The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for June 2, 2006

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
Premium Standard Farms
other news
Fort Dodge
>  Premium Standard Farms reported that sales for the year ended March 26 slid slightly, to $919.5 million from $927.6 million, while profits for the year slid from $67.7 million to $53.1 million. The company anticipates the trend to continue into fiscal 2007, with prices continuing to fall at retail as domestic demand for pork continues to slow after a spike partially engendered by the low-carb, high-protein diet fad earlier in the decade. (Meating Place) 
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> Merial announced that a federal court has signed a preliminary injunction ordering Fort Dodge Animal Health to stop using an advertising campaign that claimed its West Nile-Innovator vaccine was proven to be superior to Merial’s Recombitek recombinant technology West Nile Virus (WNV) vaccine for horses. The order applies while Merial’s false advertising lawsuit is pending. (company press release)
> GlobalVetLink announced that their eEIA system (electronic laboratory forms carrying equine infectious anemia (EIA), or Coggins, test results) is now recognized by USDA for exports.  Previously the eEIA lab forms were only recognized by USDA for movement within a state or between states. (company press release)  
> UK    NMR and Tridelta plc unveiled plans for the introduction of a new MAA diagnostic test designed to help dairy farmers make the correct clinical and welfare decisions in the treatment of their cows at the crucial drying off period. The traditional method of measuring infection, the use of Somatic Cell counts, is enhanced by measuring MAA protein, which gives a more accurate measure of active infection.  MAA testing is expected to be available to NMR’s customers by July 1st. (company press release)
Kevin Scott has extensive experience in the animal health and human health fields.  Since joining Brakke in 2003, Kevin has managed a number of engagements involving marketing research, estimates of market potential and strategy development.
Prior to joining Brakke Consulting, Kevin worked as an independent consultant from 1998 to 2003 for a number of companies including Abbott Laboratories, Smart Drug Systems and Galileo Pharmaceuticals.  He was the Vice President of Business Development for MDS Pharmaceutical Services in 1998 and 1999.  Kevin managed the companion animal business for Mallinckrodt Veterinary in 1995 and 1996 prior to the sale of this business to Schering-Plough.  Prior to 1995, Kevin worked for Pfizer and SmithKline Beecham in management and business development in which he started up a division in Canada and negotiated the acquisition of Roche’s animal health business.  This acquisition led to the commercialization of Rimadyl (carprofen), which is now the leading non-steroidal anti-inflammatory in animal health.
Kevin is a graduate of Creighton University where he earned a B.S. degree in Biology.
What does Kevin see for the future of animal health:
I see continued growth for both the companion animal and food animal segments of the market. For companion animals, new treatments for chronic diseases will improve the care of these “family members” and in food animals, new treatments will lead to increased productivity in the production of protein.
>  AVIAN INFLUENZA   Migrating wild birds have played and will likely continue to play a role in transporting highly pathogenic avian influenza viruses over long distances. This was among the main conclusions of a two-day international scientific conference called by the Food & Agriculture Organization and the World Organization for Animal Health. However, the conference, attended by more than 300 scientists from more than 100 countries, also recognized that the virus was mainly spread through poultry trade, both legal and illegal. (Feedstuffs online)
> US – BSE CASES WERE ATYPICAL   A French scientist reported last weekend at an international conference in London, England, that two cases of BSE in the US apparently had an “atypical” strain of the disease previously found in cattle in France, Poland and Sweden. Researchers presented data that the two US cows had “identical” tests to a handful of animals diagnosed with the rare form of the disease.  USDA officials were not immediately available for comment. (Feedstuffs online)



As you know, Brakke Consulting, Inc. just celebrated our 20-year anniversary. For those of us who have been in the Industry for that amount of time, it is interesting to look back and reflect on how we did business at the time!  Fax machines were just being introduced, you could use computers for writing letters and spreadsheets and, if you were really up-to-date, you had a car phone that was a lot bigger than a normal phone.
In our business, heartworm was still being prevented with a once-a-day tablet, the best pain reliever we had was aspirin, and we really had to trim all the fat from a pork chop before cooking it.
As you can see, we have come a long way in utilizing technology both in our normal lives and in our industry. The challenge will be how to find and commercialize the next new technology. What will be the next disruptive technology and large market segment?
Brakke Consulting can assist the evaluation of technology and market potential for our clients. We can conduct market and customer surveys to determine the potential for a new product in either companion animals or food animals. If you have a potential product to market such as a pharmaceutical, vaccine, diagnostic or nutraceutical, let us know how we can help.
Kevin Scott
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Brakke Consulting, Inc.
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Dallas, TX  75234    USA


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