The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for September 1, 2006

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
Del Monte
Spectrum Brands
other news
Sparhawk Labs
> Bayer reported results for the second quarter of 2006.  The Animal Health division reported an increase of 10% to EUR 252 million ($316 million), benefiting primarily from strong growth in the Advantage product family in North America. (company website)  
> Ridley Inc. reported results for the fiscal year ended June 30, 2006.  Sales were US$506 million, an increase of 6% compared to FY 2005.  All of Ridley’s businesses reported increased sales volume, although the Sweetlix business’ increase was attributable to 12-months sales in FY 2006 compared to 11-months sales in FY2005 when the business was acquired. (company website)  
> Del Monte Foods reported net sales for the first quarter of fiscal 2007 ended July 30, 2006. Pet Products net sales were $254 million, an increase of 30% over net sales of $194 million in the prior year period. The increase was driven by the Meow Mix and Milk-Bone acquisitions. (company website) 
> Spectrum Brands, Inc. announced financial results for its fiscal third quarter ended July 2, 2006. The Global Pet segment contributed net sales of $132 million and segment profits of $20.6 million during the third quarter. This compares to segment revenues of $108 million and segment profits of $11.6 million in the third fiscal quarter of last year. The third quarter revenue contribution from acquisitions was $22.8 million. (company website)
Correction:  Last week’s newsletter contained a typographical error in the item on Synbiotics’ financial results.  The item should have read “Synbiotics…revenues for the first six months totaled $10.8 million compared with $10.1 million for the same period last year.” 
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.
>  Synbiotics Corp. announced that it is relocating is corporate headquarters and research and development facilities from San Diego, CA to Kansas City, MO. (Feedstuffs online)   
> Trouw Nutrition International B.V. announced it intends to acquire Sloten, a Dutch manufacturer and worldwide supplier of milk replacers for calves, piglets and other young animals. Sloten achieved revenues of approximately EUR 90 million ($115 million) in 2005. This move makes Trouw Nutrition International the leading player in the world market for milk replacers for young replacement animals and strengthens Trouw’s position in important growth markets such as Central and South America, Asia and Russia. (Feedstuffs online) 
> The FDA amended the animal drug regulations to reflect approval of an abbreviated new animal drug application (ANADA) filed by Sparhawk Laboratories, Inc. The ANADA provides for use of a generic gentamicin sulfate solution as an intrauterine infusion for the control of bacterial metritis and as an aid in improving conception in mares. (AnimalNet – Federal Register)
> Altana received FDA approval for Vetro-Max, a generic topical ointment containing gentamicin, betamethasone, and clotrimazole for the treatment of acute canine otitis externa associated with yeast.  (Animal Pharm) 
> AspenBio announced that it signed an exclusive agreement with Bioniche Animal Health to sell and promote EquiPure LH reagent sales for the 2007 equine breeding season in the US (commencing in the fourth quarter of 2006). (company website) 
> The United States Animal Identification Organization, Inc. announced it has completed an agreement with Y-Tex Corporation, a manufacturer of ISO RIFD devices. Y-Tex joins Allflex USA and Destron Fearing (Digital Angel) in agreeing to manufacture ISO RFID ear tags bearing the USAIO logo. Any livestock owner using the levy-paid tags can enter data into the USAIO data repository at no charge, for the lifetime of each animal identified in this manner. (Drovers Alert) 
> EUROPE – BLUETONGUE   Marking the northern-most outbreak ever of bluetongue, animal health officials from the Netherlands, Belgium and Germany notified the World Organization for Animal Health (OIE) of a series of bluetongue outbreaks in sheep and cattle. The European Commission’s Standing Committee on the Food Chain & Animal Health backed precautionary measures to control the disease. OIE is defining the northern European outbreak of bluetongue as an emerging disease (Feedstuffs online)
> US – AGROTERRORISM MEETING   The 2006 International Symposium on Agroterrorism (ISA), initiated by the FBI and Joint Terrorism Task Force (JTTF), will be held Sept. 25 through 29 in Kansas City, MO.  With a primary focus on US food security and safety, the conference will encompass all facets of the food chain to foster exchange of ideas on prevention, detection and investigation of agroterrorism.  For more information about the conference, visit the ISA Web site at (association communication)
> US – GROW AMERICA LAUNCHED   The Grow America Project, an agricultural and food industry consortium developed to improve the public’s understanding of modern agricultural and food production systems, was launched this week.  Founding members of Grow America are the Pork Board, Elanco Animal Health, Monsanto Co., Country Mark Co-op, Fair Oaks Dairy, Maple Leaf Duck Farms and the Indiana State Department of Agriculture. Additional information is available at (Feedstuffs online)
Mr. Brakke is off hunting, and by the volume of news this week, he isn’t the only one who started the holiday weekend early.  For the rest of us, it might be a good time to consider the power of brands, our own and those against whom we compete.  I think Milk-Bone is older than I am and Meow Mix is similarly well established.  These brands were available for sale because of business trends like consolidation and rationalization.  Which demonstrates a long-held belief of mine that within consolidation lie the seeds of new business opportunities.  If you are out shopping this weekend, consider how many of your purchases from beer to cars are driven by your fondness for brands.  Then on Tuesday, consider how to make your brand one that will be written about in 20 years or more.
By the way, don’t mix the beer with cars; be careful out there.
John Mannhaupt
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