Trupanion Primed and Ready to Provide Coverage for Lifesaving Medication for Feline Infectious Peritonitis

Rhea-AI Summary

Trupanion (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, is expanding coverage to include lifesaving medications for Feline Infectious Peritonitis (FIP) in the US starting June. This move follows successful implementation in Australia and Canada. The medications, including Remdesivir, significantly improve survival rates for cats with FIP, previously a fatal disease. During the COVID pandemic, Remdesivir, initially evaluated for Ebola, was found effective against FIP due to its antiviral properties. Trupanion's initiative ensures more cats receive necessary treatment, aligning with FDA guidelines. Chief Veterinary/Product Officer, Dr. Steve Weinrauch, emphasizes the company's mission to provide care for pets, with multiple successful treatments already covered in North America. Trupanion remains committed to paying veterinary invoices directly to hospitals in real-time, aiding pet owners financially.

Positive

• Trupanion expands coverage for FIP medications in the US starting June.
• Successful implementation of FIP treatment coverage in Australia and Canada.
• Remdesivir found effective against FIP, improving survival rates.
• Trupanion ensures real-time payment of veterinary invoices.
• Trupanion's initiative aligns with FDA guidelines.
• Multiple successful treatments of FIP in North America covered by Trupanion.
• Financial aid for pet owners through direct payment system.

Negative

• High cost of treatment, with a single invoice for FIP totaling over $53,000.
• Potential financial strain on Trupanion due to high cost of covering FIP treatments.
• Uncertainty regarding long-term availability and pricing of Remdesivir for FIP.

Insights

Financial Analyst

Trupanion's expansion into providing coverage for lifesaving medication for Feline Infectious Peritonitis (FIP) in the United States is a notable development. For investors, this indicates potential growth in the company's market share and customer satisfaction. Having already established coverage in Australia and Canada, Trupanion can leverage this experience to streamline operations in the U.S.

In terms of financial impact, increasing coverage for high-cost treatments such as $53,000 invoices for FIP medication could result in higher premiums, which may boost revenue. However, this also means higher payouts, which could affect profit margins if not managed properly. Investors should consider the balance between increased revenue from premiums and the cost of claims.

In the short term, the announcement might lead to a positive market reaction due to the potential increase in customer base and improved brand loyalty. Long-term implications will depend on Trupanion's ability to manage the financial risks associated with high-cost treatments. Monitoring the company's financial statements for changes in claims ratios and premium adjustments will be essential.

Veterinary Expert

From a veterinary perspective, the availability of Remdesivir and related drugs for treating FIP in the U.S. is a breakthrough. FIP has been historically fatal and the introduction of effective treatments could save countless feline lives. This aligns with Trupanion's mission to provide high-quality care and support to pet owners.

For veterinarians, this development means they can offer a viable treatment for a previously untreatable condition, potentially improving outcomes for their patients. The direct payment model used by Trupanion also simplifies the process for veterinary clinics, ensuring they receive timely payments for expensive treatments.

This advancement may encourage more pet owners to opt for insurance, knowing that life-saving treatments are covered. It could also lead to an increase in veterinary visits for early detection and treatment of FIP, potentially improving overall pet health outcomes.

- Lifesaving drugs for Feline Infectious Peritonitis are available to treat cats in Australia, Canada and elsewhere across the globe, and may now become available to cats in the US starting as early as June

SEATTLE--(BUSINESS WIRE)-- Trupanion (Nasdaq: TRUP), the leading provider of medical insurance for cats and dogs, is poised to increase access for Trupanion members to lifesaving medications for treatment of otherwise deadly Feline Infectious Peritonitis (FIP). Trupanion has been providing coverage where the medications are already commercially available in Australia and Canada and is ready to continue fighting FIP in the United States in June.

The COVID pandemic spurred a slew of new medical research, some of which has provided an unexpected silver lining for our family pets. One is a treatment for an overwhelmingly deadly disease called Feline Infectious Peritonitis (FIP) which is a mutated form of a feline coronavirus. Both domestic and wild cats are susceptible to FIP and it has long been considered fatal regardless of treatment. Not only is this disease fatal, but efforts to treat FIP have been historically fruitless due to a lack of appropriate medication and financial inaccessibility. In fact, Trupanion paid a single invoice on behalf of our member for their infected cat totaling over $53,000.

During the pandemic, an antiviral drug called Remdesivir, originally evaluated to treat Ebola many years earlier, was found to inhibit COVID replication in humans. Remdesivir and closely related drugs called metabolites, have since been discovered to successfully treat FIP in cats and have proven results in multiple countries.

As the leading provider of medical insurance for cats and dogs, and the only provider focused on paying veterinary invoices directly to hospitals in real-time, Trupanion has been providing coverage for these medications for eligible pets in Australia since 2022 when the medication became commercially available. Trupanion quickly aligned coverage in Canada when the treatment was authorized there earlier this year.

Dr. Steve Weinrauch, BVMS, MRCVS, Trupanion’s Chief Veterinary/Product Officer, stated, “At Trupanion, we’re focused on ensuring pets get the care they deserve. We’re excited about the potential to provide coverage for the treatment of FIP here in the U.S. while aligning with FDA guidelines. Already, we’ve covered costs and provided access to care for many Trupanion pet parents in Canada and Australia whose pets were successfully treated with Remdesivir and related drugs. At Trupanion we see 2-3 invoices in North America for FIP every single week. It will be a relief to know that this diagnosis will no longer equal a death sentence for cats in the United States.”

Dr. Stephen Rose, veterinarian and General Manager, Trupanion Australia, reflects, “Having personally attempted treatment for FIP in clinical scenarios in the past, it was difficult and disheartening, but with this new treatment many of these cats are surviving. Being able to provide hope to these impacted cats has been an important part of delivering our mission to allow our members' pets to get the care they deserve. I am pleased to know that cats in the United States will soon have access to the same high-quality care.”

Know the signs of FIP in your cat:

All cats, indoors and outdoors, are vulnerable to FIP in the first two years of their lives. Know the signs so you can catch the onset and seek treatment quickly.

1. Progressive distention of the abdomen
2. Difficulty breathing
3. Long lasting fever
4. Loss of appetite
5. Weight loss
6. Depression
7. Eye and/or central nervous system signs may occur

Interviews Available

Trupanion's Chief Veterinary Product Officer, Dr. Steve Weinrauch is available to share related insights or to provide context regarding pet health data as it relates to the extensive Trupanion database. Please contact corporate.communications@trupanion.com for scheduling.

About Trupanion

Trupanion is the leading provider of medical insurance for over 1,000,000 cats and dogs throughout the United States, Canada, Europe, Puerto Rico and Australia. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet's recovery, not financial stress. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol "TRUP". The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Accelerant Insurance Company of Canada. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. For more information, please visit trupanion.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240515931853/en/

Corporate Communications

Corporate.communications@trupanion.com

Source: Trupanion

FAQ

What new coverage is Trupanion providing for cats in the US?

Starting June, Trupanion will cover lifesaving medications for Feline Infectious Peritonitis (FIP) for cats in the US.

Which drug has Trupanion found effective for FIP treatment?

Remdesivir, initially evaluated for Ebola, has been found effective for treating FIP in cats.

When did Trupanion start covering FIP treatments in Australia and Canada?

Trupanion started covering FIP treatments in Australia in 2022 and in Canada earlier this year.

How does Trupanion facilitate financial aid for pet owners?

Trupanion pays veterinary invoices directly to hospitals in real-time, easing the financial burden on pet owners.

What are the signs of FIP in cats?

Signs include progressive distention of the abdomen, difficulty breathing, long-lasting fever, loss of appetite, weight loss, and depression.

Why is Trupanion expanding FIP treatment coverage to the US?

Trupanion is expanding coverage to ensure that cats in the US receive the same lifesaving treatments available in Australia and Canada, aligning with FDA guidelines.