In 2017, Ceva remained the market leader in Turkey for both the ruminants and poultry sectors, reinforcing its top position by
achieving 15% growth in the company’s strategic products.

Over the past 5 years, Ceva Turkey has established itself as a trusted advisor to poultry vets
and producers. We have more than doubled our sales for poultry over the past 5 years and
also expanded the market. In ruminants, we have succeeded in becoming the reference for
reproduction management products. Ceva Turkey’s success is due to a good balance between
individual performance and team solidarity and spirit. Each of our employees needs to be
the best in their area of expertise – the one that the customer seeks out when they need support.
To that end, we are committed to training, developing and listening to our team members. We also need to provide
leadership in the country – currently Ceva holds the chair of VISAD, the organisation representing the animal
health industry in Turkey.
Yavuz Uzun, Ceva Turkey country manager

North America | Pacific Thailand


During 2017, the North America | Pacific Zone delivered strong In Thailand, reintroduction of the Circovac® vaccine in 2017
results by focusing on expanding and deepening customer was warmly welcomed by Thai pig farmers. As a result, Ceva
relationships. The business improved its ability to efficiently Thailand doubled the size of its swine team enabling them to
meet demands of the companion animal, poultry, swine and better serve existing and attract new key accounts with a wider
ruminant markets. Expansion in the online and pet retail space range of products and services, including surveillance, sero
resulted in growing brand awareness and usage – a trend which monitoring, improvement of vaccination and vaccination audit.
will continue in 2018.
A decade after the hatchery vaccination concept was
introduced in Thailand during 2017 more than 900 million
Ceva’s innovative and variant-virus infectious bronchitis vaccine
day-old-chicks were vaccinated in hatcheries using the
helped poultry producers battle this serious respiratory threat.
company’s vaccines in more than 500 Duovac automatic
This year Ceva successfully launched GleptoForte® for swine
injectors.
in the U.S. and Florkem for swine and cattle in Canada.
Ceva is now the market leader
Our team had strong momentum in poultry vaccines in Thailand.
going into 2017, even if overall, This confirms the effectiveness
this was a difficult year for the of our actions to meet the expec-
Zone. We focused on uncovering tations of our customers and earn
and capitalizing on opportunities their trust. We are now the
to protect and grow our business. reference in hatchery vaccination and services for
Across all species and countries, our teams challenged our customers and we keep on bringing innovations
themselves to do more and deliver more. I’m very in products and services, not only to broiler farmers
proud of their successes and results. but also to layer farmers.
Craig S. Wallace, Ceva North America-Pacific zone director Rucha Jarungratchatakit, Ceva Thailand country director

Ceva Annual Report 2017 19


Executive Committee

Members of the Executive Committee

VALÉRIE MAZEAUD DR. GABRIEL RSHAID DR. MARC PRIKAZSKY DR. PASCAL ANJOT
LEGAL DIRECTOR GLOBAL OPERATIONS CHAIRMAN & CEO PHARMACY UNIT DIRECTOR
& FRANCHISES DIRECTOR

20 Ceva Annual Report 2017


DAVID DERAIN ALAIN DE WOILLEMONT THIERRY LE-FLOHIC DR. JÉRÔME-ANDRÉ GAUTHIER
GROUP HUMAN CHIEF FINANCIAL OFFICER BIOLOGY STRATEGY AND BUSINESS DEVELOPMENT
RESOURCES DIRECTOR UNIT DIRECTOR DIRECTOR

Ceva Annual Report 2017 21


Ceva in 2017
24 Calendar 2017
26 Poultry
38 Swine
48 Ruminant
58 Companion animal

22 Ceva Annual Report 2017


Ceva Annual Report 2017 23
Calendar 2017

January February March


Ceva: Best company in Europe Ceva Santé Animale creates a C.H.I.C.K. Program wins the
winner Animal Pharm awards 2016 new joint-venture with EBVAC E-Novation Award VIV ASIA 2017
Animal Pharm’s annual industry awards Founded in 2005 by China Animal Health VIV ASIA 2017 awarded our C.H.I.C.K.
are designed to honour achievements and Epidemiology Center (CAHEC), Program, which received Quality Recogni-
within the animal health sector over the EBVAC is specialized in the development tion by Bureau Veritas in 2016, as the
calendar year. and production of animal health vaccines. world-class innovation in the animal
The last 12 months have been transfor- This new agreement will not only allow health category.
mational for Ceva , as the company made Ceva to increase its position on the global The award values the professionalism of
large strides to achieving its top five swine market, but also strengthen its our teams and their customer passion.
ambitions. expertise in vaccinology and develop its
Not only is Ceva stimulating growth biology activities.
internally with R&D in the areas of
vaccines, genomics and livestock repro-
duction, it has also secured some signi-
ficant acquisitions in 2016.

April May June


New Communication Campaign Official authorization granted Vectra efficiency recognized
for Altresyn® launched by Ceva to Zeleris® by the U.S. Companion Animal
Swine Corporate Team The official marketing authorization for Parasite Council
Altresyn® improves the production flow Zeleris® was granted by the European The U.S. Companion Animal Parasite
and profitability on farm by allowing the Medicines Agency (EMA) on May 19th. Council (CAPC) launched its first-ever set
plan of an intelligent production flow. Zeleris® was therefore launched before of guidelines on mosquito control and
The objective of this campaign is to the peak of respiratory infections (bovine) mentioned Vectra 3D® by name, as an
consolidate Ceva as the reproduction that mainly appear in the European effective product to kill and repel
management leader in swine production autumn. mosquitoes.
and promote the exclusive advantages The creation of the Mosquito Control
of the product in swine production. Guidelines demonstrate CAPC’s commit-
ment to the veterinary community and
pet-owning public in the fight against
vector borne illness.

24 Ceva Annual Report 2017


July August September
Ceva Phylaxia inaugurates state First “Global Animal Welfare WVPA Congress in Edinburgh,
of the art vaccine plant to support Awards” Ceremony Ceva details latest poultry
“Innovation with Impact” growth plan On the occasion of the 33rd World
“Vaccinology” strategy
A further 3900m of space, containing
2 Veterinary Congress in Incheon, Korea, At the World Veterinary Poultry Association
more than 100 pieces of new equipment, Ceva and the World Veterinary Associa- Congress in Edinburgh, Ceva hosted a
were added to the existing campus at a tion (WVA) jointly organized the first scientific symposium, Mastering In Ovo
cost of € 25 million euro (7.8 billion Global Animal Welfare Awards. Vaccination - A closer look at key details,
forint), creating 60 new jobs. These prizes recognize and reward focusing on the critical success factors for
Ceva Phylaxia campus lies at the center veterinarians who showed initiative and in ovo vaccination: embryo age and
of a global vaccine network with commitment, and provided outstanding development, new solutions for improved
Budapest being the single largest R&D and exemplary welfare-related services chick quality and the essential steps to
and production center. to animal owners, shelters, fellow veteri- optimise in ovo vaccination.
Over 95% of current production is narians, and the public. “Innovation is the key to this new Vaccino-
exported to countries around the world. logy approach” said, Dr. Sylvain Comte,
Ceva’s Head of Poultry.

October November December


Ceva gathers its 1400 French All around the world, Ceva’s For the first time, Ceva crosses the
employees in Bordeaux teams commitment goes “beyond symbolic 1 billion euro milestone
Ceva’s employee numbers have grown
animal health” Dr Marc Prikazsky, Ceva CEO, wanted to
at a strong pace through both acquisi- Ceva employees worldwide share this share a message with Ceva’s teams:
tions and recruitment. Marc Prikazsky, vision, which is why the Portuguese team “It is a remarkable achievement, especially
Ceva’s CEO, is keen that all employees decided to donate 10 tons of animal feed for those of us who took the first steps
remain close to one another and for this for the areas most affected by the serious with Ceva in 2000. Who would have
reason decided to gather all employees fires that damaged the region. imagined it? Many other challenges lie
from the 6 French sites during a conven- A few weeks earlier, Ceva Mexico had ahead for us, but for the moment, at the
tion organized October 2-3. donated Adaptil® products to relieve the end of the year, let us celebrate together
This event was the opportunity for rescue dogs from the high level of anxiety this historic breakthrough.”
everyone to discover or rediscover each and tiredness experienced during their
site’s expertise, then get together during exhaustive work shifts following the
a gala dinner in the presence of the recent earthquakes.
Bordeaux-Bègles Top 14 professional Finally, Ceva Indonesia team supported
rugby team, which Ceva sponsors. “World Egg Day” and “National Chicken
and Egg Day” through a blog competition
to increase the awareness of society
about the importance of chicken and
eggs for human health.

Ceva Annual Report 2017 25


Poultry

26 Ceva Annual Report 2017


Ceva Annual Report 2017 27
Poultry

Ceva – number one


in hatchery vaccination

N°1
in hatchery
2 nd
global supplier
22 billion
doses of new techno
vaccination of poultry vaccines hatchery vaccines in 2017

18%
global vaccine
800
poultry
180
vet specialists close
market share professionals to you

1/4
1 in 4 chickens globally is vaccinated with
175
hatchery specialists
Ceva’s new technology vaccines at your service

14 % 54 %
6% 2%
Ceva
Global leader in Supplier A
new techno hatchery Supplier B
vaccines supply-2017 Supplier C
Others
24 %

28 Ceva Annual Report 2017


After launching some of the most
innovative vaccines that the poultry
industry has seen in the last decade we
realized vaccination alone is no longer
enough. Ensuring that vaccines are applied
correctly as part of a total preventative
health programme is key to the future.
So, Ceva has invested significantly over
the last decade developing a complete
portfolio of new technology vaccines,
in-ovo vaccination and hatchery
automation equipment, and support
services. For example, our new product
Laser Life™ identifies live eggs,
vital in the in ovo process, as one dead or
contaminated egg can spread contamination
through injecting equipment causing severe
disruption and waste. And our latest
Egginject™ adapts to every egg,
as compared to older systems that inject
to a uniform depth, which can result
in poor or no vaccine uptake.
Sylvain Comte, Ceva poultry corporate marketing director

Ceva Annual Report 2017 29


Poultry

Ceva’s 9 innovation areas


to help the world’s poultry
producers optimize production
The challenges of feeding the world in the future are well known. The current global population
of 7.6 billion will increase to 9.7 billion by 2050 and reach 11.2 billion by the end of the century.
Between 2016 and 2017 the world gained an additional 83 million citizens. The growing
population will demand not only sufficient food but good quality food, including in many cases
meat, milk, eggs and fish. Poultry is the fastest growing agricultural sub-sector and is likely to
continue to grow in the future. But whilst achieving that growth and meeting increasing demand,
the poultry industry will have to produce eggs and meat in ways that are more sustainable and
efficient, that enhance bird welfare and safeguard human health; 70% of the increased production
will need to come from productivity gains.
Vaccines and improved preventative medicine will have an important role to play in this, but vaccination alone is
not enough. As a result, in addition to becoming the global reference in hatchery vaccination with a complete
portfolio of new technology vaccines, Ceva’s preventive health approach also includes innovative hatchery vaccination
and automation equipment and a wide range of services to help its customers optimize their performance all along
the production cycle - breeders, hatcheries, farms and slaughterhouses.

30 Ceva Annual Report 2017


Vaccination equipment Ceva Ecat-iD Campus

The company’s unique offer to the global


poultry industry is made up of nine 2 Hatchery vaccination services
The unique Ceva C.H.I.C.K. Program is a complete service package
innovation areas which together can be used
to improve quality of day-old-chicks and in ovo vaccination.
to build customer-specific, total preventive
It combines managing the vaccination program, improving the
health solutions.
quality of vaccination and achieving good quality chicks, ensuring

1 Innovative hatchery
the equipment is in sound working condition and training
customers’ staff in good vaccination procedures. C.H.I.C.K. is the
vaccines first quality animal health services program to be independently
certified by Bureau Veritas. The program has now been officially
Investment over 20 years has enabled Ceva approved in South Africa, Spain, Turkey, The Philippines, Mexico,
to provide the largest range of vaccines that Russia, and Poland.

3 Field
can be used in the hatchery, either in ovo or

monitoring
administered to day-old-chicks. The full range
of vaccines includes highly innovative
immune complex, recombinant, inactivated & veterinary services
and live vaccines. Ceva has been at the
Ceva’s Global Protection Service (GPS) concept offers poultry
forefront of the shift to vaccination in the
companies an objective, effective and organized approach
hatchery and this approach offers multiple to vaccination monitoring, disease diagnosis and control,
benefits: better quality vaccination leading and tracking epidemiological trends over time on their farms.
to better protection and reduced usage of The GPS protocol provides guidelines for what samples need
antibiotics later on; reduced handling and to be collected at what ages and frequencies and how the
vaccination of day-old-chicks and older birds samples should be analysed to enable poultry companies’
leading to enhanced welfare; increased vets and managers to assess the efficacy of vaccination
efficiency and reduced waste leading to cost regimes and support decision making and fine tuning of
savings and more worker-friendly conditions. their veterinary investments.

Ceva Annual Report 2017 31


Poultry

Hatchery system
Ceva Ecat-iD Campus

4 Diagnosis
network
and laboratory 6 Autogenous vaccination services
In addition to off-the-shelf solutions, Ceva can offer
bespoke vaccines to address specific local disease
Ceva has three scientific support and investigation
challenges identified on individual farms. So far, this
units serving the USA, Europe and China. The units
service includes autogenous vaccines against bacterial
provide experts and laboratory support for diagnosis,
and viral diseases in the US from the Biomune Campus
in running trials and monitoring results in customers’
in Kansas and bacterial diseases in Europe, and soon
facilities. In addition, the units carryout scientific
viral diseases will also be covered in Europe from the
studies to build knowledge on existing products as
Ceva Biovac Campus in Angers, France.
well as innovations still under development.

5 In ovo vaccination 7 Data management services


Both the C.H.IC.K. program and GPS generate large
Ceva Ecat-iD’s Egginject™ in ovo system has a host amounts of data. Going forward, an important focus
of innovative feature that together improve the for Ceva will be to focus on how best to use this huge
precision and efficacy of in ovo vaccination and amount of data to help its customers continuously
enhance chick welfare. meet evolving consumer demands.

32 Ceva Annual Report 2017


8 Hatchery automation
Ceva Ecat-iD does not subscribe to a ‘one size fits
Summing up Ceva’s innovative approach, Head
of Poultry Sylvain Comte said: “Applying science
to what our customers do every day in the field
all’ approach. As each customer, hatchery and is key. We are proud of the innovative vaccines
processing room is different, the ethos is to help that we have developed but this is only half of
customers maximise throughput by tailoring the the job. Constantly testing their performance and
best solution for their facility, using equipment that ensuring they are applied correctly under field
meets the highest animal welfare standards. conditions is much more challenging. That’s why

9 Day-old chick health services


we ensure our scientific and services teams are
alongside our customers ensuring they can achieve
the highest possible performance standards.”

Laser candling with the innovative new Ceva Ecat-iD


product Laser Life™ allows automatic removal of clear
eggs and early mortality embryos. This prevents
contamination of day-old chicks at hatch and improves
chick quality, helping producers achieve antibiotic-free
production.

Ceva Annual Report 2017 33


Poultry

With the successful launch of IBras in Brazil, ®

Ceva emerges as the leader in avian


vaccination in Latin America
As chicken becomes the world’s most consumed meat, with Brazil the largest exporter of poultry products,
Ceva’s teams worked hard during 2017 to bring innovation to this important global market.

The Poultry team in Brazil have for several years worked hard to promote the success of Transmune, a vaccine, which today
protects 72% of the country’s broilers from Gumboro disease, a contagious viral disease with serious economic consequences.
Our SG Cevac S. Galinarom, Corymune 4 and 7 vaccines are also strengthening their positions, as primary products in the control
of salmonellosis.
But 2017 will be remembered above all as the year of the successful launch of a new vaccine, IBras®, designed specifically to
prevent a local variant of infectious bronchitis for which no satisfactory response had been found, at the time of its launch.

With this new Cevac IBras ®


in the last 10 years. It caused losses estimated at over

vaccine, Ceva is tackling one


10 million US dollars in the state of Parana, alone1.

of the most dangerous diseases


Cevac IBras® is the first live attenuated vaccine that
provides a true response to this pathology. Designed
found on poultry farms in partnership with the University of Sao Paulo and
tested in 2016, it was successfully launched in 2017.
Brazil has been impacted by infectious bronchitis variant Administered in the hatchery on all categories of day-old
BR1, a disease with particularly severe health and chicks, as part of the C.H.I.C.K. Program, using Desvac
economic consequences. This disease, which previously Duo technology, which has been recognized for its
could not be satisfactorily controlled with vaccines and simplicity, quality and efficiency, it was warmly
often required the use of antibiotics, was probably the welcomed by the entire profession, from breeders to
most serious avian health problem to emerge in Brazil opinion leaders.

1 Assayag, 2012

34 Ceva Annual Report 2017


The strength of a model based
on customer proximity,
ecosystem-focused work and
the commitment of our teams
These results are first and foremost the result of our
cooperation with our customers. For us, the challenge
is to understand their needs, their constraints and their
models so as to provide them with specific answers with
high added value. This strategy requires our teams to
focus not only on the development of vaccines, but also
on the whole vaccination process.
This cooperation, through the sharing of knowledge and
experience it brings about, is undoubtedly the most
reliable driver of innovation.

Ceva Annual Report 2017 35


Poultry

Ceva Animal Health makes available the


C.H.I.C.K Program Quality Code of Practice
to their affiliates for the control of good
hatcher y vaccination prac tices in poultr y.

CT814 C.H.I.C.K Program Quality


Code of Prac tice Version 1/16 .
CONTROLLED BY BUREAU VERITAS GROUP.

C.H.I.C.K. Program Quality Recognition


by Bureau Veritas - 17 new subsidiaries
audited and approved in 2017
Consumers are becoming more and more attentive to the quality of their food. According to a recent
study 66% of consumers worldwide consider food to constitute a potential health risk.

Ceva’s poultry team was early to recognise the emerging demand of consumers to be certain about the quality of
their food and in 2016 took the initiative to approach the Bureau Veritas Group to obtain the International Quality
Recognition for our C.H.I.C.K. hatchery vaccination program. Our subsidiary in South Africa was the first to achieve
this important recognition and in 2017, 17 subsidiaries followed suit: Spain, Turkey, the Philippines, Mexico, Russia,
Poland, UK, Vietnam, Argentina, Malaysia, Thailand, Indonesia, Egypt, Romania, Brazil, Colombia and France.

Our poultry team took a very early interest in hatchery nation: vaccine management, use of injection machines,
vaccination, which alone can guarantee that all chicks vaccination techniques, control and audit of vaccination
are vaccinated properly under much less stressful programs, as well as continuing training for hatchery
conditions than in on-farm vaccination: concerns for personnel, to ensure that hatchery personnel apply
animal health, after all, are closely bound to concerns good vaccination practices and are kept informed of
for animal welfare. the latest developments and news in the vaccination
field. Launched in 2009, the C.H.I.C.K. Program
Hatcheries can play a decisive role in disease elimination experienced spectacular growth at hundreds of
strategies, provided that they are well-equipped, hatcheries around the world. This is shown in the table
well-managed and employ trained personnel. It was below. Very early on, it benefited from the introduction
this strict requirement that gave rise to the development of innovative data management tools (2013-2014) that
of the C.H.I.C.K. Program, a comprehensive service made it possible to monitor performance as part of a
program covering the five aspects of hatchery vacci- process of continuous improvement of results.

2014 2015 2016 2017


Hatcheries 610 816 912 957
Audits 3659 4592 6928 7225
Dedicated professionals in Ceva 111 130 151 160
hatchery services team

Table 1. Growth of C.H.I.C.K. Program hatchery services worldwide (Source : Ceva)

36 Ceva Annual Report 2017


It was out of this concern to guarantee our customers itself as a global benchmark. It helps its customers to
ever-greater levels of quality, safety and efficiency, improve their performance levels by providing services
that the poultry team first decided to approach Bureau that allow them to verify that their products, infrastruc-
Veritas Group to validate the C.H.I.C.K. Program’s tures and procedures comply with regulatory standards
Quality Code of Practices, documentation and the and requirements in regard to quality, safety, health,
expertise of the teams responsible for implementing protection and social responsibility.
it in the field.
Ceva is proud to be the first animal health company
Established in 1828, Bureau Veritas is a world-leading, to obtain such Quality Recognition for vaccination
independent testing, inspection and certification body services, ensuring for our customers the same quality
that delivers ISO 9001 and ISO 14001 quality service every day and everywhere. We are currently
management and environmental management certi- totally focused in rolling this out to all major countries
fications. With more than 74,000 employees in nearly including China, the United States, India and Saudi
1,400 offices and laboratories, the group has established Arabia, among others.

Ceva Annual Report 2017 37


38 Ceva Annual Report 2017
Swine

Ceva Annual Report 2017 39


Swine

With Circovac , Hyogen and its rapidly ® ®

expanding vaccine range, Ceva demonstrates


its commitment to swine health
PCV2 is a virus that causes major diseases of pigs leading to considerable economic losses. In 2017 Ceva relaunched
Circovac®, a vaccine originally developed by Merial that protects piglets, gilts and sows from PCV2 throughout
their lives. Circovac® is marketed in combination with Hyogen®, the reference vaccine that Ceva developed to
prevent mycoplasmosis, an important respiratory disease. By engaging with thousands of veterinarians and
producers around the world, Ceva aims to become a global leader in swine health.

In January 2017, Ceva signed an agreement to acquire In 2017, particular emphasis


four major porcine vaccines, Circovac®, Parvoruvax®, was given to relaunching and
Parvovax® and Progressis®, previously developed and putting the Ceva stamp on
marketed by Merial. This acquisition significantly stren-
gthened our range of pork products and services. It has
Circovac®. This included
allowed us to affirm our commitment to engage with developing and sharing clear
producers and swine veterinarians around the world. messages about the features and benefits of
this unique vaccine, as well as producing
clear, simple guidelines for effective vacci-
nation programmes using Circovac®
Stefano Gozio, Ceva swine corporate marketing director

Circovac® provides protection against porcine


circovirus diseases (PCVD) caused by porcine
circovirus 2 (PCV2). These diseases represent a major
problem in almost all commercial pig farms, signi-
ficantly limiting the efficiency and profitability of
operations even in apparently healthy herds. The
virus is ubiquitous in swine production systems.

40 Ceva Annual Report 2017


The economic impact of the disease, even in its
2017, a big year
for the swine business
most common subclinical form, justifies the mass
implementation of PCV2 vaccination in piglets.
The year 2017 will be recorded in the archives as a big year for
Circovac® was the first PCV2 vaccine registered for use
the Ceva swine business. During the year, our teams have
in piglets and sows and is the only globally marketed
participated in major events, targeting leading pork producers
vaccine based on PCV2 whole virus. It offers important
and several thousand veterinarians in Europe, China and Asia,
benefits for the customer. It ensures a reduction in
Russia, Latin America and Canada. By sponsoring these prestigious
piglet mortality, improved growth, better homogeneity
events and organizing symposiums and other technical gathe-
in a batch and a reduction in the use of antibiotics.
rings, Ceva creates the conditions for sharing knowledge and
Its efficacy is also proven against all relevant PCV2
experience between opinion leaders, experts, researchers from
genotypes, including the emerging PCV2d.
health institutes, health professionals and our own teams. We
believe that progress in swine health is best achieved by working
Ceva’s swine business is now able to offer the industry
together, to share knowledge in an expanding ecosystem.
an effective solution to protect pig farms: Circovac®,
which covers a wide range of indications, protecting The rapid development of innovative products and services, and
piglets, gilts and sows throughout their life, is marketed our concern to ensure that the global community of veterinarians
to producers in combination with Hyogen®, a vaccine and pig producers is kept abreast of developments in this sector,
that our teams have developed to fight against demonstrates our commitment to listen to swine producers for
Mycoplasma hyopneumoniae. the joint welfare of people and animals.

Ceva Annual Report 2017 41


Swine

Ceva launches flagship injectable


iron product GleptoForte in the US ®

The Ceva swine team took advantage of the opportunity provided by the Iowa Pork Congress, held
in Des Moines in January 2017, to stage the official US launch of Ceva’s flagship iron supplement for
piglets, GleptoForte®. With around 5,000 vets and producers in attendance from the large swine
producing states in the Midwestern United States, the event was an ideal opportunity to demonstrate
how Ceva’s rapidly growing range of quality swine products, backed up by best-in-class technical
services, is increasingly meeting their herd health needs.

42 Ceva Annual Report 2017


GleptoForte®, an FDA-approved injectable iron Piglets are especially prone to developing anaemia
supplement containing gleptoferron, is backed up by due to iron deficiency. Compared to other animals,
nearly four decades of research and development on piglets are born with a low iron concentration in
iron supplementation. It can be used for routine their tissues and this situation is exacerbated by
prevention and also treatment of baby pig anaemia low levels of iron present in sows’ milk. Without
due to iron deficiency leading to healthier and more effective supplementation piglets inevitably
productive pigs at weaning. develop iron deficiency anaemia: in severe cases
piglets can die, while in less severe cases growth
One advantage of GleptoForte® is that iron in the form
rates are reduced and immune systems depressed
of gleptoferron is rapidly absorbed and ensures high
leading to increased risk of other diseases.
blood iron concentrations, which is especially important
in the first few days of life.

The Iowa Pork Congress provides us with a great opportunity


to meet customers and prospects and discuss how Ceva is
assembling all the right elements to meet their herd health
needs.
Veterinarians in attendance were excited to know they have
another option for their iron supplementation needs. Ceva’s
decision to market GleptoForte®, our unique injectable iron,
in the United States demonstrates our commitment to provide
our customers with both a high-quality injectable iron and a
reliable supply of product.
The success we earned by gaining market share with
ChronoMate®, for synchronization of oestrus, shows US swine
producers trust us and recognize our capacity to deliver quality
products and daily technical support.
Gary Robertson, Ceva US swine business unit director

Ceva Annual Report 2017 43


Swine

Smartvac™: A smarter way to ensure


streamlined, high quality and traceable
vaccination of piglets

During 2017, Ceva launched Smartvac™, the first-ever connected, automatic vaccinator for piglets. The innovative
Smartvac™ injector has a host of smart features that helps ensure fast, safe and accurate vaccination, complemented
by a link via Bluetooth to Ceva’s smartphone or tablet application Vaccinomics™. The award-winning Vaccinomics™
application allows comprehensive measurement and instant reporting of all relevant data to allow tracking of
the quality of vaccination sessions in a continuous improvement approach.

Since 2008, the Ceva Desvac We know that vaccination sessions are a
campus in Saint-Barthéle- delicate balance between speed and quality
my-d’Anjou, France has been of execution. The Smartvac™ injector and
busy combining its unique its accessories have been designed to the
expertise in vaccination highest ergonomic standards to achieve
equipment with the skills
‘peace of mind’ and meet the demands of
and resources of Ceva to form a powerful vaccine
the field, regardless of the number of piglets
to be vaccinated
technology partnership. This partnership reflects
Ceva’s recognition that it is not enough just to
Benoit Jonet, Ceva Desvac campus general manager
develop and supply world-class vaccines; rather
comprehensive vaccination solutions are needed. The Smartvac™ injector is packed full of innovative
Previously focused on the poultry sector, Ceva features that deliver a wide range of benefits on
Desvac’s new generation automated injector, the farm.
Smartvac™, now extends the benefits of The injector is safe and convenient to use and allows
high-quality automated vaccination to the swine the operator to set instantaneously the right dose,
sector. for the vaccination session.

44 Ceva Annual Report 2017


It has a built-in LED light, animal sensor and remote Vaccinomics™ which operates on a smartphone
wireless trigger – the latter ensures that the user can or tablet. This allows vaccine quality to be measured
control the exact moment a piglet is injected and and tracked. It provides instant reporting of all
avoid accidental injection. The user receives instant relevant data in clear, user-friendly formats. This
feedback to confirm the correct volume has been makes it easy for managers to monitor, improve
administered and is also automatically alerted when and control the quality of immunization.
the vaccine vial needs replenishing. This is easily
achieved through a simple ‘plug out-plug in’ system The Vaccinomics™ application was awarded an
to ensure an uninterrupted vaccination session. Innov’Space award at the International Livestock
Exhibition, held in Rennes, France in September
The Smartvac™ injector is linked via Bluetooth 2017. This marked the tenth successive year Ceva
technology to Ceva’s innovative application innovations have been recognised at this event.

At Ceva, we know the importance of vaccinating piglets in terms


of time spent on this task, but the quality of vaccination is also
key to improving herd health and optimizing the working comfort
of those people vaccinating. Until now, swine producers mostly
talked about vaccination as being done or not done. At Ceva we
want to guarantee that it is not only done but also WELL done. In order to meet
these requirements, Ceva Desvac developed an innovative solution with Smartvac
™. We subscribe to the idea that anything that cannot be measured cannot be
improved; now with Vaccinomics™ the producers will finally be able to set the
parameters, measure and control the vaccination quality of piglets.
Philippe Mazerolles, Ceva swine corporate range manager

Ceva Annual Report 2017 45


Swine

Ceva invests to support Chinese pork


producers who account for over 40%
of global swine production
When Chinese people say ‘meat’ they mean pork. The national pig herd, which totalled over 433 million head*
at the end of 2017, accounts for almost one in every two pigs worldwide. The Chinese pork industry represents
43.4% of the global production, with 55.8 million tonnes being consumed in 2017 – equivalent to more than
40 kg a year for every man, woman and child. Although in the past most pigs were kept by small-scale backyard
producers, there is currently a strong shift to very large-scale integrated production to comply with increasingly
strict environmental protection regulation. The country’s north-eastern corn belt is a particular focus of the
huge new ultra-modern pig farms. As Ceva’s ambitions in the swine sector have grown dramatically over the
last few years and its range of products and services increased to keep pace, not surprisingly China is a high
priority country for the company.

Ceva has been directly present in China since 2002, following of 20% a year and in 2016 achieved sales of 140 million
the signature of a partnership with the distributor, Trinity. RMB (USD 22 million). Swine vaccines have been the major
In the following years, our presence steadily increased until driver of this impressive growth and account for well over
the creation of the joint-venture, Ceva HuaDu in 2011, half of sales.
designed to share knowledge and ensure the company’s EBVAC was founded by the China Animal Health and Epide-
international swine (and poultry) expertise could be applied miology Center (CAHEC), through its subsidiary company
to local conditions and the disease challenges in China. Qingdao Yebio, a part of the National Institute of the Ministry
In February 2017, Ceva’s presence in China was significantly of Agriculture.
boosted with the signing of a The company is recognized by the government
major new joint-venture
agreement with Chinese swine
as a ‘National High-Tech Enterprise’.
vaccine specialist EBVAC. Harry Picard, Ceva China country manager
The agreement saw the creation
of a new business, Ceva Ebvac, Ceva will hold the majority of shares in the new company,
Ceva Ebvac. By bringing together Ceva’s products and services
focused on swine vaccines. This
with the Ebvac portfolio of vaccines the aim is to create the
historic agreement was signed in
most innovative company in the swine vaccines market sector.
the presence of both the Chinese and French prime
ministers. Since it was founded in 2005, EBVAC, based in Ceva Ebvac has recently made significant investment to build
Hangzhou City, near Shanghai, has focused on swine and a world-class industrial facility that together with major R&D
poultry vaccine research, production and service. Over investment will allow the business to continue it impressive
the past 5 years, the company has grown at an average growth record.

*www.statista.com

46 Ceva Annual Report 2017


I am delighted that EBVAC Combining the two company’s sales forces and training them to roll
and their shareholders have out Ceva’s innovative swine management programs will allow the
company to reach many more swine producers and encourage them
accepted our offer to create to adopt the ‘new-style professional farming methods’ recommended
this exciting, new partnership. by the Chinese government in its latest 5-year plan.
China is a country that no August 2017 saw the launch in China of the swine vaccine Circovac®.
global animal health company Circovac® was one of the former-Merial vaccines that Ceva acquired
can ignore. Half of the world’s in a deal finalised in January 2017.

pigs are raised here and demand for pork products Circovac® is an inactivated vaccine for use against porcine circovirus
is set to rise even further. If you are not present in
type 2 (PCV2). Uniquely amongst PCV2 disease vaccines, it is based
on the whole virus.
China, you simply cannot be considered a global PCV2 first emerged in North America in the late 1990s, since when it has
swine company. spread to most swine producing regions. The virus was initially associated
Marc Prikazsky, Chairman and CEO of Ceva with a clinical syndrome known as postweaning multisystemic wasting
syndrome (PMWS) but today the disease is mainly seen under a subclinical
form with growth retardation and heterogeneity of pigs within a batch.
The launch events for Circovac® in China were an opportunity to
provide an update on PCV2 related diseases and to demonstrate the
benefits of the vaccine to technical managers from the country’s
largest swine producers.

China has around 40 million sows, 10 million of which are kept in industrial farms.
This represents a huge potential market for Circovac® and the Ceva swine team is
very motivated to capture a big part of it. In this market, with one international
competitor and a crowd of more than 30 local vaccines, the Ceva swine team is
now focused on demonstrating the superior benefits of Circovac® through imple-
mentation of impactful trials and by providing excellent veterinary services to the
key accounts. Our huge ambitions for Circovac® in China will help Ceva to become
a leading player in the biggest swine market in the world.
Antonin Bonneau, Ceva China swine business manager

Ceva Annual Report 2017 47


48 Ceva Annual Report 2017
Ruminant

Ceva Annual Report 2017 49


Ruminant

Powerful new one-shot treatment


for bovine respiratory disease,
Zeleris launched in Europe
®

Bovine respiratory disease (BRD) affects up to 25% of calves in Europe. The disease is the most important
cause of deaths in young stock accounting for 30% of all calf mortality. In May 2017, Ceva was granted market
authorisation by the European Medicines Agency for a new product, Zeleris®. For the first time, this new product
combines a powerful antibiotic, florfenicol, with a long-acting non-steroidal anti-inflammatory, meloxicam.
In the past, treatment of BRD required two separate injections to deliver these two types of medications.
With the advent of combination products, this became possible in one shot. Now Ceva’s new combination
product offers a range of additional benefits to farmers and vets. Zeleris® has already been well received in
Europe. With other marketing authorisations expected soon, the benefits of this important new product will
be extended worldwide.

Bovine respiratory disease affects up to 25% of Europe’s Zeleris® was developed as part of Ceva’s Cevolution Program,
30 million calves. Infected animals usually have a fever and which embodies the company’s commitment to smart,
exhibit coughing due to infection of the lower respiratory tract. responsible innovation in antibiotics:
Pulmonary inflammation can have a long-lasting effect on the antibiotic used is not classified as being
growth rates and liveweight gain. critically important for human medicine.
Zeleris® also offers the advantage of
Zeleris® is the ‘perfect match’, combining an antibiotic well suited ensuring good compliance as it requires
to the treatment of BRD infection (florfenicol) with a long-acting only one injection, displays excellent
non-steroidal anti-inflammatory drug (meloxicam) to relieve syringability and is packaged in
inflammation and reduce fever. Florfenicol, which is not used lightweight and unbreakable CLAS® vials.
in human medicine, is active against the most commonly isolated Finally, it reduces the pain of animals, a
bacterial pathogens involved in BRD, Mannheimia haemolytica, major concern for veterinarians and
Pasteurella multocida and Histophilus somni. producers.

By combining florfenicol, a molecule not used in human medicine,


with meloxicam, a proven and well-used long-acting non-steroidal
anti-inflammatory drug, Zeleris® allows vets and farmers to use a
single-shot product that treats the infection, relieves pulmonary
inflammation and reduces fever. This minimizes the impact of lung
lesions due to BRD, which is important for the future performance
of the calf. The fast action also means that calves resume feeding
quickly to allow resumption of normal growth and development.
Juan Munoz-Bielsa, Ceva ruminant corporate marketing director

50 Ceva Annual Report 2017


Ceva Annual Report 2017 51
Ruminant

One year on, the integration of Brazilian


FMD specialist Inova has gone smoothly
In late 2016, Ceva announced its biggest ever acquisition when it purchased two leading Brazilian biophar-
maceutical companies, including specialist foot-and-mouth disease (FMD) vaccine manufacturer Inova
Biotecnologia Saude Animale Ltda. A major challenge for the year 2017 was to initiate the process of integrating
Inova into the Ceva family of businesses. In fact, the integration process went very smoothly: targets were
exceeded both in Brazil and in the export business. Following the acquisitions, Ceva has now emerged as one
of the top players in the country’s huge cattle sector. Good progress has also been made in preparing for major
changes necessitated by the government’s decision to change the composition of the FMD vaccine during
2018 and to reduce the dose volume in 2019.

Making a success of new acquisitions is often a This is a great achievement


challenging process but integration of the Brazilian for the country and
FMD vaccine manufacturer Inova into Ceva’s rapidly
is the pay-off for an
growing family of businesses went very smoothly during
2017. Not only did FMD vaccine manufacture and effective control campaign
distribution continue without disruption, but targets implemented for more
were exceeded and profitability increased. Ceva’s share than 20 years. This will be
of the country’s FMD vaccine market was a very respec- good for the country’s beef industry because
table 15% in 2017 with Ceva being one of the top three it will demonstrate the serious work done
FMD vaccine producers in Brazil.
and will improve our image as an exporter
Brazil has the second largest cattle herd in the world; country, reducing each time more sanitary
only India has more cattle. Brazil is the world’s largest barriers
exporter of beef, accounting for nearly 20% of global
Fernando Luiz De Mori, Ceva Brazil country manager
exports.
FMD vaccination of cattle is mandatory in Brazil with a The new FMD status will not affect the mandatory
total of more than 332 million doses being administered vaccination of all cattle in the country, at least not
during 2017. The twice-yearly vaccination campaign is for the foreseeable future. And FMD outbreaks during
a huge operation that demands military-style organi- 2017 in countries that border Brazil, such as Venezuela
sation with the vaccine manufacturers and distributors, and Colombia, serve as reminders that FMD virus is
farmers and the government all playing important roles. still in circulation in the region.
Brazil’s FMD control programme has been ongoing for
more than two decades. During 2018, Ceva Brazil faces major challenges due
The year 2018 is expected to see Brazil be formally to the decision by the government to change the
recognised by OIE, the World Organisation for Animal formulation of FMD vaccine used in Brazil. Currently
Health, as being ‘FMD free with vaccination’. the vaccine contains three antigens, A, O and C, but

52 Ceva Annual Report 2017


Ceva Juatuba, Brazil

in 2018 the C antigen will be dropped from the There is very strong political
vaccine formulation. This is being done because FMD support for vaccination
serotype C has not been detected in the country for
against FMD in Latin
more than 10 years. In addition, in 2019, the volume
of vaccine injected is to be reduced from the current
America and we are working
5 ml to 2 ml. closely with governments and
veterinary authorities. There
Looking ahead, Fernando De Mori, is optimistic: is a critical need for high-quality vaccines. With
“Ceva Brazil has already produced some batches of our state-of-the-art production facilities and
the new two-antigen vaccine formulation which
excellent quality control processes we have a
have been approved by the government’s testing
100% record for successful release of all the
program, so we look to be well placed to cope with
producing the new formulations. Going forward, batches of vaccine we have produced.
our objectives are to focus on increasing efficiency Jean-Charles Tissot, Ceva Latin America zone director
of vaccine production and reducing costs, thereby
further increasing profitability. This is more important With the capacity of the Ceva vaccine production facility
to us than simply increasing production volume and at Juatuba in Minas Gerais state standing at around
market share.” 160 million doses there is still potential to increase sales
further, beyond the current total of around 90 million
In addition to sales in Brazil, exports to other Latin doses per year. Jean-Charles adds: “We are currently in
American countries continued uninterrupted the process of registering our vaccine in other Latin
following the acquisition. 40 million doses of vaccine American countries. We are also looking beyond Latin
were sold to Uruguay, Paraguay, Bolivia and America with a view to selling our FMD antigens to vaccine
Venezuela, in line with the prior year’s volumes. manufacturers in Asia.”

Ceva Annual Report 2017 53


Ruminant

reprodAction team leap into action,


helping customers boost herd fertility
The year 2016 was a challenging one for many dairy farmers throughout the world with milk prices at rock
bottom. Fortunately, 2017 saw an upturn in the fortunes of many dairy producers with higher farmgate
prices and a generally more positive market for the sector. During 2016, Ceva’s reprodAction team had
quietly been making preparations for this eventuality. With a strong portfolio of products, dairy farmers
increasingly looking for support, strong commitment from the reprodAction team and a long track-record
in helping farmers improve reproductive management of their herds, in contrast to 2016, 2017 was a very
busy year for the reprodAction team. ReprodAction, which is short for reproductive management in action,
brings together Ceva’s unique ruminant reproduction offering in one coordinated initiative. ReprodAction
is defined by three pillars: our complete range of products, our expertise and our innovative view of ruminant
reproduction. Those three pillars allow us to offer our customers the most complete range of solutions for
ruminant reproduction with the commitment of enhancing overall fertility.

Two key areas of focus for reprodAction are Valla, Technical Manager at Ceva Italy addressed many
management of ‘open’ cows and replacement heifers. technical topics such as: bovine oestrus cycle and
Open cows (animals that are neither pregnant nor synchronization protocols for fixed time-artificial
milking) cost money, they must be looked after but insemination (AI) through use of PRID® Delta ; the impact
are not generating any income. Rapidly identifying of infectious diseases on reproductive performance,
these animals, deciding what to do with them and, focusing on bovine viral diarrhoea virus (BVDV) and
if appropriate, taking urgent steps to get them in calf Coxiella burnetii infections; treatment options and the
is a priority for herd managers. Similarly, managing best way to prevent disease through vaccination with
replacement heifers to ensure they calve at the optimal Mucosiffa® & Coxevac®; and even the management of
time is essential for a profitable herd. heat stress. Overall, the importance of improving
During 2017, the reprodAction team were extremely reproductive performances for the sustainability and
active carrying out an extensive global training program productivity of dairy farmers was emphasised.
for farmers and vets, and Ceva staff. Some highlights Meanwhile, Ceva’s ruminant team in Germany held the
included: first reprodAction Expert Forum in Dusseldorf on the
The first Italian reprodAction Workshop, held in Rome importance of identifying non-pregnant cows as early
in October 2017. Thirty-eight veterinarians, coming as possible after insemination, attended by an invited
from all over Italy, attended a three-day workshop which audience made up of leaders from universities, insemi-
focused on management of reproduction in high nation centres, breeding societies and influential vet
producing dairy cattle. Alessio Valenza and Federico practices. The team also held a press conference and a
Randi, Ceva Global Technical Managers, and Giorgio technical presentation about the anoestrus cow and

54 Ceva Annual Report 2017


the PRID® DELTA success story for a dozen German and Greece attracted 35 vets, while a symposium titled
Austrian journalists representing the most important ‘Reducing the calving interval in 2017’ was attended
farming magazines from Germany and Austria. by 150 Irish vets.
Summing up the achievements of reprodAction during
The ruminant team 2017, Ceva’s Ruminants Corporate Marketing Director,
strongly believes that Juan Munoz-Bielsa said:

the reprodAction forum


and press conference It’s been a good year.
represent important The reprodAction team
milestones in the can feel proud that by
recognition of Ceva as the specialist in helping our customers
cattle reprodAction in Germany and we have also done well
Austria. for the company. The team have shown
Alessio Valenza, Ceva ruminant offer conception manager a strong commitment to the ruminant
During 2017 the busy reprodAction team also organised
reproduction sector and have created a
and ran events in Romania and Bulgaria, and an event very strong presence in the market.
for Spanish vets was held in Rome. A symposium in Juan Munoz-Bielsa, Ceva ruminant corporate marketing director

Ceva Annual Report 2017 55


58 Ceva Annual Report 2017
Companion
animal

Ceva Annual Report 2017 59


Companion animal

“Save the couches” with


FELISCRATCH by FELIWAY ®

Cats are territorial animals and mark their territory to orient themselves. When they scratch, they leave
both visual and olfactory messages, the latter includes the emission of pheromones from their paw pads.
When cats are stressed they tend to scratch the furniture in the house more intensely. More than half of
cat owners complain about this behaviour and often feel helpless to stop it.

FELISCRATCH by FELIWAY® was designed to address Clinical trials have proven that FELISCRATCH by
this concern. The product works by emitting a FELIWAY® effectively reduces or eliminates unwanted
message of both a visual (blue lines) and olfactory scratching on vertical and horizontal surfaces. More
nature, which encourages the cat to scratch at a than 8 out of 10 cats started using their scratching
location chosen by the owner, such as on a scratching posts within 7 days of using the product. It comes in
post rather than the couch. This allows the owner to an easy to use pack of 9 pipettes that are applied once
respect the cat’s natural needs, since the “normal” a day during the 1st week, then once a week during
scratching is not prevented, but simply redirected week 3 and week 4. It is available from veterinarians,
to a suitable surface. pet shops, specialty stores and online retail sites.

60 Ceva Annual Report 2017


The expansion of our FELISCRATCH by FELIWAY has a ®

pheromone range
through innovation and
particularly important role to play in the
marketing excellence, United States to help prevent declawing
is a major growth driver
When it comes to animal welfare, FELISCRATCH by FELIWAY® has a
for our companion decisive role to play in the American market. For years, many owners
animal business. We aim to continue to have resorted to surgery to amputate young cats’ claws; 20 million
develop the calming category, with the cats in the US are declawed. The practice is considered to be
addition of convenient solutions for our unnecessary and harmful by all experts in the field of feline welfare.
customers and their beloved pets to ensure The American Association of Feline Practitioners, which strongly
opposes declawing, suggests pheromone products as one of the
they stay “happy together” , protecting the alternatives to declawing. Ceva has made a number of materials
essential human-animal bond. available to make cat owners aware that declawing can permanently
François Bost, Ceva companion animal corporate marketing director harm cat health and welfare http://www.savethecouches.com

Ceva Annual Report 2017 61


Companion animal

2017: the year of Catego , ®

an innovative and easy to use


feline parasiticide
Cats have an important place in our society, with numbers growing very rapidly in many countries.
As a result the market is also expanding, with owners more and more concerned about their cat’s
health and well-being. With the launch of both FELISCRATCH by FELIWAY® and Catego®, this market
held our full attention in 2017.

Helping to ensure the quality of the relationship This new product is remarkably effective against
between humans and companion animals is one fleas and ticks. It is 97% effective at 3 hours, and
of the 3 priorities set out in Ceva’s vision. Ceva 100% starting from the 6th hour. That’s a feat for
began its focus on the need to add improved feline this class of drugs, which are usually far less
medicines with the introduction of the FELIWAY® fast-acting.
product line, which was enriched this year by the
arrival of FELISCRATCH by FELIWAY®. Catego® not only kills fleas by contact, but also
breaks their life cycle, thus preventing any form
Our companion animal teams have also focused of re-infestation. As for ticks, it is effective even
recent research and development on the introduction before they bite. That is an asset, since we
of parasiticides. In 2017, Ceva USA launched Catego®, know that these parasites are carriers of
the first fast-acting topical against fleas and ticks zoonotic diseases that can sometimes be
specially designed for cats. difficult to treat, such as Lyme disease.

62 Ceva Annual Report 2017


Catego® is suitable for all cats and kittens weighing The launch of this
more than 0.7 kg and over 8 weeks old. The patented innovative product is
applicator tip allows for easy application on the skin
the result of a strong
and minimizes the risk of skin abrasion. Each dose has
a one-month duration of action.
commitment from a
cohesive team that
Catego® has been the subject of digital and television brought together both local and global
advertising campaigns aimed at the general public, which
thinking. But mostly, it is the result of
the close collaboration that we were
have stirred the interest of cat owners by highlighting
its rapid action. The launch of this innovative product is
the result of the commitment of a close-knit team whose able to create with our customers.
work has fired local and corporate imaginations. Shane Fairchild, Ceva US companion animal marketing manager

Ceva Annual Report 2017 63


Companion animal

With DOUXO , Ceva becomes a major ®

player in the dermatology field


Skin conditions such as itching, redness and hair loss are very common, especially in dogs (they
are the second-biggest reason for appointments with veterinarians). Pet owners are very sensitive
to these diseases, because a beautiful coat is viewed as a sign of good health. These skin conditions
can also negatively affect interactions between humans and animals, thus damaging the quality
of family life.

To respond to this situation, the Dermatology team at The Seb line regulates excess fat and controls bad
the Ceva Sogeval Campus developed a unique product odours
line, which takes into account the specific nature of The Care line permits frequent cleaning of the skin
each animal. The DOUXO® range offers not only a and ears
shampoo, but also includes innovative no-rinse solutions
that are easy to use (‘like stroking’): mousses, sprays Having well
(micro-emulsions), impregnated cotton swabs (pads) understood the need
and pipettes (spot-ons).
for well being of
The feline and canine skin barrier is vital in protecting
both animals and
them against penetration by microbes, allergens and
toxins. It also helps to retain water within the body.
their owners, the DOUXO® range
The DOUXO® formulas developed and patented by our
has grown quickly all around the
teams are designed to provide complete protection for world.
the skin barrier ecosystem of dogs and cats. They act Mélanie Bélliard, Ceva companion animal corporate marketing
on four levels: manager - dermatology & antiinfective

The products are now available in 42 countries, with a


The Pyo line helps restore the balance of skin flora
leading position in France and the USA, and have been
The Calm line soothes sensitive skin endorsed by leading veterinary dermatologists.

64 Ceva Annual Report 2017


The success enjoyed by DOUXO in the USA is consistent
®

with our teams’ commitment to serving our customers to promote


animal welfare more effectively
In 2017, Ceva USA sales of DOUXO® grew by 33%. Finally, it is not only necessary for laboratories to
This impressive performance is the result of the develop good products that are easy to use, but also
threefold conviction that motivates our teams: to set up support programs that bring together
veterinarians, animal owners and our teams.
The animal health industry should treat animal welfare
and the quality of human/animal relationships as a The success we have been posting in the United
priority. States is particularly encouraging. It reflects the
efforts our teams have made in committing to this
Veterinarians should be our special partners. process.
Our understanding of health issues reveals their
complexity each day; they are the result of numerous It is a process that is based on the idea that we can
interactions, and that makes it vital for us to partner only achieve success together - in the service of both
with specialists working in the field. human and animal welfare.

Ceva Annual Report 2017 65


66 Ceva Annual Report 2017
Together,
beyond animal
health

Ceva Annual Report 2017 67


Together, beyond animal health

Ceva-sponsored Animal Welfare


awards go global
Since 2012, Ceva has been proudly sponsoring the annual UK Animal Welfare Awards, which showcase,
reward and celebrate the outstanding work that individuals and organisations do to improve animal
welfare.
In 2017, the 8th annual UK awards ceremony went ahead as usual but in addition a brand-new event was held that
year to shine the spotlight on veterinary professionals from all around the world who have provided outstanding
and exemplary welfare-related services. Co-founded with the World Veterinary Association (WVA) and supported
by Ceva, the first global WVA Animal Welfare Awards ceremony was held during the 33rd World Veterinary Congress
in Incheon, Korea. Just like the UK awards, the global awards identified some remarkable individuals and enabled
their inspirational stories of outstanding commitment to animal welfare to be told and celebrated.

The WVA applauds this partnership with Ceva Animal


Health to recognize veterinarians from around the world
for their efforts to improve animal welfare and eliminate
animal suffering. Such recognition is not only important,
it is necessary to bring continued awareness to the benefits
of good animal welfare for animals, people and society.
It is well recognized that good animal care can have far
reaching and positive benefits in a number of areas, including
human physical and psychological health, social development,
poverty and hunger reduction, disaster management and
environmental sustainability.
René Carlson, Immediate past President, WVA

68 Ceva Annual Report 2017


At the center, Marlyn Romero, Colombia
WVA Animal Welfare Awards 2017

I am very proud that as Chairman of Ceva, we are able


to accompany the World Veterinary Association (WVA)
in the creation of these important new awards. As a
veterinarian, I have felt for some time that the profession
needed to bring welfare back to the centre of what they
do. Animals contribute enormous value to our society and
as veterinarians we have a pivotal role to protect their
health and welfare. Through these prizes, we want to
reward veterinarians from around the world who distin-
guished themselves outstandingly in this cause.
Marc Prikazsky, Chairman & CEO of Ceva

Ceva Annual Report 2017 69


Together, beyond animal health

Dr Joseph Othieno, Kenya


WVA Animal Welfare Awards 2017

Winners were selected after thorough vetting of all the Vice President of the British Veterinary Association and
nominees by a WVA committee. One winner was selected has been active in promoting that organisation’s strategy
from each of the six regions covering North America, on animal welfare and promoting the five welfare needs,
Latin America, Europe, Africa, North Africa/Middle East necessary for the physical health and mental wellbeing
and Asia/Oceania. In addition to a certificate, each of animals in the UK’s Animal Welfare regulations.
winner received a monetary award of 5,000 Euros.
Dr Marlyn Romero from Colombia, who was nominated
The 6 winners of the WVA Animal Welfare Awards for for the Awards following her work in Colombia and
2017 Award were: Latin America on research into animal welfare issues,
Dr Joseph Othieno from Kenya, who has raised particularly in slaughterhouses. She has authored
awareness of animal health issues in Kenya through his numerous publications on the subject and is leading
veterinary work and on a wider scale through his a research group looking at animal welfare on the theme
journalism. As well as being a respected veterinarian, of ‘One Health’.
he regularly writes articles on veterinary issues in
Dr Daniel Ventura from the Philippines, who was cited
newspapers and makes regular appearances on
for his work in promoting animal health in his home
television.
country, particularly in the field of veterinary education
Dr Sean Wensley from the UK, who devoted much of and spearheading a steering committee that has
his professional life to the issue of animal welfare. promoted the adoption of a syllabus entitled ’Advanced
He worked on various international welfare projects as Concepts in Animal Welfare’. He has also led a campaign
a young volunteer veterinarian. He is currently Senior called ‘Better Lives for Dogs’ and recently organised a

70 Ceva Annual Report 2017


Dr Sean Wensley, UK
WVA Animal Welfare Awards 2017

mass rabies vaccination day for dogs and their owners management of stray dogs which is a huge problem
in Cebu City, Philippines. in Egypt. He also acted as Chairman of the Egyptian
Professor Johann (Hans) Coetzee from USA, who has Federation for Animal Welfare for four years.
been active in animal welfare for many years, particu-
larly in the area of cattle where he has led research I am delighted and honoured to present
looking at ways of advancing methods to treat livestock here today the 2017 WVA Animal
better. Key examples of his work include co-founding Welfare Awards to six remarkable
the biannual International Symposium on Beef Cattle
Welfare. He has also been involved in work looking at veterinarians from across the world,
the subject of pain management issues in the who are contributing in their daily lives
production of farm animals and has been a regular
to the protection and welfare of various
commentator in the media on these subjects.
species of animals.
Dr Shehab Osman from Egypt, who was nominated
for his work as Chairman of the Cairo Society for the René Carlson, Immediate past President, WVA
Prevention of Cruelty to Animals (SPCA) and for
promoting a variety of animal welfare issues in his Looking ahead, the 2018 WVA Animal Welfare Awards
country and on the international scene. He also advises will be presented during the 34th World Veterinary
Egyptian government departments and health Congress being held in Barcelona, Spain in May. Once
authorities on a number of areas, including the again, Ceva will be proud to support the event.

Ceva Annual Report 2017 71


Together, beyond animal health

Ceva renews its commitment towards


agrobiodiversity alongside the Fondation
du Patrimoine
One of the primary roles of the agriculture is to provide people with enough food to eat that is safe,
affordable and can be produced in a sustainable way. Feeding a global population of around 10 billion
in 2050 is a demanding challenge that will require the development of new practices adapted to the
extraordinary diversity of economic, social and cultural canvases that make up world agriculture.

72 Ceva Annual Report 2017


In this context, Ceva’s vision is to support all forms of rare breeds and their unique genetic heritage: cattle,
agriculture, giving particular attention to: goats, horses, sheep, pigs, poultry, working dogs and
other farm animals.
Animal welfare, a notion that must be a common thread,
no matter what the size or form of agriculture The 5th edition of the prize, organized during the Paris
International Agricultural Show, rewarded 3 associations
Preservation of agrobiodiversity as the major bulwark committed to preserving regional livestock breeds: Sasi
of our ecosystem’s protection. Ardi Sheep from the Pyrenees (1st prize), Moka Cattle
These 2 reasons explain Ceva’s long-standing from Reunion Island (2nd) and Boulonnais Sheep from
commitment to the “Fondation du Patrimoine National the north of France (3rd). The judging panel also decided
Animal Agrobiodiversity Prize” under the patronage of to award an exceptional Grand Prix d’Honneur to the
Pas Bête la Fête Association, the organizers of the
the French Ministry of Agriculture, first awarded in 2012.
Nantaise Cattle and Local Breeds Festival, to encourage
The annual prize recognises the original actions of their efforts in the protection, awareness and promotion
farmers or associations to preserve and promote French of rare breeds.

Ceva Annual Report 2017 73


Together, beyond animal health

Far from home: traditional French mountain


cattle breeds help boost milk production in
West Africa
Since 2015, Ceva received a grant from the Bill and Melinda Gates Foundation to train vets and boost dairy and
poultry production and health in Bangladesh and Burkina Faso. The project in Burkina Faso aims to improve
milk production of the local zebu cows by crossbreeding them with a suitable dairy breed, taking advantage of
Ceva’s world-beating expertise in the management of cattle breeding.

Burkina Faso, like other West African countries, has lots While crossbreeding has no impact on the milk yield of
of cattle but locally produced milk is sufficient to meet the inseminated cow, crossbred calves that are born
only about 10% of local demand. As a result, fresh milk following AI will inherit characteristics from both parents,
can often be hard to find, prices are high and the country including for females the potential for higher milk yields.
spends around USD 20 million a year on imports of Since 2016, Ceva has been applying its expertise in
powdered milk and other dairy products. managing reproduction in cattle in a project seeking to
boost milk production in Burkina Faso. The aim is to
One reason for this milk produce 1200 female and 1200 male crossbreds.
deficit is that the vast The choice of breed for the donor bulls is critical. Perhaps
majority of Burkina Faso’s surprisingly, the breeds selected for crossing with the
cows are low-yielding, Burkinabe cows in the project are two traditional French
zebus, typically producing breeds, the Tarentaise and Montbéliarde. The Tarentaise
up to 2-3 litres of milk per day. In compa- was originally bred in the Tarentaise valley in the French
Alps, while the Montbéliarde originated in the mountain
rison, in industrialized countries, average valleys and foothills of the Franche-Comté region, close
production from dairy breeds is around to the Swiss border. Although both breeds originated in
40 litres a day. On the plus side, however, areas a long way away from Burkina Faso, both have
the local zebu is very well adapted to the characteristics which make them very well adapted to
harsh local environment. the local environment and farming system.

Marie Ducrotoy, Ceva project manager Public Health The Ceva team travelled to Burkina Faso in late 2016 to
lay the foundations for the ‘Vache du Faso’ project. This
One solution to Burkina Faso’s national milk deficit is to involved mobilizing the Fula pastoralists and providing
training for the local AI technicians.
crossbreed the low-yielding local cows with more
productive dairy breeds. The most convenient way of Building on Ceva’s expertise in the management of
doing this is through artificial insemination (AI), using reproduction in cattle, the first step was to use Ceva
semen from carefully selected bulls from a suitable breed. products to synchronise the reproductive cycles of cows

74 Ceva Annual Report 2017


selected for the project – the very best local zebus. This local zebus. Furthermore, in a country with a chronic
meant that all the cows could be inseminated at the shortage of fresh milk, there is a market for any surplus
same time using imported semen from Tarentaise or milk not consumed by the family.
Montbéliarde bulls..
Whilst the target of producing 1200 crossbred females is
The first batch of 400 synchronised cows was inseminated impressive,the real challenge is maintaining the advantages
in November 2016; half of those not pregnant were of these superior dairy genes in the future – which is where
re-inseminated in January 2017, resulting in 210 many previous initiatives in Africa have failed. It is therefore
pregnancies. This conception rate of over 50% is consi- essential that a very clear genetic exit strategy is established
derably higher than the 30% usually achieved locally. before the end of the project and that the necessary training
Nine months later, in August 2017, the first crossbred and groundwork has been undertaken to ensure a healthy
calves were born: 45 singletons and 3 sets of twins population of cattle can be maintained in the future,
amongst the first batch to be born.The female calves benefiting from the genetic heritage of both the local zebu
will join milking herds after they themselves have a calf. and exotic dairy breed.
The males will be fattened and sold for meat.
A further 239 cows were inseminated between May and
July, this time in peri-urban farms around Bobo Dioulasso,
In 2015, Ceva received a grant from the Bill & Melinda Gates Foundation
the country’s second largest city.
to roll out three targeted development projects corresponding to Ceva’s
Another batch of 500 cows was inseminated during five area of expertise and the foundation’s strategy to make smallholder
hectic days in September 2017 – a very impressive feat livestock more productive, improve nutrition and empower women
achieved under difficult field conditions, only made farmers.
possible by the strong team spirit that developed
These projects include initiatives to boost health and production in the
throughout the year as well as the training rolled out
poultry and dairy sectors in Burkina Faso and Bangladesh over three
the previous year.
years. Ceva is proud of its partnership with the Bill & Melinda Gates
For the Fula herders and their families, a conservative Foundation which supports Ceva’s commitment to work together
estimate suggests that the crossbred cows in Burkina beyond animal health through feeding the world, tackling zoonoses
Faso will generate double the income compared to the and strengthening the human animal bond.

Ceva Annual Report 2017 75


Together, beyond animal health

Ceva develops multiple partnerships to offer


health and livestock breeding professionals
programs tailored to their needs

Pierre-Marie Borne, Ceva’s Director of Public Health, Zoonoses and Food Safety at Ceva, was recently
a guest speaker at the World Conference on Quality Assurance in Veterinary Education, organized as
part of the 33rd World Veterinary Congress held in Incheon, South Korea in August 2017.

During his talk, Pierre-Marie explained that despite their many differences, private companies like Ceva and academic
institutions such as veterinary schools have synergistic roles to play in enabling the continuing professional
development of veterinarians. By working together, he suggested, the private and public sector could help enhance
the veterinarian’s contribution to the important fields of food safety and security, disease control (including zoonotic
diseases), human-animal relations and animal welfare.

One Health means approaching things through diverse of Veterinary Sciences. This training cycle gave thirty
sanitary, economic and social contexts. This is the basis veterinarians the opportunity to acquire or reinforce
behind Ceva’s “Together, beyond animal health” social their abilities to help small independent farmers better
vision, which engages the company to do much more manage their farms in regard to sanitary conditions.
than simply develop effective medicines. Pierre-Marie
Early results were very encouraging, and have led us
explained to delegates how the company’s combined
to continue this type of commitment, as we did recently
offer of highly-specialised tools and manuals and
in Bangladesh, where malnutrition rates are among the
highly-practical training opportunities was playing a
world’s highest. It is estimated that 41% of children
vital role in enhancing vet’s skills, knowledge and
under five there suffer from stunted growth. Poultry
competencies, building on their initial training and
production is their primary source of animal protein.
professional experience.
Such production however is carried out in a difficult
Speaking immediately after the Conference on Quality epidemiological environment, and, although the sector
Assurance, Dr René Carlson, World Veterinary Association is organized in regard to reproduction, the rearing of
Immediate Past President, said: “Ceva has been extremely broilers is mainly the work of independent small farmers,
supportive of animal welfare as well as veterinary who have limited access to specialized veterinary skill
education and I think that their approach provides an in the field.
opportunity for veterinarians around the world to take
To remedy this situation, Ceva, in partnership with
their basic competencies to advanced levels and really
the Bill and Melinda Gates Foundation, the National
serve public health.”
Veterinary School of Maisons-Alfort, and the College
Thus in 2015 in Myanmar, Ceva created a training cycle of Veterinary Medicine of the Sher-e-Bangla Agricul-
for poultry veterinarians in partnership with the National tural University of Dhaka, decided to organize intensive
Veterinary School of Alfort and the Nay Pyi Taw College courses that would combine theory and practice,

76 Ceva Annual Report 2017


while raising farmers’ awareness of livestock health Europe: Ceva launched its «Guide for the Rational
management issues. The possible benefits that are use of Antimicrobials» (GRAM), a practical, compre-
emerging are quite significant, with estimates that hensive, and easy to use guide to help combat the
these programs will help reduce the mortality rate of development of resistance to antibiotics in companion
broilers, now in the range of 10 to 15%, below the animals. This guide, comprising 550 pages, was
5% mark. This has been a fruitful approach, and is developed by an independent panel of 10 experts
now to be pursued in Ethiopia, where courses will
from 7 European countries.
soon be offered in a partnership with the National
Veterinary School of Toulouse (ENVT).
France: A partnership with Sanders, a major French
We are convinced that a comprehensive approach to
animal feed company, to develop and supply Indic@
preventative health must involve the development
Vet, a new tool to monitor the use of antibiotics in
of these types of partnerships on all continents. Some
of our other programs include: animals and evaluate the actions taken to reduce the
use of these products.
Burkina Faso: where Ceva has created specialized
training for veterinarians and artificial insemination
technicians within the framework of the Vache du Argentina: The Ceva Business Program was imple-
Faso project. The project aims to stimulate milk mented to encourage our customers who are
production by crossing local zebu cows with carefully veterinarians to adapt to changes and new techno-
selected traditional French mountain breeds and is logies and develop new tools to deal with their
also supported by the Bill & Melinda Gates Foundation. customers in this new era.

Ceva contributes its specialized technical knowledge, with a focus on practical


operational and field-oriented aspects as well as its knowledge and close connections
to the markets. The academic partners contribute their technical knowledge and
expertise in the design of courses, content and teaching methods. They can also
verify and supervise courses to ensure the quality of the training products. The end
result is a much stronger, more relevant and better-quality training experience than
any of the parties could provide on their own, which is pretty close to the definition
of synergy given by the dictionary.
Pierre-Marie Borne, Director of Public Health, Zoonoses and Food Safety

Ceva Annual Report 2017 77


Together, beyond animal health

Ceva’s continuing support helps


Indian animal welfare charity
to achieve more

Charities the world over face a constant struggle to raise the funds they need to enable them to fulfil
their charitable purposes. It’s no different for TOLFA, an animal welfare charity, registered in the UK
and India with its operational base in Rajasthan, Northern India. But thanks in part to carefully targeted
and ongoing support from Ceva, TOLFA’s fund raising operations and other vital back-office functions
have gone from strength to strength. This means that more animals in need are being treated and
more people are being educated about kind and safe interaction with animals.

TOLFA, short for Tree of Life for Animals, has a big vision: programme and 5,358 pets treated at its veterinary
‘to bring healing, compassion and hope to India’s sick clinic. In addition, 1,329 school pupils were taught its
and injured animals, and empowerment to the commu- animal welfare and rabies awareness syllabus.
nities of which they are a part.’ Ceva’s relationship with TOLFA dates back to 2012 when
It brings its vision to life by running a busy animal Rachel Wright, TOLFA’s founder, was recognised as the
hospital and rescue centre for owner-less animals that Welfare Nurse of the Year in the inaugural Ceva Awards
reside on India’s streets; through a rabies eradication for Animal Welfare. Since then the company has provided
programme based on neutering and vaccination of financial, practical and moral support to the charity.
owner-less dogs; by helping local villagers care for their During 2017, the focus has been on helping TOLFA be
animals; by operating a vet clinic for pet owners; and more effective in its fund raising so that it can concen-
by teaching children how to become kind and compas- trate on helping more animals and engaging with more
sionate members of society and take care of not only communities.
the animals in their locality but to be considerate to
Ceva’s support during the year included contributing
the environment and other human beings as well.
towards the salary of Clara Nowak, TOLFA’s executive
TOLFA’s achievements during 2017 were impressive: director in the UK, providing access to a specialist donor
5,967 animals admitted to its rescue centre and hospital, management software package and directly sponsoring
22,497 animals treated through its rural outreach printing of fundraising calendars and greeting cards.

78 Ceva Annual Report 2017


Ceva’s support has made a real
difference. Compared to 2015, our
grant income in 2017 increased by
more than 90%. A single social media
campaign, focused on maggot-infected
dogs during the post-monsoon season
when the risk is especially high, raised
in just two weeks enough money to
directly help 180 dogs.
Clara Nowak, TOLFA’s executive director in the UK

Ceva Annual Report 2017 79


Together, beyond animal health

Ceva’s US Team helps animal shelters


through 2 major hurricane disasters
The state of Florida was hard hit when Hurricane the hurricane hit, the local Ceva team reached out
Irma hit at the end of August and many residents to state veterinary medical associations, shelters and
were forced to evacuate without their animals. Ceva’s clinics with information on what could be provided
rapid response team distributed, pheromones, and how to stay in touch as the storm came ashore.
parasiticides and dermatology products throughout This made it much easier to mobilize donations as
the southeast. soon as the weather improved. While distributing
supplies for Hurricane Harvey relief, Ceva employees
Lessons shared by the Texas based team during heard time and time again that they were the first
Hurricane Harvey helped the team in the Southeast animal health company to deliver supplies into the
proactively prepare to respond to the storm. Before area in south Texas most devastated by the hurricane.

80 Ceva Annual Report 2017


Our entire team pitched in to ensure we were in a position to help.
Many customers and shelters told us we were the first to offer support
and the first to arrive with product to help their efforts. The clean-up
from this storm will continue for months and we have plans in place
for a sustained relief effort.
Jeff McCaughey, VP of Companion Animal Sales

The hurricanes came through regions where heartworm disease


is the most common in the U.S. To help prevent the spread of
the disease, Ceva provided doses of Vectra 3D® to prevent the
spread of heartworm disease during transportation and in
shelters taking in these displaced animals. Ceva also worked
with relief agencies to produce new guidelines to reduce the
possibility of heartworm disease transmission when transporting
animals. These guidelines have subsequently been approved
for all emergency situations, with the recommendation to
immediately treat dogs coming into a shelter’s care with an
appropriate topical parasiticide.

Ceva Annual Report 2017 81


Together, beyond animal health

Ceva embarks on a
major new partnership
with Dogs for Good

Living up to its Together, beyond animal health’ vision, Ceva has recently embarked on a major new
long-term partnership with the UK charity Dogs for Good. The charity enables adults and children
who live with a wide range of physical and mental health issues to live more fulfilling and independent
lives through carefully planned interventions with dogs. This exciting new partnership will see Ceva
provide financial, practical and moral support through a coordinated programme that aims to help
Dogs for Good transform the lives of even more people in the future.

For 30 years Dogs for Good has For people to meet their responsibilities
brought greater independence and and understand the role of the dog as a
companionship to many people companion and co-worker they need to
through partnerships with highly have the most up to date information
trained assistance dogs. Building on
covering the basics of healthcare,
their experience of training and
socialisation, behaviour, social networks and canine
working with assistance dogs over
cognition amongst other topics. We have a growing
responsibility to provide this information within our
the years inspired them to explore
own sphere of operation but it is clear that the information
other ways dogs can help individuals,
would be of interest and value to the wider world of
families and communities. Today
those living and working with dogs. Those searching
Dogs for Good uses creative and for this information can find a plethora of fragmented
inspiring partnerships between and disjointed sources of information which are usually
people and dogs to meet the diverse slanted to reflect the interests of the providers. While
needs of those with physical disabi- an excellent information service concerning cats is
lities, learning disabilities, autism, provided by International Cat Care, no such database
dementia and those living the of information, pulled together and accessible in one
after-effects of stroke and other place, currently exists for dogs.
debilitating diseases. Peter Gorbing, Chief Executive of Dogs for Good

82 Ceva Annual Report 2017


To kick-start our new University of Lincoln for a three-year research project
partnership, in December investigating how dogs can affect children with autism

2017 Ceva made a and impact on the family unit as a whole. The University
of Lincoln’s Dr Daniel Mills, who specialises in animal
donation to enable Dogs behaviour and in exploring the potential benefits of
for Good to start work on keeping animals, is an old friend of Ceva.
its ambitious programme of work to
The ground-breaking study, led by Dr Mills, confirmed
establish the charity as the ‘go to’ source that pet dogs can have a highly positive effect on
of trusted, authoritative information on autistic children and the whole family unit. Some of
all aspects of dogs. Our investment has the findings from the study, for which 500 dog owning
enabled work to begin on pulling together families with autistic children were surveyed, included:
and packaging the information Dogs for 85% reported their child was happier in the presence
Good already has available, identifying of the family dog
and addressing gaps, and making this 60% reported their child was less likely to have a
information available in accessible and meltdown
engaging ways through a well-designed of 62 families tracked before and after they got a dog,
online platform. 69% of parents showed reduced stress levels within
Martin Mitchell, 10 weeks of getting their pet
Ceva group communication director
The project’s research findings provided a solid
But for Martin that is just the start: “For some years foundation on which Dogs for Good built their Family
now Ceva has been a passionate advocate of human- Dog Service. The result is that the charity has been
animal relations. Dogs for Good epitomises the concept able to support many more families with a child with
of the human-animal bond in practice so I am really autism: while Dogs for Good has provided around 80
excited about working with them in the coming years. fully-trained assistance dogs, they have helped some
The support they provide to individuals and families 800 families benefit from pet dogs through their Family
affected by a wide range of health issues is awe inspiring Dog Service.
but as a company we are especially keen to support
Children with autism tend to be anxious, can be
their pioneering work with families with autistic
withdrawn, often display repetitive behaviours and
children.”
are prone to ‘melt-downs’ when they become
One way that Dogs for Good provide support to families overwhelmed by their surroundings. The presence of
with a child with autism is by providing fully-trained a well-trained pet dog can help them feel much less
assistance dogs. These dogs can make a huge difference anxious, encourage them to become more engaged
to the lives of families with a child with autism but and motivated, can disrupt repetitive behaviours and
training the dogs takes nearly two years and is expensive generally promotes a calmer environment that benefits
meaning only a limited number of families can benefit. the whole family both in the home and outside.

Ten years ago, the charity began to realise that perhaps Going forward, one area in which Ceva hopes to support
not all children with autism needed an assistance dog; Dogs for Good is in developing an online learning
simply having a well-trained pet dog in the home resource so that even more families with a child with
might also be beneficial. Dogs for Good therefore autism can enjoy the benefits that a carefully chosen
teamed up with the National Autistic Society and the and properly trained and managed pet dog can bring.

Ceva Annual Report 2017 83


Together, beyond animal health

After success with assistance dog Lola,


Ceva Australia is keen to extend partnership
with Assistance Dogs Australia
In 2016, Ceva Australia committed to sponsoring the training of an assistance dog in partnership with
Assistance Dogs Australia. From the outset, Ceva staff were fully onboard; they held a competition
for the honour of naming the golden retriever pup – the winner chose Lola – and closely followed
progress throughout the two-year training period and beyond. Now fully trained, Lola has a full-time
role as an assistance dog at North Gosford Training Centre, a special school that caters for children
aged 10-16 years with a history of behavioural difficulties or emotional disturbances. Proud of the
part they have played in enabling Lola to be trained, Ceva Australia is now looking for ways to extend
its relationship with this inspiring charity.

Since 1996 the charity Assistance Dogs Australia has We chose Assistance Dogs
been training and making available assistance dogs to
because it was nicely in
people living with a wide range of disabilities, thereby
providing them with greater freedom and independence. line with Ceva’s focus on
To date, over 200 dogs have been provided by the human-animal interaction.
charity, entirely free of charge, to both individuals as
Chris Abbott, Ceva Australia & New Zealand country manager
well as care institutions and special schools. With each
dog costing over AUD 35,000 (USD 27,500) up to the
point it is placed with its new owner, Assistance Dogs
relies entirely on donations to fund its vital work.

84 Ceva Annual Report 2017


Lola’s role at North Gosford is supported by many studies Mother dogs communicate with their puppies through
that have shown that a dog in the classroom at special natural messages released into the air. These “comforting
schools can provide significant benefits including offering messages“ are scientifically called Dog Appeasing
emotional support, recognising signs of anxiety and helping Pheromones. These canine odorless messages are only
improve concentration and communication skills, as well perceived by dogs, not people or cat and provide a
as reducing the incidence of antisocial behaviour and strong signal of security and comfort to puppies and
bullying. dogs of all ages.
Spurred on by Lola’s success and proud of the impact she Adaptil® helps dogs feel calm and relaxed at all times,
has had on the children’s lives, Ceva Australia is now looking especially in challenging situations.
at ways to extend the journey they have begun

We will certainly sponsor another dog, but


we are also talking to Assistance Dogs about
how we can maybe help them use Adaptil®
to support the training and help with some
of the stress these dogs encounter during
their day-to-day lives.

Ceva Annual Report 2017 85


Together, beyond animal health

With the launch of VERYL® and VerYDiag , ®

Ceva continues to lead innovation in the fight


against trypanosomosis, an endemic disease
which deprives Africa of precious food resources

The parasitic disease trypanosomosis, spread in Losses due to the disease in


Africa by biting tsetse flies, is a major constraint Africa alone are estimated to
to cattle production. Losses due to the disease in
Africa alone are estimated to exceed USD 1 billion
exceed USD 1 billion a year, a
a year and the disease also impacts on cattle loss difficult to accept in a region
production in South America. with close to 250 million under-
Unusually for an international animal health company, for more than a decade
nourished people
Ceva has steadily invested in research and development which has led to the Thomas Palliargue, Ceva ruminant marketing
launch of a wide range of products to help vets and cattle keepers in Africa and technical director for AMEET zone
and South America fight back against this disease. In mid-2016, this included
the launch of the first-ever penside test for trypanosomosis, VerYDiag®.
Eighteen months later, VerYDiag® has been well received by vets, NGOs, animal
health institutions and farmers. And Ceva’s R&D pipeline continues to deliver.

86 Ceva Annual Report 2017


Ceva introduced a new The launch of this innovative product
combination product, VERYL ®

in 2017 follows the introduction


which simultaneously treats of VerY Diag in 2016 ®

cattle for trypanosomosis and Having available the latest innovative treatments such as VERYL® is one thing,
internal parasites. but making the correct diagnosis under field conditions in Africa, where several
similar bloodborne diseases can affect cattle concurrently, is much more complex.
VERYL® is a unique formulation that combines a
That’s why, Ceva’s introduction of the VerYDiag testkit marked a significant step
tried and tested drug to treat trypanosomosis,
forward in the control of this major disease. The kit was the result of several years’
diminazene aceturate, with a medication used to
of collaborative research with a number of expert partners: GALVmed, CIRAD
treat parasitic worm infections, levamisole.
and the University of Bordeaux.
Animals infected As Cyrille Chevtzoff, Ceva’s Ruminant Vet Service Manager for Africa, Middle East,
with gastrointestinal Eastern Europe and Turkey Africa, explains: “Not only is VeryDiag® the first penside
parasites are often test for trypanosomosis, it is the first commercially available penside test for any
much more susceptible livestock disease in Africa, so this is a big step forward. We are therefore introducing
to trypanosome infec- a totally new concept to our veterinary colleagues in Africa and we are still in the
promotion phase. But already there is a lot of interest in the product and it has
tion and show greater clinical signs been very well received.”
as trypanosomes reduce immune
responses. After extensive research VeryDiag® needs just one drop of blood, requires no specialist equipment or
knowledge, and gives a definitive result in around 10 minutes.This allows
and development, Ceva has therefore professionals to prescribe the appropriate treatment and is especially important
introduced this exciting new combi- in helping cattle owners to recognise symptoms of the disease before the clinical
nation product that offers exceptional signs appear.
efficacy against both trypanosomes One enthusiastic advocate of the new test is Dr J. Henri Pell-Minhiaud, the president
and gastrointestinal parasites. Treat- of the association of private veterinary practitioners of Ivory Coast:
ment with VERYL® eliminates the
For my part, I believe that the approach to
parasites and stimulates the immune
the diagnosis of bovine trypanosomiasis in
system enabling infected cattle to
the field with VerYDiag® is revolutionary
recover more quickly and return to
and should be adopted by veterinary practi-
full productivity.
tioners as it has many benefits.
Cyrille Chevtzoff, Ceva ruminant vet service manager Dr J. Henri Pell-Minhiaud, President of the association of private veterinary
for AMEET zone practitioners of Ivory Coast

VerYDiag , a diagnostic kit opening up new horizons….


®

Since its introduction in 2016, we now have some great examples of how the test has been used in different countries:
In Burkina Faso and Mali, where a cattle genetic improvement programme is underway. Infection with trypanosomes, the parasites
that cause trypanosomosis, can reduce fertility. So, before cows are inseminated with semen from carefully selected bulls of improved
breeds, VerYDiag® is used. Any cows which test positive are treated with a trypanocidal drug, such as Veriben®, before artificial
insemination (AI) is carried out.
Previously, in some regions of Senegal and Cameroon it was thought that trypanosomosis occurred only at some times of the year.
Careful testing with the VerYDiag® has revealed, however, that cattle can be infected throughout the year. This finding has enabled
vets and herders to treat their animals earlier, before clinical signs are obvious, thereby minimising any reduction in productivity.

Ceva Annual Report 2017 87


Together, beyond animal health

Avian Flu: a growing challenge for Africa


Highly pathogenic avian influenza (HPAI) was first reported in Africa in 2006 but the number of
reported outbreaks in poultry started to rise in 2015 with a sharp increase in 2017 – from just
2 reported outbreaks in 2013, to 71 reports in 2015 and 216 in 2017. The vast majority of Africa’s
poultry are in small backyard, village and semi-commercial flocks, although these often coexist
alongside large, ultra-modern poultry farms, making effective control of the disease very difficult.
The situation is exacerbated by technical, logistic and financial challenges facing most African
countries. Maintaining ongoing disease surveillance, ensuring effective biosecurity and movement
control measures are in place to prevent and contain outbreaks, and undertaking effective culling,
decontamination and restocking operations when outbreaks occur are all an ongoing struggle.

88 Ceva Annual Report 2017


Ceva already works closely with governments in countries in which HPAI is
endemic, such as Egypt, where vaccination can officially be used, helping to ensure
that effective vaccination programmes are in place. We are also ready to work
with other governments and regional and international authorities to help explore
how vaccines might be used in non-endemic countries alongside other methods
of control. We believe such an approach could help safeguard human life and protect
the poultry industry from crippling economic losses and hard-pressed state veterinary
departments from unaffordable costs, without impairing effective disease monitoring
in support of the eventual aim of eradicating this devastating disease.
Bertrand Le Tallec, Ceva poultry director for AMEET zone

Since 2006, the H5N1, H5N2 and H5N8 strains of HPAI have been vaccinate against low pathogenicity avian influenza (LPAI) to protect
officially reported in Benin, Burkina Faso, Cameroon, Côte d’Ivoire, breeders and commercial layers. There are also reports that,
Democratic Republic of the Congo, Djibouti, Egypt, Ghana, Libya, unofficially, vaccination is being used in another country’s
Niger, Nigeria, South Africa, Sudan, Togo and Zimbabwe. In addition, commercial poultry sector against LPAI – vivid evidence of farmers’
the H7N1 strain has been reported in Algeria in 2016 and 2017. disarray in the face of avian influenza.
During 2017, strains of HPAI were confirmed in 12 African countries Control of HPAI in Africa depends largely on surveillance and
spanning North, West and Central, East and Southern Africa. biosecurity and, in the event of an outbreak, movement controls,
Confirmation of the H5N8 strain in Uganda in 2017 is the first quarantine, culling and decontamination.
confirmed case in East Africa representing a potential threat to the
In October 2017, Reza Bentaleb, Africa Poultry Business Unit
large poultry industry in the region.
Manager, took part in Poultry Africa 2017, an expo and leadership
In Egypt, the World Health Organisation (WHO) report that one conference, held in Kigali, Rwanda. There he shared Ceva’s
person died as a result of infection with HPAI (H5N1) in 2017. insights into the changing face of avian influenza and the role
Previously in Egypt, over 120 people have died from H5N1 with that new vaccine technology could play in being part of the
the peak occurring in 2015. The disease is considered to be endemic solution for Africa’s poultry industry, if this approach was officially
in the country’s poultry flocks. Other than Egypt, fortunately there sanctioned.
have been no other reported human deaths due to HPAI in Africa
since 2007, when a single case fatality was reported in Nigeria. Avian influenza has changed
In addition to threats to human life, these HPAI outbreaks have during the past few years. It is
resulted in significant losses due to poultry deaths, culling and now caused by more types of
impacts on trade, and unquantified impacts on people’s lives and virus and is present in more
livelihoods.
countries. The risk is much
During 2017, South Africa was particularly severely impacted by higher than before, so now is perhaps the time
HPAI. Outbreaks of the H5N8 strain were reported in commercial to discard old dogmas and adapt to the new
chickens, commercial ducks, ostrich, wild birds and in hobby and
backyard poultry throughout the country, including Eastern Cape,
situation.
Free State, Gauteng, Kwazulu-Natal, Mpumalanga, North West and Reza Bentaleb, Ceva poultry business unit manager for Intertropical Africa
Western Cape. In the Western Cape, more than 2 million birds have Ceva’s new generation vector vaccine - Vectormune® AI - offers real
been killed or culled due to HPAI during 2017 with the economic advantages over previously available inactivated whole virus vaccines.
impact estimated to exceed R800 million (USD 70 million). It provides strong protection against a wide variety of H5 type HPAI
With the exception of Egypt, vaccination is not currently allowed viruses, overcomes maternally-derived antibodies and so can be
against HPAI in any African country. Algeria, Tunisia and Morocco reliably used in the hatchery.

Ceva Annual Report 2017 89


Together, beyond animal health

Ceva US continues its work with public health


authorities to prevent the spread of a heartworm,
a disease causing sudden death in dogs

During 2017, the U.S. team continued spreading the Double


Defense® message to help veterinarians and consumers
understand the benefits of using Vectra 3D®.
The Double Defense® approach uses a monthly macrocyclic
lactone to prevent adult worm development inside the dog
as well as Vectra 3D® to kill and repel mosquitos. This approach
fights both vectors involved in the spread of heartworm and
the parasite that causes the disease. In Dr. John McCall’s
research, using Vectra 3D® was shown to be significantly
more effective in preventing the spread of heartworm than
relying on a macrocyclic lactone alone.

90 Ceva Annual Report 2017


Sales Force Expansion Heartworm Prevention Guidelines
The states surrounding the Gulf of Mexico and the During 2017 several U.S. associations also revised their guidelines
Mississippi Delta have the highest incidence of to recommend a Double Defense® approach.
Heartworm in the United States. Many cities and
The Companion Animal Parasite Council (CAPC) revised its
counties in the region reported more than 100 cases
heartworm guidelines and introduced the first ever Mosquito
per clinic. To promote the Double Defense® approach,
Control guidelines. Both documents include information about
this region became the focus of marketing efforts
the importance of killing and repelling mosquitos to prevent
during 2017.
vector borne disease.
Additional territory managers were added in the
The American Heartworm Society (AHS) introduced relocation
Gulf Shores Region to increase Ceva’s ability to work
guidelines during the hurricane season to help shelters reduce
with veterinary clinics in this region. Additionally a
the risk of infecting dogs they were receiving as well as with dogs
strong advertising and public relations campaigns
they were transporting out of affected areas.
were also conducted to communicate the impor-
tance of using a bimodal approach. The Mosquito Guidelines and Transportation Guidelines
recommend using a topical parasiticide containing dinotefuran,
These efforts combined to result in strong
permethrin and pyriproxyfen. When hurricanes hit Texas and
momentum for the brand. Vectra 3D® dispensing
Florida, Ceva donated 11,000 doses of Vectra 3D® to shelters in
was up 13% in the region.
the areas hardest hit to reduce the potential spread of the disease.
The team also worked with AHS to ensure shelters in the disaster
zones were aware of and followed these guidelines and
immediately treated dogs with a topical moxidectin or Vectra
3D® as they were brought into rescue centres.

Ceva Annual Report 2017 91


92 Ceva Annual Report 2017
Financial report

Alain de Woillemont,
Group CFO

In 2017, the Ceva group saw another year of double-digit tunity to continue our R&D and industrial investment
growth, exceeding the symbolic watershed of €1 billion efforts. In certain higher-risk countries, we have also
in revenue, which will enable us to increase our invest- secured a significant portion of our liquidity.
ments and take advantage of economies of scale.
To maintain our growth and strengthen our profitability,
The strategic acquisitions made at the end of 2016 and we have launched several performance-driven excel-
the beginning of 2017 contributed to growth in turnover lence initiatives at all levels of the business (not only in
totaling 14%. Growth in turnover at constant scope our plants, but in support functions as well). The work
came to 6%, including a negative impact of 3% due to we have undertaken, through the program entitled
exchange rate fluctuations. Despite these fluctuations, “Quantum: From Data to Value” , will help us to achieve
we should emphasize that all our species and geographic greater data security and harmonization starting in
areas posted solid growth. 2018. This will undoubtedly help make our decision-
The group’s operating income was up more than 30% making processes even more efficient.
on 2016. This confirms, once again, our ability to
The steady progress in our results confirms the
integrate acquisitions, deliver on our commitments
robustness of Ceva’s business model. We have business
and advance our profitability. On this last point, the
today in more than 110 countries, and our expertise is
improvement of our financial ratios is the happy
recognized worldwide. The effort we put into maintaining
consequence of the positive trend in our product mix
our ability to innovate and operate flexibly, while
and the economies of scale we are making.
maximizing our collaborative work as an ecosystem,
The group’s other financial priority is still to generate are the best drivers of success in an increasingly complex
and secure our cash flow, which will give us the oppor- environment.

Ceva Annual Report 2017 93


Key figures (M ) *

Turnover for the year totaled €1099 million in 2017, + 20% compared to €912.3
million in 2016 and + 9% at constant scope and exchange rates.
Operating profit rose by nearly 31%, to €205.2 million, compared to €156.9 million in 2016.
At constant exchange rates and scope, the Group’s operating profit grew by +17.5%.

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

Sales Operating profit


Sales I Sales annual increase in % Operating profit/Sale I Operating profit Growth

2015 856.4 M€ 11.9% 2015 129.6 M€ 15.1% I 9.1%

2016 912.3 M€ 6.5% 2016 156.9 M€ 17.2% I 21.1%

2017 1 099.0 M€ 20.5% 2017 205.2 M€ 18.7% I 30.8%

Research & development EBITDA


R&D*/Sales I Growth in R&D spend EBITDA/Sales I EBITDA Growth

2015 77.8 M€ 9.1% I 10.7% 2015 150.0 M€ 17.5% I 8.9%

2016 77.6 M€ 8.5% I -0.3% 2016 179.4 M€ 19.7% I 19.6%

2017 92.8 M€ 8.4% I 19.6% 2017 238.8 M€ 21.7% I 33.2%

* Excluding capitalised R&D, which if included brings this figure close to 10% of sales.

Investments (M€)
2015 2016 2017

Property, Plant and Equipment Investments 38.8 47.5 65.3

Intangible Investments 21.1 25.6 25.1

Financial Investments 7.3 194.1 165

Total Investments 67.3 267.2 255.5

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

94 Ceva Annual Report 2017


Financial Structure
Capital employed (M€)
Fixed Assets WCR (Working Capital Requirement)
Other Current Assets & Liabilities
2015 520.0 M€ 2015 146.6 M€
2016 788.5 M€ 2016 168.4 M€
2017 975.5 M€ 2017 205.9 M€

Total capital expenditure


2015 666.7 M€
2016 956.9 M€
2017 1 181.4 M€

Financing (M€)
Stockholders’ Equity, Group Share Net Debt
2015 256.1 M€ 2015 367.4 M€
2016 318.1 M€ 2016 566.4 M€
2017 349.8 M€ 2017 698.1 M€

Minority Shareholders Total Financing


and other long term liability
2015 43.2 M€ 2015 666.7 M€
2016 72.5 M€ 2016 956.9 M€
2017 133.5 M€ 2017 1 181.4 M€

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

Ceva Annual Report 2017 95


Sales and operations
activity per zone
M€ 2017 % 2016 % Variation % 2017/16

Zone Europe 377.6 34% 331.0 36% 46.7 14%

Zone Africa, Middle-East, Eastern Europe


209.9 19% 201.0 22% 8.9 4%
and Turkey

Zone Asia 147.5 13% 102.1 11% 45.4 45%

Zone Latin America 165.2 15% 96.2 11% 69.0 72%

Zone North America - Pacific 173.8 16% 160.2 18% 13.6 8%

Sub-total Zones 1 074.1 98% 890.5 98% 183.6 21%

Other activities (inc. trade, toll manufacturing) 24.9 2% 21.8 2% 3.0 14%

Consolidated total 1 099.0 100% 912.3 100% 186.6 20%

Employees by service
2015 2016 2017

Industry / Supply Chain 1 326 2 046 2 200

Sales / Marketing 1 482 1 913 2 147

Administrative 457 545 611

Research & Development 514 546 619

Total employees
2015 3 779

2016 5 050

2017 5 578

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

96 Ceva Annual Report 2017


Ceva Annual Report 2017 97
98 Ceva Annual Report 2017
Key products performance
The year 2017 was marked by strong growth in all areas in the Swine segment
(+66%, of which +258% for vaccines), particularly in Asia and Europe.

Sales in the Ruminant sector rose by 40%, thanks in particular to strong


growth in Latin America (+ 231%), driven by the acquisition of the Brazilian
companies Hertape and Inova, and in Europe (+ 26%)

Sales in the Companion Animals sector grew by 12%, with particularly good
performance in the «Behaviour» (+11%) and «Antiparasitic» (+11%) ranges,
and the new vaccines segment. Sales grew by 9% in Europe.

Driven by our strategic vaccines, sales in the Poultry sector grew by 8%


overall, up 19% in Asia and up 16% in Latin America.

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

Ceva Annual Report 2017 99


Gross margin
The published gross margin rate increased by 0.5 points to 62.3% of net turnover, despite
the heavy negative impact of currencies on margins (-1 point). The increase in the margin
rate can be explained by a favourable and also below product mix (+1.5 impact points),
an increase in sale prices (+0.4 points), a favorable industrial variance of +0.1 points and
an effect of -0.5 points due to acquisitions for the year.

Gross margin I % Sales

2015 513.8 M€ 60.0% I 11.1%

2016 564.0 M€ 61.8% I 9.8%

2017 684.3 M€ 62.3% I 21.3%

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

Expenses
Distribution expenses Commercial expenses
The distribution expense-to-sales ratio represented Commercial expenses rose by nearly €35 million,
3.9% of net sales in 2017, stable compared to 2016. with savings of 1 point compared to 2016, amounting
The efforts made by the dedicated working group are to 23.5% of sales.
bearing fruit and distribution expenses have now
returned to 2014 rates.

Research and Development expenses


Ceva’s Pharmaceutical Unit R&D positively contributed VerY Diag®: A world first in the provision of veterinary
to the group’s growth, bringing five significant new diagnostics with the development off the first field
products to market: kit for the identificationof cattle trypanosomosis in
Africa.
Zeleris®: a new product for the treatment of bovine
pneumonia, with an original approach, using an FELISCRATCH by FELIWAY®: a new pheromone in
antibiotic not used in humans. Ceva’s portfolio for cats, used to redirect scratching
to a specific location. Ceva is the clear world leader in
Forceris®: an innovative product for the treatment of
pet behaviour and welfare.
anaemia and parasitic disease in piglets obtained its
first marketing authorizations in Mexico and Peru. In the Biology field, the group continued its geogra-
phical expansion by registering poultry and swine
Zelys : a new medication in the cardiology product
®
vaccines in numerous non-EU countries.
line, with a European marketing authorization.

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

100 Ceva Annual Report 2017


Other expenses and income
Other income and expenses represented an expense of €11 million for the year, as
compared to an expense of €4 million in 2016, mainly due to the inclusion in 2017
of risks present in certain countries in the non-EU zone, along with increased
provisions for pension obligations, and increased provisions for unrealized foreign
exchange losses.

Consolidated pre-tax profit


M€ 2015 2016 2017

Sales 856.4 912.3 1 099.0

Gross margin 513.8 564.0 684.3

% sales 60.0% 61.8% 62.3%

Distribution expenses (37.4) (36.5) (43.4)

% sales -4.4% -4.0% -3.9%

Commercial expenses (209.2) (223.0) (257.8)

% sales -24.4% -24.4% -23.5%

Administrative & general expenses (60.8) (65.9) (74.1)

Research & Development expenses (77.8) (77.6) (92.8)

Operating margin 128.6 160.9 216.2


% sales 15.0% 17.6% 19.7%

Other income and expenses 1.0 (4.0) (11.0)

Operating profit 129.6 156.9 205.2


% sales 15.1% 17.2% 18.7%

Amortizations, depreciations provision for intangible assets (9.2) (9.6) (22.3)

Operating result before taxes and financial expenses 120.5 147.3 182.9

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

Ceva Annual Report 2017 101


Consolidated cash flow
M€ 2015 2016 2017
EBITDA 150.0 179.4 238.8
Cash Flow from Operating Activities 83.1 127.1 145.7
Cash Flow from Investing Activities (*) -66.3 -261.6 -239.1
Free cash flow 16.9 -134.5 -93.5
Cash Flow from Financing Activities 55.0 273.1 41.5
Effect of exchange rate changes -3.0 3.5 2.5
Changes in Cash Position 68.9 142.0 -49.5
Cash at beginning of period 71.7 140.6 282.6
Cash at end of period 140.6 282.6 233.1
(*) net from transfer of long-term assets

The analysis of the consolidated cash flow statement included The acquisitions of property, plant and equipment correspond
in the attached financial statements shows the following: to investments in the Group’s primary industrial sites: Ceva
Sante Animale, Ceva Biomune and Ceva Phylaxia.
EBITDA totaling €238.8 million,
In 2017, the group invested nearly €23 million for the acquisition
Cash flow from operations accounting for €145.7 million.
of technology licenses and patents. These investments were
Total investments for financial year 2017 (net of financial made to support the design of new products.
leasing) totaled €239.1 million, including €90.4 million for
As of December 31, 2017, gross free cash flow and investments
acquisitions in property, plant and equipment and intangible
amounted to €233.1 million, as compared to €282.6 million
assets, and €148.7 million in financial fixed assets (in particular
at the end of the prior financial year.
for acquisitions of new companies and the acquisition of a
number of products from the ex- Merial business).

Consolidated balance sheet


M€ 2015 2016 2017
Intangible Assets 292,1 478,8 651,2
Property, Plant and Equipment 208,9 271,0 305,4
Financial Investments 19,1 38,7 18,9
Total fixed assets 520,0 788,5 975,5
Working Capital requirement 146,6 168,4 205,9
Total Assets 666,7 956,9 1 181,4
Stockholders’ Equity 256,1 318,1 349,8
Minority Interests 1,2 5,0 19,5
Other long-term Assets Liabilities 42,0 67,5 114,0
Net Financial Debt 367,4 566,3 698,1
Total Liabilities 666,7 956,9 1 181,4
Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

102 Ceva Annual Report 2017


® Ceva Santé Animale, Jean-Marie Laugery, François Blazquez, Stephane Klein
Ceva Santé Animale
10, avenue de la Ballastière contact@ceva.com
33500 Libourne - France www.ceva.com

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