Revenue Gains while Activity Falls; Adequan Canine Recall

|18 min read
Male veterinarian conducts an exam on a medium sized dog in an independent vet clinic exam room.

Theme this week

Across two US practice samples, revenue rose while visit, client, invoice, or patient counts fell, continuing a pattern PULSE editions have tracked since June, 2026. The recall of two Adequan Canine lots requires immediate stock action. Compare revenue with visits, tests, prices, and units before changing August orders or forecasts.

Executive takeaways

  1. Remove Adequan Canine lots 3369 and 25011 from stock today. American Regent found glass fibers in samples it had kept. Lot 25011 expires December 31, 2027. The company had received no reports of related adverse events. 1
  2. Pair diagnostic revenue with clinical visits and testing per visit in August. IDEXX’s US recurring diagnostics revenue rose 9.7% in the second quarter. 2 In a separate sample of about 9,200 practices, clinical visits per practice fell 1.3% and diagnostic revenue per practice rose 6.0%. 3
  3. Check revenue, client, invoice and patient counts each week through August. Animalytix’s sample of about 3,000 reporting practices showed year-to-date revenue rising 2.4% while client, invoice, and patient counts fell. 5 The cited publications assign the figures cutoff dates of July 4, July 25, and August 1. 5, 6, 7, 8
  4. Keep premium growth separate from policy counts in the next market brief. AM Best said US pet insurers wrote $5.5 billion in direct premiums in 2025. The US pet insurance segment recorded a profit in 2024 and 2025. 9
  5. Check local units and prices against supplier sales before changing August forecasts. Merck said new product launches drove most of its 7% global companion animal sales gain. 12, 13 Hill’s price increases outweighed its organic volume decline. 14, 15 Colgate-Palmolive said organic volume would have been flat without the private-label exit. 16

Signals

1. American Regent recalls two Adequan Canine lots

OBSERVED

American Regent announced a US-wide recall of Adequan Canine Injection lots 3369 and 25011 on July 31. The recall includes vials held by consumers. The company found glass fibers in samples from both lots that it had stored for testing. 1

American Regent distributed lot 3369 on May 22, 2024, and lot 25011 on April 14, 2025. Lot 3369 expires October 31, 2026; lot 25011 expires December 31, 2027. Both lots went to US veterinarians, online pharmacies, distributors and wholesalers. 1

The medicine is injected into muscle. Glass fibers may cause pain, irritation, swelling or inflammation at the injection site. They may also cause infection or an abscess. American Regent said it had received no reports of related adverse events. It instructed anyone with recalled vials to stop using or distributing them. The company directed veterinary hospitals and clinics to return or discard unused vials. 1

VIEWPOINT

The recall requires immediate stock checks and may disrupt supply. Because the lots shipped in 2024 and 2025 and one expires in December 2027, clinics, pharmacies, distributors or wholesalers may still hold recalled vials. A clinical lead should review patient records and decide whether any owner follow-up is needed. Clinics and suppliers should record whether each recalled vial was returned, discarded, credited or replaced.

CONFIDENCE

High — American Regent’s official recall announcement lists the lots, dates, possible effects and instructions. Stock levels, the number of treated dogs and replacement supply are unknown.

ACTIONS

Independent veterinary practices

  • Remove all vials in lots 3369 and 25011 from use today for return or disposal within 7 days.
  • Have a clinical lead decide within 24 hours whether to contact owners of dogs treated with Adequan Canine from either lot.

Corporate veterinary groups and clinic consolidators

  • Track each clinic’s recalled vials through return or disposal within 7 days, using a stock count completed within 24 hours.
  • Have a clinical lead send clinics instructions within 24 hours for reviewing records of patients treated with Adequan Canine from either lot.

Distributors, e-retail and home delivery providers

  • Stop distribution of Adequan Canine lots 3369 and 25011 today.
  • Notify every customer listed in shipment records for either recalled lot today.

Manufacturers and commercial operators

  • If processing recalled stock, track pending customer credits each week through August.
  • Update sales and customer service teams each week through August on replacement stock for customers affected by the recall.

↑ Back to top

2. IDEXX recurring diagnostics revenue rises; clinical visits fall in its US practice sample

OBSERVED

IDEXX reported on August 4 that its US recurring diagnostics revenue grew 9.7% in the second quarter of 2026. The revenue comes from ongoing diagnostic services and testing products for companion animals. Global recurring diagnostics revenue for IDEXX’s Companion Animal Group reached $975 million. It rose 11%, or 10% after removing currency changes and certain acquisitions and divestitures. 2, 3

IDEXX based its US practice results on a sample of about 9,200 practices. IDEXX defines a clinical visit as one where the reason for the visit involves an interaction between a clinician and a pet. In the sample, total practice revenue per practice rose 2.9%. Total visits per practice fell 2.6%, while clinical visits per practice fell 1.3%. After rounding, IDEXX estimated that the decline in clinical visits reduced diagnostic revenue growth per practice by 1.5 percentage points. 3

IDEXX said a larger share of clinical visits included diagnostic testing. The change added 0.5 percentage point to diagnostic revenue growth per practice. More diagnostic revenue from each clinical visit that included testing added 7.0 percentage points. IDEXX said this measure includes the volume and intensity of diagnostic activity and prices after discounts. Together, the three components produced a 6.0% increase in diagnostic revenue per practice. 3

IDEXX attributed its US recurring diagnostics revenue growth to strong volume gains. It said price gains after discounts met its full-year expectations. Average global prices after discounts for Companion Animal Group diagnostics rose about 4%. 4

VIEWPOINT

The IDEXX sample helps explain how diagnostics revenue can grow as practice activity falls, an ongoing pattern PULSE editions have tracked since June. More diagnostic revenue from each clinical visit with testing supplied most of the growth and offset softer visit volume. The commercial focus is therefore on the number and mix of tests completed and the prices clients pay.

The driver breakdown applies to diagnostic revenue per practice in IDEXX’s sample. The available data combines the effects of test volume, test mix, and price. A matching breakdown of total practice revenue, supplier unit data, and comparable results from other US practice samples would show how widely the pattern applies.

Practices should compare completed tests, test mix, and client prices before changing diagnostic services or prices this month. Suppliers should compare revenue with units sold and prices after discounts before changing September demand forecasts.

CONFIDENCE

High — IDEXX’s official earnings materials consistently report the company revenue and practice sample results. Comparable US practice sample results and supplier unit data are unavailable.

ACTIONS

Independent veterinary practices

  • Compare diagnostic revenue with the share of clinical visits that included testing each week through August.
  • Measure changes in completed tests and client prices by test type before the next review of diagnostic services.

Corporate veterinary groups and clinic consolidators

  • Compare diagnostic revenue per clinical visit across clinics during August.
  • Measure tests per clinical visit by clinic before finalizing September plans for diagnostic services.

Distributors, e-retail and home delivery providers

  • Track units sold and prices charged separately for each diagnostic supply this quarter.
  • Compare how often each customer orders diagnostic supplies with the number of units in each order before preparing September forecasts.

Manufacturers and commercial operators

  • Compare diagnostic revenue, units sold and prices after discounts for each customer this month.
  • Compare IDEXX’s visit growth rates and testing results with data from another US practice sample before updating the US demand forecast.

↑ Back to top

3. US practice revenue rises while client, invoice and patient counts fall

OBSERVED

On August 4, Animalytix reported that US practice revenue grew 2.4% through the week ending August 1, compared with the same period of 2025. The data covered about 3,000 reporting practices. Unique client counts fell 1.8%, invoice counts fell 2.4%, and unique patient counts fell 2.3%. Revenue grew in all nine geographic divisions used by the US Census Bureau. 5

Antelligence listed earlier cutoff dates for the same figures. Its July 31 report and August 4 briefing used July 25, while the July 31 Fountain Report “Market Pulse” table used July 4. 6, 7, 8

Animalytix used a separate sample of more than 32,000 US veterinary practice and shelter locations to report year-to-date product spending through June 30. Spending in its combined core and lifestyle vaccine category for dogs and cats fell 3.8%. The label combines routinely recommended vaccines with vaccines selected for a pet’s exposure risks. Spending on surgical supplies rose 0.1%. 5

Animalytix reported core and lifestyle vaccines for dogs and cats as a combined category. Spending in the combined category fell 3.8%. 5

VIEWPOINT

Since June, PULSE editions have referenced several Animalytix VetWatch reports. Across those reports, year-to-date revenue rose 2.3% to 2.7%. Client, invoice and patient counts fell from a year earlier. The reports cover many of the same weeks and show that the pattern has continued in Animalytix’s practice data sample. Comparable results from other US practice samples would show how widely it applies.

The reported revenue and invoice changes imply about 4.9% higher revenue per invoice than a year earlier. The estimate assumes both changes cover the same practices and period and use compatible aggregation methods.

Animalytix used a separate sample for product spending and reported changes in dollars only. Product counts would show whether practices bought more or fewer units. Practices should compare revenue with client, invoice and patient counts before changing staffing. Suppliers should compare sales revenue with units sold before changing orders or demand forecasts.

CONFIDENCE

Moderate — Animalytix reports the figures and sample sizes, while the publications assign the same practice figures cutoff dates of July 4, July 25, and August 1. Uncertainty exists in whether the revenue and invoice figures use identical practice sets and compatible aggregation methods.

ACTIONS

Independent veterinary practices

  • Compare weekly revenue with client, invoice and patient counts through August.
  • Compare spending with units bought for vaccines, surgical supplies, chronic-care products and parasite-control products before placing September orders.

Corporate veterinary groups and clinic consolidators

  • Flag clinics where revenue rises while client, invoice or patient counts fall during August.
  • Estimate separately how price changes, services sold and patient counts affect the September revenue forecast.

Distributors, e-retail and home delivery providers

  • Compare sales revenue with units invoiced for each product before setting September inventory levels.
  • Track weekly unit sales for vaccines, surgical supplies, chronic-care products and parasite control by customer through September.

Manufacturers and commercial operators

  • Compare US demand forecasts this month with internal unit shipments and Animalytix’s year-to-date change in patient counts.
  • Identify customers where sales revenue rises while units shipped fall before planning for the fourth quarter.

↑ Back to top

4. US pet insurance premiums rise 17% to $5.5 billion

OBSERVED

On August 3, AM Best reported $5.5 billion in US pet insurance direct premiums written for 2025. The measure counts premiums before an insurer transfers part of the risk to another insurer. The total was 17% higher than in 2024. Direct premiums written also rose 17% in the first quarter of 2026 from a year earlier. 9, 10

In AM Best’s data, the 10 largest pet insurers accounted for 98% of pet insurance premiums in 2025. Trupanion Insurance Group accounted for more than 20% of those premiums. The 6 largest insurers used managing general agents for most or all of their 2025 pet insurance premiums. 9 A managing general agent is a person or company authorized to manage all or part of an insurer’s business. 11

AM Best said the US pet insurance segment recorded an underwriting profit in both 2024 and 2025. Its net combined ratio was below 100% in both years, meaning premiums exceeded claims and expenses after accounting for risk transferred to another insurer and before investment income. 9, 10

A net loss ratio compares claim losses with premiums after accounting for risk transferred to another insurer. 10 In 2025, net loss ratios among the 10 largest pet insurance groups ranged from 57.1% to 93.3%. The average for all pet insurers in AM Best’s data was 69.1%. 9

VIEWPOINT

Premium growth can come from more policies, more revenue per policy, or changes in coverage. Policy counts and average premiums are needed before operators treat the increase as evidence that more pets are insured.

Aggregate underwriting profit may support investment in distribution, claims systems, and partnerships. The wide loss-ratio range points to different claims results among leading groups. Company-level combined ratios, coverage, and reinsurance provide stronger benchmarks for insurer performance and partnership value.

High concentration means changes by a few leading groups may affect partnerships and claims workflows across much of the market. The common use of managing general agents can place customer contact, insurance management, and risk with different organizations. If growth reflects more policies, practices and pharmacies may receive more requests for claim documents. Tracking request volume, staff time, and any effect on care or order timing by brand, managing general agent, and insurer would help locate workflow costs.

CONFIDENCE

Moderate — AM Best’s release supports premium growth, insurer shares and underwriting results. The full report was unavailable, and changes in the number of policies, average premiums and coverage are unclear.

ACTIONS

Independent veterinary practices

  • Count requests for claim documents by insurance brand each week through September.
  • Measure staff time spent completing requests for claim documents each week through September.

Corporate veterinary groups and clinic consolidators

  • Compare requests for claim documents by insurance brand across clinics each month through September.
  • Compare staff time per request for claim documents across clinics through September.

Distributors, e-retail and home delivery providers

  • Count requests for pharmacy records by insurance brand through August.
  • Measure any shipment delay linked to a request for pharmacy records through September.

Manufacturers and commercial operators

  • Verify the insurer and managing general agent for each pet insurance partnership before the next partnership review.
  • Show premium growth and assumptions about growth in the number of policies separately in every fourth-quarter forecast using pet insurance data.

↑ Back to top

5. Merck’s global companion animal sales rise 7% in the second quarter

OBSERVED

On August 4, Merck reported global companion animal sales of $734 million for the second quarter. Sales rose 7% from a year earlier, or 5% after removing currency effects. US sales rose 8% to $333 million, while international sales rose 7% to $402 million. Merck said its rounded geographic figures may differ from the reported total. 12, 13

Merck attributed the sales growth mainly to new product launches. Sales of Bravecto products reached $359 million, up 7% from a year earlier, or 4% after removing currency effects. The disclosures provide sales figures; units sold, the effect of price changes, sales from each launch and market share are unavailable. 12, 13

VIEWPOINT

Merck linked most of the global growth to new product launches. Currency effects added about 2 percentage points to reported global growth, based on rounded figures. Operators should first track sales from newly launched products and repeat orders for those products.

The 8% US result measures Merck’s own sales. Assessing the wider US market also requires units sold, sales by product, and competitor data. Operators should compare units sold for new and established products before revising US demand forecasts.

CONFIDENCE

High — Merck’s release and financial data agree on global and regional sales. Units sold, the effect of price changes, sales from each launch and reasons for US growth are unclear.

ACTIONS

Independent veterinary practices

  • Compare changes in Merck invoice prices with changes in units used in patient care for each product before the next order.
  • Track Bravecto first fills and refills separately for 30 days if the practice dispenses it.

Corporate veterinary groups and clinic consolidators

  • Compare changes in Merck prices and units used by product within each clinic at the next procurement review.
  • Report repeat orders for newly launched Merck products carried by clinics in the next network report.

Distributors, e-retail and home delivery providers

  • Compare US units sold and sales revenue by Merck product this quarter.
  • Track the number of Bravecto units sold through repeat orders in each sales channel every week this month.

Manufacturers and commercial operators

  • Compare growth in units sold for new and established companion animal products before the next demand forecast.
  • Compare changes in units sold and prices after discounts by US account this month.

↑ Back to top

6. Hill’s price increases offset lower volume after its 2025 private-label exit

OBSERVED

On July 31, Colgate-Palmolive reported global net sales of $1.195 billion for Hill’s Pet Nutrition in the second quarter. Net sales rose 3.4% from a year earlier. 14, 15

Organic sales, which exclude currency effects and businesses bought or sold, rose 2.1%. Higher prices added 3.9 percentage points to organic sales growth. Organic volume, which excludes businesses bought or sold, fell 1.8%. Reported volume, which includes acquisitions, fell 1.2%; the Prime100 acquisition added 0.6 percentage point to it. Currency effects added 0.6 percentage point to net sales growth. 14, 15

Hill’s exited its private-label pet food business, which made products sold under other companies’ brands, in 2025. Colgate-Palmolive said the exit reduced second-quarter 2026 organic sales growth by 2.0 percentage points compared with a year earlier. It said organic volume would have been flat without the private-label exit. 16

Hill’s described its US organic sales growth as mid-single-digit, meaning around 5%. 16

VIEWPOINT

After separating the private-label exit, Hill’s organic sales growth came from higher prices while organic volume was flat. Prime100 lifted reported volume, and currency lifted net sales. Operators should separate these effects before using Hill’s sales growth as a demand benchmark.

Hill’s approximate 5% US organic sales growth suggests faster growth than the 2.1% global result. The contributions of prices, volume and products to US growth are unclear.

Operators should separate the private-label exit, Prime100 acquisition and currency effects, then compare their own US units sold and prices before revising US demand forecasts.

CONFIDENCE

High — Colgate-Palmolive’s release, filing and prepared remarks support the global sales, price, volume and private-label exit results. A breakdown of US sales data by price, volume and product is unavailable.

ACTIONS

Independent veterinary practices

  • Compare changes in Hill’s invoice prices and gross margin before the next order.
  • Track units sold for stocked Hill’s products by dog and cat category for 30 days.

Corporate veterinary groups and clinic consolidators

  • Compare changes in Hill’s prices paid and gross margin by clinic at the next procurement review.
  • Flag clinics where Hill’s sales revenue rose while units sold fell at the next network review.

Distributors, e-retail and home delivery providers

  • Compare Hill’s selling prices and units sold by channel this month.
  • Use available records to separate units linked to Hill’s former private-label business in the next year-over-year comparison before ordering stock.

Manufacturers and commercial operators

  • Show how prices, the private-label exit, the Prime100 acquisition and currency affected sales or volume at the next review.
  • Compare internal US growth and prices by category with Hill’s US sales growth range before updating this quarter’s demand forecast.

↑ Back to top

Methodology and governance

This PULSE Edition covers developments posted or acted on from July 29 through August 5, 2026, using US Eastern Time.

Observed statements are anchored to public sources and attributed subscriber reports cited below. Viewpoints are PETMETRIX assessments that interpret commercial implications for operators. Early watch items are early hypotheses. They are not yet strong enough for a full Signal, and they include what would confirm or rule out the pattern.

PETMETRIX PULSE commercial intelligence is provided for informational use and to support lawful, independent business decisions. It is not legal, clinical, reimbursement, accounting, or financial advice. Route legal, clinical, reimbursement, accounting, and financial decisions to qualified advisers. Respect for the veterinary-client-patient relationship is mandatory.

Terms of Service | Privacy Policy | Methodology and Data Disclaimer

Glossary

Adverse event: An unwanted health event reported during or after use of a medicinal product, but not necessarily caused by the medicine.

Confidence: PETMETRIX rating of the strength and consistency of a signal. It is expressed as High, Moderate, or Low and does not mean certainty.

Direct premiums written: Premiums recorded for policies an insurer issues directly, before amounts transferred to another insurer through reinsurance.

Lifestyle vaccine (noncore vaccine): An informal term for a noncore vaccine recommended for some animals based on lifestyle, location, and risk of exposure.

Loss ratio: Losses incurred as a percentage of premiums earned.

Lot number: A manufacturer code used to identify a specific batch or production run, often for inventory checks and recalls.

Managing general agent: An insurance producer authorized by an insurer to manage all or part of its business, such as underwriting, issuing policies, collecting premiums or handling claims.

Net combined ratio: An insurer’s claims and expenses as a percentage of premiums after reinsurance. A result below 100% means premiums exceeded claims and expenses before investment income.

Observed: A statement anchored in an attributable source, for example a company announcement, regulator posting, publication, data release, or market report.

Organic growth: A company growth measure that removes items such as acquisitions, divestitures, currency changes, or other company-specific adjustments.

Percentage point: The arithmetic difference between two percentages. A rise from 5% to 7% is 2 percentage points.

Recurring diagnostics revenue: An IDEXX measure of revenue from in-clinic test consumables, rapid tests, reference-laboratory services, and related diagnostic services and accessories. Instrument sales are reported separately.

Signal: A sourced market, company, product, policy, data, or behavior change with a clear commercial implication.

Viewpoint: PETMETRIX interpretation of observed facts through a commercial lens.

References

  1. American Regent, Inc. Animal Health. “American Regent, Inc. Animal Health Issues Nationwide Recall of Two Lots of Adequan® Canine and Two Lots of Adequan® I.M. Due to Visible Glass Fiber Material in the Product.” FDA-hosted company announcement. July 31, 2026. https://www.fda.gov/safety/recalls-market-withdrawals-safety-alerts/american-regent-inc-animal-health-issues-nationwide-recall-two-lots-adequanr-canine-and-two-lots
  2. IDEXX Laboratories, Inc. “IDEXX Laboratories Announces Second Quarter Results.” August 4, 2026. https://ir.idexx.com/news-events/press-releases/detail/414/idexx-laboratories-announces-second-quarter-results
  3. IDEXX Laboratories, Inc. “IDEXX Q2 2026 Earnings Highlights.” August 4, 2026. https://d1io3yog0oux5.cloudfront.net/_4c9f3e6aa79b480be14770d3be69ef4e/idexx/db/3734/35331/earnings_snapshot/earnings-snapshot-2026-q2.pdf
  4. IDEXX Laboratories, Inc. “Q2 Fiscal Year 2026 Earnings Call – Prepared Remarks.” August 4, 2026. https://d1io3yog0oux5.cloudfront.net/_4c9f3e6aa79b480be14770d3be69ef4e/idexx/db/3734/35331/prepared_remarks/Q2%2726+Earnings+Call+Prepared+Remarks.pdf
  5. Animalytix. “Vet Watch® Insight Report - YTD Week 30, July 2026.” August 4, 2026. Subscriber email received by PETMETRIX August 4, 2026. https://www.vetwatch.com
  6. Antelligence. “The Fountain Report.” July 31, 2026. Subscriber report received by PETMETRIX July 31, 2026. https://www.antelligence.com/the-fountain-report/
  7. Antelligence. “The Fountain Report (email edition) - Fountain Market Pulse.” July 31, 2026. Subscriber email received by PETMETRIX July 31, 2026. https://www.antelligence.com/the-fountain-report/
  8. Antelligence. “The VetWatch Report: Industry Indicators.” The Fountain Briefing. Email subject: “Charterhouse Capital Partners completes acquisition of Animalcare Group.” August 4, 2026. Subscriber email received by PETMETRIX August 4, 2026. https://www.antelligence.com/the-fountain-report/
  9. AM Best. “Best’s Market Segment Report: US Pet Insurance Plans Show Rapid and Profitable Growth.” August 3, 2026. https://news.ambest.com/pr/PressContent.aspx?altsrc=2&refnum=37619
  10. National Association of Insurance Commissioners. “Glossary of Insurance Terms.” Accessed August 6, 2026. https://content.naic.org/glossary-insurance-terms
  11. National Association of Insurance Commissioners. “Market Conduct Annual Statement Pet Insurance Data Call & Definitions.” Version 2026.0.0. Updated May 22, 2025. https://content.naic.org/sites/default/files/inline-files/MCAS%20Instructions%20Pet%202026.0.0.pdf
  12. Merck & Co., Inc., Rahway, N.J., USA. “Merck & Co., Inc., Rahway, N.J., USA Announces Second-Quarter 2026 Financial Results; Highlights Key Regulatory and Clinical Milestones Across Broad, Diverse Pipeline.” August 4, 2026. https://www.merck.com/news/merck-highlights-key-regulatory-and-clinical-milestones-across-broad-diverse-pipeline/
  13. Merck & Co., Inc., Rahway, N.J., USA. “Financial Highlights Package: Second Quarter 2026.” August 4, 2026. https://www.merck.com/wp-content/uploads/sites/124/2026/08/2Q26-Merck-Other-Financial-Disclosures.pdf
  14. Colgate-Palmolive Company. “Colgate Announces 2nd Quarter 2026 Results.” July 31, 2026. https://investor.colgatepalmolive.com/news-releases/news-release-details/colgate-announces-2nd-quarter-2026-results/
  15. Colgate-Palmolive Company. “Quarterly Report on Form 10-Q for the Quarterly Period Ended June 30, 2026.” US Securities and Exchange Commission. Filed July 31, 2026. https://www.sec.gov/Archives/edgar/data/21665/000002166526000042/cl-20260630.htm
  16. Colgate-Palmolive Company. “Prepared Management Remarks: Second Quarter 2026.” July 31, 2026. https://investor.colgatepalmolive.com/static-files/ca92df4c-8d85-4df1-bf67-c2b76b8b36fe
↑ Back to top