The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for July 6, 2007

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA

other news
K-9 Genetics
JULY 16, 2007
For the first time, Brakke Consulting will be presenting our 2007 Industry Overview at the American Veterinary Medical Association Annual Convention.  The Mid-Year update will include current information on the leading animal health companies, observations of successes and challenges for new product and company entries into the marketplace, and estimates for year end 2007.  We’ll have a special section on our expectations for the market place in 2008 for your planning purposes.  We would encourage you to have your senior marketing and sales management participate in this Mid-Year update.
Registration is $375 for the first company attendee and $350 for each additional attendee from the same company at the same presentation.  To register online, visit our website at  Or call Jane Morgan in the Dallas office at 972-243-4033 or email .
> Hill’s Pet Nutrition announced plans to build a new petfood manufacturing plant in Emporia, Kansas. Hill’s reportedly plans to start construction on the new $100 million plant early next year and begin production in 2009.  Hill’s will continue to operate its global headquarters, pet nutrition center and canned petfood manufacturing facility in Topeka, Kansas. (Petfood industry)
> Effective July 1, 2007, John Payne has been appointed the role of President, Chief Operating Officer and Acting CEO of Banfield, The Pet Hospital. John succeeds Scott Campbell, DVM, who is retiring as CEO, but maintaining his role as Chairman of the Board of Directors.  A formal search will be undertaken shortly for a CEO. (company press release)
> Vetradent announced the launch of “dc dental chews” for dogs, clinically-proven to reduce tartar and plaque accumulation.  Vetradent dc dental chews earned the  VOHC-Veterinary Oral Health Council Seal of Acceptance. Vetradent dc dental chews are dispensed exclusively by veterinarians. (company press release)
> Sogeval Laboratories, Inc. announced the launch of Douxo Calm, a line of phytosphingosine-based products for the treatment of allergic dermatitis. The line includes Douxo Calm Micro-emulsion Spray, Douxo Calm Shampoo and Douxo Calm Gel in spray form. Douxo Calm products combine phytosphingosine salicyloyl with hinokitiol, raspberry seed oil and Lipidure C (shampoo only). (company press release)
> EntreMetrix, Inc. announced the launch of a new portfolio investment within the ultra-premium dog food and treats industry.  The new portfolio company, K-9 Genetics, will develop personalized wellness programs that include Personalized Chow and Personalized Treats, functional foods that are nutritionally balanced to meet the exact needs of each unique dog. (Business Wire)
> FRANCE – AVIAN INFLUENZA   France’s Agriculture Ministry confirmed the country’s first incidence of the H5N1 strain of avian influenza since February 2006, as three swans were found dead in a pond in eastern France. The ministry ordered domestic fowl protected from wild birds and banned pigeon racing and certain other activities involving birds. Officials also set up a control zone of about half a mile around the pond to watch for more bird deaths. (Meating Place)
> FRANCE – BSE  France’s veterinary services reported a new case of BSE in a 11-year old cow that was born before the imposition of the meat and bone meal feed ban. Six other animals, all over 10 years old, have been destroyed. This was the fourth case of BSE reported in France this year. (Wattnet Meatnews)
> US – CORN CROPS   USDA’s acreage report estimated corn planting at 92.88 million acres, up 19% from last year and the highest level since 1944. Meat and poultry processors, including Smithfield Foods, Jennie-O Turkey Store, Butterball and others, have raised product prices due to the run up in corn prices. (Pork Alert)
> US – NEW USDA FACILITY   A new USDA high containment large animal facility was dedicated in Ames, Iowa. The “high-containment” designation means the building is designed for optimal safety and security because the scientists will work with a variety of endemic, zoonotic and foreign animal diseases in what is called Biological Safety Level 3 (BSL3) space. The new building is the second component of a multi-phase, $460 million project.  The center consolidates three units within the two USDA agencies:  ARS’ National Animal Disease Center; APHIS’ National Veterinary Services Laboratories; and APHIS’ Center for Veterinary Biologics.  A consolidated lab and a low-containment animal facility are still under construction. By 2009, when the project is expected to conclude, the Ames complex will be one of the largest animal health centers in the world. (ARS press release)
> US – VETERINARY DEMOGRAPHICS   The AVMA reported that women now officially outnumber men in the veterinary profession for the first time.  This reflects the recent trend of increasing numbers of female veterinary students; the 2007 graduating class was 75% female. (Veterinary Practice News)
> US – LARGE ANIMAL VET PROGRAM   Michigan State University has launched the Production Medicine Scholars program.  Undergraduate students will major in animal science with the understanding that they will be accepted into the College of Veterinary Medicine, as long as they demonstrate a passion for working with food animals and meet all academic and experiental requirements. (Veterinary Practice News)
Based on the amount of news this week, it’s obvious that many managers in the Industry took advantage of mid-week holiday here in the US to take some additional vacation time.  The weather has been less than ideal for the animal health business the past few weeks. From Texas through the Midwest there have been excessive rains causing significant flooding and other health issues.  The West has been experiencing extremely warm and dry weather, as has a large section of the Southeast.  Mother Nature does not seem to be inclined to provide moderation this summer.
One of the advantages of these types of weather patterns is that it provides sales management with a host of reasons as to why they are ahead or behind budget the first 6 months.  In general we expect to find most firms reporting a strong first half of the year in spite of the weather conditions. The strong performances will clearly be the result of quality management and planning on the part of those involved versus any weather conditions.  
We look forward to seeing many of you at the AVMA meeting in DC that starts next week!!
Ron Brakke
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Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA


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