The Experts in Animal Health

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 Brakke Consulting’s
 Animal Health News & Notes for December 10, 2004
 Copyright © Brakke Consulting, Inc.
earnings news:
Sanderson Farms
other news:
Animal Health Pharmaceuticals
Bayer – Japan
Dainippon (Sumitomo)
Dainippon (Merial)
Dainippon (Bayer)
Dr Bommeli AG
Marine Harvest
Merial – Japan
Nippon Zenyaku Kogyo
Pet Ecology
Pfizer – Japan
Phibro Animal Health
Smithfield Foods
Takeda Schering-Plough
Vet Med
> Provimi reported sales of 1.19 billion euros ($1.56 billion) for the first nine months of 2004, an increase of 4% compared to the prior year. (Animal Pharm)
> Sanderson Farms reported net income for the fourth quarter ended Oct. 31, 2004, dropped 75% to $5.1 million from $20.5 million for the fourth quarter of fiscal 2003. Net sales for fourth quarter 2004 were $259.2 million, compared with $254.7 million for the same period a year ago. Net income for the year posted an increase, however, to $91.4 million from $54.1 million in fiscal 2003. According to the company, overall market prices for poultry products were less favorable during the fourth quarter than for the previous three quarters, during which they showed considerable strength. (Meating Place)  
Brakke Consulting will once again be presenting our annual overview of the Animal Health Industry at the 2005 North American Veterinary Conference and also at the Western Veterinary Conference. There will be a single presentation at each of the conferences.
The Overview will be presented at the NAVC on Monday, January 10 from 1:00 – 3:00 pm. 
The Overview will be presented at the WVC on Tuesday, February 22 from 9:30 – 11:30 am.
Registration fees are $325 for early registration for the first attendee from a company, and $300 for additional attendees.  Early registration ends December 28th for the NAVC Overview and February 9th for the WVC Overview. 
To register, please visit our website at or call Jane Morgan at
>  Merial’s equine family of products is growing with the launch of Ulcergard, the first and only non-prescription, FDA approved product proven to prevent stomach ulcers in horses. Ulcergard will be available to horse owners through their veterinarians. Formulated as a once-a-day cinnamon flavored oral paste that is well accepted by horses, Ulcergard prevents the onset of Equine Gastric Ulcer Syndrome. Its main ingredient, omeprazole, administered at 1 mg/kg per day for 28 days during the time of stressful activities, suppresses acid production in a horse’s stomach and has been shown to effectively prevent stomach ulcers.  (Business Wire)
> Hill’s Pet Nutrition announced the upcoming launch of Prescription Diet Canine j/d pet food, the only pet food clinically proven to reduce pain and improve mobility in dogs with osteoarthritis. Prescription Diet j/d is clinically proven to reduce pain and increase mobility, including running and walking better, and rising more easily. Prescription Diet j/d will be available in both dry and canned formulas beginning in January 2005. (company press release)  
>  The FDA amended the animal drug regulations to reflect approval of a new animal drug application (NADA) filed by Animal Health Pharmaceuticals, LLC. The NADA provides for veterinary prescription use of an oral suspension of sulfadiazine and pyrimethamine for the treatment of equine protozoal myeloencephalitis (EPM). (AnimalNet – Federal Register)  
>  IDEXX Laboratories, Inc. announced that its Production Animal Services group has completed the acquisition of Dr. Bommeli AG from Intervet. Based in Liebefeld-Bern, Switzerland, Bommeli is an internationally recognized leader in the production animal diagnostic market, offering state-of-the-art diagnostic reagents and test kits for the control of diseases. (company website)
>  Smithfield Foods has ended its plan to merge two subsidiaries, Gwaltney of Smithfield and Smithfield Packing. After an 18-month trail merger, Smithfield officials say the combination would create an organization that is large and cumbersome, with too many plants, brand names and sales teams under one umbrella. The original goal was to reduce overhead and logistics costs, but the merger produced only “modest” savings, say Smithfield officials. The merger attempt did create the Smithfield Foodservice Group, which will sell to food distribution companies.  (Pork Alert)
>  Phibro Animal Health Corporation announced that it has received and accepted consent from the holders of over 98% of the Existing Notes regarding proposed amendments to the indenture governing the Existing Notes. The amendments will become effective upon the consummation by the Company of the offering of up to $22.5 million aggregate principal amount of additional U.S. Notes and Dutch Notes with Jefferies & Company, Inc. as initial purchaser, on or prior to December 31, 2004. (Business Wire)
> Pet Ecology Brands, Inc. announced that it has signed a distribution agreement with Vet Med to offer Pet Ecology’s Scientific Professional Brand Cat Litter to veterinarians in the Southern Regions. (Business Wire)
>  Nutreco is sending out an explanatory memorandum to shareholders about its plans to merge its fish farming processing and marketing and sales activities with fish farming activities of Stolt-Nielsen S.A. into Marine Harvest. This new company will be 75% owned by Nutreco and 25% owned by Stolt-Nielsen. After the finalization of the due diligence process, both parties have now signed the agreement for the joint venture. Restructuring costs are estimated between Euro 10 million and Euro 15 million. (Wattnet Meatnews)  
>  Dainippon Pharmaceuticals and Sumitomo Pharmaceuticals announced an agreement to merge together on equal terms on November 25, 2004. A new company will be set up on October 1, 2005; the chairman and the president will be appointed Mr. Yasuo Okamoto, president – Sumitomo and Mr. Kenjiro Miyatake, president – Dainippon. Mr. Miyatake said that the new company would maintain and invest in the animal health business in the future.
>  Merial Japan and Dainippon Pharmaceuticals have consented to terminate their sales agreement on small animal products including Cardomec [ivermectin/Heartgard] product line and Enacard [enalapril] by the end of 2004. Accordingly, these products will be sold through Nippon Zenyaku Kogyo after January 1, 2005.
> Bayer Medical Animal Health and Dainippon Pharmaceuticals announced an agreement to co-market and co-sell Advantage Heart [imidacloprid + ivermectin] spot-
on solution on November 16, 2004. They will begin their sales activity on January 1, 2005.
>   Takeda Schering Plough Animal Health has launched Zubrin [tepoxalin], a NSAID to relieve pain and inflammation originating from musculoskeletal disorders in dogs.
>  Pfizer [Japan] has introduced Rispoval, a Mannheimia [Pasteurella] haemolytica type 1 inactivated vaccine added oil adjuvant solution for the prevention of pneumonia in cattle.
Brakke Consulting offers consulting services for Japan and the Pacific rim through our consultant Dr. Atsuo Hata.  For more information on our international consulting services, please contact Dr. Hata at or our Dallas office at 972-243-4033.
>  ITALY – BSE   The Italian Health Ministry reported that an 8-year-old cow in southern Italy has tested positive for BSE, raising to 124 the number of cases detected in the country since testing began in 2001. (AnimalNet – AP)
>  SPAIN – BSE   Spain’s Agriculture Ministry has reported 11 new cases of BSE.  This brings the number of cases discovered in Spain this year to 125 and takes the total number of cases since the disease was first discovered in the country to 501. (Wattnet Meatnews)
>  UK – ATYPICAL SCRAPIE   The UK’s Veterinary Laboratories Agency has confirmed that 83 “atypical” cases of scrapie have been found over the last three years in samples from 110,000 sheep brains tested. Of those 83 abnormal results, 12 have been found in sheep with the genotype normally associated with the highest degree of resistance to scrapie.  Officials are stressing that the discovery of a new strain of scrapie is not linked to BSE and that there is no need for consumer concerns over food safety. (AnimalNet – The Herald)
>  JAPAN – TRACEABILITY   A beef-tracking system went online this week at retailers and specialized restaurants, allowing consumers to trace the background of any cow via the Internet via a 10-digit registration number. The system was introduced in December 2003, but until now, the tracking system covered only information at the production and meat-
processing levels. But the coverage now expands to retailers and restaurants that offer beef dishes.  (Japan Times Online)
>  US – TRACEABILITY   The Texas Animal Health Commission (TAHC) has gone live with its premises identification program, an underlying program that sets the stage for national animal identification. Every location in every facet of the livestock industry in which live animals are raised or kept will be issued a unique 10-digit “premises identification number,” which will be used for rapid tracing of animals in the event of a problem. At the same time, TAHC is launching a year-long pilot to test the effectiveness, durability and reliability of ear tags supplemented with radio frequency identification (RFID) chips and their related scanners and readers, as well as the resulting data bases of animal identification information. The pilot is sponsored by the Agriculture Department, with TAHC, the Oklahoma Department of Agriculture, Food and Forestry, and the Osage Nation in Oklahoma. Field tests are also underway in 20 other states. (Meating Place)
>  ROMANIA – HORSE EXPORT RESTRICTIONS   The European Commission today adopted a decision to restrict the import of horses from Romania following repeated reports from the Food and Veterinary Office (FVO) of shortcomings regarding both health and welfare conditions of horses exported to the EU from Romania. Problems included insufficient testing for diseases, incomplete certificates and a lack of proper identification of exported animals, in violation of Directive 90/426/EEC on animal health conditions for the movement and import from third countries of equidae. In addition, horses intended for export to the EU from Romania were being kept in unacceptable conditions including overcrowding and insufficient access to food and water. (Agriculture News Digest)
>  US – NEW EXEC DIRECTOR FOR AAIV   The American Association of Industrial Veterinarians (AAIV) announced the appointment of Bobrow & Associates as their new Executive Director.  The AAIV is a professional organization for veterinarians who are employed in industry.  (association press release)
>  US – SENIOR PET GUIDELINES   The American Animal Hospital Association (AAHA) has developed the AAHA Senior Care Guidelines for Dogs and Cats to provide a framework for practitioners dedicated to enhancing the well-
being of senior pets. The guidelines were approved by the AAHA Board of Directors at its October meeting and will be published in March/April 2005. The guidelines promote the early detection of disease in aging pets, outline common clinical conditions as well as aspects of screening, diagnosis, treatment, anesthesia, pain management and surgery that are particular to senior pets, and provide a framework to help practice teams evaluate an aging pet’s quality of life and assist clients with the end of life decision-making process. (AAHA Press release)
As we’ve done for the past several years, Brakke Consulting is publishing an update of our annual report on the US Flea Control and Heartworm Markets.  The report includes up-to-
date sales data on the leading flea and heartworm products, as well as information on new and developing products and a discussion of the recent FDA recall of ProHeart 6.
The 2004 report includes a survey of small animal veterinarians regarding flea, tick and heartworm products.  The survey also investigates practitioner opinion on ProHeart 6, including which products veterinarians are now recommending in its place, experience with adverse reactions, and whether they plan to use ProHeart 6 if it
re-enters the market.
The report on the US Flea Control & Heartworm Markets is available immediately for a purchase price of $4,500. Please contact Dr. Lynn Fondon at (972) 243-4033 or to order the report or for more information. 
One of the things a consultant, advisor or industry observer has to do is to learn to see things through another’s eyes.  When clients or customers ask for something that seems outlandish, there may well be a good reason.  I have been told that the failure of the US to understand the Japanese position on BSE may well relate to how differently the two countries trust the outcomes of science.  Likewise, how would we in the US react to BSE if we had 124 cases, like Italy, instead of one? 
On a happier note, but in the same vein, in this holiday season we might think about how we view each other.  There was a letter in the paper this morning to Ann Landers that bemoaned the way so-called educated upper class people treat service people.  Ann’s advice was to give those who work for us even in the most basic jobs the gift of respect this season.
Happy Holidays.
John Mannhaupt, Dallas
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