Together, beyond animal health

Annual report 2016

CEVA ANNUAL REPORT 2016 1 WALL PAINTINGS FROM THE LASCAUX CAVES

2 CEVA ANNUAL REPORT 2016 CEVA ART “STREET ART” WORKSHOP IN BORDEAUX, FRANCE, FOR CEVA EMPLOYEES

Ceva’s vision “Together, beyond animal health” focuses on the essential link between animals, people and our environment captured in Art throughout time.

Today, veterinary science and art are often seen as polar opposites but nowhere is the history of this ancestral relationship better recorded than in Art. From the 20,000-year-old cave paintings found in Lascaux, close to our head office in South West France, to the spray painted street art (see cover) realized by our Directors Committee in 2016 – art is the best record we have of our ever-evolving relationship with animals. We encourage Ceva employees to interpret our vision through art. The results may not parallel Picasso but we are proud to share some of them with you in the pages of this report.

CEVA ANNUAL REPORT 2016 3 4 CEVA ANNUAL REPORT 2016 CEVA ART PAINTING WORKSHOP FOR CEVA BIOVAC EMPLOYEES IN ANGERS, FRANCE

Summary

6 Editorial 36 Ceva in 2016 83 Together, beyond animal health 103 Financial report

CEVA ANNUAL REPORT 2016 5 Editorial

2016 was a very good year that saw Ceva grow on all fronts, becoming the leading French veterinary company

2016: now ranked sixth in the world As in previous years, the 2016 financial year was a to grow on all continents and in all countries: in good one, exceeding our forecasts. At €912 million, Europe, Africa, the Americas and Asia. Our most rapid our sales grew by 10%, at constant scope and progress can be observed in Asia (+25%) and in Latin exchange rates. 2017 should therefore see us pass America (+19%). These two zones each account for the symbolic €1 billion mark. 10% of our overall sales.

Now ranked sixth in the world, Ceva is not just another As well as being strong in all continents, our growth animal health company. We are today, the leading is also evenly divided between sectors. Livestock French-based animal health company and as such production, which is essential to meet the world’s assume a responsibility to represent the strong growing nutrition challenges, accounts for 70% of tradition of veterinary medicine, which originated our sales. Companion animals, meanwhile, account with the founding of the world’s first veterinary school for 30% of sales and are progressing in line with our in Lyon more than 250 years ago. Ambition 2020 business plan, particularly in high growth sectors, such as external antiparasitic Ceva is proud to have inherited this weighty responsi- products, cardiology and dermatology. bility. Our company, with its international outlook, has every intention of continuing to promote this Ceva’s 5,000 employees are therefore proud to present expertise all over the world. The company continues these excellent results to you.

6 CEVA ANNUAL REPORT 2016 CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 7 Substantial investment to move up to fifth in the world In order to prepare for this future, the company Substantial investments have been made across invested heavily: €70 million in its industrial our 3 pharmaceutical facilities in France. One sites during 2016, a figure that will rise to over of the major projects being the development €90 million in 2017. of the Ceva Sogeval campus in Laval, with the aim of achieving approval of the US authorities These investments are evenly divided between (FDA) for the manufacture of oral medicines. the biology and pharmaceutical businesses. In biology, Ceva invested massively in its Ceva The Loudéac site is also benefiting from an Biomune site in the US in 2014, and in 2016 it investment of €6 million, to relocate the was the turn of Ceva Phylaxia, our European manufacture of dermatology products from campus in Budapest, Hungary. Laval.

8 CEVA ANNUAL REPORT 2016 A 50/50 split between our pharmaceutical and vaccines business Our research and development budget (R&D) to develop new treatments to prevent their represented 8.5% of turnover in 2016, a similar suffering. In practice, it is better to do both. ratio to those of the world’s largest interna- Our responsibility is to continue to develop tional animal health companies. The aim is both preventative programmes to avoid that R&D will eventually be split 50/50 animals becoming sick and treatments to between our two growth drivers: vaccines cure those that unfortunately do. In 2016, and pharmaceuticals. both our business units continued to innovate, striving to meet the expectations of our In an ideal world, properly vaccinated animals customers through helping to ensure the never fall ill, which would make it unnecessary health of their animals.

CEVA ANNUAL REPORT 2016 9 HERTAPE-INOVA, BRAZIL

2016 confirmed the dynamism of our pharmacy and biology teams In pharmaceuticals, 2016 highlighted the vitality of our of how to use antibiotics «as little as possible, only as much companion animal business. In antiparasitics, where we were as necessary». already present with Vectra® 3D for dogs and Vectra® FELIS for In a different segment but with the same overall objective, cats, Ceva expanded its range with the launch of Strectis®, Ceva and Sanders, a leading French animal nutrition company, offering long lasting protection for cats against fleas and ticks. joined forces to develop and market Indic@Vet, a new tool In July 2016, in London, the charity International Cat Care to control the use of antibiotics in livestock. Over the first nine (ICC) awarded our teams two prizes: the ICC «Easy to Give» months of use, to September 2016, use of antibiotics on farms prize for Amodip®, the first product for treating cats with high using Indic@Vet fell by 23% for poultry and 49% for swine. blood pressure, and the «Cat Friendly» prize for Feliway® Friends, which extends the benefits of Feliway to homes with several Our Biology business also continues to make strong progress, cats. In another therapeutic area, the 8th World Congress of rising to 3rd place globally in avian biology (number 1 in Brazil Veterinary Dermatology, which was held in our home area and number 2 in the USA). Our aim is to become the leader of Bordeaux, demonstrated the high level of expertise that in this market by 2020. I am confident we will succeed, given we have achieved in this field. the quality of our products - Transmune®, Vectormune® ND, Vectormune® FP-LT, Vectormune® AI, CEVAC IBird® - and our Still in the pharmaceutical sector and in a particularly important hatchery vaccination programs. Accordingly, it is significant area, given the globally significant problem of rapidly to see that the Poultry Franchise achieved a first in the animal developing resistance to antibiotics, Ceva strengthened its health sector, by obtaining Bureau Veritas quality certification commitment, together with the respective health authorities, for its international hatchery vaccination services C.H.I.C.K. to promote the responsible use of this class of drugs. Antibiotics program. are hugely important products that for over 80 years have protected and improved the lives of our families and animals. The Swine Franchise meanwhile made considerable progress That is why all our species teams have worked hard for several extending the successful launch of two vaccines, Hyogen® years now to develop responsible use programs. and Coglapix®, across several new markets but particularly in Europe. Accordingly, Ceva launched the 2nd edition of GRAM «Guidance for the Rational use of Antibiotics» for companion animals. The range will be once more significantly expanded in This practical guide, which is both comprehensive and 2017, particularly through the acquisition of Circovac (see easy-to-use, aims to help professionals make the best decisions below).

10 CEVA ANNUAL REPORT 2016 CEVA SANTÉ ANIMALE REINFORCES ITS POSITION IN CHINA THROUGH THE CREATION OF A NEW JOINT-VENTURE WITH EBVAC

CEVA ANNUAL REPORT 2016 11 Six acquisitions Since our inception in 1999, Ceva has acquired over is the largest milk producer in the world, with production 40 animal health companies, always with the agreement equivalent to that of the entire European Union. India is of their managements, who in turn have assisted us with also a major beef exporter and the fifth-largest producer our development. We would like to thank them here for of chicken meat. Although India is a giant in livestock their contribution on the road we have travelled together. production, it ranks only thirteenth in the animal health These companies have opened up international markets market. There is therefore great potential for growth. Polchem for us, and enriched our ranges, expertise and corporate is a well respected name in both the dairy industry and culture. poultry farming and we are delighted to welcome them to the Ceva family. 2016 was a special year, with acquisitions which expanded our geographic horizons, particularly in India and Brazil, Brazil is another particularly important strategic market. our skills and our product portfolio, particularly in the field It is the world’s second beef producer behind the USA, and of vaccines. the third largest poultry producer behind the USA and China. Ceva already had a major presence there but the end In France, 2016 began with the takeover of iD Projects. of 2016 was marked by two new acquisitions, Hertape and Ceva is now emerging as one of the world leaders in hatchery Inova, to further strengthen our position in the country. automation and in-ovo vaccination. This form of adminis- We have now become the fifth largest veterinary biophar- tration is being developed in close synergy with marketing maceutical company in Brazil and a major player in bovine, of our avian vaccines. poultry and companion animal products. With the acquisition The second French acquisition in 2016 was that of autogenous of Inova, we will enter 2 new markets, producing foot and vaccines manufacturer Biovac. These vaccines are “made mouth disease vaccines and a canine vaccine against to measure” from pathogenic agents isolated on farms. leishmaniasis. They have become one of the weapons recognised as Finally, on 1st January 2017, Ceva finalised the acquisition essential to avoid the repeated use of antibiotics on infected of Merial’s major range of swine vaccines, along with a farms, especially in the swine and poultry sectors, and in vaccine against mucosal disease in ruminants and the species where the range of vaccines is insufficient: in ducks majority of its non-steroidal anti-inflammatory treatments. and geese and in fish farming for example. This range should The technological expertise associated with the development also be expanded in the future to include ruminants. of the vaccines will be transferred to the Ceva Phylaxia In November 2016, Ceva took its first steps in India with the campus in Budapest, Hungary. These acquisitions will allow acquisition of Polchem. With 120 million dairy cows, India us to grow more rapidly in the swine sector also.

2017, a year of consolidation In the wake of these major acquisitions, 2017 will be a year benefit of the entire health sector. It also requires us to of consolidation. The challenge is to integrate our new provide solid support for existing and new initiatives in colleagues into the Ceva group, to establish closer ties favour of animal welfare and biodiversity. between our sites in Brazil, to take our first steps in India in a well constructed and coherent fashion and to prepare the The products that we innovate, the coherency of our service Ceva Phylaxia campus in Hungary to produce the new swine programs and the great number of our partnerships we and poultry vaccines that will ensure our future growth. have developed are detailed in this report and I’m delighted Our vision “Together, we are building a new reference to to report that aside from our financial success in 2016, we create value beyond animal health” means that we must are also moving forwards in our commitment to create push to the cutting edge of veterinary knowledge, to the value for society beyond animal health.

12 CEVA ANNUAL REPORT 2016 CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 13 Antibio resistance

14 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 Ceva extends its initiatives to promote rational antibiotherapy

Sick animals have the right to be treated to ensure their well-being. Recently , the development of resistance to antibiotics has become one of the major health issues facing our society. Ceva is committed to promote the responsible use of antibiotics by professionals - veterinarians and pharmacists, who in turn work with owners of livestock and companion animals around the world. For over 80 years antibiotics have protected us, our animals and families - Now it’s time to protect them

Tackling the threat of developing antimicrobial resistance and Indic@vet programs for livestock production. These achieved huge prominence in 2016 with many govern- programs include training sessions for vets and profes- mental and transnational health bodies hosting major sionals, recommended good practice guides, and even meetings and publishing their own strategies. Developing diagnostic tools to identify infected animals. a “One Health” approach that cuts across organisational These programs have been particularly well received by and national boundaries is a significant step forward health authorities and our industry as a whole. They add towards preserving the future of antibiotics and the practical steps to our credo of how antibiotics can be health gains they have brought to society. used “as little as possible, only as much as necessary.” However, making real gains will involve activating all In-field use proves the effectiveness of such an approach, stakeholders across the healthcare, food chain and pet which demonstrates once again that to promote animal care sectors to work individually and collectively to health and well-being, innovation must be extended contribute effectively to more rational antibiotherapy. and success is only possible by working together.

Providing practical advice to professionals as to how to Finally rational antibiotherapy goes hand in hand with use antibiotics in a responsible way is not a new subject the promotion of preventative medicine through wider for Ceva. Over 10 years ago we published a “Guide to use of conventional, new generation and autogenous Rational Antibiotherapy in Poultry”. In recent years we vaccines. We have moved the emphasis in our business have extended our commitment by designing service strategy to reflect this. In 2010, 28% of our sales were programs aimed at improving diagnosis quality, making made up by vaccines and we are well on the way to it easier to choose the right antibiotics and defining how achieving our target of a 50:50 split between vaccines best they are used by the right person, at the right time. and pharmaceutical products by 2050. Small steps maybe, but it is the small steps that will finally create the big It is with this in mind that Ceva developed the GRAM step changes required to change societal attitudes to program for companion animals, and the Cevolution the use of antibiotics.

CEVA ANNUAL REPORT 2016 15 Ceva is promoting rational antibiotic use with GRAM

A 2015 survey, commissioned by Ceva, revealed that 60% of vets in the UK, France and Germany were interested in having more advice about the use of the right antibiotics. Responding to this demand, in 2016 Ceva launched the ‘guidance for the rational use of antimicrobials’ (GRAM), a comprehensive, practical, and easy-to-use guide to help fight antibiotic resistance in companion animals.

16 CEVA ANNUAL REPORT 2016 Ceva is promoting rational antibiotic use As a veterinarian, I know that we are with GRAM all concerned to get things right, to make the right decisions, not only to protect the animals under our care but also to protect the future of antibiotics. They are vital to medicine. We are grateful for and proud of the work carried out by the experts on this panel. We believe their hard work represents a significant practical step forwards towards better, rational use of antibiotics. Dr. François Bost Head of Ceva’s Companion animal business

The GRAM guide, at over 550 pages, was developed by Commenting on the launch Dr Francois Bost, Head of an independent panel of 10 experts from 7 European Ceva’s Companion animal business, said: “As a veterinarian, countries. Each of them is an internationally-recognized I know that we are all concerned to get things right, to leader in antibiotherapy. make the right decisions, not only to protect the animals under our care but also to protect the future of antibiotics. National and international health authorities, such as the They are vital to medicine. We are grateful for and proud world human and animal health organizations (OIE and of the work carried out by the experts on this panel. We WHO), have already published many recommendations. believe their hard work represents a significant practical The idea behind GRAM is not to compete with these or step forwards towards better, rational use of antibiotics.” create yet another document. It is intended as a concrete, practical guide for practitioners. It is based on widespread This book emphasizes the need for carrying out proper consensus, and provides clear, precise answers to the initial diagnosis. It also suggests alternatives to antibio- questions vets have in relation to rational use of antibiotics therapy, for example the use of suitable topical antiseptics in canine and feline surgery and medicine. The book as the initial choice for the treatment of surface or includes 37 factsheets on diseases, 29 practical recommen- superficial pyoderma. dations and 6 synopses dealing with major topics such as When antibiotics are justified, compliance with treatment ‘key questions before initiating any antibiotherapy’ - , by owners is another major challenge: an antibiotic is only all element which should help people to use antibiotics effective if the owner is able to administer a full course of “as little as possible, only as much as necessary”. drug to their pet. This is why, at the Ceva Sogeval Campus, Ceva has developed the DELICAMENTS® range of highly The guide was launched at the British Small Animal palatable antibiotic tablets which are willingly accepted Veterinary Association (BSAVA) conference, a gathering by dogs and cats. of small animal specialist vets, held in Birmingham, England in April 2016. It has been published across Europe in An innovative commitment: it is surely better to make several languages to be available to vets in their everyday good medicines that end up in the animal’s stomach than practice. a perfect molecule that will end up under the sofa…

CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 17 Indic@Vet: A new tool to help reduce recourse to antibiotics in the swine and poultry sectors

Ceva has joined forces with Sanders, one of the leaders in animal feed, to develop Indic@Vet, a new tool to monitor use of antibiotics in farm animals and to evaluate actions taken to reduce the use of these products. This approach is fully in line with Ceva’s commitment to rational use of antibiotics – ‘as little as possible, only as much as necessary’ as Ceva’s adage puts it. In its first year of use, the tool has been shown to be effective in helping farmers reduce usage of antibiotics. Reduced usage of antibiotics is considered to be essential to safeguard the efficacy of antibiotics for people and animals and to overcome the growing problem of antibiotic resistance.

Indic@Vet (pronounced Indicavet) is an online platform As for fluoroquinolones, now classified as antibiotics available to farmers and vets. It combines the use of of “critical priority” to human health by WHO, they production data with prescription data to calculate are no longer used. optimal antibiotic usage using standardized approaches developed by the European Medicines To enable this reduction in the use of antibiotics, it is Agency. necessary to have a healthy animal raised under the best possible conditions. To achieve this requires In September 2016, after nine months of this new tool being used, antibiotic use on farms using Indic@Vet attention in five complementary areas: secure rearing decreased by 23% in poultry and 49% in swine. For management, a balanced diet, biosecurity to ensure swine, the consumption of colistin, an antibiotic used a cleaner production environment, rational medication for gastro-intestinal infections, decreased by 42%. and effective alternatives to antibiotics.

18 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 - 49% Decrease of antibiotic use in pig production farms using Indic@Vet

- 23% Decrease of antibiotic use in poultry production farms using Indic@Vet

Sustainable Sanitary Management only improve what we measure is a global approach common to all precisely. Indic@vet is an Sanders’ animal production. It aims educational tool that allows dialogue to reduce the use of antibiotics by between livestock keepers and their controlling the fundamentals of livestock farming by following five veterinarians and measurement axes: secure breeding management, of the benefits of the actions a balanced diet, well-controlled implemented around the other axes. biosecurity, rational medication and The most committed producers can the use of alternatives to antibiotics. serve as an example for others. The Indic@vet project and the It is a virtuous approach, all the collaboration with Ceva were born more important as its final goal is to around the 4th axis on rational use. The objective is to monitor the preserve our arsenal of antibiotics consumption of antibiotics in and their effectiveness in connection livestock farms - because we can with the concept ‘One Heath’.

Stéphane Athimon Director of the animal sectors of the Avril-Sanders group

CEVA ANNUAL REPORT 2016 19 Growing demand for chicken produced without the need to use antibiotics introduces new standards in poultry farm sanitary management, a field in which Ceva has solid experience

20 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 A recurrent theme at the Ceva Poultry Vaccinology Seminar, held in Barcelona in March 2016, was that consumers are increasingly demanding, and many are willing to pay a premium for, higher quality, higher welfare chicken. An important aspect of this is the production of poultry without the use of antibiotics: in addition to being demanded by major retailers and consumers, this goal is acknowledged by public health authorities to be vital to safeguard the effective use of antibiotics for both people and animals in the future. Ceva has played a leadership role over recent years in the shift from controlling poultry diseases through adminis- tration of antibiotics and other drugs to effective disease prevention through the strategic use of its growing range of innovative new-generation vaccines. Ceva has also invested significant resources to ensure good application of the vaccines and that animals are well protected against major diseases.

As Rick Sharpton of Purdue Farms, USA, explains: “Consumer tastes are changing. It is up to the producer to provide antibiotic-free products and to meet these needs. I think there will be an increase in the use of vaccines as well as other techniques to try to meet these goals.” Purdue Farms produce more than two-thirds of their chickens without antibiotics. They market an increasing share of their products under their ‘No Antibiotics Ever’ trademark. The idea of producing poultry without the need to use antibiotics was thought to be a near impossible goal. But as Sylvain Comte, Ceva Poultry Franchise Director, points out: “The US already produces more than 20% of its production without antibiotics. So it is possible. But it is not so easy. It involves a number of changes: in the management of the chickens; in the way we encourage the bird to grow; in people management and farmer training. Ceva is very glad to have had the opportunity to debate this in Barcelona. Our new technology vaccines are bringing a part of the solution and we want to bring that to the attention of our customers.” An important aspect of this new approach to rearing poultry is to take into account the individual needs of each bird to contribute to improving their wellbeing. We deal with this in our article on the demand for “cage-free eggs”.

CEVA ANNUAL REPORT 2016 21 Acquisition

Ceva is opening up to new markets and new sources of innovation via new acquisitions

22 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 The companies taken over are intended to become local skill and expertise centers, which will work to promote the Group’s strategy. This is why the culture and autonomy of the people that made these companies successful must be respected. We must successfully connect them with and integrate them into the other structures making up the Ceva mosaic. Because success is only possible together in all our diversity.” 30 successful business integrations since 2000 Ceva’s strategic products now account for 71% of our sales. 14 currently exceed annual sales of €10 million . These excellent results underline the strength of our internal growth and our ability to innovate... But that is not all. Anyone would have to be clearly delusional to believe that a business nowadays could count simply on its internal sources of innovation to develop internationally. With the acceleration and intensification of globalization, with the arrival of new competitors, and with clients concerned about quality, 60% conquering markets has become considerably more complex and of the growth is organic more than ever the time is right for businesses to merge.

This is what makes takeovers Every year, Ceva therefore carries out one or so important, as they allow several takeovers. From this point of view, 2016 us to: was a particularly prolific year. Open new markets to our Over the years, the Ceva Acquisitions team has strategic products, by increasing accordingly developed genuine experience in awareness of them. the art of finding new sources of innovation outside the group. It involves team work that Enrich our product portfolio. affects different areas of the business: sales, And perhaps and above all, acquire marketing, R&D, and, of course, Business new know-how. Development, which coordinates business intelligence work and manages negotiations. Acquisitions have played a key role in Ceva’s history, allowing the young The key to success is perhaps taking account of group to rebuild its position on the the human factor: the attention paid to the way international stage. which the different teams cooperate and adapt their behavior, in order to create a larger whole, rich in its new diversity.

CEVA ANNUAL REPORT 2016 23 24 CEVA ANNUAL REPORT 2016 Acquisition of Polchem paves way for Ceva’s poultry and ruminant products in India

In December 2016, Ceva finalized the acquisition of Polchem, an Indian veterinary business specializing in the poultry and dairy sectors. This sets the stage for Ceva’s entry to a strategically important new market; India is the world’s largest milk producer, second largest egg producer and fifth largest poultry meat producer. Building on Polchem’s existing products, especially disinfectants and feed supplements, and commitment to excellent service and support, customers in India will now have access to Ceva’s innovative vaccines, medicines and reproductive management products together with associated services and equipment.

India represents a vast and rapidly growing animal chemical engineer and Milind Lamaye, veterinary health market driven by a growing population, microbiologist, the company has grown rapidly in urbanization and increasing incomes. With a national the poultry and dairy sectors. With its own production, herd estimated at close to 300 million cattle and R&D and laboratory facilities, the company has buffaloes, India is the world’s largest milk producer established a strong reputation for service thanks to accounting for almost one-fifth of global milk a team of field-oriented veterinarians supported by production. The country also produces an estimated excellent diagnostic and laboratory support. 74.5 billion eggs and over 3 million tonnes of poultry meat each year. The Indian government regards both Nitin Sahasrabudhe explained: “There is great synergy sectors as strategically important to support secure between the two companies. Ceva wants to help livelihoods and food and nutrition security. develop the Polchem range domestically and inter- Polchem is based in Pune, 160 km southeast of nationally and Polchem will establish Ceva’s innovative Mumbai. Founded in 1991 by Nitin Sahasrabudhe, a products and services in the Indian market.“

CEVA ANNUAL REPORT 2016 25 With the acquisition of iD Projects and its integration into Ceva Ecat, our customers will benefit from a high-quality in ovo vaccine offering as well as hatchery automation

Ceva has acquired unique expertise in the field of poultry vaccination. After having developed innovative, new-generation vaccines, we soon realized that we needed to go even further in order to meet our customers’ needs: producing good vaccines is not enough, we have to optimize their administration conditions. This is what led our teams to focus on hatchery vaccination and drove them to develop complete vaccination solutions, including equipment and service programs. A perfect example of this commitment is the C.H.I.C.K. program, which has recently received Bureau Veritas certification, a unique case in the world of health.

26 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 The 2016 acquisition of the company iD Projects technology such as automatic laser candling to and its integration into Ceva-Ecat, a subsidiary of differentiate fertile eggs from infertile ones. the Ceva Group since 2013, is part of this context. Above all, thanks to their employees’ talents and These two Brittany-based companies, highly combined technical skills, the synergy between Ecat specialized in hatchery engineering, have and iD Projects will increase our ability to innovate developed complementary product ranges of on all levels: R&D, production, and after-sales service. cutting-edge technologies. These are assets to make Ceva one of the global The new subsidiary Ecat-iD now covers all modern leaders in poultry vaccination in the hatchery, as hatchery needs: Marc Prikazsky, CEO of Ceva, explains: “our group It offers high-performing in ovo machines with a is the world leader in poultry vaccination in the rate of 60,000 eggs per hour, combining safety hatchery. Access to state-of-the-art vaccination and efficiency. It has a double-pressure injection methods and hatchery automation is a constant demand from customers. They will benefit from system, Egginject, which automatically adapts to the innovation generated by this latest investment. the injection depth for each embryo. In the Brittany region of France, we have access It also offers full ranges of hatchery automation to some really talented engineers, specialized in machines including egg storage and handling and poultry farming. We want to be able to leverage cleaning machines. Some of these use unique these skills for the benefit of our global customers.”

CEVA ANNUAL REPORT 2016 27 HERTAPE-INOVA BRAZIL

The acquisition of Hertape-Inova broadens Ceva’s expertise in foot and mouth disease and canine vaccines, as well as reinforcing its position in Brazil

In November 2016, Ceva announced the purchase of the biopharmaceutical company Hertape-Inova. This acquisition will enable Ceva to enter the global foot and mouth disease vaccine market, and to make a foray into the companion animal vaccine market. It will also allow Ceva to benefit from high-quality infrastructure, and to join the Top 5 animal health firms in Brazil.

Brazil is a highly strategic market for all species: it is the reproduction and sustainable antibiotic treatment. second-largest producer of beef after the USA, and It will also open up the world of companion animal third-largest poultry producer following the USA and vaccination, to complement Ceva’s existing products China. It is also a fast-growing market in the companion in the companion animal segment, particularly its wide animals sector. Ceva is already established in Brazil, with range in the fields of external antiparasitics, behavior, a strong foothold in poultry vaccines. The Hertape-Inova dermatology, and cardiology. Hertape/Inova has even acquisition will open up new horizons: developed an innovative vaccine against leishmaniasis It will launch us onto the foot and mouth disease vaccine in dogs. This zoonotic disease causes serious symptoms market with Aftomune®, an innovative, highly purified, in untreated animals. It exists on all continents, in the and safe vaccine, developed by the Brazilian laboratory. intertropical zone and in Mediterranean climates. Foot and mouth disease is a highly contagious disease The Hertape/Inova complex is located in the state of with heavy economic consequences. This justifies the Minas Gerais, one of the country’s largest agricultural establishment of nationwide vaccination campaigns. regions. The company plays a major role in the prevention This new expertise builds on that which Ceva has and treatment of animal diseases in Brazil and throughout developed in the ruminant segment: udder health, Latin America. Around 60% of its sales are ruminant

28 CEVA ANNUAL REPORT 2016 TOP

5the position Ceva reached in the Brazilian market with this acquisition

180millions is the number of Aftomune® doses produced each year

% 60is the share of ruminant products in Hertape’s sales

products, but its range also includes equine, swine and values, especially an entrepreneurial spirit. We are looking companion animal products. Hertape-Inova’s industrial forward to joining Ceva and continuing the development facilities meet the highest quality standards. Its production of our site by rolling out our expertise in both Brazil and facility at Juatuba has a level 4 biosafety ranking. It was internationally.” – Ricardo Renault and Hugo Zanocchi designed to meet international biosafety standards and “The acquisition of Inova and Hertape is a strategic step for good manufacturing practice. It has the capacity to produce Ceva. The high-quality manufacturing site of Inova and the 200 million doses a year of Aftomune. expertise of its management will allow Ceva to enter the key global market segment of foot and mouth disease This new alliance will enable Ceva to increase its positions vaccines. Additionally, when we combine the strength of on the immense Brazil market and to enter the top 5 animal our local positions in ruminants and companion animals, health companies established in the country. This is a new this will give us the critical mass to enter Brazil’s top 5. We step which we can be proud of: will invest further into Juatuba to create a global campus “Ceva is a great opportunity for Hertape-Inova. We discovered dedicated to ruminant vaccine development and production.” during negotiations that our companies share very similar – Marc Prikazsky

CEVA ANNUAL REPORT 2016 29 CEVA BIOVAC, ANGERS

Acquisition of Biovac allows Ceva to provide tailor-made vaccines in France

In June 2016, Ceva purchased Biovac, a leading manufacturer of (bacterial) autovaccines, canine allergy desensitization treatments and reagents based in Angers, France. Ceva already offers custom vaccines to leading poultry and swine producers in other parts of the world. With Biovac, customers in France may also benefit from this valuable service.

Biovac, like Ceva, has experienced double-digit microorganism isolated from a diseased animal on growth for several years. Veterinarians are seeking the farm in just 4 to 5 weeks. The autovaccine is alternatives to control infections which have become then administered to the animals on the farm under more difficult to treat with ‘standard’ antibiotherapy. the control of a veterinarian, creating an extremely Biovac has renowned expertise in microbiology, responsive and precise service for livestock allowing it to provide custom-made solutions for producers. veterinarians and their customers. “As a vet, I know how disappointing it can be to This strategy is in line with Ceva’s stated policy of make a diagnosis and then not have the precise combating antibiotic resistance. It consists of putting the veterinarian back at the center of the fight tool necessary to control the disease.” Ceva’s against microbial diseases. Autovaccines are Chairman & CEO, Dr. Marc Prikazsky explains. “Biovac produced only after identification and diagnosis of provides a unique service to veterinarians in France. the pathogen by a veterinarian. In cases where a Through this partnership, we will share our expertise standard vaccine may not be effective or may not in vaccine production and generate new techno- exist, “custom” vaccines can be produced from the logies in order to better meet needs in the field.”

30 CEVA ANNUAL REPORT 2016 MARC PRIKAZSKY, CEVA’S CHAIRMAN AND CEO, AND CHRISTOPHE TREMBLAY, BIOVAC’S DIRECTOR GENERAL

Biovac provides a unique service to veterinarians in France. Through this ??????????????????? partnership, we will share our expertise in vaccine production and generate new technologies in order to better meet needs in the field.ˮ

Marc Prikazsky Ceva’s Chairman & CEO

CEVA ANNUAL REPORT 2016 31 Geographic review

North America It is difficult to believe that Ceva began operating in this«new» zone only 10 years ago. Ceva’s activities in the United States began with the takeover of firstly Biomune in 2006, then Summit Vet Pharm and Nature Vet in 2010, and finally the creation of our Canadian subsidiary 5 years ago. In 2016, all the company’s divisions and all species collectively achieved very good results. The zone focused on the companion animals and poultry markets but also launched a new swine activity in the United States (see Ceva launches a Swine Business Unit in the United States), which recorded excellent results. The US poultry sector continues to benefit from major innovations launched on the market, becoming the leader on the poultry vaccine market for the first time. In the companion animals sector, every country has benefited from sharing knowledge in spite of the clear geographical distances that separate them. Craig Wallace, Director of the North America Zone, declared: «We have reaped Mexico and the benefits of our species/portfolio strategy and collaboration with our international colleagues. In reality, these Central America businesses are still very young. I’m proud of what our team has achieved in a Jose-Antonio Varona, Country manager Mexico, relatively short time and on a highly-com- declared: «2016 was an excellent year for the Poultry petitive market.» Business Unit in Mexico. Every country has recorded higher-than-forecast sales: actual growth was 16%. The attention paid by our teams to key accounts allowed us to achieve this performance. Ceva has now risen to second place on the poultry vaccination market in Mexico, according to the Chamber of Veterinary Pharmaceuticals. Sales increased by 37% on 2015, exceeding the planning budget by 15.9%. Ceva is positioning itself on new segments in Mexico: companion animals, with the launches of Adaptil®, and Feliway®, and swine with the launch of Valora®.»

32 CEVA ANNUAL REPORT 2016 Vietnam The Vietnam team demonstrated particularly clearly what Ceva’s customer centric approach can achieve. In our Swine business, the set-up of a strong technical service has led to good growth for Ceva. All-in all-out swine management, using Altresyn®, represents a major breakthrough for Vietnamese farmers as it improves the flow of livestock and overall animal health. It is important to note that this tool also complies with the guidelines of the Vietnamese authorities, which aim to reduce dependency on antimicrobials. By combining preventive approaches in terms of respiratory health - such as the Ceva pulmonary program, Hyogen® (vaccine against mycoplasmae) and Coglapix® (actinobacillus pleuropneumoniae (A.p.) vaccine) - it is possible to further reduce the appearance of diseases and therefore their treatment with antibiotics. As Antonin Bonneau, Head of Ceva Vietnam, explains: «What is good for society is also good for farmers. This demonstrates the extent to which a close relationship with our clients is a real passion in Vietnam.»

Italy Germany In 2016, Ceva Italy recorded two-digit Patrick Piette, Country growth, easily exceeding the animal manager Germany health market trend. New companion declared: «In 2016, Ceva animal product launches and the Germany recorded reorganization of the sales structure growth of 23% com- allowed impressive growth of 30%. pared to 2015 and easily «Reorganizing sales structure, exceeded overall growth committing more and paying greater on the German market, attention to our large product which was 3%. This is the portfolio, as well as launching new result of combining two biological products in the poultry and swine industries, allowed a factors: highly-motivated teams in all business units growth rate twice as high as the market trend.» explains Flavio and successful launch campaigns, mainly Strectis® (flea Zanellato, Italy CEO. and tick control for cats) and the Coglapix® vaccine (Actinobacillus pleuropneuomoniae (A.p.) for swine).»

Egypt

During 2016, Ceva Egypt was especially active in the poultry sector. It held its first Ceva University on ‘Poultry Industry Challenges and Solutions’, a scientific seminar on avian influenza and launched the coccidial vaccine Immucox®. Mohamed Abed, General Director, Ceva Egypt said: “For 10 years now, Ceva Egypt has been pursuing its success. During the last few years our strong team, with management leadership and full support from the Ceva in France, has been committed to running a profitable business in a particularly difficult political and financial context. Our aim is to help our customers to achieve the maximum profit from our products and services and to support the animal health industry in Egypt.”

CEVA ANNUAL REPORT 2016 33 Executive Committee

Members of the Executive Committee

VALÉRIE MAZEAUD DR. GABRIEL RSHAID DR. MARC PRIKAZSKY DR. PASCAL ANJOT LEGAL DIRECTOR GLOBAL OPERATIONS CHAIRMAN & CEO PHARMACY UNIT DIRECTOR & FRANCHISES DIRECTOR

34 CEVA ANNUAL REPORT 2016 Members of the Executive Committee

DAVID DERAIN ALAIN DE WOILLEMONT THIERRY LE-FLOHIC DR. JÉRÔME-ANDRÉ GAUTHIER GROUP HUMAN CFO BIOLOGY DIRECTOR STRATEGIC DIVISION RESOURCES DIRECTOR UNIT DIRECTOR AND BUSINESS DEVELOPMENT

CEVA ANNUAL REPORT 2016 35 36 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 CEVA ART PAINTING WORKSHOP FOR CEVA LOUDEAC EMPLOYEES, FRANCE

Ceva in 2016

38 Calendar 2016 40 Poultry 50 Swine 58 Companion animal 72 Ruminant

CEVA ANNUAL REPORT 2016 37 Calendar 2016

January February March Faced with the potential disappearance In Europe, Ceva launched Vectormune® ND, Top American experts in the field of swine of koalas, Ceva’s Australian subsidiary a vaccine which has already achieved a health joined forces with swine farmers specially re-launched for them the strong market position in many markets and Ceva’s swine team for the launch of production of a product containing around the world. Most birds vaccinated the Ceva U.S. Swine Scientific Symposium, Chloramphenicol, the only drug capable with Vectormune® ND in ovo or at one organized in New Orleans in parallel with of treating chlamydiosis, which had day old benefit from lifelong protection. the 47th meeting of the American stopped being produced in 2014. Association of Swine Veterinarians. The Australia Zoo in Brisbane, and other Australian wildlife parks now use this product provided free-of-charge by Ceva to successfully treat their koalas.

April May June Marc Prikazsky, Chairman of Ceva Santé Ceva launched its GRAM guidelines at Ceva announced the takeover of Angers- Animale, was invited to the Biovision World the British Small Animal Veterinary based Biovac, the French leader in Life Sciences Forum «Global Health & Association Congress in Birmingham. bacterial autogenous vaccines and Prevention», to take part in the «Medicine reagents and European leader in the This guide offers veterinarians practical & Humanities» round table. treatment of allergies (desensitization). and reliable expert advice for rational Speaking alongside Doctor Alain Mérieux, use of antibiotics in companion animals. This company, specialized in micro- Dr Marc Prikazsky shared his vision of one biology and proposing custom vaccine single form of healthcare, human and solutions for veterinarians and farmers, animal: «By taking care of animals, we take shares Ceva’s values and expertise in the care of people», recalling the three-pronged field of avian biology. challenge: (1) food, faced with millions of undernourished people, (2) health, to combat zoonoses and pandemics, and finally (3) psycho-emotional, in terms of human-animal interaction.

38 CEVA ANNUAL REPORT 2016 July August September Ecat and iD Projects, two companies Since 2010, Ceva has been a partner of Ceva shows its commitment to Mécénat specialized in avian biology taken over the IAHAIO (International Association of Chirurgie Cardiaque (MCC) in order to by Ceva, merged to form a single Human-Animal Interaction Organiza- save children with heart defects. In company: Ecat-iD. tions), global leader in the promotion of collaboration with French veterinarians: science, research and education in the in September and October, Ceva donated Their combined expertise, know-how field of human-animal interaction. a share of the profits from sales of and professionalism will allow Ceva to Cardalis®, an innovative drug combining move a step closer to its objectives: This commitment pushes Ceva to get two active ingredients to treat heart to become the leader in biosafety and actively involved in projects on failure in dogs, to MCC. animal well-being, and develop closer animal-assisted activities (AAA) and relationships with its clients via a single allowed it to bring the teams of the range of products. ARDRA association (Clermont-Ferrand) and the Humlamaden rehabilitation centre (Sweden) together during a meeting organized in Spain to discuss their experience in this field.

October November December The Maisons Alfort veterinary school, the Ceva and Temasek jointly chaired the Ceva continued its efforts to develop second veterinary school created 2016 edition of AFAS, the Asia-Pacific and announced successive acquisitions worldwide, celebrated its 250th birthday food and agri-food industry seminar of Merial products following its takeover in October. organized in Singapore. by Boehringer Ingelheim, and the Brazilian biopharmaceutical companies Ceva chose to participate in this event This event provided the opportunity for Hertape Saude Animal Ltda. and Inova on the theme of animal well-being the 80 international business leaders Biotecnologia Saude Animal Ltda.. because, as Marc Prikazsky, Ceva who were meeting to discuss practical Chairman & CEO and a graduate of the cases during interactive discussions, and Via its acquisition of Merial products, school, says: «Welfare is an exceptionally to work together on innovative solutions Ceva gained significant market share in important subject, as veterinarians we to meet the challenges of this industry, the field of swine vaccination. have an important role to play in which is responsible for feeding the responding to increasing consumer whole growing global population on a concerns.» planet with limited resources.

CEVA ANNUAL REPORT 2016 39 40 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 Poultry

CEVA ANNUAL REPORT 2016 41 It’s official: C.H.I.C.K. is a quality program

In November 2016, Ceva achieved a notable first for the animal health industry when one of its services programs received internationally recognised quality approval. The company’s global hatchery vaccination services program for poultry, known as the C.H.I.C.K. program, received quality recognition from the international testing and certification company, Bureau Veritas.

At Ceva, we know that being in the hatchery day-to-day with our customers is the way to help them get the most productivity from their operations. We probably have the most innovative range of poultry vaccines in the world but unless they are applied properly, this counts for nothing. Now our customers can be sure that the quality services we provide to support our products are of the highest possible international standard.ˮ

Dr Gabriel Rshaid Global Operations & Franchises Director

42 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 The C.H.I.C.K. program was introduced by Ceva to ensure the management tools to continually track performance and ensure optimal use of its vaccines in hatcheries. It is increasingly recognised continuous improvement of results. The overall aim is to ensure that there are real benefits for producers from concentrating that all chicks are well vaccinated in the hatchery before being vaccination activities at the hatchery rather than the farm and sent out to farms. Ceva has been at the forefront of this shift. The C.H.I.C.K. program covers five key areas: handling of vaccines; use of injection The quality recognition was given based on the C.H.I.C.K. machines; vaccination techniques; monitoring and audit of Program Quality Code of Practice. Compliance to the high vaccination programs; and ongoing training to ensure hatchery standards of this reference guide will now be monitored by staff are kept abreast of the latest news and developments. Bureau Veritas at country level all around the world.

Ceva has a global team of over 130 hatchery specialists who Created in 1828, Bureau Veritas is a global leader in testing, work with local hatchery managers. They use innovative data inspection and certification.

CEVA ANNUAL REPORT 2016 43 Following its launch in Europe, Vectormune® ND establishes itself as a major poultry vaccine

At the beginning of 2016, Ceva launched Vectormune® ND in Europe. This innovative new technology vaccine prevents Newcastle disease, which poses a serious health risk to poultry. Although the disease is present in asymptomatic forms in some countries, such as the United States, Brazil, Chile and Western Europe, it is not without its consequences for farms there. It is also a constant endemic problem in a large part of the world, with severe epidemic outbreaks. Before the recent introduction of new technology vaccines, such as Vectormune® ND, the vaccines administered for preventing Newcastle disease had many drawbacks. One of these was that they interfered with maternal antibodies, which meant that they could not be administered in the hatchery. Hatchery vaccination presents considerable advantages in terms of farm health management (for more information, see the article on the C.H.I.C.K. Program).

Vectormune® ND is a decisive response to these This advance builds on the expertise we have acquired problems. It has many advantages, such as improved over the years and explains why today, one in four of innocuity, long-lasting immunity and no interference all broilers worldwide are protected by new technology with maternal antibodies, which means it can be vaccines developed by Ceva.

administered in the hatchery. By providing farmers with Vectormune® ND, we will These advantages highlight the benefits of using greatly contribute to limiting the economic losses Vectormune® ND in the prevention of Newcastle caused by Newcastle disease, thus securing the disease: quantity and quality of protein supply. This is highly important, as chicken is set to become the most not only in geographic zones where the pathology widely-consumed meat in the world, due to its many causes destructive epidemics advantages: being the cheapest and leanest, with the but also in those where it is an underlying problem. lowest impact on the environment.

44 CEVA ANNUAL REPORT 2016 CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 45 Rapid response by Ceva protects poultry industry in Delaware, Maryland and Virginia

In the winter of 2014-15, outbreaks of avian infectious bronchitis, caused by the infectious bronchitis virus (IBV) isolates GA08 and GA13, occurred on broiler farms located in Delaware, Maryland and Virginia – known as the Delmarva region. This region, which has a high concentration of broiler farms, experienced increased mortality and condemnations. At the time, there were no vaccines that offered protection against these IBV isolates. Ceva therefore worked closely with the poultry producers and the U.S. government to accelerate development, licensure and distribution of the Cevac IBron vaccine. The result was that an effective vaccine was made available in time for the 2015-2016 winter season, the use of which prevented further damaging losses to the broiler industry in this region.

In October 2015, the U.S. Department of Agriculture the country. Many colleagues in many departments issued a U.S. Veterinary Biological Product License worldwide contributed to the success of Cevac IBron. for the Cevac IBron vaccine administered by the A huge thank you to all, especially to the Ceva coarse spray route to healthy day-old chickens. This Biomune campus teams! This example illustrates live, monovalent bronchitis vaccine contains the perfectly our focus on listening to the customer and Georgia (GA) serotype of IBV and is effective against accelerating innovation as we strive to be the world’s IBV GA08 and IBV GA13. Avian IBV is distributed number one for poultry vaccines.” worldwide and causes economic losses due to poor weight gains and decreased egg production. Cevac Ceva purchased the Lenexa, Kansas based Biomune IBron is the only licensed live IBV vaccine that protects Company in 2005, creating the Ceva Biomune Campus against the DMV isolate. as a centre of excellence for vaccine development. Gary Baxter of Ceva said: “Although the formal launch Since 2005 over US$ 68 million has been invested in of the product occurred in May 2016, distribution of the Lenexa campus to support the growth of Ceva’s the vaccine in the winter of 2015-2016 to poultry vaccine sales around the world and has plans to producers in Delmarva successfully circumvented invest an additional US$ 40 million to expand facilities damaging losses for the industry in this region of once again.

46 CEVA ANNUAL REPORT 2016 millions68 $ were invested in the Lenexa campus to support the growth of our vaccine sales worldwide

millions40 $ were invested additionnally to expand facilities

Although the formal launch of the product occurred in May 2016, distribution of the vaccine in the winter of 2015-2016 to poultry producers in Delmarva successfully circumvented damaging losses for the industry in this region of the country.ˮ

Gary Baxter Vice president of poultry sales and marketing, U.S.

CEVA ANNUAL REPORT 2016 47 Cage-free” egg production, or how animal wellbeing is changing the approach to health management in poultry farms

Public opinion is increasingly sensitive to animal wellbeing, and this can be measured through demand from distribution and hospitality professionals as well as consumers. Ceva fully supports this cause. In the poultry field, this concern has resulted in the development of“cage-free” layer farms, which offer the advantage of providing better conditions for the birds: more space and more freedom. However, this new form of farming raises new difficulties in terms of health management.

With this in mind, Ceva’s US Poultry team organized caged layer facilities where the challenge is particularly a “Cage-Free Health” Summit in November 2016, for big. This is why the biology of the Eimeria parasites is top egg producers interested in these new production presented, as well as the ways in which a vaccination systems. strategy has to be managed to ensure adequate The goal was to create conditions for open dialogue immunity in preventing the disease,” said Kobus in order to understand the healthcare changes Van-Heerden. resulting from these new forms of farming. The shift to cage-free production in the US is being The production of “cage-free” eggs changes the driven by pledges from major restaurants and food conditions of bacterial and viral transmission, which production companies to only purchase eggs from are likely to generate new forms of respiratory and cage-free birds: many have committed to go cage-free digestive pathologies. In particular, participants at by 2025. As cage-free egg production becomes more the summit mentioned the increased risks of cocci- common-place in the US$ 10 billion a year egg market, diosis: demand for Ceva’s custom vaccine solutions, support to gut health through the cocci product line and “Switching from a cage to cage-free production system assistance to customers with new food safety increases the exposure of birds to the Eimeria parasite challenges will all doubtless increase. species causing coccidiosis. In commercial egg production systems, the use of anticoccidials for “Poultry producers are asking us for information and treatment is difficult to manage. It requires withdrawal support to help manage flock health as they convert of eggs from human consumption, making it a very to cage-free systems. Holding a summit such as this, costly disease to treat. Vaccination against coccidiosis shows our long-term commitment to provide solutions is a viable alternative that is already being used as the industry evolves,” said Andy Long, Ceva US successfully in breeder operations and even in some Layer Segment Manager.

48 CEVA ANNUAL REPORT 2016 Vaccination against coccidiosis is a viable alternative that is already being used successfully in breeder operations and even in some caged layer facilities where the challenge is particularly big. ˮ

Kobus van Heerden Poultry range manager

CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 49 50 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 Swine

CEVA ANNUAL REPORT 2016 51 Ceva reinforces its positions on the strategic swine market, with new vaccine acquisitions

Ceva has developed world-renowned expertise in the field of poultry vaccination, thanks to its new technology vaccines, services and complete vaccination equipment range. The swine sector is following in its footsteps. Ceva has now reached the critical mass needed to become a global leader in the swine sector too, thanks to the quality of its products and its service programs. This performance can be attributed to considerable investment in research and development, and the recent acquisition of four new vaccines from Merial: Circovac®, Parvoruvax®, Parvovax® and Progressis®.

Ceva has a long history in swine. Ceva Phylaxia in preventing respiratory infections, and service Hungary dates back more than 100 years: Phylaxia programs, like the Ceva Lung Program, designed by Vaccine Production Co was established in 1912 and our team to optimize swine vaccination protocols and soon after introduced the first classical swine fever measure the results. vaccine when the disease threatened to wipe out By acquiring the four vaccines from Merial, Circovac®, European herds. World-renowned researchers worked Parvoruvax®, Parvovax® and Progressis®, Ceva will at Phylaxia, notably Aladár Aujeszky and later Adorjan reinforce its position in the swine sector, and offer its Bartha. They lent their names to diseases and vaccine customers effective ranges of products for controlling strains that are still common today. respiratory infections, improved breeding programs, The existing range of Ceva swine products already and ultimately, contribute to improved swine health, includes innovative products, such as Hyoxin and productivity and welfare. The transfer of these products, Coglapix, two especially innovative vaccines for helping clear Boehringer Ingelheim to take over Sanofi

52 CEVA ANNUAL REPORT 2016 CEVA PHYLAXIA, HUNGARY

(Merial)’s animal health business, was approved by Progressis® is an inactivated vaccine against the viral the European Commission in November 2016. disease porcine reproductive and respiratory syndrome It has been in effect since January 2017. (PRRS). It is the market leader in the inactivated PRRS segment. Circovac® is the first inactivated vaccine for use against porcine circovirus type 2 (PCV2) to have been autho- Dr Marc Prikazsky, Ceva’s Chairman and CEO, said: rized in Europe. It is for use in both sows and piglets. “I am very pleased that Boehringer Ingelheim chose to transfer the production and marketing of these Parvoruvax® is the global market leader for vaccines Merial assets to Ceva. Through these products, we against parvovirus and erysipelas. will inherit part of the scientific know-how of Pasteur, Rhône-Mérieux and Merial that we will integrate into Parvovax® is an inactivated vaccine against porcine our biology business to complement the strong parvovirus for use in gilts, sows and boars. Hungarian heritage of our Ceva Phylaxia plant.“

CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 53 The introduction of Altresyn® in Denmark and Ireland shows its effectiveness in all-in/all-out batch farrowing systems

Batch rearing of sows allows the operation of all-in/all-out systems and brings with it important health and economic advantages. Batch rearing also makes breeding operations easier to manage and facilitates more effective biosecurity arrangements. The key to such batch farrowing systems is synchronization of oestrus in gilts, which can be achieved using Altresyn®. This product was initially trialed in Denmark and is now widely used in many countries, including Ireland. In both countries users are very happy with both the results they are achieving and the technical support from Ceva.

The key to batch farrowing systems is synchronization Altresyn® for the last day on a Wednesday and of oestrus in gilts. This can be achieved using Ceva’s I know the next Tuesday they will start to come into Altresyn® which contains altrenogest, a synthetic heat: 90% will be on heat Tuesday and Wednesday, version of the hormone progestagen. It is administered so I can put my best people down for insemination for 18 consecutive days. Regardless of the phase of on these two days and so on, week after week. And the oestrus cycle when administration of Altresyn® is when the time for farrowing comes, the gilts farrow started, gilts will come in oestrus simultaneously together with the sows, 75% farrowing in 2 days.” within 5-7 days after the last day of treatment. Gilts A recent study focused on Niels’ 1,200-sow farm find Altresyn® highly palatable and so it is easily showed that the use of Altresyn® to synchronize gilts administered as a top dressing on feed or directly into resulted in better flow of breeding animals, more even their mouths using the inbuilt metering pump. batches, increased output of weaned piglets and Niels Thing, Production Manager at Engholm/Krogs- significant saving in gilts’ feed. A reduction of the gaard Svineproduktion, Denmark, was involved in the average insemination age in the gilts by 18 days (from initial trials of Altresyn and has now become a regular 259 to 240) enabled a saving of up to € 15 of feed per user of the product: “It is in the daily routine that we gilt per year. Comparing results before and after use can see the difference. Now with the gilts I am using of Altresyn®, the number of farrowings each week

54 CEVA ANNUAL REPORT 2016 € 15are saved on food per gilt per year when using Altresyn®

+27the weekly increase of weaned piglets (742 in total)

Altresyn®is a management tool. It enables us to synchronize our gilts, get a consistent flow of gilts into the herd every single week and that consistency is going straight on through the herd.ˮ Shane McAuliffe Parknageragh Pig Breeders Farm, County Kerry, Ireland

increased from an average of 50.8 to 53.5 and the Commenting on Ceva’s number of piglets weaned each week increased from technical support, Shane said: 715 to 742, an increase of 27 piglets each week. “Ceva’s back-up support and the Shane McAuliffe of Parknageragh Pig Breeders Farm, technical advice they give is tremendous. Ceva came County Kerry, Ireland – a modern 1,000-sow unit - on farm at numerous times to make sure both explained that: “Altresyn® is a management tool. ourselves and the technicians were completely It enables us to synchronize our gilts, get a consistent comfortable with the product before we were ready flow of gilts into the herd every single week and that to start using it. They come back very often to see consistency is going straight on through the herd.” how we are doing with the product.” Declan Mangan, McAuliffe Farms Manager, was also Nigel Bennet, Ceva Field/Product Trial Officer, who impressed: “Altresyn® synchronizes the workmanship has been responsible for providing support at and the pigs and sows when they are farrowing, so Parkernageraph, added: “We’ve now got the gilt pool they are all farrowing at the right time and it is easier reduced in size so the feed intake and the amount of to manage from a labor point of view and housing feed we are using is now reduced. All the animals we point of view. Everything works smoothly.” have now are productive females.”

CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 55 Ceva launches Swine Business Unit in the U.S.

The 2016 annual congress of the American Association of Swine Veterinarians served as the official launch of Ceva’s U.S. Swine business. Our Swine team chose a theme borrowed from the periodic table of elements to showcase how Ceva strives to bring together the right people and the right products, to meet the needs of pork producers, with passion.

Ceva sponsored a symposium attracting veterina- director of the U.S. swine business unit. rians and executives from the largest pork “The symposium featured several of the leading producers in the U.S. and several other countries researchers as well as opinion leaders speaking in North and South America. Ceva employees from about issues everyone in the industry must face, Europe, Asia and South America attended as well. such as optimizing vaccine strategies.” “We were pleased and yet humbled to have In 2016, the Ceva Swine team hosted decision representatives from 25 of the top 40 companies makers from many U.S. swine production responsible for breeding more than 70% of swine companies, who visited our industrial facilities in in the U.S. at our event,” said Gary Robertson, Lenexa to gain a better understanding of the

56 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 The reputation Ceva has built in the poultry industry carries a lot of value with our customers and our prospects. The U.S. meat production landscape is no longer made up of poultry companies and swine companies. We’re talking to protein companies who raise animals of both species. Many of these companies have experienced first- hand the value we can deliver and are eager to do business with us as we expand our innovations in commercial autovaccines. ˮ Gary Robertson Director of the U.S. swine business unit

foundation of Ceva’s expertise and its ability to This unit combines a field-based technical services create and produce innovative, effective vaccines. team with a lab-based team that has vast expertise Discussions with the R&D team, which is working in everything from serology to genome mapping on the vaccine portfolio to be launched in 2017, and sequencing. This unit’s structure allows it to were especially appreciated, and demonstrated provide a complete spectrum of services to Ceva’s desire to have a close relationship with its producers, testing in production buildings, partners. diagnostics, custom vaccine solutions, autovaccines Ceva has also created a Scientific Services Inves- specially-adapted to the farms on which they have tigative Unit (SSIU), adding to the R&D team’s work. been isolated, and on-farm follow-up.

CEVA ANNUAL REPORT 2016 57 58 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 Companion animals

CEVA ANNUAL REPORT 2016 59 Strectis®, long-lasting protection against fleas and ticks now available for cats

During 2016, Ceva extended its range for the control of external parasites of companion animals with the launch of Strectis®, a new spot-on product for cats. Strectis® is marketed only by vets. Initially Strectis® was launched in France and Germany with launches in Spain and Belgium scheduled for 2017. This spot-on product provides long lasting protection against fleas and ticks by contact – up to twice as long as regular products. It came into Europe two years after the launch of Vectra® 3D for dogs and Vectra® FELIS for cats. This new product extends Ceva’s offering in the strategic parasiticides market. It also better meets the need of owners who want a routine broad-spectrum prevention for their cats.

60 CEVA ANNUAL REPORT 2016 With a long acting flea and tick protection, Strectis® comes as an important additional brick and shows Ceva’s commitment to cats. A continuous and safe protection against major external parasites in cats with Strectis® contributes to a better health status and increased quality time spent by families with their cat.ˮ Arnaud Leboulanger, Ceva country manager, France

For its marketing authorization, Strectis® benefitted Strectis® acts directly on the pets’ coat, without any from an extensive research and development program. need for the active ingredients to reach the Its formulation is original, the excipient promotes bloodstream. Strectis® is applied using a convenient diffusion of the two active ingredients and their pipette to the base of the animal’s neck. From here, persistence on the cat’s skin. Strectis® provides longer the active ingredients spread throughout the skin protection: 5 weeks against ticks, 8 weeks against and hair. The pipettes also feature a child safety system. adult fleas and 6 weeks against flea eggs, pupae and Pet-owner brand awareness has been increased larvae. through the use of modern packaging, point-of-sale The two active ingredients of Strectis® are fipronil, an display materials, advertising and editorial coverage insecticide and acaricide, and (S)-methoprene, that in specialized media. prevents eggs hatching and flea larvae molting in the Ceva aims to make Strectis® a flagship product in the surrounding environment. In trials, Strectis® proved external parasiticide sector, distributed through vets to be safe for kittens over 8 weeks and cats weighing only. Strectis® has already been used to protect more over 0.5 kg. than one million cats.

CEVA ANNUAL REPORT 2016 61 Our teams have been awarded two new International Cat Care awards, bringing our total number of ICC awards to seven

For the second year running, two of Ceva’s innovative feline products have been recognized at the annual International Cat Care Awards. At the award ceremony, held in London in July 2016, Amodip® received an ICC ‘Easy to Give’ award, while Feliway® Friends received a ‘Cat Friendly’ award.

62 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 These awards recognize the companies investing in innovation, aimed at making animal health products more feline friendly. Medicines that are easier to administer make life less stressful for vets, owners and feline patients alike. ˮ

Abigail Busk Companion Animal Business Unit Manager for Ceva UK

Amodip®, launched at the end of 2015, is the first licensed signs of aggression such as staring, obstructing, fighting veterinary medicine for hypertension in cats. The Easy and chasing within multi-cat households. to Give category was created by ICC to encourage and In total, since the first edition of the ICC awards in 2005, reward companies which have invested in innovations an impressive seven Ceva products have received awards, that make dosing cats easier. Amodip® is presented as a chewable tablet based on the calcium channel blocker five in the Easy to Give category and two Cat Friendly amlodipine. Cats find the tablets very tasty, which makes Awards, underlining Ceva’s commitment to working them easy for owners to administer. This is especially with cat owners and ICC to overcome the difficulty of important for chronic conditions such as hypertension giving medicines to felines. as affected cats will require treatment for the rest of Abigail Busk, Companion Animal Business Unit Manager their lives. for Ceva UK, commented: “these awards recognize the Feliway® Friends, launched in 2016, is clinically proven companies investing in innovation, aimed at making to reduce tension and conflicts between cats in multi- animal health products more feline friendly. Medicines ple-cat households. The Cat Friendly award it received that are easier to administer make life less stressful for was recognition from the ICC expert panel that this was vets, owners and feline patients alike.” a product that had made a real difference to cat Founded in 1958, ICC works towards improving treatment well-being and welfare. Feliway® Friends is a copy of the and care provided to cats by veterinary surgeons, cat appeasing pheromone which is naturally produced boarding cattery professionals, those involved in rescue by nursing mother cats. It helps kittens feel safe and work, breeders and cat owners. secure and promotes a bond between them and their mother. It has a similar effect on adult cats, reducing The charity celebrates its 60th anniversary in 2018.

CEVA ANNUAL REPORT 2016 63 Doctors and veterinarians share their knowledge at a ʻcross-talkʼ symposium organized by Ceva

In 2009, even before the ‘One Health’ movement really began to take off, Ceva came up with a unique concept: bring together veterinary experts in cardiology with their counterparts from human medicine in an event that combined formal sessions with opportunities for social interaction and networking. The third edition of this Ceva symposium was held in February 2016 at the Natural History Museum, in Paris. Two new topics were added, nephrology and hypertension. A record number of more than 100 key opinion leaders gathered, eager to learn from each other.

64 CEVA ANNUAL REPORT 2016 We have a very good drug for hypertensive cat amlodipine.ˮ

Pr. Jonathan Elliott Professor at the Royal Veterinary College London, UK, who leads research projects on feline hypertension

Reflecting the importance of the exchange format between human and veterinary medicine is of information between animal and human absolutely original. We learn so much from each other.” health experts and practitioners, the Paris Ceva ‘Human Veterinary Cross Talk Symposium’ was Although many of the speakers focused on dogs and co-chaired by a medic and a vet: Professor Clarke humans, cats were also considered. Just a few months Atkins of the College of Veterinary Medicine, North before the meeting in Paris, Ceva had launched ® Carolina State University and Professor Faiez Zannad, Amodip (amlodipine), the first veterinary medicine Head of the Division of Heart Failure, Hypertension for hypertension in cats. and Preventive Cardiology, Department of Cardio- Professor Jonathan Elliott from the Royal Veterinary vascular Disease of the Academic Hospital in Nancy. College London, UK, who leads research projects on Both of these renowned specialists are involved at an feline hypertension, shared his findings on the international level in the writing of guidelines for the management of the hypertensive cat and the impor- treatment of heart failure – in dogs and humans. tance of early detection and management. “This symposium is really one of its kind,” commented “The correlation between age, chronic kidney disease Professor Atkins. “It brings together an interesting and increased blood pressure in cats is now clearly mix of physicians and veterinarians, cardiologists and established”, he confirmed. Regarding treatment, nephrologists, from academia as well as private he commented: “we have a very good drug for practice.” Professor Zannad added: “this cross-talk hypertensive cats: amlodipine.”

CEVA ANNUAL REPORT 2016 65 From the Great Barrier Reef to dogs’ skin

At the 8th World Congress of Veterinary Dermatology (WCVD), held in Bordeaux in July 2016, Ceva’s team invited the 2,000-plus delegates to consider the link between the threat posed to the Great Barrier Reef and the skin barrier of cats and dogs. The coral reef’s fragile ecosystem has been massively impacted by small changes to the environment such as temperature and pH levels. Ceva’s communication drew attention to the fact that these same factors, together with bacteria and allergens, also have a negative impact on the sensitive skin of pets. This provided a novel way of showing the benefits of the innovative DOUXO® range of topical and easy-to-apply skin-care products. Ease of use is a determining factor, as over three-quarters of pet owners fail to apply shampoos prescribed to them by vets correctly.

Ceva’s DOUXO® range is formulated to manage owners to comply better with treatment a wide variety of skin conditions including protocols recommended by their vets. Research infections while restoring the integrity of the has shown that 77% of pet owners fail to apply skin barrier ecosystem. The products are available the classic shampoos prescribed to them in mousse presentations, a huge leap forward correctly. in skin barrier ecosystem protection. The mousse formulation makes rinsing unnecessary, which The use of topical products has significant gives longer lasting direct skin contact. advantages, including providing an alternative The relaxing massage application encourages to antibiotic treatments, as highlighted by frequent use. These DOUXO® mousses help Dr Chiara Noli, a veterinary dermatologist and

66 CEVA ANNUAL REPORT 2016 It is important as a principle to use topical products for infections because we do not want to use systemic antibiotics if possible. ˮ

Dr. Chiara Noli Veterinary dermatologist

member of the organizing committee developed by the Ceva Sogeval of the 8th WCVD: “it is important as a Campus in the West of France, which principle to use topical products for infections specializes in antibiotic treatment and dermatology. because we do not want to use systemic antibiotics, if The aim of this program is to change the future for topical possible. By using shampoos and mousses that have dermatology products, led by the DOUXO® range, through disinfectants we will avoid the use of antibiotics and thus contribute to reducing the risk of antibiotic resistance.” the introduction of highly innovative ingredients and dosage forms. This should enable Ceva to become a leader In February 2016, Ceva launched its New Generation of in topical dermatology by 2020 with a sharp focus on Dermatopicals (NGD) program. This program was meeting the needs of animal owners.

CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 67 This research shows an important benefit of the mosquito repellency feature of Vectra® 3D. ˮ Dr Elizabeth Hodgkins Veterinary Relations Director for Ceva U.S.

The ‘Double Defense’ protocol gives Vectra® 3D a major role in preventing heartworm

To control heartworm, a serious and potentially fatal dog important benefit of the mosquito repellency feature of disease, for years, vets in the United States have routinely Vectra® 3D. It shows that Vectra® 3D, by repelling and killing prescribed an oral medication that controls the heartworm mosquitoes that may transmit the disease, provides greater parasite in infected dogs. The latest research findings, protection along with oral heartworm preventive. announced at the AVMA Convention held in San Antonio This significant demonstration shows the benefits of the in August 2016, have provided additional evidence for ‘Double Defense’ protocol, combining Vectra® 3D and a the need to change this approach. Building on earlier heartworm preventive.” work, the phase 2 study, undertaken by Professor Emeritus ® John McCall of the University of Georgia College of Ceva’s Vectra 3D protects dogs against the nuisance and Veterinary Medicine, showed the value of combining a irritation caused by fleas, ticks and flies, and also the topical insecticide to repel and kill mosquitoes that transmit potentially fatal diseases they can spread, including the disease with a preventive drug against the heartworm heartworm. With three active ingredients that together parasite. This new ‘Double Defense’ protocol comes as the repel, kill and prevent the breeding of these parasites, ® incidence of heartworm in the US is rapidly increasing: Vectra 3D provides protection against a wider range of from 2013 to 2015, there was a 166% increase in reported external parasites than any competitors’ pour-on product. cases. The latest research findings, announced at the This unique product, which is highly valued by vets and AVMA Convention held in San Antonio in August 2016, dog owners alike, has recently notched up a remarkable have demonstrated the benefits of combining this milestone – it has become one of only four Ceva products preventative treatment with an insecticide against the to exceed annual sales of Euro 50 million. mosquitoes that transmit the pathology. While fleas, ticks and flies can make life uncomfortable These advances provide new perspectives for Vectra® 3D, for dogs and their owners, the diseases these pests can giving it a central role in the ‘Double Defense’ protocol, spread are potentially life-threatening to people’s canine which aims to protect dogs against heartworm by covering companions. One such disease is heartworm, a serious all bases, as Elizabeth Hodgkins, Veterinary Relations and potentially fatal parasitic disease of dogs in the United Director for Ceva emphasizes: “This research shows an States and many other parts of the world. Spread by

68 CEVA ANNUAL REPORT 2016 50millions € of annual sales for Vectra® 3D

X2.7 the increase in heartworm disease cases in the US between 2013 and 2015

mosquitoes, infected dogs can harbour hundreds of from infected mosquitoes to the dogs. This is done by 30 cm-long worms in their heart, lungs and associated repelling the mosquitoes and by killing them. Following blood vessels. These can cause severe lung disease, heart the Double Defense protocol, I think the use of the failure and damage to other organs in the body. Even if heartworm preventive program plus the Vectra® 3D is the successfully treated, heartworm can cause lasting damage best way we have to prevent heartworm and also prevent after the parasites have been eliminated, seriously affecting the spread of resistance.” the dog’s health and quality of life. Preventing infection ® occurring in the first place is therefore vastly preferable Vectra 3D protects dogs from fleas, ticks, and mosquitoes, to treatment of the disease. and in doing so, also protects them from the life-threatening diseases (including heartworm) they carry. Vectra® 3D Professor McCall explained: “In the past we have focused provides greater, more effective protection than many on just the heartworm parasite but now we need to focus external anti-parasite treatments, thanks to its three active also on the heartworm vector. From our recent research, ingredients for repelling, killing, and preventing breeding. we have shown that treatment with Vectra® 3D blocks the transmission of heartworm microfilaria to the mosquitoes Veterinarians and dog owners have both welcomed this and also blocks the transmission of the infected larvae strong new campaign.

CEVA ANNUAL REPORT 2016 69 Ceva Santé Animale, world leader in animal behavior, expands its Feliway® range to help cats and their owners to live in perfect harmony

70 CEVA ANNUAL REPORT 2016 Feliway®

Feliway® Friends

Feliscratch®

CEVA ANNUAL REPORT 2016 71 72 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 Ruminants

CEVA ANNUAL REPORT 2016 73 The Ruminant Franchise organizes a second training session to increase its members’ expertise to the highest level

Ceva is highly committed to building and developing the technical skills and competencies of its staff to ensure the company’s customers receive the highest level of technical support. This was clearly demonstrated again in October 2016 when more than 50 of Ceva’s technical and marketing managers who are involved with cattle gathered in Rome for the second technical training meeting organized by the company’s Ruminants Franchise team. Over three days, participants benefitted from practical hands-on sessions as well theoretical sessions, based on our three major lines of treatment: udder health, reproduction, and rational antibiotic use. The practical sessions were held at Maccarese farm near Rome. Owned by the Benneton Group, this is Italy’s largest dairy herd with 3,300 cows producing about 32,000 liters of milk per day.

For each of its four target species, Ceva aims to develop one new product a year for ruminants.” However, what innovative programs and services, to meet its customers’ comes up in our daily experience alongside farmers, is their expectations, as well as contributing to animal wellbeing. need for greater support. This means that developing our teams’ practical and theoretical expertise is a real priority In the ruminant sector, our expertise is built around three for us. In the reproduction segment, International Technical major lines: udder health, reproduction, and rational Manager of Ceva’s ruminant unit, Alessio Valenza, envisages antibiotic use. In 2016, we extended this offering, with our growing demand for yet more efficient and effective acquisition of the Brazilian Hertape-Innova complex, which reproduction management protocols: “As farms become will enable us to enter the global hand foot and mouth larger and more complex, there is a greater need for a disease market, and with the acquisition of Merial vaccines, high-quality oestrus synchronization standard operating such as MUCOSIFFA, a live attenuated vaccine against Bovine procedure. This procedure needs to be simplified in order viral diarrhea. Ceva is reinforcing its presence on one of the to ensure ease of use for the farmer and to ensure good leading ruminant markets in the world, as confirmed by compliance.” Juan Munoz-Bielsa, Ceva’s Ruminants Corporate Marketing Director: “we have particular experience in the ruminant This is why Pedro Rodríguez, Ceva’s Corporate Range reproduction space and I believe Ceva will continue to focus Manager for Ruminants, who led the Rome training meeting, on this, as well as on rational antibiotic use and products is looking forward to a third technical training seminar. for udder health. However, with a reduction of antibiotic “With Ceva’s ambitions to grow the ruminant business and usage in Europe, we will have to look towards developing exciting new developments within both the company and alternatives which will include both pharmaceutical and global cattle sector there will clearly be no shortage of topics biological products. Across our range, we aim to introduce to cover at the next technical training meeting.”

74 CEVA ANNUAL REPORT 2016 % 20is the share of ruminants products in Ceva’s total sales

With Ceva’s ambitions to grow the ruminant business and exciting new developments within both the company and global cattle sector there will clearly be no shortage of topics to cover at the next technical training meeting. ˮ Dr Pedro Rodríguez Corporate Range Manager for Ruminants

With a reduction of antibiotic usage in Europe, we will have to look towards developing alternatives which will include both pharmaceutical and biological products. Across our range, we aim to introduce one new product a year for ruminants. ˮ Dr Juan Munoz-Bielsa Ruminant Franchise Director

CEVA ANNUAL REPORT 2016 75 Ceva signs its entry into the ruminant market in Canada, with the authorization of Florkem® and Cevaxel® RTU.

November 2016 marked the culmination of 2 years of hard work by Ceva’s regulatory affairs team in Libourne and Ceva Canada. They obtained our first new marketing authorisations (MAs) in Canada, for two drugs for ruminants: Florkem® and Cevaxel® RTU.

76 CEVA ANNUAL REPORT 2016 Establishing local regulatory expertise has been a tremendous asset to the global team in navigating the Canadian requirements, up-dating our dossiers, engaging with Canadian authorities and addressing their questions. ˮ

Brian Thomas Canada Country Manager

November 2016 marked the culmination of 2 years of Ceva Canada established its business operations in Canada hard work by Ceva’s regulatory affairs team in Libourne in October 2011 through the acquisitions of two local and Ceva Canada. They obtained our first new marketing companies, CentaurVA Animal Health and Vetech authorisations (MAs) in Canada, for two drugs for Laboratories. ruminants: Florkem® and Cevaxel® RTU. Through these acquisitions, Ceva was able to begin Brian Thomas, Ceva’s Canada Country Manager, explained: distributing its own products. We could therefore expect “Canada has mutual recognition protocols with European a significant increase in Ceva Canada’s sales. To do so, authorities that can allow for geoextension of Ceva’s Ceva reinforced its Canadian regulatory teams in 2013 European dossiers and manufacturing sites. Establishing and decided to intensify its product registrations. Three local regulatory expertise has been a tremendous asset more MA applications for cattle products have already to the global team in navigating the Canadian require- been submitted, or are being evaluated. Two new appli- ments, up-dating our dossiers, engaging with Canadian cations are being prepared. authorities and addressing their questions.” Juan Munoz-Bielsa, Ceva’s Ruminants Marketing Director, In the ruminant sector, Florkem® and Cevaxel® RTU were commented: “The launch of these new medicines marks issued the first MAs. our entry into the ruminant market in Canada. Previously, our focus has been more on companion animals and Florkem® is indicated for the treatment of respiratory poultry. We carefully selected products with high potential diseases in swine and cattle, caused by florfenicol suscep- in ruminants for these first marketing authorizations. tible bacteria. These two new MAs will extend our range for cattle and Cevaxel® RTU is indicated for infections associated with swine. Following this first success, we are working towards bacteria sensitive to ceftiofur, which cause respiratory more new MAs, allowing us to offer an even wider range diseases in swine and foot infections in cattle. to our customers in the ruminant sector in Canada.”

CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 77 Following on from its experience in Spain, Ceva is now making Australian sheep farmers happy with the results from Regulin®

Ceva’s recent experience with a sheep reproduction product, originally introduced some years ago, is a textbook example of how to go about relaunching a product. The combination of identifying and focusing on the right product, led by the right person who received the right support and building on previous experience from Spain proved to be a winning formula and resulted in a highly successful product relaunch in Australia. The outcome of this successful approach is clear to see as sales of the product in question, Regulin®, exceeded AU$ 1 million in 2016. Testimonials from some very happy sheep farmers clearly show how they are benefitting from the use of this product.

Australian sheep farmers have reported a range lambs produced without the need to increase of benefits after they started using Regulin® in number of ewes. their flocks, including: higher conception rates in Sheep are short-day breeders, that is they naturally maiden ewes leading to more lambs; earlier ovulate and mate in autumn and lamb in spring. lambing which allowed them to avoid lambing Melatonin, produced by the pineal gland at night, during adverse weather periods, enabled optimum plays a key role in controlling reproductive function use of feed resources and allowed sale of lambs in ewes. Regulin® is an implant for use in female sheep at favourable prices before the glut; more concen- based on melatonin. It mimics the effect the short trated lambing period leading to more even mobs days of autumn have on the pineal gland, i.e. the of heavier lambs with no late lambs; and more production of melatonin, thereby inducing oestrus.

78 CEVA ANNUAL REPORT 2016 Feedback from happy farmers … We could not afford to continue with low lamb numbers in our maiden ewes. Regulin® has proved to be an effective tool in achieving fertility rates equivalent to or better than our mature ewes ˮ. The Davidsons run a mixed farming operation with 6,500 Merino ewes at Milvale, NSW.

We have benefited from the use of Regulin® by moving fertilization forward one month; this allowed us to obtain a more mature, heavier and consistent frame size of saleable rams to produce a better product for our customers ˮ. The Doherty family run Tulagi Border Leicester Stud at Deniliquin, NSW.

Our biggest gain has been the fact that there were no late lambs and that they are all so even in size. The benefit of this is that we can fully maximize our feed to support our early weaning program of 10-12 weeks, and sell more lambs earlier at a heavier weight. Our biggest gain has been the fact that there were no late lambs and that they are all so even in size. The benefit of this is that we can fully maximize our feed to support our early weaning program of 10-12 weeks, and sell more lambs earlier at a heavier weightˮ. The James run their family farming operation ‘Viewbank’ at Bungeet, North East Victoria.

Being skeptical about Regulin® we decided to trial it 3 years ago. With all age groups of ewes including maidens split evenly into 2 groups, we recorded 28% more fetuses in the treated group. An increase in lambing percentages has enabled us to increase lamb numbers whilst maintaining ewe numbers. This helps us over the summer by not having to feed as many ewes and reducing labor costsˮ. The Fowler Family run Kooroogong at Harefield in the South West Slopes region of NSW.

CEVA ANNUAL REPORT 2016 79 st

1Ceva’s position on the Turkish market

Ceva Turkey is in great shape despite a difficult context, thanks to its highly committed team

14millions cattle in Turkey

40millions sheep and goats in Turkey

80 CEVA ANNUAL REPORT 2016 Ten years ago, Ceva acquired a modest local company, DiF, and quietly entered the Turkish market. Ceva has since become the country’s number one veterinary health company. Turkey, with 14 million cattle and 40 million sheep and goats, is Ceva’s largest ruminant market. Despite the decline in the economic and political situation, which presents problems in security and supplies, the Ceva Turkey team’s sales have grown spectacularly, allowing our subsidiary to become the leader in this growing market.

Turkey is a country of opportunities and challenges. When Ceva acquired DİF in 2005, the product range It has a large livestock population and the agricultural consisted largely of locally-developed products such sector contributes strongly to GDP and creates many as vitamins. Ceva set about introducing more jobs. Turkey’s national cattle herd totals around innovative, specialized products that meet the 14 million head. The government is keen, however, specific needs of Turkey’s farmers more effectively. to develop the national dairy industry with a view to In this way, Ceva Turkey has established itself as the being self-sufficient. It provides considerable support leader in the antibiotic and reproduction market including zero-interest loans to dairy cow breeders. through its range of high-class medicines such as The national sheep and goat flock holds remarkable Prid, Gabbrocol, and Florkem. potential, with nearly five times the number of animals in the French flock. Turkey’s chicken flock is 75% larger Yavuz Uzun, Ceva Turkey’s Country Manager, explains than France’s at 293 million. The pet market is, however, the subsidiary’s success: “Ceva Turkey has developed relatively small with just over a million dogs in Turkey into an excellent team who work together extremely compared to over 7 million in France. well. They have really developed this strategically Challenges of doing business in Turkey include the important, large market and have achieved testing political, security and economic impressive growth, emerging as a leader in the environment. During 2016, for example, the Turkish animal health sector. And as leaders, we exchange rate shifted considerably, from around have the duty of advancing veterinary knowledge Turkish lira 3 to 4 to the Euro. and promoting new ideas.”

CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 81 82 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 Together, beyond animal health

84 Public health and zoonoses 86 Feeding the planet 92 Human-animal interaction 100 Animal welfare

CEVA ANNUAL REPORT 2016 83 Public health and zoonoses

A VerY useful new tool for Africa’s cattle farmers

In October 2016, Ceva launched VerY Diag, the first commercially available rapid field test for the diagnosis of bovine trypanosomosis. This means that, finally, Africa’s cattle farmers and herders can obtain a definitive diagnosis in the field in real-time, enabling them to select the appropriate treatment option for their animals. Up to 150 million cattle are believed to be at risk of this potentially fatal disease, which is a major constraint to cattle productivity throughout much of Sub-Saharan Africa. This advance is important because it is likely that inappropriate use of the drugs used to treat or prevent trypanosomosis has led to the emergence of drug-resistance. Now, with the introduction of the sensitive and specific VerY Diag test, unnecessary treatments can be avoided, saving farmers and herders money and helping to ensure these vital drugs remain effective in the future. In addition, currently many infected animals go undiagnosed and are therefore left untreated with a high risk of death. Availability of the test means these animals can now be properly diagnosed and rapidly treated.

84 CEVA ANNUAL REPORT 2016 VerY Diag represents a real advance in the battle A VerY useful new tool against trypanosomosis. It will have a huge impact on farmers making them more sensitive to the disease. It will help them to act earlier, preventing for Africa’s cattle farmers deaths or losses of earning. Currently they only consider the disease when they see animals with clinical signs. This approach is an example of Ceva’s strategy in Africa to provide services, adding more value to our products. ˮ

Dr. Cyrille Chevtzoff Ceva Ruminant Technical and Marketing Manager, Africa

Alliance for Livestock Veterinary Medicines (GALVmed) and teams of researchers in East, West and Southern Africa. Dr Davita Pillay, a member of the team that developed the test, commented: “I am very satisfied to see my work being translated into something that’s useful, practical and will definitely make a huge impact on controlling African trypanosomosis.” VerY Diag is a lateral flow test that can be readily used in the field by farmers and local technicians as it requires no specialist knowledge or facilities. It enables rapid diagnosis of tryps in the field alongside the animal, can be stored at Bovine trypanosomosis – tryps for short room temperature and includes an internal quality control - is a parasitic disease spread mainly by tsetse test to ensure accuracy. flies as they feed on the blood of cattle. Left untreated the disease is almost always fatal. The total Prior to the introduction of VerY Diag, diagnosis of the direct and indirect cost of the disease across the African disease required examination of blood smears by expert continent has been estimated to be USD 4.5 billion annually. microscopists or complex laboratory tests, which required transporting blood samples to distant facilities and intro- Uniquely for a major international animal health company, duced lengthy delays before results became available”. over the past two decades Ceva has invested heavily in research and development focused on solutions for tryps, Commenting on the new test, Dr Cyrille Chevtzoff, Ceva a disease found in Africa and also in South America where Ruminant Technical and Marketing Manager, said: “VerY it is spread by other types of biting flies. Under its VerY Diag represents a real advance in the battle against trypanosomosis. It will have a huge impact on farmers brand, Ceva now has the largest range of trypanocidal drugs making them more sensitive to the disease. It will help in the market: more than 40 million individual doses of them to act earlier, preventing deaths or losses of earning. Ceva’s curative and preventive trypanocides are administered Currently they only consider the disease when they see annually. animals with clinical signs. This approach is an example The VerY Diag test was developed through a partnership of Ceva’s strategy in Africa to provide services, adding between Ceva, the University of Bordeaux, CIRAD, the Global more value to our products.“

CEVA ANNUAL REPORT 2016 85 Feeding the planet

Ceva’s continued worldwide commitment to protect producers and consumers from avian influenza

Ceva has placed at the forefront of its “Together, beyond animal health” vision its desire to contribute to the well-being of populations by protecting and treating animals, paying special attention to zoonotic diseases, those transmissible from animals to humans. With this in mind its teams developed the Vectormune® AI vaccine, successfully tested and introduced in numerous countries hit by avian influenza. This vaccine is a genuinely innovative weapon, more efficacious than traditional solutions. In terms of preventing avian influenza, 2016 was an intense year: in parallel with our epidemio- logical research and monitoring activities, our teams managed a packed program of meetings, summits and national and international symposium, attended by hundreds of professionals from the poultry industry, as well as scientists and politicians concerned with controlling avian influenza.

Avian influenza is a serious disease that spreads The avian influenza viruses (H5 and 7) can be geographically. Epidemics lead to the death of millions transmitted from animals to humans with dramatic of birds and cause considerable damage, both to consequences, because they differ from the types affected producers and to populations faced with (H1, H2, H3) that characterize seasonal winter forms sharply falling meat supplies and sharply rising prices. of influenza, which we know and are better The USA was hit by a severe outbreak during 2015. protected against. Recently, a H7N9 type virus More than 200 farms were affected, 43 million birds appeared in China with increased transmissibility were destroyed as a result of the disease with the to humans: to date, more than 1,500 cases have global economic impact estimated as close to US$ been recorded with a death rate of above 30%, and 4 billion. In 2015-2016, it was Europe’s turn to be the virus continues to evolve. The really frightening affected by avian influenza, particularly Ceva’s home risk is that an avian influenza virus may develop area of south west France. The drastic measures taken that is capable of direct transmission between did not prevent this disease from rearing its ugly humans. The more we allow avian viruses to head again the following winter. Avian influenza has multiply, the more the risks for humans increases, now become endemic in many countries in Asia, the which raises the question of the potential role for Middle East, Central America and Africa. wider routine vaccination.

86 CEVA ANNUAL REPORT 2016 Since 2012, Ceva has been working in close collaboration with the Mexican government to put in place specific monitoring of avian influenza adapted to the country.

In June 2012, the national food health, safety, nearly a billion doses of Ceva vaccines have and quality service (SENASICA, Servicio been used. So it makes sense that the 2nd Nacional de Sanidad, Inocuidad y Calidad Ceva summit on avian influenza was held Agroalimentaria) confirmed the presence in Mexico in June 2016. of the H7N3 virus on poultry farms in the During this summit, we had the pleasure State of Jalisco. In April 2013, the epidemic of announcing that Ceva researchers, had already led to the slaughtering and/or in collaboration with the Mexican authorities, death of 27 million birds, while exports had had developed a specific vaccine against the fallen by 69% in volume, and many jobs had H7 subtype of the avian influenza virus found been lost in an industry that employs in Mexico, based on the same principle as 2 million Mexicans. And this outbreak Vectormune® AI. This is just the latest example of avian influenza also heavily penalized of our constant commitment in favor of consumers who saw the price of eggs genuine control of this serious disease for the (the number one source of protein for poultry industries affected by it. many Mexicans) increase by 56%.

Ceva was then asked for support by the authorities to help them protect the country against this scourge, and since then,

CEVA ANNUAL REPORT 2016 87 88 CEVA ANNUAL REPORT 2016 Traditional inactivated vaccines have action, which is very different to that of conven- little or no efficacy against this tional vaccines. They have also demonstrated that disease for different reasons: they in the event of contamination, vaccinated poultry cannot be administered early in excreted much less virus, which reduced contagion hatcheries due to their inhibition by and spreading to other farms, making Vectormune® AI maternal antibodies. As a result, the an efficacious tool not only to protect farms, but protection they provide can prove too late and coverage of farms also to prevent the spread of the disease. insufficient. They are also highly But a vaccine is fully efficacious only if it is correctly specific and incapable of ‘following’ ® the virus’s frequent antigenic varia- administered. Vectormune AI can be administered tions, which reduces all or part of their very early, in hatcheries, where every chick is sure efficacy. to be properly vaccinated. This guarantees high vaccine coverage (above 97%), which is essential More than 10 years ago intensive work led the Ceva team to successfully to protect groups of several thousands of indivi- develop Vectormune® AI, an efficacious duals. vaccine to prevent the H5 subtype virus. Tested in many independent centers, in These positive results are based both on our ability the USA, Europe and Asia, Vectormune® AI to innovate in terms of vaccines, and our unequalled was registered in the USA then introduced expertise in the field of hatchery vaccination. to Egypt, Mexico, Bangladesh and Vietnam. This includes the development of vaccination The results have exceeded all expectations; equipment, training of motivated teams, and all experiments have confirmed its extraor- creation of control programs and services, such as dinary ability to protect poultry. We owe this the C.H.I.C.K. Program, which this year received performance to the vaccine’s mechanism of Bureau Veritas quality certification.

CEVA ANNUAL REPORT 2016 89 Ceva partners with the Bill & Melinda Gates Foundation to train vets and boost dairy, poultry production and health in Bangladesh and Burkina Faso

Since 2015, Ceva has worked in partnership with the Bill & Melinda Gates Foundation to train vets and boost dairy, poultry production and health in Bangladesh and Burkina Faso.

As Pierre-Marie Borne, Ceva’s Public Affairs Director with The grant supports Ceva and its local and international responsibility for public health, zoonoses and food partners to work in three areas: safety, explains: “Ceva has long-standing experience of 1/ Developing a new improved local breed of chicken, working in Africa and a large team dedicated to the the Poulet de Faso. This breed will retain the flavour continent. Unusually for a major veterinary pharma- and texture characteristics local consumers value so ceutical company, we continue to invest heavily in highly but will be faster growing and the hens will lay developing products and services to meet the specific more eggs than the currently available local breeds. needs of this region where livestock play such an Small-scale poultry rearing is a critical source of income important role in people’s lives. The receipt of this for poor rural and peri-urban households. Poultry is substantial USD 6 million grant, which runs for 5 years often managed by women: the income they can derive up to 2020, represents a unique opportunity for us to empowers them and helps them to meet the needs of make our expertise in animal health and production their families. The project aims to make day-old-chicks available more widely in Africa and beyond, helping us of the new breed widely available. Since these will be live up to our vision of going ‘together beyond animal vaccinated in the hatchery they will be immune from health.” Newcastle disease. The project should therefore

90 CEVA ANNUAL REPORT 2016 Together with our partners we plan to run four, 4-week training courses, each for 30 vets, during 2017 and 2018. Beyond 2018, we plan to extend the program to other countries, most likely Ethiopia, where small-scale and backyard poultry play important roles in the livelihoods and diets of the poor.ˮ

Dr Pierre-Marie Borne Public Affairs Director with responsibility for public health, zoonoses and food safety

In 2015, Ceva received a grant from the Bill & Melinda Gates Foundation to roll out three targeted development projects corresponding to Ceva’s area of expertise and the foundation’s strategy to make smallholder livestock more produc- tive, improve nutrition and empower women farmers. These projects include initiatives to boost health and production in the poultry and dairy sectors in Burkina Faso and Bangladesh over three years. Ceva is proud of its partnership with the Bill & Melinda Gates Foundation which supports Ceva’s commitment to work together beyond animal health through feeding the world, tackling zoonoses and strengthening the human animal bond. two traditional French breeds, the Tarentaise and Montbéliarde. Both these breeds are widely used in crossbreeding programs around the world with the resultant crossbreds being hardy and productive. Pierre-Marie commented: “Ceva’s expertise in managing overcome the two main constraints to local poultry reproduction in cattle is central to this project. To date, the production: lack of day-old chicks and high disease losses. first batch of 400 cows have been synchronized and the Pierre-Marie is delighted with the way the Poulet de Faso results of the first round of inseminations are promising. project has taken off:“The project has been greeted with The first crossbred calves are due to be born end August overwhelming support and enthusiasm from people in 2017. When these calves eventually calve and start lactating Burkina Faso. The efforts of the local team have gone beyond they should produce up to five-times as much milk as their the call of duty; everyone has given their all to help build mothers. This will make a huge difference to the income the Boussé selection centre and dig the well which will and diets of the families of these pastoralist and farming provide water for the entire site.” families.” 2/ Also in Burkina Faso, the second project aims to boost 3/ The third project aims to improve the health and produc- milk production through the production of more productive tivity of poultry, initially in Bangladesh, through providing cross-bred cows. The target is to produce 1200 crossbred short, intensive and highly practical training courses for by inseminating the best local zebu cows with semen from local vets.

CEVA ANNUAL REPORT 2016 91 Human -animal interaction

there is growing evidence that animal-assisted therapy can aid in the treatment of children with Autism Spectrum Disorders. ˮ Pr. Daniel Mills Specialist in Veterinary Behavioural medicine, University of Lincoln, U.K.

92 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 UK pets save NHS £2.45 billion a year – but at what cost to the animal?

A recent study1 has estimated that pets save the UK’s National Health Service close to £2.5 billion a year. The study, published in 2016, considered both negative aspects, such as the cost of treating dog bites, along with positive aspects, including pets’ influence on human mental and physical health, illness prevention and well-being. The saving, which the report’s authors consider to be a conservative estimate, is largely because pet ownership has been shown to be associated with reduced use of health services.

There is a growing body of evidence that suggests that one of the first to examine how pet dog ownership can dog and cat owners have better psychological and physical also improve the lives of those more widely affected by health than those without pets. Dog owners have been autism. Our results show that owning a pet dog, rather reported to recover more quickly after serious illnesses than a specifically trained assistance dog, can considerably and they also make fewer visits to doctors. improve the function of the whole family unit.” In addition to considering the effect of companion animals The flipside of the benefits to people from interaction on human health and its economic implications, the recent with animals is the potentially negative impact on the study also considered the additional health benefits welfare of the animals. Dr. Bérengère Larhantec, from of economic value provided by animal-assisted interven- Ceva, said: “As the use of animals, especially dogs, in a tions and the wider support of individuals with increased range of animal-assisted interventions grows, the issue need in UK society. One of the report’s authors, Professor of animal welfare also grows in importance. We need to Daniel Mills, a specialist in clinical animal behaviour, know how stressful these roles are for the animals is also a co-author on a recently published paper describing concerned and what can be done to mitigate this stress. the results of a unique 3-year study that examined the In this context, the potential role of Adaptil®3, the use of effect of pet dogs on families with autistic children2. which is a proven to reduce stress in dogs, is an area we Professor Mills explains: “While there is growing evidence are keen to investigate further alongside other that animal-assisted therapy can aid in the treatment of approaches, such as effective training programs for both children with Autism Spectrum Disorders, this study is people and animals.”

1 S. Hall, L. Dolling, K. Bristow, T. Fuller & D. Mills (2016). Companion animal economics: The economic impact of companion animals in the UK. CABI, Wallingford, UK

2 S. Hall, H.F. Wright, A. Hames, PAWS Team & D.S. Mills (2016). The Long-Term Benefits of Dog Ownership in Families with Children with Autism. Journal of Veterinary Behaviour. Clinical Application and Research. Volume 13, Pages 46–54 http://eprints. lincoln.ac.uk/23108/1/fulltext#

3 The active ingredient in Adaptil® is a synthetic version of the dog appeasing pheromone DAP. This pheromone has been proven to have a comforting effect on both puppies and adult dogs during stressful situations and also helps support their training and socialisation.

CEVA ANNUAL REPORT 2016 93 People and animals together in harmony

For the past six years, Ceva has been pleased to sponsor the International Association of Human Animal Interaction Organisations (IAHAIO). IAHAIO is a global umbrella organization drawing together 70 associations and institutions comprising more than 100,000 individuals who are doing innovative and exciting work in the human-animal interaction field. In July 2016, 450 of them gathered in Paris to attend the latest in IAHAIO’s regular 3-yearly conferences to benefit from and share the latest in human animal interaction (HAI) research, education and practice. Ceva also provides direct support to a number of projects in which animals are being used in carefully designed and targeted inter- ventions to help people who are experiencing a range of medical conditions and disabilities.

94 CEVA ANNUAL REPORT 2016 Our product range includes highly innovative products that help people live in harmony with their pets and that make the lives of dogs, cats and working and generally championing animals less stressful. the ever-growing field of human animal interactions.” To complement these products, we are In addition to supporting proud to work with carefully chosen IAHAIO, Ceva has also partners who provide leadership in the provided direct support to field of human animal interaction.ˮ AAI projects in Sweden and France. In Sweden, Ceva Martin Mitchell supports the Humlamaden Director of Ceva Group’s communication Rehabilitation Centre which helps IAHAIO patients with a variety of medical covers a wide conditions to recover through both range of interac- horse and dog assisted therapy. In France, tions between people Ceva has just extended it support to the and domestic animals. Association for Research and Development of These include the bond between Reeducation in Auvergne (ARDRA) for another 3 years. pets and their owners and also various animal Through ARDRA, Drs Didier Vernay and Cecile Cardon, from assisted interventions (AAI) which can vary from well-be- Clermont-Ferrand Hospital University, work with horses to haved dogs visiting the elderly in care homes, through help people with multiple sclerosis (MS). They have also riding for the disabled to fully-trained service dogs providing created a program to help other centers choose the right daily support to disabled and vulnerable people. tools, extending the benefits of AAI beyond MS patients to The President of IAHAIO, Marie-Jose Enders-Slegers, include conditions such as autism. As well as providing explained: “Our mission is to provide international leadership support to the Swedish and French teams directly, Ceva has in advancing and professionalizing the HAI field by stimu- also helped to bring the two teams together. lating, motivating and helping members from both research and practice, to work together and to share knowledge and As Marie-Jose Enders explains, this fits well with IAHAIO’s best practices. We consider the care and wellbeing of both way of working: “In the coming years we will work for more people and animals involved in HAI or AAI of great impor- cooperation, more sharing of knowledge and practices, to tance and welcome insights from those working in the field help each other, especially in countries where AAI and HAI on how good standards of care can be achieved in different initiatives are ‘underdeveloped’, in professionalizing and settings and contexts.” sustaining our field.” IAHAIO appreciates that Ceva wants to partner with them in this initiative. Ceva’s Martin Mitchell, said: “Ceva’s together beyond animal health vision embodies three commitments: in addition to At the Centre Alienor in Bordeaux, which breeds, trains and supporting sustainable livestock production to feed the supports guide dogs, Ceva provides very practical support. ® world and helping global public health authorities to protect In 2016, for the second year, Ceva provided Adaptil collars the lives of people and animals through combating the for the dogs during their training programs. The collars threat of zoonotic diseases, the third commitment focuses improve the well-being of these dogs, helping them to on the importance of domestic animals in our lives and the adapt better to different environments during their training real benefits they can bring to our health and wellbeing. and eventual placement with the blind or visually impaired person whose lives they will transform. Our product range includes highly innovative products that help people live in harmony with their pets and that make In future Ceva will expand its activity in the Netherlands as the lives of pet dogs and cats as well as working animals well by working together with the Institute for Anthrozoology. less stressful. To complement these products, we are proud This is an institute, linked to the Open University in the to work with carefully chosen partners who provide Netherlands, that carries out research in effects and practices leadership in the field of human animal interaction. Since of animal assisted Interventions, and implementing the 1990, IAHAIO has worked tirelessly to promote the welfare results in standards of practice, thus enhancing human and of both people and animals through advocating best practice animal welfare and wellbeing.

CEVA ANNUAL REPORT 2016 95 Towards more harmonious relations between people and animals – great and small

96 CEVA ANNUAL REPORT 2016 For close to 20 years, Ceva has been committed to developing innovative products for the prevention and treatment of problem behaviours of dogs and cats. The use of products such as Feliway® and Adaptil®, based on synthetic versions of naturally occurring pheromones, is now well established to facilitate more harmonious, less stressful relations between people and their pets. Now, Ceva has begun to roll out its latest offering in this range: Feliscratch® is the answer for anyone whose cats like to scratch prized items of furniture or other inappropriate places. And Ceva’s concern for the wellbeing of animals extends beyond the small and domestic to the large and exotic too.

Scratching is part of cats’ natural behaviour and Ceva over the past 20 years in the development of the is thought to have a role in communication as company’s growing range of pheromone-based animal well as maintaining claws in good condition. behaviour products. And thanks to Ceva’s support, WWLPS Research suggests that more than 80% of households has been able to provide pheromones to many projects. with cats have problems with scratches on furniture. Feliscratch® by Feliway® contains a copy of the pheromone Doctor Patrick Pageat, Director of IRSEA and the inventor that cats naturally leave on objects when they scratch of many of Ceva’s behavioural products, explained: “WWLPS plus a small amount of catnip, which cats find highly started out as a dream but with support from Ceva, our attractive. Placed on their scratching posts, Feliscratch® long-term industrial partner, this exciting initiative became by Feliway® focuses their scratching on the post, saving a reality in 2008. Since then we have been able to support furniture from unwanted attention and helping cat owners conservationists working with a wide range of endangered to live in closer harmony with their pets. species including lions, tigers, cheetahs, wolves, bears, zebras, elephants and Przewalski’s horse.” Ceva is also helping to make the lives of exotic and endangered wild animals less stressful. Feliway® Classic One example of WWLPS’s impact was with a 28-year old and Feliway® Friends have been successfully used with a elephant. Orphaned as a baby and brought up by people, variety of big cats in zoos throughout the world. A recent she was finding it difficult to integrate into a captive group carefully conducted study on captive lions in Madrid and faced the prospect of living out her life in isolation showed that exposure to these products increased the until WWLPS supplied the appropriate pheromone. amount of time the lions spent playing and socialising The use of the pheromone reduced aggression between and they were generally more active. The overall conclusion the group and enabled the previously troubled elephant was that these products had a positive effect on captive to enjoy a peaceful, sociable life. lion behaviour and contributed to improved animal In another example, the use of equine appeasing welfare. pheromone has allowed captive bred Przewalski’s horses, Since 2008, Ceva has been proud to support a unique which became extinct in the wild in the 1960s, to be initiative which makes pheromones freely available to successfully reintroduced to their native range in Mongolia. wildlife conservation programs. The World Wildlife Library The pheromone reduced stress in the horses during their of Pheromones and Semiochemicals (WWLPS) was lengthy journeys from zoos in Europe to Mongolia, enabling established by the Institute of Research in Semiochemistry them to successfully adapt to their new environments and Applied Ethics (IRSEA). IRSEA has worked closely with and to re-establish healthy wild populations.

CEVA ANNUAL REPORT 2016 97 previously, just 39% of dogs graduated success- fully as hearing dogs, Previously, just 39% whereas afterwards this of dogs graduated percentage increased to successfully as hearing 68%. dogs, whereas afterwards this percentage Adaptil® collars help increased to 68%. to reduce stress for trainee assistance dogs

Future hearing dogs for deaf people undergo intensive and complicated training from when they are puppies through to adulthood. This training period, especially in its traditional form, placed the animal under a great deal of stress. They had to cope with several changes in environment, and time spent in kennels between different homes. This stress was not only harmful to the animal’s wellbeing, it also decreased their capacity to learn. To address this problem, the British charity Hearing Dogs for Deaf People, introduced a series of changes to their training program. These included a shift from kennel-based training to allowing the dogs to continue to live with families throughout their training and also the introduction of Adaptil® collars at key moments during training. The impact of these measures was dramatic; previously, just 39% of dogs graduated successfully as hearing dogs, whereas afterwards this percentage increased to 68%.

Hearing Dogs for Deaf People is a UK charity which, for the introduced Adaptil® collars at four key stages of the dogs’ past 35 years, has been training dogs to assist hearing-im- socialization and training programs: when they leave their paired people, especially helping them to respond to sound mothers; for the first month of their socialization phase living alerts, such as doorbells, alarm clocks and fire alarms, among with families; as they enter the more intensive training phase; others: “deafness can be a very isolating disability. A hearing and when they are eventually placed with their deaf partners. dog can give a deaf person a newfound sense of indepen- The collars are also used at other times, such as to help the dence and confidence now that they have a loyal companion dogs cope with fireworks or other short-term stressful and a true friend by their side” Hearing Dogs explains. experiences. In 2016, the charity trained 140 dogs. Currently they have Adaptil® is the synthetic copy of the natural dog appeasing over 900 active working hearing dog partnerships across pheromone released by the mother dog 2-3 days after giving the UK and since 1982 have successfully placed 2,901 hearing birth. This pheromone comforts and supports the puppies, dogs with deaf people. giving them the confidence to explore the outside world. Before the changes were implemented, the majority of dogs This dog appeasing pheromone has been proven to have a undergoing training with Hearing Dogs did not succeed and comforting effect on both puppies and adult dogs during had to be rehomed as pets. Staff at Hearing Dogs realised stressful situations and also helps support their training and that a key problem was the stress associated with the 3-4 socialization. months’ intensive kennel-based phase of the training program. Jo Gray, Head of Quality Assurance and Welfare at Hearing This took place after an initial 12-16 months puppy socialising Dogs said: “minimizing stress and maximizing enrichment phase in volunteer’s family homes. Some dogs could not cope is a key focus point of the hearing dog operational teams. with the changes associated with the move to the kennels. We recognize that each dog is an individual with needs that Their stress manifested as a range of behavioural problems; will differ and so our approach to the training journey needed in some cases, this led to them being dropped from the to adapt and change too. Using Adaptil® for each dog in training program. One result of this was a 4-5 year waiting list training is one such tool that encourages a well-rested, for deaf people who wanted a hearing dog. relaxed dog that is supported through its learning. This has This is what encouraged the association to devise a new had a very positive impact on the welfare of our dogs and program which enabled the dogs to live in family homes allowed us to help more deaf people by providing them throughout their training. At the same time, the association with the gift of a hearing dog.”

98 CEVA ANNUAL REPORT 2016 The Adaptil® collar also proved to be effective at improving the graduation success rate at Leader Dogs for the Blind in the US.

In a carefully controlled trial on to adjust to this person and 39 dogs, the effect of the work with them as a guide Adaptil® diffuser was com- dog. In the Adaptil® group, pared to a placebo diffuser. only one dog was career The diffusers were plugged in changed due to unrelated the residence room of the dogs medical necessity; the remaining during their last month of trai- 17 dogs all graduated. In the ning, when they meet their placebo group, 17 out of potentially future visually-im- 21 dogs graduated: the four paired owner. This period is who failed were all due to challenging as the dog learns behavioral factors.

The program changes implemented by Hearing Dogs, and “Hal helps me every day. He is my ears. He tells me about the introduction of Adaptil®, greatly contributed to reducing important sounds, like my mobile phone, so I can keep the dogs’ stress, and making them more sociable. in touch with my friends. When the alarm clock goes in This translated into more successful outcomes. Before, of the morning, he wakes me up with his paws on the bed. 177 dogs, just 69 (39%) graduated; afterwards, of 209 dogs When it rings to tell me I can finish my homework, he entering the program, 142 (68%) graduated. gives me a gentle nudge with his nose. We’re a team. The higher success rate achieved has halved the average waiting Hal looks after me, and I look after him. When people time for a hearing-impaired person to be matched with a dog, see him, and notice his jacket, they talk to me about from 4-5 years to around 2 years. It also means that significantly him. I love telling them how he helps me. If I’m feeling more people can benefit sooner from the life-changing tired, I can give Hal a cuddle and I feel much better. He experience of receiving a fully trained and accredited hearing ‘energizes me up’. He’s not just my hearing dog. He’s my dog. People like Olivia, who became deaf when she was three. best friend.“

CEVA ANNUAL REPORT 2016 99 Animal Welfare

TOLFA, a Ceva-supported charity transforms attitudes to animal welfare in Northern India

In 2012, the founder of TOLFA, a small animal welfare charity based in Northern India, was recognised as Ceva’s Veterinary Nurse of the Year as part of Ceva UK’s annual Animal Welfare Awards. That award marked the start of an ongoing relationship which has seen Ceva providing a wide range of support to this small but hard working organisation. The kudos the award brought TOLFA also raised its profile and enabled it to be more effective in its fund-raising activities.

TOLFA – short for Tree of Life for Animals – is a busy Since 2012, Ceva has supported TOLFA in a variety of animal hospital and shelter based in Rajasthan, Northern ways such as sponsoring the printing of a fund-raising India. TOLFA’s work includes rescuing and treating sick calendar, sponsoring uniforms for the charity’s 36 staff and injured street animals, especially dogs and cattle, at the animal hospital in India and providing other neutering and spaying stray dogs and vaccinating them types of practical support. against rabies, running mobile rural animal clinics and educating communities, especially children about Clara Nowak, TOLFA’s UK Manager, explained: animal welfare and rabies prevention. Since 2005 TOLFA “We are extremely thankful for our relationship with has provided medical care, vaccinations, veterinary Ceva. Their vision and approach is very much in line treatment and spaying or neutering to more than with TOLFA’s. We work with animals but also help 100,000 animals and helped transform people’s attitudes people through good veterinary practice and our to animal welfare in this part of India. approach to good animal welfare.”

100 CEVA ANNUAL REPORT 2016 I am really grateful for Ceva for creating the animal welfare awards and for creating the opportunity for people who work in animal welfare across a whole spectrum of different opportunities, from volunteers, to vet nurses, charity professionals and vets.ˮ

Heather Bacon Outreach Manager at the University of Edinburgh’s Jeanne Marchig International Centre for Animal Welfare Education

Ceva’s Animal Welfare Awards move from strength to strength with incredible stories of human-animal devotion

On the eve of the British Small Animal Veterinary Association Conference, held in Birmingham in April 2016, Ceva hosted its annual UK Animal Welfare Awards ceremony. Now in their fifth year, Ceva established the awards to showcase, reward and celebrate the outstanding work that individuals and organisations from the UK do to improve animal welfare.

Heather Bacon won the prestigious Chris Laurence Vet that characterises particular breeds of dogs as dangerous, TOLFA, a Ceva-supported charity transforms of the Year 2016, awarded in association with the rather than being focused towards individual dogs and Veterinary Times, in recognition of her pioneering work their owners. Her vision is to reduce negative press and attitudes to animal welfare in Northern India around the globe. Heather is the Veterinary Welfare attitudes towards bull breed type dogs and to see more Education and Outreach Manager at the University of bull breeds being taken on as rescue dogs. Edinburgh’s Jeanne Marchig International Centre for The Volunteer of the Year 2016, awarded in association Animal Welfare Education, based within the Royal (Dick) with the Blue Cross, went to John and Judith Morton School of Veterinary Studies. Her work is focused of the East Midlands Retired Greyhound Trust. John and primarily overseas to improve the welfare of animals Judith’s focus is to find homes for ex-racing greyhounds by working with NGOs and veterinary organisations, and in doing so they aim to support both the dogs and particularly on the topics of dog population management, the people who rehome them. Commenting on the zoo animal and exotic pet welfare. award John said: “After 20 years, this is the first, fantastic Speaking after receiving her award, Heather said: “I am thank-you we’ve ever had. We work hard -7 days a week, really grateful for Ceva for creating the animal welfare weekends, Christmas, Bank Holidays – we never stop.” awards and for creating the opportunity for people who As Lindsay Johnson of Ceva UK explains: “Each year, our work in animal welfare across a whole spectrum of eminent judges are given the arduous task of reading different opportunities, from volunteers, to vet nurses, through hundreds of nominations which they have to charity professionals and vets.” whittle down to finalists and then winners. It is a tough Shakira Free-Miles won the Veterinary Nurse Veterinary process because of the quality of the people they have Nurse of the Year award for 2016 having been a finalist to judge, often leading to very tough decisions between in 2015. The judges were impressed by her commitment equally deserving individuals. Our ‘Animal Welfare to veterinary and animal welfare education, especially Awards’ each year are a celebration of the very best her campaigning work to improve legislation governing people committed to the cause. And yet, each year, we animal welfare. Shakira founded ‘SaveABulls’ to raise are always humbled by the dedication of all our welfare issues surrounding breed-specific legislation nominees. They all go beyond what is required.”

CEVA ANNUAL REPORT 2016 101 Financial report

In a turbulent and unpredictable economic and geopolitical context, Ceva continues to grow profitably and resumed strategic external growth in 2016.

102 CEVA CEVA ANNUAL ANNUAL REPORT REPORT 2016 2016 Alain de Woillemont, Group CFO

Revenue growth (excluding the full-year impact of acqui- gthen our position in the Brazilian market (the third largest sitions made in 2016) is 6.5% compared to 2015 and 10% producer of animal protein) and enter the ruminant vaccine at constant exchange rates. segment, adding to our presence in poultry and swine vaccination. Finally, the acquisition of a Merial portfolio at The Group operating income (excluding the full-year impact the very beginning of 2017 (following the merger with of the 2016 acquisitions) was up by more than 21% compared Borhinger) will allow the Group to accelerate its expansion to 2015, confirming once again that our company is able in the swine vaccine segment. All these acquisitions will to meet its commitments. The Group has seen its profitability have a very significant impact on our future growth and ratios improve as a result of the expansion of our product will strengthen the Group’s strategic position on the world mix and our ability to realise economies of scale. The Group’s stage and in key segments. other financial priority remains cash generation, which will allow us to continue our investments, ensuring our future In line with its growth and to maintain the momentum of growth in plants and R&D and enabling ongoing impro- improved profitability, the Group has launched several vement missions. initiatives to benefit business, aiming at excellence both in our plants and within support functions. These include data The continuous growth in our earnings confirms the security and harmonisation to improve the decision-making soundness of Ceva’s business model. Our presence on all process through the “Quantum: From Data to Value” program. continents, providing both pharmaceutical and biological products for the four main animal species, as well as our To secure its financing and take advantage of attractive agility, allow us to mitigate risks and move forward in an conditions on the debt markets, the Group renegotiated increasingly complex environment. the terms of its medium-term financing, raised €600m to finance acquisitions and refinanced part of its long-term Several significant strategic acquisitions were made during subordinate financing for a total of € 1.3bn. 2016, laying the ground for the medium and long-term future of our Group. The Group strengthened its differen- Thus the Group has not only demonstrated its agility and tiated offering in the poultry segment with the acquisition capacity for action, but also its ability to adapt and anticipate of iD Projects and Biovac. The acquisition of Polchem gave in order to face new challenges, be able to take advantage us a foothold on the Indian continent with high-value local of opportunities and fulfill our ambition to become a new teams sharing the Ceva culture. In the final days of 2016, reference for our customers and continue our virtuous circle Hertape and Inova joined the Group enabling us to stren- of profitable growth.

CEVACEVA ANNUALANNUAL REPORTREPORT 20162016 103 * Key figures (m€) Excluding full year impact of acquisitions

Turnover for the year came to €912.3 million in 2016 compared to €856.4 million in 2015, an increase of 6.5%. At constant scope and exchange rates, the growth in turnover was 10.0%. Operating profit saw growth of 21.1% to €156.9 million, up from €129.6 million in 2015. At constant scope and exchange rates, Group operating profit grew by 37.5%.

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

Sales Operating profit Sales I Sales annual increase in % Operating profit/Sale I Operating profit Growth

2014 765.3 M€ 22.7% 2014 118.8 M€ 15.5% I 17.9%

2015 856.4 M€ 11.9% 2015 129.6 M€ 15.1% I 9.1%

2016 912.3 M€ 6.5% 2016 156.9 M€ 17.2% I 21.1%

Research & development EBITDA R&D*/Sales I Growth in R&D spend EBITDA/Sales I EBITDA Growth

2014 70.3 M€ 9.2% I 17.9% 2014 137.8 M€ 18.0% I 18.4%

2015 77.8 M€ 9.1% I 10.7% 2015 150.0 M€ 17.5% I 8.9%

2016 77.6 M€ 8.5% I -0.3% 2016 179.4 M€ 19.7% I 19.6%

* Excluding capitalised R&D, which if included brings this figure to more than 10% of sales.

Investments (M€) 2014 2015 2016

Property, Plant and Equipment Investments 36.0 38.8 47.5

Intangible Investments 8.6 21.1 25.6

Financial Investments 1.0 7.3 194.1 Total Investments 45.6 67.3 267.2

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

104 CEVA ANNUAL REPORT 2016 Financial Structure

Capital employed (M€)

Fixed Assets WCR (Working Capital Requirement) Other Current Assets & Liabilities

2014 496.6 M€ 2014 120.9 M€

2015 520.0 M€ 2015 146.6 M€

2016 788.5 M€ 2016 168.4 M€

Total capital employed

2014 617.5 M€

2015 666.7 M€

2016 956.9 M€

Financing (M€) Stockholders’ Equity, Group Share Net Debt

2014 226.0176.7 M€ M€ 2014 348.8 M€

2015 256.1 M€ 2015 367.4 M€

2016 318.1 M€ 2016 566.4 M€

Minority Shareholders Total Financing and other long term liability

2014 42.7 M€ 2014 617.5 M€

2015 43.2 M€ 2015 666.7 M€

2016 72.5 M€ 2016 956.9 M€

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

CEVA ANNUAL REPORT 2016 105 Sales and operations activity per zone

M€ 2016 % 2015 % Variation % 2016/15

Zone Europe 331.0 36% 311.2 36% 19.8 6%

Zone Africa, Middle-East, Eastern Europe 201.0 23% 189.7 22% -13.0 6% and Turkey

Zone Asia 102.1 11% 82.9 10% 19.2 23%

Zone Latin America 96.2 10% 92.7 11% 27.8 4%

Zone North America - Pacific 160.2 18% 158.1 18% 2.1 1%

Sub-total Zones 890.5 98% 834.7 97% 55.8 7%

Other activities (inc. trade, toll manufacturing) 21.8 2% 21.7 3% 0.1 1%

Consolidated total 912.3 100% 856.4 100% 55.9 7%

Employees by service

2014 2015 2016

Industry / Supply Chain 1 279 1 326 2 046

Sales / Marketing 1 358 1 482 1 913

Administrative 453 457 545

Research & Development 504 514 546

Total employees

2014 3 594

2015 3 779

2016 5050

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

106 CEVA ANNUAL REPORT 2016 Turnover by product group

2016 was a year of solid growth in all areas of the poultry segment (+9%, of which +11% for vaccines), especially in Asia (+22%) and Europe (+14%). Sales in the companion animal sector grew by 6%, with very strong performances in the Behaviour (+32%) and Anti-Infective (+27%) ranges. Sales in Europe were up by 14%. Sales in the ruminant sector were stable, while sales for the swine sector increased 10%, with growth in Asia of 36%, a launch of operations in North America (+€1.9 million) and overall growth in vaccine sales of 31%. Growth in turnover was driven mainly by products in the areas of strategic development: the concentration of strategic products increased 5 points, with these products now representing 71% of total sales.

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

CEVA ANNUAL REPORT 2016 107 Gross margin Reported gross margin was up by 1.8 points, reaching 61.8% of net turnover. This increase in gross margin can be explained by a favourable product mix (impact of +2.5 points) due to the 5-point increase in the strategic concentration. Furthermore, the increase in sale prices (impact of +1.6 points on gross margin) fully offset the unfavourable impact of exchange rates on gross margin (-1.4 points).

Gross margin I % Sales

2014 462.6 M€ 60.4 % I 19.9%

2015 513.8 M€ 60.0 % I 11.1%

2016 564.0 M€ 61.8 % I 9.8%

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva Costs Distribution expenses Research and The distribution expenses to sales ratio was 4.0% of net development expenses turnover in 2016, a -0.4-point decrease on 2015. R&D expenses represented 8.5% of net turnover in 2016, The effort implemented by a dedicated working group with €77.6 million for the year, €0.2 million less than in 2015. was successful and the distribution cost ratio therefore fell back to within 0.1 points of the 2014 rate. In the ruminants segment, the group registered 4 products: Zeleris, an anti-infective, Parasol, an anti-parasitic, Commercial expenses Plenix and Seclaris: two products intended for the repro- In 2016, the group continued to expand its sales force duction range (treatments for conditions related to the by focusing on veterinary services. The relative share of lactation period) commercial expenses in total turnover was stable compared to 2015 at 24.4% of net turnover, with the share of costs In Biology, the group continued its geographical expansion related to vaccination services increasing +0.3 points by registering poultry and pig vaccines in many countries in 2016 to reach 1.1% of turnover. throughout the world, particularly in Latin America and Eastern Europe.

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

108 CEVA ANNUAL REPORT 2016 Other income and expenses The other income and expenses represented an expense of €4.0 million for the year, compared to income of €1.0 million in 2015, mainly due to a risk adjustment for certain countries in the international zone in 2016.

Consolidated pre-tax profit

M€ 2014 2015 2016

Sales 765.3 856.4 912.3

Gross margin 462.6 513.8 564.0

% sales 60.4% 60.0% 61.8%

Distribution expenses (29.6) (37.4) (36.5)

% sales -3.9% -4.4% -4.0%

Commercial expenses (187.1) (209.2) (223.0)

% sales -24.4% -24.4% -24.4%

Administrative & general expenses (56.6) (60.8) (65.9)

Research & Development expenses (70.3) (77.8) (77.6) Operating margin 119.1 128.6 160.9 % sales 15.6% 15.0% 17.6%

Other income and expenses (0.3) 1.0 (4.0) Operating profit 118.8 129.6 156.9 % sales 15.5% 15.1% 17.2%

Amortizations, depreciations provision for intangible assets (5.7) (9.2) (9.6) Operating result before taxes and financial expenses 113.0 120.5 147.3

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

CEVA ANNUAL REPORT 2016 109 Consolidated cash flow

en M€ 2014 2015 2016 EBITDA 137.8 150.0 179.4 Cash Flow from Operating Activities 103.5 83.1 127.1 Cash Flow from Investing Activities (*) -43.3 -66.3 -261.6 Free cash flow 60.2 16.9 -134.5 Cash Flow from Financing Activities -60.0 55.0 273.1 Effect of exchange rate changes -3.9 -3.0 3.5 Changes in Cash Position -3.7 68.9 142.0 Cash at beginning of period 75.4 71.7 140.6 Cash at end of period 71.7 140.6 282.6

* net from transfer of long-term assets

Analysis of the consolidated cash flow statement provided in Acquisitions of tangible fixed assets acquisitions concerned the attached financial statements reveals the following points: investments in the Group’s main industrial sites: Ceva Santé EBITDA stood at €179.4 million, Animale, Ceva Biomune and Ceva Phylaxia. Cash flow from operations represented €127.1 million. In 2016, the group invested in the acquisition of technology licences and patents for nearly €22.9 million. These investments Total investments in 2016 (net of lease-based financing) came were made to support the design of new products. to €261.6 million, of which €73.6 million euros for acquisitions of tangible and intangible fixed assets, and €188.1 million for On 31 December 2016, gross free cash flow and investments financial fixed assets (of which €178.5 for the acquisition of new stood at €282.6 million, compared to €140.6 million at the end companies). of the previous financial year.

Consolidated balance sheet M€ 2014 2015 2016 Intangible Assets 294.0 292.1 478.8 Property, Plant and Equipment 189.3 208.9 271.0 Financial Investments 13.4 19.1 38.7 Total fixed assets 496.6 520.0 788.5 Working Capital requirement 120.9 146.6 168.4 Total Assets 617.5 666.7 956.9 Stockholders’ Equity 226.0 256.1 318.1 Minority Interests 1.3 1.2 5.0 Other long-term Assets Liabilities 41.4 42.0 67.5 Net Financial Debt 348.8 367.4 566.4 Total Liabilities 617.5 666.7 956.9

Consolidated Profit & Loss account Senior Mendel / Consolidated Balance sheet Ceva

110 CEVA ANNUAL REPORT 2016 FRANÇOIS BLAZQUEZ, STÉPHANE KLEIN, CEVA SANTÉ ANIMALE Ceva Santé Animale 10, avenue de la Ballastière [email protected] 33500 Libourne - France www.ceva.com