Putney, Inc.
Headquartered in Portland, ME, Putney is a pharmaceutical company committed to providing high quality, cost-effective generic medicines for pets. Putney’s reliable supply of affordable drug options empowers veterinarians, allowing them to provide the best possible medicine at the best possible price, and supports pet owners, helping them afford to comply with veterinary recommendations. Putney’s ongoing investment in research and development is focused on creating the next generation of generic veterinary products based on inputs from companion animal veterinarians and its industry partners.
Why Putney? — Putney has a strong management team, a sizeable addressable market, a solid business model to drive value, momentum, and moat, meaning a defensible position and barriers to entry—all 5M’s of Safeguard’s go-to-market strategy. Putney’s pipeline of products offers a unique solution for the unmet need in the care of companion animals today.
Market Opportunity — According to the American Pet Products Manufacturers Association (APPMA), over 60 percent of U.S. households have at least one companion animal, which included more than 171 million cats and dogs in 2010. Americans spent $47.7 billion on their animal companions in 2010, approximately $12.8 billion of which was spent on veterinary care. While human generics have had significant market penetration—78% of all human prescriptions are filled by a generic—most FDA-approved drugs for companion animals lack a generic equivalent. This results in pet owners paying out of pocket for branded—and often expensive—veterinary drugs. Putney has a significant opportunity to reach both veterinarians and pet owners with a convenient and less expensive option for pets.
Despite slow economic growth, the APPMA estimates that spending on companion animals will continue to grow, as companion animals today have longer life spans and often require more medical treatments using more drug products. The total global market for companion animal pharmaceuticals is estimated to be $5.7 billion. Today, many pharmaceuticals approved by the FDA for companion animals have expired patents, but are sold as brand-name medications with no generic competition. Trone, Inc. reported that one-third of pet owners decreased visits to veterinary hospitals in 2010 because of poor economic conditions, while 45 percent postponed care, according to the National Commission on Veterinary Economic Issues (NCVEI).
Safeguard Board Member — James A. Datin
Financial Summary — Safeguard has deployed $10 million in Putney for a 28% primary ownership position. Co-investor includes NewSpring Health Capital.
Initial Capital Deployment — September 2011
Sector — Life Sciences, Specialty Pharmaceuticals
