'Creating value' via animal health

Juan Ramon Alaix shepherds Zoetis Inc's expansion in China, its third-largest market in the world

If you head a company whose business is animal health, might it be useful to have a healthy interest in animals? Zoetis Inc's CEO Juan Ramon Alaix has more than a healthy interest in animals - and in big business opportunities they could create in medicines and vaccines.

He said the world's largest animal health company by revenue foresees massive growth opportunities in China, which it entered in 1995 and where its main customers include livestock producers and veterinarians.

Until four years ago, China ranked 11th in Zoetis' list of largest markets. Now, it ranks 3rd.

In China, Zoetis focuses on core livestock varieties such as cows, pigs and poultry. The company is convinced that the China market for animal health will continue to grow faster than many other global markets.

Alaix believes he is part of a business that is "creating value for the society".

"We are helping pet owners to take care of their animals, and helping veterinarians and livestock producers to produce meat with focus on quantity, quality and affordability to feed the population," he said.

In 2012, he was appointed the CEO of the New Jersey-based company, whose previous avatar was Pfizer's animal health unit that was spun off.

He brings to the job 35 years of experience in finance, sales and management, including two decades in the pharmaceutical industry.

During the interview in Beijing, the silver-haired executive looked sharp in a dark suit over a striped shirt, with his calm demeanor and amiability offering a perfect contrast.

"I still remember that day in February 2013 when my colleagues and I went to the New York Stock Exchange and rang the opening bell at the start of the trading day, and Zoetis became a public company," he said.

"China has been growing at double-digit rates and we are projecting that China will continue to grow at double-digit rates, while the global animal health industry has been growing at 5 percent to 6 percent annually."

In the first half of this year, Zoetis' sales revenue was $97 million in China, up 30 percent year-on-year.

With two plants in China at Suzhou, Jiangsu province and Tonghua, Jilin province, the animal vaccine producer is seeking to expand its manufacturing capacity. It has decided to invest in a new vaccine plant in Suzhou.

The new plant will focus on producing vaccines for swine, cattle and farm fish. In the spring of next year, it is expected to break the ground for the new factory and complete all the construction works in two years.

As the Chinese economy switches gears to slower, sustainable growth driven by domestic consumption, the services sector is opening up more business opportunities for global players.

This year, sales of pet healthcare products in China are expected to reach 20.8 million yuan ($3.13 million), up 9 percent year-on-year, according to market research provider Euromonitor International.

Next year, Zoetis plans to strengthen its research and development efforts in China by launching a lab in Suzhou, and expanding its R&D center in Beijing.

Given that the industry is highly regulated, Zoetis said it needs to ensure that the products used in animal health are not misused by humans.

Talking about business and management in general, Alaix said a clear vision for long-term growth that can ride out short-term pain could make any company successful, through positive annual results.

"My management style is to empower people, delegate authority and make sure they have the resources to develop their objectives. I also focus on delivering results. In my opinion, this is the first attribute of any leader. When we face a challenge, we should not panic but remain focused on what is important."

For the record, the Spaniard's favorite animal is dog. But his wife's favorite is cat.

There was a time when the New York-based couple had a lot of cats for pets at their home in Spain. Not any more, having relocated to the United States 14 years back. But Alaix's healthy interest in animals endures.