this is taken from a recent posting on the Merial board.....
Originally Posted by Anonymous
I'm a veterinarian and in my more than 30 years in practice I have watched the flea control market evolve. Most of my clients use Frontline Plus, and most of those purchase it from me. But that is changing and is getting ready to turn upside down. I can compete with the pet stores, they charge $20 per dose. We price ours a little below PetMeds both in hospital and through our web store. Costco is problematic, they are satisfied with a 4% margin, difficult to compete with that. But most clients understand that we can't compete with Costco. The real nail in the coffin will be a generic equivalent available in stores at a lower cost than I can purchase the brand name from the manufacturer.
Unlike some of my colleagues I don't blame Merial. As long as it isn't illegal, EPA products are going to go otc. No way to stop it. No amount of tracking will stop it. It's the nature of the beast. It doesn't really matter to me if it is diverted or sold directly to the store. The effect on my practice is the same. The only company that has been disingenuous about it was Bayer. I called them a few weeks before they went public about selling their products direct to the pet stores and was told it was to "get a handle on the diversion problem." That's like screwing someone to get a handle on the pregnancy problem.
In the short term I think veterinarians need to stick with FDA products and let the pet stores fight over the EPA market. Would I be interested in yet another EPA product like Vectra? No thanks. Reminds me of Hill's who has brought out several "veterinary exclusive" wellness pet foods. If sales don't boom they discontinue it, if we successfully build a market for the product they take it otc and sell it to pet stores at a price not available to veterinarians. I'm not interested in playing that game.
Ultimately I think dispensing will be taken away from veterinarians altogether. I remember when many MD's had their own little pharmacy in their office, one stop shopping. The auto shop that did state inspections also did the repairs. No more, gone because of the perceived conflict of interest. Reminds me of a comment made to me by a retiring veterinarian on my first day on the job, only half in jest, "If you don't have the drugs to treat what you've diagnosed, diagnose something you do have the drugs to treat."