Over the last several decades, our relationship with our pets has changed dramatically. They are now family members.
Two-thirds of families in the United States have a pet and annually spend over $95 billion on pet-related products, according to the American Pet Products Association.1 Consumers spent estimated $1.7 billion2 on Valentine’s Day presents alone for their pets in 2020 and $1.5 billion on knee surgeries for dogs.
KindredBio’s mission is to bring innovative biologics to veterinary medicine, because we believe our pets deserve the same kinds of safe and effective medicines that human family members enjoy.
Our core strategy is to identify targets that have already been proven safe and effective in humans. This approach allows us to leverage the billions of dollars of R&D that have been invested in human therapeutics, and quickly and efficiently develop innovative drugs for dogs and cats. Our expertise is in the development of biologics: monoclonal antibodies and recombinant proteins.
We expect the veterinary market to follow the human market, where biologics have revolutionized treatment of multiple diseases and as a group are the most successful drugs available.
With this strategy, we expect higher success rates, lower cost of development, and faster time to market. We expect, for example, 70% success rate, which greatly surpasses 5-10% success rate that is the norm in drug development of new chemical entities. We develop our biologics for an average of $8 million in approximately six years. The market for veterinary drugs may only be one-tenth to one-half of the size of the human market, but the cost of development is about 1/100th. This makes our ROI very attractive and is consistent with our mission of delivering favorable returns for our shareholders, while at the same time improving and saving the lives of pets.