Member Info for Ivyspivey

Agree Green it would be good to get an official update on the 2 main trial programmes so that we can at least be kept informed,

This would represent the 5th Meeting/ conference presentation in 6 weeks so you would have thought there must be something new to update us all on.

From 28 th March

Not sure Buchanan where you are from and if you know but Buchanan s in Manchester along with Tony Regan and Michael Gourlays were the 3 big group Practices CVS bought a long while ago before they added Petmedics.

Just seen 5.4 in link I posted and deadline for submitting response is 5pm tomorrow so maybe no full response tomorrow

FYI this is full consultation document proposal which will be finalised tomorrow and May be of background interest.

https://assets.publishing.service.gov.uk/media/65eee4015b6524420bf21a93/Veterinary_Services_for_Household_Pets_in_the_UK_-_Consultation_on_proposed_market_investigation_reference.pdf

I was referring to communication tomorrow.

Do think they will investigate further and that full report could take 12 months or more but I am looking at the detail of what areas they want to look at closer.

I can then judge how it will affect the industry and especially the individual corporate groups like CVS.

Morning yes the CMA report should be revealing.

The general thrust is very predictable but the fine detail is the important bit and how the corporates respond.

Hi All,

Some good comments and in general agreement.Will look at next CMA response and judge accordingly.

Fortunately I know this space like the back of my hand so confident I can predict the impact of any investigative action even if not the timeline.

Enjoy rest of w/ end

Morning don’t see any movement out of current range until 11th April when next CMA communication comes out.

Then depends on what action they decide.

If they go for a full investigation then this could drop further not on fundamentals imo but on general sentiment so lot of money waiting on sidelines but this is not a typical AIM stock

Many corporate groups allow varying degrees of clinical freedom and CVS are one of most restrictive and have a lot of white label products but they could argue that helps keeep prices competitive.

No worries,

It is not CVS way to respond in same way but they have along with couple of other corporate groups made approaches to CMA about a more limited half way house investigation but not sure if that will work.

You have to look at individual corporate models and how any possible wider investigation may impact the different groups and the fact the SP here has fallen so much.

So the underlying business here is still robust and they did make most of there U.K. purchases a long while ago so less likely to be in a monopolistic situation locally and plus they have been very careful with U.K. purchase since as well as establish new Practices like Southport.

They can easily change their local names and they also have ANIMED so an on line presence plus Vet buying group as well as related business.

So yes they have a big exposure to Vet market but as I said SP has halved and I believe the CMA will leave them relatively unscathed so imo this will bounce back nicely in time.

Better day today.

PAH are much less exposed to the specific Vet sector than CVS and also they issued a more robust response based on their specific model.

However still believe this drop is well overdone

Just got back from BSAVA and as usual busy during breaks but quiet during ie tires.

Not much talk about CMA report and industry just carries in as normal.According to Vet Times CVS are the only named corporate group to have approached the CMA about suggesting an intermediate framework rather than a full investigation.

Much better day today.

Yes great post Surprised.

Don’t forget in Feb 22 when CMA did report on purchase of QPC the lowest the SP got was £16.Then they did an investigation into local monopolies but only with CVS- if you look at those including Nottingham and Warrington and know anything about Vets in those localities and which ones are CVS you will know if the CMA simply required the divestment of The Vet then they could not have been that concerned with CVS dominance.

So if CMA require further divestments which is the main worry to the Corporate sector then CVS are very unlikely to be impacted

The Vet market particularly Companion Animal where CVS are strongest has exploded since Covid in terms of numbers of all pets as well as more expensive treatments such as the mABs vs Osteo arthritis which are now amongst the most expensive medicines.

CVSG have improved their own margins by their policy of white label and the huge increase in their PHC numbers and yes they may have paid highly to get into the Australian market but most of their U.K. purchases were at a time before prices peaked here.

ATB

Morning Monkfish,

Good observations and yes likes of CVS will look for geographic expansion overseas or in U.K. where it allows.

Have seen a move over last few years of ex corporate partners setting back up as independent vets and this trend will continue but I do believe CVS are in a much better position than other Corporates as they bought their bigger Practices much earlier.

Morning,

The state of the industry is still Is very buoyant and CVS are very well placed to to continue to benefit.They are expanding geographically outside of U.K. and have very little exposure to large animal sector.

As they were the lead corporate it will be harder for them to be asked to divest surgeries plus since QVC they have been very selective in current investments.

They can change the names easily enough and again their referral centres were early so their strength is the first opinion surgeries and as long as recruitment and retention is OK they will be fine.

Morning Bojo;

The point you highlight is valid the more you do to improve the Science by fine tuning and addition of extra bits like Avidmab then the more difficult it is to evaluate the individual effect of relative synergies.

No one disputes SCLP doing everything it can to improve the outcomes and of course if successful will increase the value but the history here is of continuous improvement and at some point it needs to realise value for the main assets.

Personally I am hopeful that the next set offSCIB1 Combo results will firmly put us on that pathway

Afternoon surprised to see it fall down so much and the results info was published in Vet Tines today and seems bullish.

Will get a better handle on state of the industry at Manchester next week but pretty confident it is still buoyant

Have a good w/ end all

Morning WTP

I see it as pretty positive as it focuses on CMC support which is more important as you progress the drugs through the trial process so it further validates SCLP commitment to becoming a later stage drug development Company.