The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for October 6, 2006
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
Swift & Co.
other news
Avant Immunotherapeutics
ConAgra Foods
Hartville Group
Lohmann Animal Health
> Bioniche reported results for the fiscal year ended June 30, 2006. Sales for the year were flat at C$27 million (US$24 million), with net loss for the year of (C$1.1 million). (CNW)
> Evialis announced results for the first half of 2006. The company saw revenues of EUR 316 million ($404 million) in the first half of the year, as compared with EUR 307.6 million in the same period in the previous year. However, on a like for like basis, revenues for the first half of the year fell to EUR 301.9 million. (Animal Pharm)  
> Swift & Co. reported its sales rose 8% to $2.59 billion and its profit before income taxes, depreciation and amortization rose 84% to $53 million in its first quarter, ended Aug. 27. Most of the improvement was due to Swift’s beef business, which saw sales rise 12% to $1.57 billion. (Meating Place)
Since 1986 Brakke Consulting, Inc. has successfully assisted many clients in acquiring exceptional employees at all levels, in the many departments of animal health, pet, veterinary and specialty chemical companies.   We strive to pre-qualify candidates, allowing clients to choose from a few of the best applicants for a position.  Our approach increases the efficiency and effectiveness of the Human Resources Departments of client companies. Call our offices at 972-243-4033 for more information.
> Pfizer Inc and AVANT Immunotherapeutics Inc. announced they have signed a collaborative research and development agreement for the discovery of animal vaccines. The two companies will conduct a joint research program funded by Pfizer to develop prophylactic and therapeutic vaccines to protect livestock and other animals from respiratory and enteric diseases. Financial terms of the agreement were not disclosed. (AFX)  
> Intervet announced that, with regard to cefquinome for the treatment of respiratory disease in cattle, the US Veterinary Medicine Advisory Committee (VMAC) has concluded that the evidence provided is inadequate to prove cefquinome safe with regard to the development of 4th generation cephalosporin resistance and potential transfer of resistance to humans, despite an overall risk estimate ranking of Medium. Intervet remains convinced that cefquinome use in livestock will not create public health concerns due to antimicrobial resistance and food-borne transfer. Cefquinome is the active ingredient of various Cobactan formulations which are licensed in Europe for treating cattle and/or swine and has a track record of many years of effective and safe use. Consequently, Intervet will continue to pursue approval activities. (company press release) 
> Bayer announced that Lykele van der Broek has been appointed as Head of Animal Health Division. He succeeds Peter Nicklin, who left Bayer HealthCare to pursue other job opportunities. Van der Broek was most recently Head of Regional Coordination Europe at Bayer AG after serving as head of BioScience at Bayer CropScience. (WebWire) 
> Lohmann Animal Health International (LAHI) announced the launch of AviPro, the new global brand for the company’s line of poultry health products. the AviPro brand simplifies the LAHI product line by bringing together the MBL, Vineland and TAD products under one name, streamlining the ordering process. (Access Georgia)  
> Smithfield Foods Inc. reported that the company has completed its acquisition of most of the refrigerated meats businesses of ConAgra Foods Inc., including the Butterball Turkey Co. and the Amour and Eckrich meat brands, for $571 million in cash. The deal amends the original agreement that would have been a $575 million transaction, of which $100 million would have been in Smithfield stock.  The acquisition of the Butterball Turkey Co. by Smithfield combines Butterball with Carolina Turkeys, a joint venture between Goldsboro Milling Co. and Smithfield and makes the partnership the largest turkey grower and processor in the US, with $1 billion in sales and 20% of the turkey market. (Feedstuffs) 
> The American Society for the Prevention of Cruelty to Animals (ASPCA) announced that it is now offering ASPCA Pet Health Insurance. The ASPCA has partnered with the Hartville Group, Inc. The partnership is an extension of the ASPCA’s existing strategic alliance with Hartville. (association website)
> AgInfoLink USA announced it has been approved by USDA as an Animal Tracking Database for the interim/development phase of the National Animal Identification System (NAIS).  AgInfoLink meets the requirements to share customer data on a voluntary basis to USDA’s information system to track livestock movements in an animal disease surveillance or emergency. (company press release)  
> EUROPE – Europe’s Committee for Medicinal Products for Veterinary Use recommended marketing authorization for Janssen Animal Health’s Yarvitan (mitratapide). Yarvitan is indicated as an aid in the management of overweight and obesity in dogs. (Animal Pharm) 
> AUSTRALIA  Peptech Animal Health received approval for its new long-acting canine contraceptive implant, Suprelorin 12 (deslorelin), from the Australian regulatory authorities, and is expecting to launch the product in the next few months. Suprelorin 12 suppresses fertility in male dogs over a period of 12 months. The original six-month version of Suprelorin was launched in Australia and New Zealand two years ago. (Animal Pharm)
> US – LOW-PATHOGENIC AVIAN INFLUENZA   The USDA and Department of the Interior (DOI) detected the H5 and N1 avian influenza subtypes in samples from wild, migratory green-winged teal ducks in Illinois. initial tests confirm that these wild duck samples do not contain the highly pathogenic H5N1 strain that has spread through birds in Asia, Europe, and Africa. These samples were collected from apparently healthy birds, and initial test results indicate the presence of low-pathogenic avian influenza virus. (AnimalNet – Meatnews)
>  US – TEXAS TB-FREE   The USDA’s Animal & Plant Health Inspection Service (APHIS) amended its bovine tuberculosis (TB) regulations regarding state and zone classifications by raising Texas’s TB designation from modified accredited advanced to accredited free through publication of an interim rule. (Feedstuffs)
I have just returned from a most interesting 15 days of Holiday in China.  What an interesting trip and country.  The current commercial growth occurring in China in all sectors is just phenomenal.  While most of our time was spent in the major cities, we did experience a reasonable amount of travel through some rural agricultural areas. Those rural areas passed through appeared to be really rural except for the high rise apartment or condo buildings along the river. We did not see any of the mega food production farms that they claim to have but I believe they do exist. We were told that most of the animal protein we consumed on the trip was produced in China except for the Canadian Angus beef we enjoyed on a couple occasions. 
Some trip observations and factoids that may be of interest to you:
– The pet population is minimal but increasing and in the future could offer a great deal of growth.
– Pork and/or chicken in one form or another is served at every meal.
– The people were very friendly and prepared to assist in any way to serve our needs to make it an enjoyable trip. 
– We traveled 4 days on the Yangtze River just before the final flooding occurs raising the depth in the gorges to 156 meters. 
– The Yangtze River project is said to be the largest public works project ever undertaken by man, causing the relocation of 1.3 million people.
– There are 17 million people in Shanghai, 13 million in Beijing and 7 million in Hong Kong.  We never stayed in a city with less than 7 million.
– The stories regarding the status of the China real estate market reminds me of the glory days for real estate in Texas before the savings and loan scandals.
– The required second language in grade school is currently English.
In summary, I was most impressed with China.  It’s obvious that they will be playing a larger and larger role in the economic and political issues of the world.  
It’s great to be back in the USA!!!
Have a great weekend!!
Ron Brakke
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