The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Ekaterina V. Knyazkova - JP Morgan Chase & Co, Research Division - Analyst
: This is Ekaterina on for Chris. So one more actually on the distributor changes. Were inventories at distributors at unusually high
levels heading into 1Q? And then you've highlighted how this kind of strengthens your position going forward. So just wondering
why now, why was -- why not changed to the structure earlier?
Question: David Michael Westenberg - Guggenheim Securities, LLC, Research Division - Analyst
: So I want to take a look at post-COVID here. Maybe in like 2023, when you talk about your pipeline, innovation, last year was a tad
under 15% of revenue. What do you think that optimal number looks like in terms of percent of your revenue being a part of the
innovation portfolio? And then a second one on kind of the out-year outlook. It would be -- do you believe COVID-19 is going to
pick up practice consolidation trends, just given the higher leverage that veterinary practices have and do you think you have the
right consolidation sales approach? And I'm talking there, of course, about Companion Animal Veterinary Practice consolidation.
Question: David Michael Westenberg - Guggenheim Securities, LLC, Research Division - Analyst
: Yes. So what I'm talking about is, I mean, when you lay out -- you have a slide, I think it was $440 million was your innovation portfolio
in 2019. And you do the math, that's -- I think that's 14% of your total revenue. What is the optimal number, as we look at, maybe,
say, 2023, as you're bringing this new innovation to the market? I mean what would you hope that number could be?
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