PHIBRO ANIMAL HEALTH (=) : Manageable Brazil AMR risk but lower beat potential, we think

Research evidence excerpt

PHIBRO ANIMAL HEALTH (=) : Manageable Brazil AMR risk but lower beat potential, we think

EQUITIES

PHARMACEUTICALS

NEUTRAL TARGET PRICE EPS 06/26e EPS 06/27ePHIBRO ANIMAL HEALTH PRICE* USD35.3  TARGET PRICE USD39 (UPSIDE 11%)  -20%  1%  -3%

Manageable Brazil AMR risk but lower beat potential, we think

We had a 1-1 with Phibro’s CEO designate, CFO, and COO post 3Q26 beat. At our AH Day, mgmt.14 MAY 2026

Securities Research Report struck a positive tone on market conditions with a stable cattle herd expected through 2030. Reiterate

Production time: 03:28* (London time)

Neutral as we believe large beats are mostly behind us with integration of Zoetis’ MFA.

Research Analysts & Publishing Entities

Navann Ty, CFA Phibro has manageable exposure to the antimicrobial (AMR) policy changes in Brazil

BNP Paribas Securities Corp1 Following the announced regulatory change in Brazil, Phibro indicated FY25 Virginiamycin revenue

+(1) 917 749 7734

navann.ty@us.bnpparibas.com in the market was $26m with a higher-than-group margin. The company expects to receive Tx claims

during the transition period but still expects an (unquantified) impact. We suspect it will be limited for

Curtis Moiles

Poultry where integrated producers have vets on staff. However, cattle is more fragmented andBNP Paribas Securities Corp1

(+1) 646 544 1659 producers don’t have vets on staff, which could cause a disruption, in our view. The company is

curtis.moiles@us.bnpparibas.com making PhibroVet available to track prescriptions electronically, aiming to ease the transition.

We expect the Brazil regul. changes to be a minor growth disruption, limited margin impact

In our base case, we forecast Brazil Virginiamycin revenue down ~20% in FY27E, representing a