The Experts in Animal Health

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 Brakke Consulting’s
 Animal Health News & Notes for March 25, 2005

 Copyright © Brakke Consulting, Inc.
earnings news:
other news:
Antech Diagnostics
Central Garden & Pet
Chr. Hansen
Fort Dodge
Midwest Veterinary Supply
Phoenix Scientific
celebrates 3-month anniversary, the job board dedicated to the animal health industry, is proud to mark its 3-month anniversary.  Since launching in mid-December, has:
– received 465 jobseeker resumes
– posted 145 jobs
– forwarded nearly 1,000 jobseeker applications
– received over 55,000 visits (averaging 550 per day)
Employers are reporting that they are very pleased with the quality of applicants they receive from, and have plans to make offers to our jobseekers.
In addition to our cost-effective 60-day job posting, employers can also search our resume database FREE OF CHARGE.  You agree to pay a success fee if you hire that individual, so you only pay if you find the right person for your open position! – the most efficient way to find the best candidates in animal health.
>  Neogen Corporation reported third quarter revenues of $14.4 million, a decrease of 2% compared to the prior year third quarter.  Net income was $1.2 million, a 2.5% increase compared to the prior year’s third quarter.   Year-to-date revenues for the first nine months of Neogen’s 2005 fiscal year were $46.7 million, a 16% increase from $40.2 million for the prior year comparable period.  Year-to-date net income increased 11% to $4.5 million.    (company press release) 
>  Heska Corporation reported results for the quarter and year ended December 31, 2004. Fourth-quarter revenues were $21.6 million, a 25% increase compared to the fourth quarter of 2003.  Net income for the quarter was $1.4 million compared to a net loss of ($0.6) million in the fourth quarter of 2003.  Revenues for the full year were $65.3 million, an decrease of 3.5% compared to 2003.  Net loss for the year was ($3.2) million compared to a net loss of ($4.2) million in 2003. (company website)  
4th Annual Stakeholders Summit
March 21-23, 2005
The Animal Agriculture Alliance hosted its Fourth Annual Stakeholders Summit March 21-23, 2005 at the Marriott Crystal City in Arlington, Virginia.  Over 135 high level representatives of animal agriculture from around the globe met to share ideas and learn from the program themed, “Animal Welfare Initiatives, Needs, Regulation and Communication: Building on the Past, Preparing for the Future.” Attendance at the meeting increased nearly 10%. Preliminary survey results from the meeting indicate that 100% of attendees considered the presentation topics and content as either good or excellent. In addition to record attendance, the Summit also scored a record number of sponsorships. These generous sponsors included ADM Animal Nutrition, the Food Systems Group of Vance Publishing, Rabobank International, the American Veal Association, Watt Agribusiness Media, Brakke Consulting, National Pork Board, United Egg Producers, Monsanto Corporation, American Feed Industry Association and the National Cattlemen’s Beef Association.
> The FDA amended the animal drug regulations to reflect approval of an abbreviated new animal drug application (ANADA) filed by Phoenix Scientific, Inc. The ANADA provides for use of tiamulin soluble powder to prepare medicated drinking water for the treatment of swine dysentery and swine pneumonia.  (AnimalNet – Federal Register)  
> Schering-Plough Animal Health introduced its Tri-Merit Individual Animal Health & History Certification Program for cattle producers, a data management system that combines process and source verification with individual animals and their birthdates.  The online program offers producers the potential premiums associated with documented cattle, and provides producers with a foundation for participating in the National Animal Identification System.  The program is complimentary for Schering-Plough customers. (Feedstuffs) 
>  Novartis Animal Health US, Inc. announced two new Vira Shield 6 combinations that feature 3-way BVD protection and are formulated with cows and bulls in mind Vira Shield 6+L5 and Vira Shield 6+VL5 contain Noncytopathic (NCP) Type 1, NCP Type 2, and Cytopathic (CP) Type 1.  In addition, the combinations protect animals against IBR, PI3, BRSV, lepto and vibrio when Vira Shield 6+VL5 is used. Both of the new combinations also are available with H. somnus protection.  (company press release)  
>  Fort Dodge Animal Health announced that spring 2005 In-Clinic Education Kits are being delivered to more than 10,000 veterinary clinics participating in National Pet Wellness Month, a consumer education campaign the company jointly sponsors with the American Veterinary Medical Association. The kits, which are free to all practicing veterinarians, contain a variety of high quality materials designed to assist clinic staff in educating pet owners year-round about the pet aging process, disease prevention and the importance of twice-a-year wellness exams.  (company press release)
>  Heska announced a new supply agreement for microalbuminuria testing with Antech Diagnostics.  Antech is promoting the new quantitative Urine Microalbumin Assay (ERD Test) by offering the assay as part of most canine and feline urinalyses beginning March 14, 2005.   (company press release)  

>  AgriLabs introduced Mycomune bacterin, the first USDA-licensed vaccine for the prevention of mycoplasma mastitis caused by Mycoplasma bovis.  In pre-licensing clinical trials, cows vaccinated with Mycomune and challenged with M. bovis had 80% fewer cases of mycoplasma mastitis than the control group, as measured by milk samples, udder scores and clinical mastitis cases. Mycomune is safe for use in lactating cows, dry cows and growing heifers. There is no milk withholding required following vaccination. The withholding period prior to slaughter is 21 days. (company press release)
>  Midwest Veterinary Supply announced that it recently opened a new distribution branch in Norristown, Pennsylvania.  The full-service branch will service veterinary clinics in the northeastern states with an initial focus on Pennsylvania, New Jersey and Maryland.  Midwest currently serves veterinary clinics in 18 states, concentrated in the midwest.  (Feedstuffs)
>  Central Garden & Pet Company announced that it won five new product awards, including Best In Show in the Aquarium category at the 2005 Global Pet Expo.   Oceanic won the Best In Show award in the Aquarium Category for its innovative “144 Stainless Steel Half Circle Aquarium.”   Wellmark received two awards in the Pond Category for the new “PreStrike MosquitoTorpedo” and “PreStrike Larvicide” lines of insect control products. Four Paws was recognized in the Cat Category for its “Kitty Kat Circus” and TFH Publications/Nylabone Products won an award in the Gift Category for its new title, “Little Dogs: Training Your Pint-Sized Companion.”  (Business Wire)  
>  UNITED ARAB EMIRATES   Chr. Hansen announced the recent opening of its new Middle East and Africa headquarters.  The new office in Dubai, UAE, works with a closely-knit network of distributors to handle day-to-day sales throughout the region.  Chr. Hansen is already well-established in the dairy industry in the region, according to the company.  (Feedstuffs)  
American Animal Hospital Association Annual Meeting
March 19 – 23, 2005
The American Animal Hospital Association concluded its annual meeting in Baltimore, Maryland this week.  Congratulations to Drs. John Albers, Executive Director, Dennis Feinberg, outgoing president and Dan Aja, incoming president, on their continual pursuit of excellence.  The attending veterinarians and their staffs confirmed the meeting exceeded their expectations with extensive advanced scientific and management education.   AAHA is working to standardize diagnostic codes in veterinary medicine while continuing to raise the level of their hospital accreditation standards for their member practices – always raising the bar of the profession.  
Roger Cummings, Dallas
>  US – BSE RESEARCH FUNDING  The US government will spend an additional $2 million on research into BSE, according to the USDA.  The money will pay for collaboration with laboratories in Great Britain, Italy and Spain. Funds will also go toward a facility being built in Ames, Iowa, for long-term study spanning at least the next decade. The funding comes on top of the $4.7 million the USDA will spend this year to research the disease. President Bush has proposed increasing funding to $12 million in 2006.  (AP)
>  US – NEW BROCHURE ON VETERINARY COMPOUNDING   A new brochure entitled “Veterinary Compounding” is available to help veterinarians and pharmacists safely treat animal diseases for which no approved drugs exist.  Produced as a joint effort among the Animal Health Institute, the American Veterinary Medical Association and the American Veterinary Distributors Association, the brochure explains the requirements of legal compounding of veterinary drugs and the distinction between compounded drugs and drugs approved by the FDA. The FDA has consulted with the animal health, pharmacy and veterinarian communities as a part of their current effort to update the guide used by field offices to enforce the law regarding compounding.  An updated guide is expected to be released soon.  (AHI Press release)
>  US – CALIFORNIA FINES PET STORES SELLING FLEA PRODUCTS   The California Department of Pesticide Regulation is seeking more than $3 million in fines from 13 businesses accused of selling unregistered and misbranded foreign flea treatment products for pets, including Merial’s Frontline and Bayer’s Advantage.  California law states that, in addition to registration with the EPA, pesticides must also be registered and approved by the state.  At least one of the companies involved has requested a hearing to challenge the allegations, and others report planning to do so.  (Pet Product News)
>  US – FUNDING FOR ANIMAL RIGHTS LAW   Bob Barker has donated $1 million to Northwestern University’s School of Law to endow a course on animal rights law through the Bob Barker Endowment Fund for the Study of Animal Rights Law. Barker, the host of “The Price Is Right” and a longtime animal rights activist, has given similar funds in recent years to law schools at Duke, Stanford, Columbia and UCLA. (AP)

NIAA Symposium: Focus on Zoonotic Diseases
April 7, 2005
The National Institute for Animal Agriculture (NIAA) is hosting a focused symposium in conjunction with its 2005 Annual Meeting in St. Paul, Minn. Protecting the Global Food Supply: Growing Concerns for Emerging Zoonotic Diseases will be held on April 7 at the Radisson Riverfront Hotel.
The symposium is co-sponsored by the National Center for Food Protection and Defense and the Center for Animal Health and Food Safety at the University of Minnesota. The agenda is scheduled from 8:00 a.m. to 5:00 p.m., followed by a reception. For more information on the symposium, including speakers and registration, go to or call 270-782-9798.
The company news this week covers several new product approvals and programs.  For the most part, these announcements are either related to vaccines or diagnostics.  We continue to see these two areas providing above average sales growth over the next few years. Prevention of disease via vaccines and early detection of disease utilizing diagnostics will be the cornerstones to improved animal health and food safety. 
The involvement and cooperative program of the AHI, AVMA, and AVDA to help educate veterinarians about legal drug compounding issues is timely.   The drug compounding area has increased dramatically the past few years, as has the sale of unregistered and misbranded foreign products.  We believe these sorts of illicit practices should be stopped before the whole industry is impacted negatively by one or more major incidents involving animals or humans. 
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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