The Experts in Animal Health

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 Brakke Consulting’s
 Animal Health News & Notes for June 24, 2005
 Copyright © Brakke Consulting, Inc.
earnings news
other news
First Pet Life
Fort Dodge
Novartis (lawsuit)
Novartis (vaccine)
Phoenix Scientific
QuickCare Pet Insurance Programs
Veterinary Pet Insurance
> Peptech reported results for the half-year ended March 31, 2005.  The company’s Animal Health division recorded revenues of AU$700,000 ($US 535,000), more than double the AU$300,000 recorded in the first half of last year.  This reflects higher sales of its equine hormone implant Ovuplant, and initial sales of the canine contraceptive Suprelorin, which was launched in Australia in November 2004.  The company plans to launch Suprelorin in European markets in 2007 and in the US in 2008.  (Animal Pharm)
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.
> Novartis Animal Health US, Inc. announced won a preliminary injunction against LM Connelly & Sons and National Pet Supplies, Australian businesses that sell Novartis pet medicines made for the Australian market through various Internet websites. The lawsuit alleged that the sale of these foreign medicines constitutes trademark infringement because the foreign medicines differ from those Novartis USA sells in the US.  (Law News Network)   
>  Novartis Animal Health US, Inc., announced the availability of a new vaccine for cattle.  Clostridium Perfringens Type A Toxoid is available under a conditional license by the USDA for use only in healthy cattle. The vaccine is safe for pregnant or non-pregnant animals.  C. perfringens Type A is associated with serious gastrointestinal diseases in both cows and calves. and is linked to hemorrhagic bowel syndrome (HBS) in mature cows. (High Plains Journal)  
>  CEVA announced the acquisition of Biomune Co.  Biomune has sales of $17 million and an estimated 10% of the US poultry vaccine market.  The acquisition gives CEVA a direct presence in the US.  Financial terms were not disclosed.  (company website) 
> The FDA amended the animal drug regulations to reflect approval of a new animal drug application (NADA) filed by Fort Dodge Animal Health. The NADA provides for use of an injectable moxidectin solution for the treatment and control of various internal and external parasites of cattle. (AnimalNet – Federal Register)   
> The FDA amended the animal drug regulations to reflect approval of an original new animal drug application (NADA) filed by Phoenix Scientific, Inc. The NADA provides for veterinary prescription use of a solution containing embutramide, chloroquine phosphate, and lidocaine by intravenous injection for euthanasia of dogs.  (AnimalNet – Federal Register)
>  Veterinary Pet Services, Inc. (VPSI), the parent company of Veterinary Pet Insurance Company/DVM Insurance Agency (VPI), named Dennis P. Drent to the position of president and CEO.  He will also serve as a member of the VPSI Board of Directors. James Carney, serving as acting CEO for nearly a year, will return to his role as underwriting East Region vice president for Scottsdale Insurance Company. (company press release) 
> MiracleCorp Products, maker of Miracle Coat grooming products, announced the acquisition of substantially all the assets of the Animal Health Products division of the Capper Corp., maker of Equi-Block horse liniments.  MiracleCorp stated that it is not acquiring any products related to Capper’s human products line.  Financial terms were not disclosed.  (Dayton Daily News)  
> First Pet Life, Inc., which offers many discounted services including insurance, pet supplies, boarding, and grooming, announced that it has become an affiliate of QuickCare Pet Insurance Programs.  QuickCare Pet Insurance Programs are underwritten in the US by Lincoln General Insurance Company.  Coverage is available in all states other than Alaska and Massachusetts.  First Pet Life is still in negotiations to merge with American Television and Film Company.  (Business Wire)
>  The 8th US circuit court of appeals has ordered that a previously-dismissed lawsuit filed by Alpharma against Pennfield should be reinstated. Alpharma had sued in 2003, alleging that Pennfield was falsely advertising that its BMD feed additive product was FDA-approved for the same expanded uses granted to Alpharma.  A District Judge dismissed the suit, stating that Alpharma had failed to exhaust its remedies within the FDA for resolving the dispute.  In reinstating the case, the Appeals Court wrote that “the FDA does no have the authority to award compensatory and punitive damages sought by Alpharma.”  (Animal Pharm)  
>  VIETNAM – AVIAN INFLUENZA   6,000 chickens were infected with avian influenza in Southern Vietnam, the country’s first such outbreak in two months.  Additionally, One-fifth of the total waterfowl in Vietnam’s central Quang Tri province have been found to have contracted the H5N1 strain of Avian Influenza. The local Animal Health Department has culled over 23,000 birds, mainly ducks, in the 38 infected flocks. The province expected to cull a further 120,000 to 150,000 waterfowl in response to the finding.  (AnimalNet – Agence France Presse; Thanh Nien Daily) 
>  US – ATYPICAL BSE SUSPECTED  At least one scientist believes that the so-called “November cow” currently being retested for BSE in England might have an atypical form of the disease.  A senior USDA scientist based at the agency’s lab in Ames, Iowa, told Reuters that while there is no conclusive evidence, anomalies in the sample sent by USDA to the OIE BSE Reference Laboratory in Great Britain suggest that the animal in question may have developed a new, atypical form of BSE.  Similar cases are suspected in Italy and the Netherlands, although no firm diagnosis has been made. The scientist said it is too early to tell, but that the samples, on which he worked both last fall and last week, exhibit “hallmark signs” that it could be atypical and the result of some sort of sporadic development rather than the result of ingesting infected feed.  (Meating Place)
>  CZECH REPUBLIC – BSE   Preliminary tests indicate another case of BSE in the Czech Republic, the country’s second such case this month and its 20th thus far. In all previous cases, initial positive results were confirmed in final testing. The Czech Republic’s first case of BSE was reported in June 2001. (Meating Place)
> AUSTRIA – BSE   A cow in an alpine farm in western Austria has tested positive for BSE.  It is unclear how the cow became infected with the disease. The farm, located in the remote mountain village of Kleinwalsertal, had only six animals.  Austria’s last case of BSE was discovered in November 2001.  (Meating Place)
>  US – EEE IN FLORIDA   Florida officials have reported 51 confirmed cases of eastern equine encephalitis (EEE) in 2005 as of June 17, and the state could be approaching a record year for EEE infections.  At least 20 of the 2005 cases have died or been euthanized as a result of the infection. Central Florida has experienced the most cases so far, and most of the affected animals have not been current on their EEE vaccinations. (Promed)
>  US – ANIMAL ID   USDA Secretary Mike Johanns said his Department will be accepting funding applications from state and tribal governments to continue registering premises for the national animal identification system. Approximately $14.3 million will be available to state and tribal cooperators.  Of this total, $13.5 million will be immediately available to the states. A portion has been set aside for each one based on its livestock population, land area, and other factors.  Currently, 47 states and five tribes have approved premises registration systems, and APHIS anticipates that all 50 states will be on board by July 2005, the release continued.  (Wattnet Meatnews)

This past week, I spent a few days along with other executives from the industry serving as a member of the External Advisory Council for Texas A&M University’s “Center for Executive Leadership in Veterinary Medicine.”  It was a great first meeting and much was accomplished in providing input and support to the Center from the Advisory Council.
We believe that programs which enhance, improve or expand the capabilities of new graduate veterinarians in all fields is critical to the animal care industry.  We encourage all our readers to be supportive of these leadership initiatives at the veterinary school of your choice.
Have a great weekend!
Ron Brakke
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