The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for October 7, 2005
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
other news
Doane Pet Care
Hendrix Genetics
Pet Ecology Brands
Royal Canin
Toray Industries
Trouw Nutrition
Brakke Consulting, Inc.
2006 U.S. Animal Health Manufacturers, Distributors & Services Directory
If your company was listed in last year’s directory, then update the listing that was mailed to your company, and fax it to 972.243.0925 by October 15th.
To request information on how your company can be listed or to ask any questions concerning your company’s listing, contact Jane Morgan at 972.243.4033 or email her at Orders are also being taken for directories, which will be ready in early 2006.
> Dainippon Pharmaceuticals reported that net sales of its animal health division for the fiscal year ending March 31, 2005 declined by 4% to 27,356 million yen ($255 million).  The decrease was mainly due to the termination of the distribution agreement with Merial on small animal products in Japan by the end of 2004. (Animal Pharm) top
> Dechra reported results for the fiscal year ended June 30, 2005.  Turnover rose 11% to 208 million pounds ($375 million) for the year, while operating profit increased 20% to 11 million pounds ($20 million).  (Animal Pharm)  top
New Job Postings:
Area Sales Manager – Europe, Middle East & Africa
Senior Technical Services Veterinarian
Product Manager, Swine
Regional Sales Manger
Professional Sales Representative – Equine
Quality Control Laboratory Manager
> Pfizer announced the US launch of Draxxin (tulathromycin) antibiotic for the treatment of bovine and swine respiratory disease.  Draxxin delivers a full course of therapy in a single dose.  It is the first antimicrobial to receive approval following the FDA’s new Guidance 152 review process that included a public review by the FDA Veterinary Medical Advisory Committee of safety with respect to the potential for transfer of antimicrobial resistance to humans. (DVM Newsmagazine)  top
>  Intervet announced that the Dutch Ministry of Agriculture signed a contract with Intervet for a vaccine bank of Porcilis Pesti, Intervet’s marker vaccine against Classical Swine Fever. The agreement covers a reserve of 500,000 doses of the vaccine for emergency vaccination in case of an outbreak of Classical Swine Fever in the Netherlands. The Netherlands is the first European country establishing such a vaccine bank for emergency vaccination against Classical Swine Fever, after the European commission decided in 2004 to set up community stocks. (company website) top
> Synbiotics announced the reintroduction of their Status-LH canine and feline luteinizing hormone test kit. Status-LH, used for precise canine ovulation timing, is also used to determine whether or not a bitch or queen has been spayed. This relatively new use for the kit has made it popular with shelters and humane societies that must assure that a pet has been ovariectomized before adoption. (company website) top
> Bioniche Life Sciences Inc. announced that it has signed an exclusive, non-binding letter of intent to sell its majority ownership stake in Bioniche Pharma Group Limited to RoundTable Healthcare Partners, a US healthcare-focused private equity group. As part of the same letter of intent, ICC Private Equity Fund, the minority owner of Bioniche Pharma Group, has agreed terms for the sale of its stake to RoundTable Healthcare Partners. Bioniche Pharma Group is a business unit of Bioniche Life Sciences that manufactures and markets sterile injectable pharmaceutical products in County Galway, Ireland. Bioniche Life Sciences and ICC will retain minority ownership positions in Bioniche Pharma Group to participate in the future growth of the business. Other terms of the transaction are not disclosed at this time. Final agreement terms will be disclosed upon signing of definitive agreements, which is expected to occur in November, 2005. (company website)  top
> Royal Canin announced the introduction of Oral Sensitive 30 cat food to promote healthy teeth and gums. In addition to a mechanical brushing effect from chewing the food, the formula contains calcium chelators, which act as a deterrent to minerals found in tartar that attach to the surface of the tooth. (DVM Newsmagazine) top
> Doane Pet Care Company announced that it has commenced a private placement of $150 million of senior subordinated notes due 2015. The Company currently intends to use the proceeds from the offering, together with investments of Teachers’ Private Capital, and Doane senior management and borrowings under a new senior credit facility, to fund certain transactions in connection with TPS’s acquisition of beneficial ownership of substantially all of the capital stock of the Company’s parent corporation, Doane Pet Care Enterprises, Inc. (Business Wire) top
> Dechra announced it will consolidate all its pharmaceutical licensed businesses under the group’s global brand, Dechra Veterinary Products.  The group’s instruments and consumables business will continue to trade as Arnolds Veterinary Products. (Animal Pharm) top
> Trouw Nutrition International, a subsidiary of Nutreco, announced it has acquired a majority interest in Tenusa, a Mexican premix manufacturer with approximately $22 million in sales.  The acquisition makes Trouw the second largest company in the Mexican premix and specialty feeds market.  Financial terms were not disclosed. (Animal Pharm)  top
> Pet Ecology Brands, Inc. reported its operational results for the month of September. The Company launched its national campaign for its Scientific Professional Cat Litter during the latter part of August. The Company is pleased to announce that it shipped over 500 units of cat litter during the month to more than 50 retailers located in the US and Canada. The Company also announces that it has executed distributor agreements which will provide access to the Company to more than 2,000 pet retailers and vets across the US and Canada.  The Company believes from these early results that it will meet or exceed its projections of having its pet products offered in 2,500 retailers and vets located in the United States, and having executed agreements with 20 regional distributors by the end of 2005. (Business Wire) top
> Hendrix Genetics BV announced an agreement to acquire the Institut de Selection Animale (ISA).  The deal would clearly make Hendrix the world’s leader in the brown and white egg layer genetics segments. The deal involves the acquisition of Compagnie Internationale de Volailles, which holds 100% of ISA, from Natexis Industrie. Natexis acquired ISA from Merial Ltd. two years ago and folded it into Compagnie Internationale. The acquisition is scheduled to be completed by the end of the year, subject to normal regulatory approvals, the announcement said. Terms were not released.  (Feedstuffs)  top
>  Microbix Biosystems Inc. announced it acquired a proprietary sperm-sexing technology that will enable sex-selection of agricultural animals prior to conception. Microbix obtained the technology through its announced acquisition of privately-held Sequent Biotechnologies Inc. The technology was invented, and originating patents established, at the University of Guelph which will receive a royalty on sales once the product enters the marketplace. Sequent is the exclusive licensee of the technology. Financial terms were not disclosed.  (AnimalNet)   top
> FIRSTRAX announced the launch of its Petnation Kodiak Air Insulated Doghouse, the first-ever inflatable doghouse that is 10 times more insulated than any available plastic or igloo-shaped doghouse. Kodiak’s patent-pending design is crafted of rugged materials typically reserved for sporting goods or outdoor-adventure products, making it the ultimate safe haven for dogs in cold and sometimes harsh weather conditions, such as rain, sleet, snow and frigid temperatures. (Business Wire) top
> EU  Bayer HealthCare’s Animal Health Division announced the European launch of Profender,  the first prescription-only, broad-spectrum product that allows comprehensive deworming in just one treatment step.  Designed as a spot-on preparation with two active ingredients (praziquantel and emodepside), Profender is available with immediate effect to protect cats against all relevant, normally occurring species of worm. (Medical News Today, Pharmacos) top
> JAPAN   Toray Industries announced it has received Japanese regulatory approval for Interdog, a new recombinant canine interferon gamma for the treatment of atopic dermatitis in dogs.  The product is expected to be launched in November 2005.  (Animal Pharm)  top
> EU   Alltech announced that the live yeast culture Yea-Sacc1026 (Saccharomyces cerevisiae CBS 493.94) has been granted permanent authorization for use throughout the EU as a zootechnical additive. Yea-Sacc1026 has received EU definitive approval (E 1704) for use in dairy diets.  (company website) top
> ISRAEL  Biogal Galed Laboratories announced the launch of the  Immunocomb Equine West Nile Virus IgG Antibody Test Kit in Israel and Romania.  The test is based on the solid-phase dot-ELISA principle, and can be used in the field, unlike other tests. (Animal Pharm)  top
Most participants in the animal health industry know Brakke Consulting.  But not everyone is aware of the breadth of our consulting services.  Brakke Consulting has experience in
General consulting
Strategic planning
Executive and sales force recruiting
Veterinary surveying & market research
Technology and licensing
Due diligence, mergers and acquisition assistance
Syndicated market studies
Veterinary practice management
Brakke Consulting’s team of experienced animal health professionals brings an intimate knowledge of the industry to the table that strengthens our ability to serve our clients.  In addition to several US offices, we also have a presence in Europe, Japan and Australia.  For more information about any of our services, visit our website or call 972-243-4033.
>  US – NEW FEED BAN RULES   The FDA published an expansion on its ruminant-to-ruminant feed ban, making it illegal to include some cattle parts in feed meant for animals other than cattle.  The proposed rule, however, would ban only brains and spinal cords of cattle over the age of 30 months from the animal feed supply, along with those items from cattle of any age that die on the farm, exhibit symptoms of illness or have been delivered to a rendering plant without being inspected by a USDA veterinarian or inspector. The rule does allow potentially risky products such as eyeballs, tonsils, vertebrae, intestines and other body parts considered to be specified risk materials (SRMs) by the USDA when the animal is meant for human consumption. It also continues to allow the use of poultry litter in cattle feed, as well as plate waste, blood and, in some cases, fat and tallow. (Meating Place)
> US – MUMS DESIGNATION   FDA’s Center for Veterinary Medicine has granted the first minor use and minor species drug designations under the Minor Use and Minor Species Animal Health Act (MUMS.)  The proposed rule governing designation was published in the Federal Register on September 27, 2005. The first drug to receive this designation is florfenicol (Aquaflor), and it has been designated for use in controlling conditions in four aquaculture species – catfish, hybrid striped bass, salmonids, and tilapia. Designations that are granted are posted on a list on the Minor Use and Minor Species page of the CVM website.  (AnimalNet – CVM)
> US – CHRONIC WASTING DISEASE IN MOOSE   A moose killed in northern Colorado has tested positive for chronic wasting disease, apparently the first of its species known to have contracted the disease in the wild. More testing is being conducted, but the test earlier this month is the same one used to confirm preliminary results in elk and deer. (AnimalNet – AP)
> US – MANDATORY PRICE REPORTING EXPIRES   The Mandatory Livestock Reporting program expired last week because the US Congress didn’t act to extend it.  However, even though the USDA won’t mandate packers to file the reports, most will do so anyway. The USDA has gotten voluntary cooperation among many packers to continue the price reports.  The Senate and House both approved an extension earlier this month but disagreements in how long the program should be extended resulted in a stalemate.  (Pork Alert)
> US – DAIRY INCOME PROGRAM EXPIRES   The federal government’s Milk Income Loss Contract program expired last week. The program, written into the 2002 Farm Bill, compensated dairymen when domestic milk prices dropped below a specific price or target level. US dairy producers were paid 45% of the difference between the actual milk price and the target price. The program was controversial because of a cap on compensation payments to be made on up to 2.4 million pounds of milk annually.  (Pork Alert)
> BRAZIL – FMD VACCINE   Researchers from Buenos Aires recently succeeded in developing a prototype vaccine for the Foot and Mouth Disease Virus in genetically modified plants. The researchers produced transgenic alfalfa plants expressing the FMDV VP1 polyprotein with the help of Agrobacterium tumefaciens, a microbe which is used to transfer genetic material into plants. (

> US – EGG ASSOCIATION CERTIFICATION CHANGED  The United Egg Producers (UEP) announced this morning that it will change the advertising logo related to its hen welfare program from Animal Care Certified (ACC) to United Egg Producers Certified. The change comes in response to the animal rights organization Compassion Over Killing (COK) filing a complaint with the Better Business Bureau that the ACC logo misrepresented the actual care given to hens in cage layer operations and, thus, was misleading to consumers. The Better Business Bureau subsequently took the issue to the Federal Trade Commission (FTC).  (Feedstuffs online)
> US – PRRS TEST   Researchers at the University of Minnesota’s College of Veterinary Medicine have developed a new test for detecting Porcine Reproductive and Respiratory Syndrome (PRRS).  The TaqMan-based RT-PCR test detects different genetic isolates, including both North American and European strains, in one screening and is reportedly more sensitive than existing tests for some isolates.  (DVM Newsmagazine)
Like you, Brakke Consulting has just completed the third quarter of 2005.  We are continually seeking ways to increase our value to our clients, expand our markets, and grow our business. and our Veterinary Practice Management Group are examples of how we’ve expanded into new service areas.
Senior Managers often ask me about how is progressing.  Launching a new service always involves educating our clients and ourselves about the value it offers. 
Since its launch nine months ago, has:
 – grown the resume database to over 1,100 qualified jobseekers
 – hosted over 250 open industry positions since our launch
 – averages over 2,500 visits to the website each week
 – provides Employers posting jobs on the site with an average of 10 – 15 qualified applications per job.
Employers using praise our pricing, efficiency, and quality of candidates they receive from the site.  General-purpose job boards overwhelm HR departments with hundreds of resumes they must sift through to find a few worthy candidates.  Yet, many HR departments remain unaware of as a valuable, specialized recruiting resource. 
We know that “old habits” are hard to break. But is it more efficient to receive and review hundreds of resumes for an open position in order to find a dozen qualified candidates; or to use and receive only those 10 – 15 resumes that are actually qualified for the position? 
Think about it!!
Have a great weekend.
Ron Brakke
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