Request: What is the addressable market for veterinary stem cell therapies from a

consumer or pet owner standpoint?

INSIGHTS

- Overall, there are a potential of 40 million cats and 14 million dogs that can
undergo stem cell therapy.
- The TAM for veterinary stem cell therapies is from $4.82 million to $135 billion.

In this study, we found that the total addressable market (TAM) for veterinary stem cell
therapies is from $4.82 million to $135 billion. Below is a detailed explanation of our
methodology and findings.

METHODOLOGY

We initially started the research by collecting relevant information from credible online
sources such as III, Stem Cells Journals, Hindawi Publishing Corporation, Medgadget,
Assisi Animal Health, and many more. From our sources, we found that the global
revenue of animal stem cell therapy in 2017 is close to $16.3 million with 58.63%
market share in the U.S. market, and about 50.42% share for dogs. The stem cell
therapy market for dogs is computed as follows: $16.3 million * 58.63% share of the
U.S. market = $9.55 million * 50.42% share for dogs = a total of $4.82 million.

The total addressable market (TAM) is calculated by the total number of potential
animals to be treated multiplied by the costs of stem cell therapy. First, we had to find
the number of cats and dogs with osteoarthritis that can be cured with stem cell therapy
in the US. Overall, there are 54 million potential animals (40 million cats and 14 million
dogs suffering from osteoarthritis) that can undergo stem cell therapy. The cost of stem
cell therapy is around $2,000 to $3,000, and we get the median price of $2,500.This can
be computed as follows: 54 million animals * $2,500 = a total of $135 billion.

We have used the global revenue of animal stem cell treatment to get the minimum
TAM specifically for dogs in U.S. since there is no specified percentage for cats. We
also assumed that it has a minimum percentage since half of the share is attributed to
the dogs. Based on our sources, we chose osteoarthritis because it is a disease directly
related to joint problems that needs treatment by stem cell therapy, and we used the
same disease to compute for TAM.

MAIN FINDINGS

TAM can be calculated by either top-down (data from industry research and reports) or
bottom-up (data from early selling efforts or data regarding the current pricing/usage of
the product with a larger customer base). In 2017, the global revenue of animal stem
cell treatment is almost $16.3 million having a market share of 58.63%in the U.S.
market, and about 50.42% share for dogs. The total number of cats owned is 94.2
million, while a total of 89.7 million dogs are owned. Among these numbers, a total of 70
million dogs and 74 million cats are cared for by about 103,000 veterinarians, of which
11% are specialists.

Osteoarthritis is a common disease that results in a joint pain and stiffness that affects
dogs, and is a major cause of their disability. Stem cell treatment, in the form of
mesenchymal stem or stromal cells (MSC), is the new model for curing dogs with
chronic arthritis. This generally costs $2,000 to $3,000, and is used to treat diseases
and heal injuries among pets to repair muscles, joints, and ligaments damaged by
arthritis or other injuries. Approximately 40 million cats in the U.S. experience chronic
and pain associated with neuromuscular and orthopedic conditions, while approximately
14 million dogs are considered to have osteoarthritis.