As the winter season comes into full swing, many Romanians worry about the health of their animal companions. The concern is widely shared in a country populated by animal lovers: data shows that about 57% of Romanians have at least one pet. Separately, Romanian farmers strive to keep their animals healthy in the cold months. The recent tax hikes make preventive measures all the more necessary. Both categories rely on veterinary medicines to aid their silent companions, and the local industry has grown in recent years.

However, challenges still abound, and veterinarians stress that animal health indirectly impacts humans as well. To find out more, Romania Insider caught up with Tomasz Modzelewski, CEO of the Farmavet Group, one of the players in Romania's veterinary market. At the moment, Farmavet Group serves both the Romanian market and international clients, with an extensive range of over 3,000 products, some of which are produced at the group’s Filipești center.

Modzelewski, CEO of Farmavet Group since 2023, has over 20 years of international business experience spanning EMEA (Europe, Middle East, Africa), CEE (Central and Eastern Europe), CIS (Commonwealth of Independent States), and worldwide distribution markets. He holds a PhD in Pharma Management from the Warsaw School of Economics, along with an MBA and MSc from the Warsaw University of Technology. He has been involved in major deals including the Gillette-P&G acquisition, the Glaxo Wellcome-SmithKline Beecham merger, and the SmithKline Beecham-Block Drug acquisition, plus ten additional due diligence processes. 

In your view, what are the most pressing public health risks linked to animal health this holiday season? Are there seasonal spikes in certain animal illnesses in Romania?

Veterinarians hold a central role in safeguarding both animal and public health. Whether we refer to companion animals or livestock, timely consultation with veterinary professionals remains essential. Preventive care, regular examinations, and early diagnosis significantly reduce the risk of disease transmission and help maintain animal health throughout the season. For pet owners, this means remaining alert to early signs of illness during the busy holiday period. For livestock producers, it requires sustained collaboration with veterinary experts to uphold strong biosecurity measures, vaccination programs, and continuous monitoring. Farmavet Group is fully committed to supporting our partners, veterinarians, in their essential work. 

We know that Romania’s access to innovative drugs for humans is limited, and new medicines take a long time to reach patients. Is it the same for veterinary medicines, and how does the local regulatory framework compare to the one in other countries?

Even though within the pharmaceutical industry, human and veterinary medicine share many common foundations, they differ in key areas such as species-specific formulation and palatability, dosing approaches, and the smaller, more targeted scale of veterinary clinical trials. We work with comparable molecules, similar pharmaceutical forms, and increasingly robust regulatory frameworks designed to ensure the highest standards of quality, safety, and efficacy. 

At the same time, there are fundamental differences, particularly in product development and, critically, in the overall investment and timeline required to bring a new medicine to market. Depending on the type of product, developing a new veterinary medicine from project initiation to approval typically requires between five and ten years.

The veterinary medicines market is also significantly smaller than the human pharmaceutical market, representing only about 5% of its size. This difference directly influences the resources available for research and development. Companies engaged in veterinary drug development typically operate with smaller budgets and fewer resources, which naturally limits the scope and depth of development studies they can conduct. While veterinary development programs involve fewer patients and lower overall costs, the economic return is also significantly lower, meaning innovation must be approached with careful prioritization and strategic planning.

For context, the European Medicines Agency’s (EMA) public data highlights the difference in scale between the human and veterinary pharmaceutical industries. In 2024, EMA recommended 114 human medicines for marketing authorization, including 46 new active substances, compared with only 25 veterinary medicines, with only two containing new active substances. This contrast illustrates both the broader scale of human medicine development and the significantly greater investment capacity of the human pharmaceutical sector, which also contributes to more complex pricing, reimbursement, and access pathways.

Nevertheless, the European veterinary market is growing steadily and is expected to maintain a compound annual growth rate of 5–8% through 2030. This growth is driven by rising pet ownership, increasing standards of care, global demand for sustainable animal protein, and significant unmet medical needs in chronic disease management and prevention. Referring again to innovation in the veterinary sector, the number of new products approved by EMA in 2024 is the highest ever recorded, reflecting an acceleration in this field.

Finally, although Romania continues to face practical challenges, including economic and administrative constraints and the unique realities of small farms and backyard holdings, it benefits significantly from alignment with the EU regulatory framework and full integration into the EU single market. This provides veterinarians and animal owners with reliable access to safe, effective, and high-quality veterinary products.

At Farmavet Group, we leverage our regulatory expertise to navigate this continuously evolving landscape. At our Filipești manufacturing site, we refine and adapt our products to meet the specific needs of both the local and European markets. Our portfolio development strategy spans multiple categories, including medicines, feed additives, complementary feed, and pet products. For 2026–2028, we have a strong pipeline that includes 10 key products for both large animals and companion animals. We are also launching a new investment project in 2026 to establish a significantly larger and more complex R&D center.

How has the decline in available veterinary treatments across Europe affected Romanian farmers, consumers, and pet owners this year? How is Farmavet addressing this issue?

Indeed, there are signals across Europe pointing to what I refer to as a silent availability crisis; products are being withdrawn faster than new ones are approved, creating real risks. In Romania, inflation amplifies the impact: farmers face higher production costs when essential medicines disappear from the international market, and pet owners struggle with rising prices for imported treatments. At Farmavet Group, we are continuously investing in and developing our local manufacturing site, Pasteur Filiala Filipești, in order to support both our local and international partners, ensuring greater availability of essential veterinary medicines.

This local production capability allows us to protect our partners, farmers, and pet owners, minimizing any discontinuation of veterinary treatments. Farmavet Group's investment budget for 2026 alone is set at RON 15 million and is aimed at enhancing production capabilities and better access to veterinary products through our logistics and retail capabilities.

Turning to the macro level, what trends do you see in animal healthcare in Europe?

The European veterinary market, the second-largest in the world, has undergone a major transformation in the past years, shifting from treatment-focused care to prevention-first solutions, guided by the One Health concept.

Key drivers include stricter antibiotic regulations, sustainability, precision livestock farming, and the growing use of digital technologies and AI, which enable farms and veterinary services to support rapid diagnostics and access to focused medical care easily.

At the same time, rising pet ownership along with aging pets, stricter animal health regulations, is boosting demand for preventive care, diagnostics, and specialized treatments. Investments in veterinary research are further enhancing animal welfare and advancing treatment technologies. The European veterinary market is becoming more regulated, sustainable, technologically advanced, digital, and pet-driven.

Regulatory changes not only target medicines but also production facilities. Good Manufacturing Practice (GMP) standards are becoming increasingly complex as they should be, but this leads to continuous investments in the production sites. In order to preserve operational efficiency, we observe a trend of consolidation of medicines production in fewer sites across Europe. Romania is aligning quickly with these trends, and Farmavet is well-positioned to lead in the local implementation.

How do you see Romania’s veterinary market evolving in terms of competition, consolidation, or foreign investment? Is the sector impacted by Romania’s persistently high inflation?

The Romanian veterinary pharmaceutical market generally follows European trends but also has its own specific characteristics. It is a landscape undergoing deep transformation, and I believe this process is only at the beginning. Regarding consolidation, we are already seeing some movement, particularly in retail and veterinary clinics, with new players entering the market in recent years. However, when we discuss production, this consolidation process is not yet observed.

At the same time, the economic context has become challenging, with a specific fiscal shock caused by the VAT increase from 9% to 21%, alongside other taxes that were raised in 2025 and are expected to continue the same trends in 2026. This situation has complex effects across the veterinary sector.

In essence, these fiscal changes put substantial pressure on farmers. The VAT increase, combined with already high feed and energy costs, significantly reduces profit margins for small and medium-sized farms. This financial strain may drive some farmers toward the grey market or lead them to cut essential animal health prevention measures to reduce expenses. For pet owners, the tax hike creates a barrier to access. Veterinary care risks being perceived as a luxury rather than a necessity. When essential medicines are taxed at such high levels, it is not just an economic issue, but also creates a serious public health risk, as animal and human health are directly related. 

We also consider that, according to public data, the number of veterinary clinic visits is decreasing, a trend observed not only in Romania but also in several other countries, reflecting broader challenges in access and affordability.

We are continuously working to navigate this challenging environment. Since I became CEO of the company, over the past two years, we have invested over EUR 3 million in modern warehousing and transportation, allowing us to hold safety stocks in full compliance with pharmaceutical good practices. By producing locally and managing our own distribution channels, we try to partially absorb economic shocks and ensure continuous access to essential veterinary medicines and services for Romanian farmers and pet owners.

 radu@romania-insider.com

(Photo: the company)