Animal Health News & Notes for August 17, 2007

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Brakke Consulting’s
Animal Health News & Notes for August 17, 2007
Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Lawrence
Nestle
PetSmart
Provimi
 
other news
Alltech
Fort Dodge
G.C. Hanford
 
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ANNOUNCING NEW PET OWNER CHANNEL USE STUDY
LAST DAY TO RECEIVE EARLY-ORDER PRICE!
 
Several fundamental changes are underway that potentially affect the way pet owners purchase products.  The number of pet products is proliferating. Internet usage is growing as a source of information and sales.  Traditional OTC marketers are launching veterinary divisions, and vice versa.  Vet-only products are “leaking” in larger and larger quantities into OTC.  Major products are going off patent, and may soon face OTC branded competition. 
 
The Pet Owner Channel Use Study from Brakke Consulting and Market Directions is a survey of more than 1,000 dog and cat owners that examines purchasing frequency by brand and by type of outlet, channel switching, and the importance of convenience, price and veterinary recommendation on purchasing decision.
 
Products included:
 – Wellness and therapeutic pet foods
 – Flea and tick control
 – Heartworm prevention
 – Dental treats and products
 – Pain management and other chronic-use medications
 – Joint health supplements
 – Pet health insurance
 – Boarding and day-care services
 
The study will be fielded in September 2007.  Companies that order by August 17, 2007 and pay in advance receive a $1,000 early-order discount.  Upon publication, the price of the study is $12,500.
 
To order the Pet Owner Channel Use Study, contact Jane Morgan in the Dallas office at jmorgan@brakkeconsulting.com or 972-243-4033. 
 
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2007 Animal Health Industry Overview and Mid-Year Update at the Central Veterinary Conference
September 17, 2007
 
Brakke Consulting will present its Mid-Year Update Overview at the Central Veterinary Conference in Kansas City on Monday, September 17.
 
Registration fees are $350 for the first person from a company to register and $325 for each additional person from the same company.
 
To register, go to the Brakke homepage on www.brakkeconsulting.com and click on the link at the bottom for details. You can also call Jane Morgan in the Dallas office to register at (972)243-4033.
 
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COMPANY EARNINGS RELEASES
 
> Nestle reported financial results for the first 6 months of 2007.  Petcare sales were CHF 5,916 million ($4.8 billion), representing organic growth of 7% compared to the first half of 2006. Good performances were achieved by key strategic global and regional brands competing in the super premium and premium dry segments. (company press release) 
 
> Lawrence reported results for the year ended March 31, 2007.  Sales for the year were GBP 18.3 million ($36 million), compared to sales of GBP 20.3 million in the previous twelve months.  The company divested a feed additive business during the most recent fiscal year.  The company reported a pre-tax profit of GBP 2.4 million ($4.7 million) for the current year, compared to a loss of (GBP 66,700) in the previous twelve months. (Animal Pharm)
 
> Provimi reported results for the first six months of 2007. Figures published ahead of its full half-year results show revenues of EUR 977 million ($1.3 billion), a 14% increase over the first half of 2006. New acquisitions contributed EUR 40 million to sales. (Animal Pharm)
 
> PetSmart, Inc. reported net income of $47.1 million for the second fiscal quarter of 2007, compared with net income of $34.6 million for the second quarter of fiscal 2006. Net sales for the second quarter of 2007 were $1.1 billion, compared to $1.0 billion for the same period in 2006, and comparable store sales grew 4.0% in the second quarter. Pet services sales were $117.2 million, up 19.5% from the second quarter last year. (company website)
 
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COMPANY NEWS RELEASES
 
> Fort Dodge Animal Health announced that the EPA has approved ProMeris for dogs, a low-volume, topical spot-on, to effectively control existing flea and tick infestations and prevent re-infestations on dogs and puppies eight weeks and older. ProMeris for dogs is the only product available to control fleas that contains the active ingredient metaflumizone, a new compound in the animal health industry. Amitraz, the second active ingredient in ProMeris for dogs, is a well-established tickicide and provides dogs with up to four weeks of tick control. (PRNewswire) 
 
> The FDA amended the animal drug regulations to reflect approval of an abbreviated new animal drug application (ANADA) filed by G.C. Hanford Manufacturing Co.  The ANADA provides for the use of ampicillin sodium powder in aqueous solution by injection in horses for the treatment of various bacterial infections. (AnimalNet – Federal Register)
 
> Alltech announced plans to build a new state-of-the-art biotechnology facility on a 240 acre site east of Clovis, New Mexico that will serve as a production facility and distribution center. Alltech’s signature yeast culture feed additive Yea-Sacc 1026 Farm Pak 2X will be produced at the new site, which will also include a sales office and research site. (Animal Pharm) 
 
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ANIMAL HEALTH NEWS
 
> UK – FMD   The UK Department for Environment, Food & Rural Affairs (DEFRA) announced that, based on further negative laboratory results for foot and mouth disease (FMD) and supporting veterinary advice, the decision has been taken to lift the two temporary control zones in Kent and Surrey. DEFRA said the latest epidemiology report on the FMD outbreak concluded that the risk of disease spread outside of the Surrey protection and surveillance zones is now very low. The lifting of the temporary control zones, combined with no further changes in the disease situation elsewhere means that vaccination teams will be “stood down” from their current level of alert. (Feedstuffs)
 
> US – FOREIGN ANIMAL DISEASE COMMITTEE  The US Agriculture Secretary announced intent to reestablish the Secretary’s Advisory Committee on Foreign Animal and Poultry Diseases for a two-year period, saying that the committee is necessary and in the public interest. The committee will advise the secretary of agriculture regarding program operations and measures to suppress, control or eradicate an outbreak of foot-and-mouth disease, or other destructive foreign animal or poultry diseases, in the event these diseases should enter the US. The committee also advises the secretary of agriculture about means to prevent these diseases. (Meating Place)
 
> US – FARM INTERNET USAGE  A total of 55% of US farms now have Internet access, compared with 51%  in 2005. Sixty-three percent of farms have access to a computer in 2007, compared with the 2005 level of 59%. Farms using computers for their farm business increased 3 percentage points from 2005 to 35% in 2007. (USDA-NASS)
 
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BRAKKE CONSULTING VIEWPOINT
 
While the newsletter is a bit brief this week, there are some important accomplishments announced.  It’s not easy to obtain new product approvals from the regulatory agencies, so when they happen, it’s news.
 
We hope all of you are enjoying some time off this August.  We’ll see many of you next week in Portland.
 
Travel safe and have a great weekend!!
 
Ron Brakke
 
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Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting, Inc.
For more information about Brakke Consulting’s services and syndicated studies, visit our website at www.brakkeconsulting.com.
 
Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA