The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for September 8, 2006

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
other news
AFB International
Associated Feed & Supply
Bimeda (Material Tecnic)
Bimeda (Genevet)
Cross Vetpharm
Divasa Farmavic
Laboratoires Biove
Material Tecnic
NuSci Laboratories
NutriScience Technologies (Provimi)
NutriScience Technologies (AFB)
> Dechra Pharmaceuticals PLC reported results for its fiscal year ended June 30, 2006.  Revenues for the year were GBP 232 million ($421 million), a 10% increase compared to fiscal year 2005.  Pharmaceuticals sales were GBP 23 million ($42 million), a 9% increase compared to FY 2005. (company website)
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 pre-qualify candidates, allowing clients to choose only from the best  applicants for a position.  Our approach increases the efficiency and effectiveness of the Human Resources Departments of client companies.
> Intervet announced that it has been granted an EU license for its Nobilis Influenza H5N2 vaccine.  This vaccine protects against the current H5N1 field strain. (company press release)  
> The FDA amended the animal drug regulations to reflect approval of an abbreviated new animal drug application (ANADA) filed by Cross Vetpharm Group Ltd. The ANADA provides for the use of lincomycin injectable solution in swine for the treatment of infectious arthritis and mycoplasma pneumonia. (AnimalNet – Federal Register) 
> Bimeda, Inc. announced it has acquired the assets of Material Tecnic in Mexico. The acquisition is part of Bimeda’s strategic plan to expand into Latin America. Material Tecnic has been in business for over 10 years as a distributor in Queretaro, Mexico and has being working with the Bimeda MTC division in Canada for several years, distributing exclusively Bimeda products throughout all of Mexico and Latin America. The company has now been renamed Bimeda de Mexico S.A. Financial terms were not disclosed.  (company website)
> Provimi announced that its subsidiary NANCO (North American Nutrition Companies) and AFS (Associated Feed and Supply), a regional supplier of minerals, dairy ingredients and specialty feeds, have jointly acquired Nutrius LLC and Virtus Nutrition LLC from NutriScience Technologies, a wholly owned subsidiary of Mitsui & Co. Nutrius is a major premix and base mix manufacturing company primarily focused in the Californian market. Virtus Nutrition is an international manufacturer and distributor of rumen protected fats. Together the companies had sales of EUR 56 million ($72 million) in 2005. (company website) 
> AFB International announced it has acquired NutriScience Technologies Inc.’s pet food palatant business, NuPetra LLC, and research and product development capabilities, NuSci Laboratories LLC.  Terms of the transaction were not disclosed. (company website)
> Nutro Products Inc. announced the launch of a line of pet desserts.  Natural Choice Healthy Desserts in 3-ounce cans contain no added sugar and are less than 100 calories per serving.  (Pet Product News) 
> EUROPE   Several companies in Europe announced that they have formed Genevet, a collaborative network to share resources, develop products and negotiate contracts as a single group. The group includes Bimeda of Ireland and the UK, Divasa Farmavic from Spain, Fatro from Italy, Sogeval and Laboratoires Biove from France, Depharvet from Belgium, and WDT from Germany. (Animal Pharm)
> US – AVIAN INFLUENZA  Confirmatory tests for avian influenza are being conducted on samples from wild ducks in Pennsylvania and wild duck feces in Maryland.  Genetic testing of both samples shows the presence of low pathogenic H5N1 avian influenza. The confirmatory pathogenicity testing will be performed at the Agriculture Department’s National Veterinary Services Laboratories in Ames, Iowa, to confirm the low pathogenicity. (Meating Place)
>  SOUTH KOREA – US MEAT BAN LIFTED   Korea  announced that it would resume the importation of US boneless beef from cattle less than 30 months of age. Although the agreement was signed back in January 2006, several months of cooperative effort between the two countries have been necessary, including two visits by Korean audit teams to confirm the efficacy of the US inspection system.  No date has been set for when US beef exports will be able to ship beef to South Korea. (Wattnet Meatnews)
>  US – MICROCHIP RULE OPPOSED   The American Microchip Advisory Council for Animals (AMACA), who form the infrastructure of the current practice of microchipping pets and horses in this country, has voiced opposition to a proposed rule that is being considered by USDA, set out in APHIS Docket 2006-0012. This proposed rule would develop appropriate regulations that allow for an open radio frequency identification technology microchip system that would enable a scanner to read all microchips used for the identification of pets, and considers the adoption of ISO 11784 and 11785 as the national radio frequency technology standard for pets. The AMACA states that this rule would require the use of a microchip that is incompatible with the system currently used in the US.  (Business Wire, Federal Register)
> US – COMPOUNDING ACTIVITIES UPHELD   A US District Judge in Texas has ruled that pharmacists who custom-blend drugs from bulk ingredients based on a doctor’s prescription do not create new unapproved drugs. The ruling upheld many of the claims made by 10 compounding pharmacists who said FDA enforcement agents overstepped the agency’s jurisdiction by attempting to inspect the records of pharmacists in good standing with state regulators.  The ruling said that unless pharmacies disobey local laws or dispense compounded drugs without a doctor’s prescription written for an individual patient, the FDA can only conduct limited inspections of such items as equipment, materials, and labels. The FDA has shown the most interest in compounding pharmacies that prepare drugs in large volume, alleging that they used compounding as a ruse for the mass production of prescription treatments. An FDA spokeswoman said the agency will consider all options, including seeking an appeal. (
>  US – HORSE SLAUGHTER BAN PASSED   The US House of Representatives voted 263 to 146 yesterday to ban the slaughter of horses for human consumption. The measure must now pass the US Senate before it can become law. The Senate has failed to pass similar legislation in the past. Three horse slaughter plants are in operation in the US; nearly all of the horse meat that they produce is exported, primarily to Europe and Asia. If the US does ban the slaughter of horses, US horses will likely be exported to Canada and Mexico for slaughter. (Wattnet Meatnews)
>  US – HSUS LAWSUIT STANDS   A US district court judge refused to dismiss a lawsuit brought by the Humane Society of the U.S. (HSUS) to require the USDA to bring poultry within the Humane Methods of Slaughter Act of 1958. HSUS, in its suit, argues that the slaughter act requires that “cattle, calves, horses, mules, sheep, swine and other livestock” be handled in accordance with humane methods and maintains that “other livestock” includes poultry, despite USDA’s interpretation to the contrary. (Feedstuffs online)
There is a limited amount of news this week; however, a couple of stories touch on significant industry issues.  The areas of electronic animal ID and drug compounding for use in animals are two areas of high interest. 
We believe the future of electronic ID is bright for both food and companion animals.  The USDA and industry participants will work their points of difference out with time.
The compounding of drugs for use in animal health has been expanding.  In this area, too, we believe the FDA and industry will work out their points of difference with time.
We all need to remind ourselves that the animal health industry is built on quality products and services that are safe for animals as well as the human food supply.
Have a great weekend.
Ron Brakke
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