Read below an article taken from our Animal Health platform dated 30/03/20.

The coronavirus outbreak was declared a pandemic by the WHO on March 11. Over the course of March, a range of animal health companies witnessed a fall in share value. Such firms included IDEXX Laboratories, Zoetis, Elanco, Phibro Animal Health, Covetrus and Virbac.

IDEXX's share value previously endured one of the sharpest declines - falling 32% in value. From March 11 to March 20, the firm's stock fell from $245.58 to $183.29. However, the company's shares have begun to recuperate their value and is currently trading at approximately $232 each.

Zoetis had also witnessed a significant decrease in its share price, falling from $130.24 on March 11 to $96.31 on March 18. Now, the firm's stock had climbed back up to around $111 per share.

Elanco's share price has also undergone a steady recovery. The share valuation climbed from a low of $15.53 on March 18 - its lowest ever pricing - to just under $22. Elanco recently retracted its financial guidance for 2020 due to the pandemic and expects to deliver a new forecast later this year. It has also donated over $700,000 to "help fight rising food insecurity challenges due to the novel coronavirus outbreak".

Phibro Animal Health's share price has also seen an upturn. On March 19, the company's stock value had fallen to $17.07 - its lowest trading price since 2014. Now, Phibro shares are priced at over $20 each.

Covetrus' share value recently declined to an all-time low for the firm. However, its stock value has gradually climbed since then to around $8 per share.

In contrast, Virbac's stock valuation has only seen a small recovery. After dropping to €132.20 per share on March 18, the company was trading at €162.40 on March 25.

However, by March 30 the firm's share price had fallen again to €146.60. Virbac recently outlined its pre-coronavirus 2020 sales expectations, forecasting growth of 4-6% for the year.

Kindred Biosciences has also struggled to recover its share price. From March 11 to March 18, the company's trading value fell from $8.87 to $3.90. The firm's stock is currently priced at a little over $4 per share.

In a recent research note, US investment bank William Blair said it expects the companion animal health market to take a hit while COVID-19 restrictions are in place. It estimated the space could face a 10%-15% sales cut during the period.

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This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.