00:00It's interesting. This is something that we've talked about before, the fact that consumers,
00:04Americans, are spending a lot of money on their animals. But then you take a look at vet visits.
00:10They've actually been declining a bit over the past several years. And, you know, I wonder how
00:15you square that circle and what it means specifically for Zoetis. Well, first of all,
00:21Katie and Isabel, it is great to be back with you. And yes, the animal health industry is
00:26incredibly resilient. And as you just think, over the last 40 years, the average lifespan of pets
00:33have increased 1.5 to 1.7 times. And I think innovation is at the heart of this right now.
00:40And, you know, even as you mentioned, you know, consumers feel pressure in this economy and vet
00:45visits have indeed been declining. But pet owners' human-animal bond means they're, you know, still
00:51willing to spend to take care of those pets. And really, at Zoetis, what we're doing is leading
00:56in the innovation for both of those pets, as well as for livestock and all the protein
01:00that people are continuing to consume. And you're embedding AI
01:03across your business. Where is it actually making a difference today?
01:07Yeah, I mean, we really see AI as a force multiplier. It amplifies, you know, the power
01:14of our scientists, of our veterinarians, and of our teams. And there's a few really big places
01:20where we're invested. You know, first, as you think about livestock, we have an AI model that
01:25can predict pancreas disease in salmon eight weeks before you can confirm it. And eight weeks is
01:31everything if you're a livestock producer in a salmon farm. It's the difference between protecting
01:36their harvest and losing their harvest. And today, we have AI diagnostics in animal health at your vet
01:43clinic that can let you know as soon as they take a mass out within an hour whether or not
01:48your pet,
01:48you know, actually has cancer, and we'll put you online again with a specialist pathologist. So
01:54that's why I say we really think it's a force multiplier to amplify the strength of both our
01:59scientists as well as our vets. Well, you touched on something I've been wondering about, you know,
02:03when it comes to AI in animal care, I feel like that conversation is just starting to be had
02:08on a wider scale when it comes to human health. When it comes to animals, I mean, is the bigger
02:14potential opportunity in livestock, or is it in companion animals?
02:20You know, we're really looking both at AI and genomics and leveraging that to transform health
02:25care. If you think about it, you can better predict disease. We have genetic tests, you can get base
02:31paws for your dog or your cat, or in the livestock side, as you mentioned. And with that insights, you
02:37can
02:37better personalize the care for your dog. And as you think about on the livestock side, it's incredibly
02:43powerful in being able to, you know, create a healthier, more sustainable herd at scale. As you
02:49think about, you know, applying that more broadly, it helps produce a safe and affordable food supply.
02:55And if you consider the fact that by, you know, 2050, we're going to need 50 to 70% more
03:01protein than
03:02what we produce today, the need for healthier, more sustainable animals and more productive animals
03:07is, you know, more necessary than ever.
03:09And you say that animals are living longer. Now, this is fantastic news for Katie, and also my
03:14husband, who are great animal lovers. How much of your growth is really tied towards that aging trend?
03:20Yeah, so we kind of look at it as the longevity loop, Isabel. That's sort of how we talk about
03:25it.
03:25And pets are living longer. But they're also, you know, pet owners are expecting similar care to what
03:31they get. And we're addressing really new unmet medical need. I was on your show a few months ago,
03:37as we talked about our pipeline, we're going to have 12 blockbuster products, so products worth
03:42at least 100 million in new disease areas where there are really almost no products today,
03:48chronic kidney disease and cardiology and oncology. And collectively, that's $7 billion of market value
03:56that isn't being tapped today. So, you know, if you really think about it, we're in the beginning of a
04:01major innovation cycle across animal health. And we're really proud at Zoetis to have the strongest
04:06pipeline to deliver there.
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