PetIQ is a rapidly growing distributor and manufacturer of veterinarian-grade
pet prescription (“Rx”) medications, over-the-counter (“OTC”) flea and tick
preventatives and health and wellness products for dogs and cats. We pioneered
and are the leading seller to the retail channel of pet products
that were
previously available for purchase primarily from veterinary clinics. We enable
our customers to offer pet owners choice, affordability and convenience on
products from leading national brands (“distributed products”) as well as our
proprietary value-branded alternatives. Consumer behavior supports our
continuing growth: pet owners are increasingly migrating their purchases away
from veterinarians’ offices to the channels we serve. In addition, pet owners
are shifting their retail purchases from non-veterinarian-grade products,
previously the only products available in the retail channel, to the premium
veterinarian-grade products that we sell. We believe we are well positioned to
capitalize on these changes in consumer behavior because of our category
leadership, broad product portfolio, value proposition and strong customer
relationships. The end markets we serve are large and growing: U.S. sales of pet
medications have grown to an estimated $7.4 billion in 2016 and are estimated to
reach $8.9 billion by 2019, representing a compound annual growth rate (“CAGR”)
of 6% between 2016 and 2019, according to Packaged Facts.
Our product portfolio spans a wide range of veterinarian-grade Rx medications
and leading OTC medications as well as other health and wellness products. We
offer our customers a comprehensive category management solution and sell
products under multiple brands to address channel-specific requirements. Our
most popular product categories include:
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We believe our consumer value proposition drives increasing demand for our
products. Pet owners can typically buy our distributed products from retailers
at a 20-30% savings compared to the prices charged by veterinarians, and can
save as much as 50% on our proprietary value-branded products, which contain the
same active ingredients as distributed products and are subject to the same Food
and Drug Administration (“FDA”) and Environmental Protection Agency (“EPA”)
approval process.
We have successfully introduced our products into all major retail channels
including mass, food and drug, clubs, pet specialty, online and pharmacies. Our
network of customers includes Walmart, Sam’s Club, Costco, PetSmart, Petco,
Kroger, Target, and BJ’s Wholesale Club, among others, and more than 40,000
retail pharmacy locations. We support our retail customers by (i) providing
unique merchandising solutions, (ii) offering 24-hour fulfillment of Rx pet
medications to pharmacies and (iii) creating marketing and promotional programs
that highlight the value proposition and availability of veterinarian-grade pet
medications through the retail channel.
We rapidly develop, manufacture and introduce innovative new products to
retailers and consumers. Our current product portfolio and pipeline of future
products have been developed through a combination of in-house specialists and
animal health research and development (“R&D”) experts. In addition, we
specialize in market analysis, product development, packaging, marketing,
industry licensing and managing both EPA and FDA regulated products. These
internal and external resources enable us to expand our portfolio of proprietary
value-branded products and develop next-generation versions of our existing
products. We have found that our retail expertise and strong market position
makes us an attractive partner for scientists and entrepreneurs developing new
products in the pet health and wellness field. A combination of our internal
expertise and strategic relationships have produced several of our top selling
products and brands, including VetIQ, PetAction Plus, Advecta, PetLock Plus and
TruProfen.
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PetIQ, Inc., a Delaware corporation, was incorporated in February 2016 for the
purpose of this offering and has had no business activities or transactions to
date. PetIQ is a holding company and the sole managing member of True Science
Delaware Holdings, LLC, a Delaware limited liability company, which was formed
in May 2012 and renamed PetIQ Holdings, LLC, which we refer to as HoldCo, in
February 2016 to better reflect our pet-centric business. HoldCo is the sole
member of PetIQ, LLC, an Idaho limited liability company and our predecessor for
financial reporting purposes, and has no operations and no assets other than the
equity interests of OpCo. Our principal executive office is located at 500
E. Shore Dr., Suite 120, Eagle, ID 83616, and our telephone number is
1-208-939-8900. Our corporate website address is
www.petiq.com.
