The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for March 31, 2006
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
See below for details
earnings news
Doane Pet Care
OurPet’s Company
other news
Brawley Beef
Cross VetPharm
Crystal Import
Farnam (joint care)
Farnam (Shed-Stop)
First Pet Life
Iowa Veterinary Supply 
IVS Animal Health
Mrs. Allen’s Shed-Stop
Panhandle Veterinary Supply
Scholfield Veterinary Supply
US Premium Beef
Veterinary Products Laboratories
> Heska reported results for its year ended December 31, 2005, the company’s best year ever.  2005 revenues were $69.4 million, with net income of $282,000, over a $5 million improvement from 2004. (company press release)  
> Doane Pet Care Company reported net sales and earnings results for the full year ended December 31, 2005. The Company’s net sales decreased 5.7% to $992 million on a combined basis from $1.1 billion for fiscal 2004. This decrease was primarily due to the Company’s domestic cost-sharing arrangements, and the related impact of passing through lower commodity costs, and lower domestic sales volume, including the impact of the previously announced discontinuation of non-manufactured product distribution in the US, moderated by higher European sales volume. The Company reported a net loss of ($44.7) million on a combined basis for fiscal 2005 compared to a net loss of ($45.6) million for fiscal 2004. (Business Wire) 
> OurPet’s Company reported financial results for its fourth quarter and year ended December 31, 2005. For the year net sales were a record $6,566,000, an increase of 21% compared to the prior year. Net income for the current year was $254,000, an increase of 1,865% compared to net income of $13,000 for the prior year. (Business Wire)  
Brakke Consulting is once again publishing a review of pain management in small animals, and the products used to treat pain.  The new 2006 report includes 2005 sales data on the pain management products used in small animal practice, as well as news on new and developing products in the pain management area. Included are sections on nutraceuticals and joint support prescription diets.  The introduction of Merial’s Previcox and Novox, the first generic carprofen, are covered in the 2006 report.
The report also includes a survey of over 130 small animal veterinarians regarding their usage of pain management products, including NSAIDs, nutraceuticals, and the new joint support therapeutic diets.
The report will be available next week.  Orders placed on or before March 31, 2006 are eligible for the early-bird discounted price of $4,995.  Orders received after March 31 will be at the regular price of $5,500.
Place your order today to get the latest information on the veterinary pain management market!
For more information, contact Dr. Lynn Fondon at or 972-243-4033. 
> Monsanto announced that the FDA has approved full production of bovine somatotropin (bST) at Monsanto’s manufacturing facility in Augusta, GA. With full FDA approval of the Augusta plant, Monsanto said it will begin to increase production, which will help eliminate a shortage of BST that has existed since the end of 2003. (Feedstuffs online) 
> Virbac announced the introduction of CET Aquadent Dental, a breath-freshening additive for pets’ drinking water.  The product is for use in cats and dogs and helps fight plaque accumulation.  (DVM Newsmagazine)  
> The FDA amended the animal drug regulations to reflect approval of an abbreviated new animal drug application (ANADA) filed by Cross Vetpharm Group Ltd. The ANADA provides for the veterinary prescription use of flunixin meglumine injectable solution for the control of inflammation in horses and cattle. (AnimalNet – Federal Register)  
>  Wellmark announced that as a result of the recent acquisition of Veterinary Products Laboratories by Central Garden & Pet, VPL will begin representing the Vet-Kem line. (company announcement) 
> Farnam Pet Products announced that it has acquired Mrs. Allen’s Shed-Stop, a solution to excessive shedding in dogs and cats, from Stabar Enterprises, Inc. Shed-Stop is available at most pet specialty stores.  Financial terms were not disclosed. (company press release) 
> Farnam introduced the All Day Joint Care System with glucosamine and chondroitin with an exclusive time release formula that when taken as directed provides continuous joint support. All Day uses time-release formula that helps bind the active ingredients, such as glucosamine and chondroitin sulfate, in layers.  These layers release gradually for up to 12 hours as they come in contact with the liquids of the gastrointestinal tract. (company press release)  
> Iowa Veterinary Supply Co. and its divisions of IVESCO, Scholfield Veterinary Supply, IVS Animal Health, Panhandle Veterinary Supply, IVS Animal Health/WYNCO and VMS; will all be consolidated under the name IVESCO LLC.  All divisions will operate under this new name. (Poultry Times)  
> PetAg introduced DogSure and CatSure liquid food supplements that can also serve as nutritionally balanced meal replacements for aging or ailing pets.  The products are uniquely formulated to provide full nutritional needs in a highly palatable, vanilla-flavored liquid.  Both products can be mixed with a pet’s normal food and are a good source of DHA.  (Feedstuffs)  
> Wysong Corp. introduced Addlife, a concentrated natural food source of active enzymes, probiotic cultures, amino acids, vitamins, fatty acids, antioxidants, and more.  Addlife is formulated for dogs and cats to enhance and increase the efficiency of assimilation of processed foods and improve immune support.  (DVM Newsmagazine)  
> The Crystal Import Corporation, the US distributor of DATAMARS SA, announced the donation of 20,000 scanners capable of reading or detecting both 134.2 kHz and 125 kHz microchips to shelters and veterinary hospitals across the nation.   Additionally, The Crystal Import Corp. will offer a free scanner to up to 10,000 shelters and veterinarians with a purchase of 20 RFID microchips for a total commitment of 30,000 scanners. (company press release)
>  First Pet Life, Inc. announced plans to launch an E-commerce Pet Store via the First Pet Life website. This membership exclusive portal will be a discount based service only available to First Pet Life members. In order to gain this exclusive membership access, pet owners only need to purchase an insurance policy. Current free membership registration stands at just over 1500 members. (Business Wire) 
> The Supreme Court refused to hear an appeal by cattle ranchers of a case that charged Tyson Fresh Meats with price-fixing through so-called forward contracts. The ranchers had originally been awarded $1.28 billion by an Alabama jury, but the 11th Circuit Court of Appeals threw the verdict out. Cattle producers had charged that large processors, particularly Tyson, were manipulating market prices of live cattle by locking up production at favorable prices. (Meating Place) 
> US Premium Beef and Brawley Beef announced a proposed merger, bringing together two producer-based beef production systems and the fourth- and ninth-largest beef packers. Financial terms were not disclosed. (Feedstuffs)   
> CANADA  Merial announced it was granted a special import permit, clearing the way for the distribution of Circovac vaccine.  Circovac protects pigs against  Post-weaning Multisystemic Wasting Syndrome (PMWS) The vaccine has been in use in France and Germany for the past year and a half. (AnimalNet – Farmscape)
Animal Agriculture Alliance
Stakeholders Summit
March 20 – 22, 2006
Attendance at the Animal Agriculture Alliance’s Fifth Annual Stakeholders Summit March 20-22, 2006 at the Sheraton Crystal City Hotel in Arlington, Virginia reached a new record, jumping over 10%. Over 160 food industry and animal agriculture executives from around the globe met to share ideas and learn from the program themed, ’’Animal Welfare, Antibiotics and Activism: Leadership, Action and Solutions to Challenging Issues.’’ Preliminary survey results from the meeting indicate that 98% of attendees ranked the presentation topics and content as either good or excellent.
> JORDAN – AVIAN INFLUENZA   Jordan discovered its first cases of H5N1 avian influenza in three turkeys. The birds were found dead on a family farm in the village of Kfar Najah in the northern region of the country. The area around the farm was isolated, and culling of birds within a two-mile radius began. Birds within a three-mile radius will receive vaccinations. (Meating Place)
> CZECH REPUBLIC – AVIAN INFLUENZA   Tests on a dead swan have confirmed the Czech Republic’s first case of the H5N1 strain of the avian influenza virus. The swan was found near the southern town of Hluboka nad Vltavou, on the Vltava river. A second dead swan suspected of carrying the H5N1 virus was discovered in the same region. (Reuters UK)
> SWEDEN – AVIAN INFLUENZA   Swedish veterinarians have found a mink with an aggressive form of the H5 bird flu virus and had the mammal put down. The animal was found in the Blekinge region of south Sweden, an area where several bird flu cases have been found. What is initially described as an aggressive form of H5 bird flu is often later confirmed as the highly pathogenic H5N1 virus. The mink probably got the disease from eating wild birds which were already infected. (AnimalNet – Reuters)
> US – MARE REPRODUCTIVE LOSS SYNDROME   The University of Florida College of Veterinary Medicine has confirmed one case of MRLS and has two other cases that are suspect. All three cases occurred in Alachua County this spring. Two cases were septic foals that received treatment in the UFCVM intensive care unit but were subsequently euthanized. The third case was a late-term abortion. MRLS has not been previously reported in Florida. (
> CANADA – HIGH OFA PORK   Prairie Orchard Farms, a Winnipeg, Manitoba-based pork producer, has been marketing pork products high in omega-3 fatty acids for nearly a year, after receiving permission to label the pork from the Canadian Food Inspection Agency in April 2005. Unlike the process recently developed by US scientists, Prairie Orchard’s process requires no genetic material from roundworms; it’s all done with diet. Prairie Farms says the process, which mainly involves adding flaxseed and vitamins to hogs’ feed, was developed over six years of trail-and-error and results in a hog that contains very high levels of the omega-3 fatty acids. (Meating Place)
>  US – TENNESSEE ANIMAL ID   Tennessee is looking to opt out of the national electronic cattle-tracking system under a bill being considered by the House. The measure’s sponsor, said that electronic tracking is too expensive and that tags containing microchips could be manipulated for fraudulent purposes. He instead is calling for no-tech metal tags that are “cheap, dependable (and) can’t be monkeyed with.” According to news reports, his proposal is at odds with the state’s governor’s goal of making Tennessee a world leader in electronically tracking cattle. (Drovers Alert)
> NETHERLANDS – MEAT CULTURED IN-VITRO   A team of Dutch researchers have grown mice muscle in their labs and Australian researchers grew muscle tissue from a frog. Scientists are now working on pork, beef and chicken. Their goal is to develop an industrial version in five years. If they succeed, consumers could buy hamburger patties and chicken nuggets made from meat cultivated from muscle cells in a giant incubator rather than cut from a farm animal. (

This is the last day for sales in the first quarter of 2006.  Having been in the field this week and interfacing with a number of companies, it appears that sales are ending strong for the first quarter.  There are a number of special offers to assist in the attainment of budget or forecast for the first three months, but as first quarters go, most companies are very optimistic regarding the start of 2006.  It will be interesting to receive the first actual quarterly reports in a couple of weeks. 
The weekly blitz of announcements related to avian influenza outbreaks in various parts of the world continued.  These continued reported incidences are having an impact on poultry consumption in some parts of the world.  So, not only do poultry producers have the concern over the disease, but the increased supply of poultry meat is depressing the market.  It appears that this disease is going to be with us for some time, which offers some opportunities for the diagnostic and vaccine companies. 
Have a great weekend!!
Ron Brakke
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