The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for January 19, 2007
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
other news
Agtech Products
Animal Health International
Carrington Labs
Cactus Feeders
Cresud S.A.C.I.F.
JBS United
Nestle Purina PetCare
Summit VetPharm
Veterinary Products Labs
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In addition, job buys are now good for a full 12 month period from the date you buy instead of our old time frame of only 6 months.
> Virbac SA reported results for the year 2006.  The company recorded provisional net sales of EUR 401 million ($529 million), an increase of 7% over 2005.  Companion animal sales grew 6% while food animals grew 17% under the combined effect of acquisitions and solid internal growth of 8%. (company website)  
> Schering-Plough Corporation announced the national launch of the new HomeAgain Proactive Pet Recovery Network. The first-of-its-kind proactive approach for pet owners utilizes the same community-wide notification principles originally developed to help locate missing children. The HomeAgain network is also recruiting volunteers to become HomeAgain Pet Rescuers. Rescuers in the vicinity of a pet’s last known location will receive e-mail updates with a description, a photo and recovery tips to ensure a safe return to the owner. (PRNewswire)  
> Virbac SA reported the acquisition of Nuova ICC, an Italian company specializing in antibiotics for swine and poultry.  Nuova’s annual sales are approximately EUR 4 million ($5 million).  Financial terms were not disclosed. (company website) 
> Eli Lilly and Company, parent company of Elanco, announced at the North American Veterinary Conference  that it will launch a new business group focused on companion animal health. The group will produce innovative medicines for dogs and cats under the Lilly brand name. The company concurrently announced a $250,000 endowment to the Center for the Human-Animal Bond at the Purdue University School of Veterinary Medicine to fund an annual lecture series to support veterinarians’ understanding of physiological, psychological and sociological aspects of the human-pet bond. (PRNewswire) 
> Carrington Laboratories, Inc. announced they have signed a term sheet with Veterinary Products Laboratories for a supply and trademark agreement for Acemannan Immunostimulant, a biologic injectable treatment for fibrosarcoma in dogs and cats. Under the agreed upon conditions in the term sheet and the ensuing contract, Carrington agrees to supply Acemannan Immunostimulant to VPL under an exclusive agreement for a period of up to three years. During that period, VPL will be responsible for the exclusive sales and distribution of the product. (PRNewswire)  
> Heska Corporation announced the launch of the new, improved i-STAT 1 Handheld Clinical Analyzer. The new, improved i-STAT 1 analyzer offers the same extensive testing menu as the original analyzer, plus the new CHEM8+ cartridge. The i-STAT 1 analyzer also provides new testing platforms such as immunodiagnostic capability that will allow additional tests to be released in the future. Other improvements include infrared printer connectivity, upgraded storage capacity and ergonomic improvements. (PRNewswire)
> Animal Health International Inc. (Walco) set its planned initial public offering at 11.8 million shares for between $10 and $12 each. The company will sell 9.1 million shares and selling stockholders will offer another 2.7 million shares, according to an amended offering document filed with the U.S. Securities and Exchange Commission. The company said it has applied for a Nasdaq listing under the symbol “AHII”.  The underwriters, led by JP Morgan, will have the option to buy another 1.8 million shares to cover over-allotments (Reuters)
> Nestle Purina PetCare announced an agreement with Accera to develop Accera’s proprietary AC-1203 molecule compound as an application for dogs and other companion animals.  AC-1203 is the veterinary version of a compound designed to treat Alzheimer’s disease and age-associated memory impairment in humans that is currently in Phase II clinical trials. (Animal Pharm)
> Summit VetPharm, a wholly owned subsidiary of Sumitomo Corp. of America, announced its entry into the companion animal health market.  Summit is planning to offer a range of unique and valued products and services including parasiticides to veterinary practices in the US. (company press release)
> JBS United announced a strategic alliance with Agtech Products, Inc. Under the agreement, JBS United will help market and distribute direct-fed microbial swine products developed in cooperation with Agtech Products. Adsero, an all-natural, Bacillus-based premix is the first of these products now available for the US swine market. Adsero is fed to sows and gilts in gestation and lactation diets and meets the FDA’s definition of a food ingredient that is Generally Recognized As Safe (GRAS). (Feedstuffs online)
> Tyson Foods Inc. has joined with two Argentine agriculture companies in a joint venture that will create the country’s first vertically integrated beef operation and Tyson’s first beef operation outside of North America. The venture is expected to generate sales of between $30 million and $35 million in 2007. Tyson’s teammates are Cactus Feeders Inc. and Cresud S.A.C.I.F. The venture will utilize an existing feedlot operated by Cactus and Cresud to supply most of the beef for a beef slaughter and processing plant the venture recently purchased. The feedlot and plant are located in central Argentina. (Meating Place) 
> THAILAND – AVIAN INFLUENZA  Thailand has reported its first outbreak of H5N1 avian influenza in six months.  Lab results confirmed that some ducks in the northern province of Phitsanulok have been infected with H5N1 virus.  About 1,900 ducks in the area have been culled. (AnimalNet – Reuters)
> JAPAN – AVIAN INFLUENZA  About 4,000 chickens died at a farm in the town of Kiyotake in Japan’s southern prefecture of Miyazaki last week,  Officials confirmed that the virus was the H5N1 strain of avian influenza.  Another 8,000 chickens at the farm were culled. (AnimalNet – AP)
> US – STATE FILES LEGISLATION BLOCKING ANIMAL ID PLAN    Two nearly identical bills filed separately in the Massachusetts House and Senate would force the Massachusetts Department of Agricultural Resources to return any money it received from the USDA for help launching its National Animal Identification System. If one passes, Massachusetts would become the second state to turn its back on the program; Vermont’s Agency of Agriculture stopped applying for USDA funding for the program last year. The Massachusetts state chapter of the Northeast Organic Farming Association, along with other small farmers, lobbied for the legislation. (Milford Daily News)
North American Veterinary Conference
The North American Veterinary Conference was held this week in Orlando, FL.  The conference reported total attendance as of Wednesday morning of 14,981, one of the highest attendances ever; including 5,742 veterinarians, 1,723 technicians and 3,204 exhibitors. Exhibit halls were busy even on the final day of the conference.
Brakke Consulting will once again be presenting our 2007 Industry Overview at the Western Veterinary Conference.
WVC (Western Veterinary Conference)
The 2007 Industry Overview will be presented on Monday, February 19 from 2:00 pm – 4:00 pm at the Four Seasons hotel adjacent to the Mandalay Bay.
Early registration is $325 for the first company attendee and $300 for each additional attendee from the same company at the same presentation.  To register online, go to the home page at and click on the registration link. You may also register by calling Jane Morgan in the Dallas office at 972-243-4033.
It was great to see many of you at the NAVC in Orlando these past few days.  The NAVC is such a great kick-off to a new year.  Dr. Colin Burrows and the staff at NAVC are to be commended for providing such an excellent meeting.
As we reported in our Industry Overview at NAVC, we believe 2007 will again be another positive year for animal health.  There will be challenges that occur during the year, but overall most companies will record positive growth.
Have a great weekend!
Ron Brakke
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Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA


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