The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for December 15, 2006

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
MONDAY DECEMBER 18 is the last day to register for
the Brakke Overview at NAVC at the early-bird price!
earnings news
Dainippon Sumitomo Pharma
other news
Agri Labs
Central Laboratory for Veterinarians
Green’s Foods
SentrX Animal Care
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> Dainippon Sumitomo Pharma reported that net sales of its animal science division for the first half of the year ended September 30, 2006 increased by 8.8% to Yen 13,710 million ($119 million) compared to comparative period in the prior year. Although small animal product sales rose by 11%, livestock/poultry product and aquaculture product sales declined by 11.8% and 15.5% respectively. (company news) 
> Biopure Corporation announced its financial results for the fiscal year ended October 31, 2006. For the fiscal year, the company reported a net loss of ($26.5 million), compared with a net loss of ($28.7 million) for fiscal 2005. Total revenues were $1.7 million in 2006, including $1.3 million from sales of Oxyglobin, compared to $2.1 million in 2005, including $1.2 million from Oxyglobin sales in FY 2005. (company website)
Brakke Consulting has published our latest annual report on the US Flea Control and Heartworm Markets.  The report includes the following valuable information:
 – Information on a number of new products expected to enter the market in 2007
 – Up-to-date pricing and sales data on the leading products
 – Advertising budgets for flea and heartworm products
 – Opinion survey of over 180 small animal veterinarians
The report on the US Flea Control & Heartworm Markets is available for a purchase price of $4,995. 
Please contact Dr. Lynn Fondon at (972) 243-4033 or to order the report or for more information.
> Elanco and Canadian company Chemaphor announced a collaborative research and licensing agreement for rights to Chemaphor’s OxBC technology.  OxBC is a nonpharmaceutical mixture of carotenoid oxidation compounds developed for use as a feed additive for production animals to promote growth and feed conversion.  (Animal Pharm)  
> Schering-Plough Animal Health announced an expansion of its US cattle operations with the creation of separate business units for beef and dairy, each with dedicated and specialized field forces, support and management teams. The new teams will be located within the new Schering-Plough global distribution facility being constructed in Omaha, NE., and scheduled to open in early 2007. (Drovers Alert) 
> IDEXX Laboratories announced that it acquired a majority stake in Canadian-based Central Laboratory for Veterinarians (CLV). The acquisition was made through the purchase of 92% class “A” and 93% class “B” issued and outstanding shares. CLV, based in Langley, British Columbia, was founded in 1982 as a reference laboratory for local veterinarians in British Columbia. The company later expanded to the provinces of Alberta and Manitoba. Financial terms were not disclosed. (Animal Pharm)
> The FDA amended the animal drug regulations to reflect approval of an abbreviated new animal drug application (ANADA) filed by Agri Laboratories, Ltd.  The ANADA provides for the oral use of lincomycin and spectinomycin soluble powder to create a solution administered in the drinking water of chickens as an aid in the control of airsacculitis.  (AnimalNet – Federal Register) 
> CareCredit announced the formation of a new business unit devoted to the veterinary profession in Canada.  Effective immediately, the new Canadian division will be branded as GE Money CareCredit. (company press release) 
> SentrX Animal Care, Inc. announced the introduction of equitrX, a new product line designed for the large animal veterinarian. equitrX products actively support cell proliferation by providing an environment that enables rapid and complete healing with good cosmetic outcomes. equitrX consists of a chemically modified glycosaminoglycan that is cross-linked to form a matrix that works with the animal’s natural repair system to encourage enhanced production of new healthy tissue.  (Business Wire) 
> Nestlé SA has agreed to buy Australia’s Green’s Foods Ltd. for US$107 million. Green’s petfood business sells Supercoat dog and cat foods. As part of the deal, Green’s will sell its consumer food unit and its stake in house-brand dog food label Bestcare to Guinness Peat Group Plc. and CVC Capital Partners Ltd. The deal is expected to be complete by March 2007. (Petfood Industry)
> USDA has approved Bovigen LLC for participation in the Process Verified Program. The company is the first DNA-testing provider to achieve acceptance into the program, which requires an extensive auditing process. The approval, according to a company release, verifies Bovigen’s ability to securely preserve sample identification and to provide quality, repeatable genetic analysis. (Drovers Alert) 
> JAPAN – BSE   Japan’s Health Ministry confirmed the country’s 31st case of BSE.  The animal is an 84-month-old Holstein born at a ranch on the island of Hokkaido. (Meating Place)
> CZECH REPUBLIC – BSE   A new case of BSE has been confirmed in the Czech Republic, bringing the country’s total to 26. A 6-year-old cow from Chocnejovice, 80 kilometers (50 miles) northeast of Prague, tested positive for the disease. (AP)
> LIVESTOCK GREENHOUSE GAS EMISSIONS  According to a new report published by the United Nations Food and Agriculture Organization, the livestock sector generates more greenhouse gas emissions as measured in CO2 equivalent – 18% – than transport. It is also a major source of land and water degradation. (PoultrySite newsletter)
> US – HORSE SLAUGHTER BAN   Attempts to present the Horse Slaughter Prevention Act to the fiscal 2007 Agriculture Appropriations bill have failed. The legislation would have banned the processing of horses for human consumption. After the bill passed the House in September, several senators put the bill on hold, preventing action in the Senate. Time constraints, more critical issues, producer opposition and education on the ban’s adverse effects ended the legislation’s consideration. (Drovers Alert)
Brakke Consulting will once again be presenting our 2007 Industry Overview at the North American Veterinary Conference and the Western Veterinary Conference.
NAVC (North American Veterinary Conference)
The 2007 Industry Overview will be presented on Monday, January 15 from 2:00 pm – 4:00 pm at the Gaylord Palms.
Monday, December 18 is the last day to register at the early-bird price!
WVC (Western Veterinary Conference)
The 2007 Industry Overview will be presented on Monday, February 19 from 2:00 pm – 4:00 pm at the Four Seasons hotel adjacent to the Mandalay Bay.
Early registration is $325 for the first company attendee and $300 for each additional attendee from the same company at the same presentation.  To register online, go to the home page at and click on the registration link. You may also register by calling Jane Morgan in the Dallas office at 972-243-4033.
As you can tell by the size of the newsletter this week, many of you are spending your time closing out 2006 and preparing for the Holidays.  It appears from our interface with the industry that growth has been positive for most companies in 2006.  There is probably more excitement and discussion regarding new product introductions in 2007 than we have observed in some prior years. Hopefully, some the products will complete the regulatory hurdles and make it to market early in 2007.  We’re still looking for the blockbusters that will increase the market size and just not shift sales from one product to another.  I would imagine that many of the companies are going to present the industry with these blockbuster surprises shortly after the first of the year. 
We continue to observe extensive increases in sales force sizes in the companion animal area.  Does the industry really need this number of field sales people calling  on veterinarians?   Also, a number of companies are desperate to find board certified veterinarians to fill a number of spots.  It’s a great time to be looking for career changes in the animal health industry. 
Have a great weekend and enjoy the last full week of business before the closing of many businesses for the Holidays.
Ron Brakke
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Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA


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