The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for January 6, 2006
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
other news
A & G Pharmaceuticals
OurPet’s Company
Pets Best
Pet Zone Products
Universal Medical Systems
> Neogen Corporation announced that its net income for the second quarter of FY 2006 (ended Nov. 30) was $2.2 million, an increase of 32% from the previous year’s second quarter and a quarterly record for the 23-year-old company. Second quarter revenues increased 7% to $18.3 million, also a quarterly record.  Neogen’s Animal Safety Division led the company’s second quarter revenue increase, with sales up 8% to $10.4 million in FY 2006. (company press release)
58th Annual International Poultry Expo
January 25 – 27, 2006
The 58th Annual International Poultry Expo will return to the Georgia World Congress Center Jan. 25-27, bringing with it nearly 800 exhibitors and an estimated attendance of 18,000 poultry industry leaders from more than 95 countries. The IPE is the world’s largest trade show for the poultry and egg industry. All segments of the industry are represented: feed milling, hatchery, live production, marketing, processing, further processing, and all support activities.
For more information on the International Poultry Expo, go to  or phone (770) 493-9401.
> Intervet announced the launch of new once-a-day Leventa (levothyroxine sodium) oral solution.  Leventa is an easily administered, small-volume liquid formulation of thyroid medication that makes treating canine hypothyroidism highly convenient. Leventa’s oral dosing syringe, calibrated in 0.01-mL increments, allows for dosing closely matched to each patient’s needs. (company press release)  
> The FDA amended the animal drug regulations to reflect approval of an abbreviated new animal drug application (ANADA) filed by A & G Pharmaceuticals, Inc. The ANADA provides for the veterinary prescription use of phenylbutazone powder administered to horses in feed for the relief of inflammatory conditions associated with the musculoskeletal system. (AnimalNet – Federal Register)  
> ABAXIS announced the launch of the newly designed VetScan VS2 diagnostic instrument.  The VetScan VS2 is a smaller platform, with the capability to run rotors in as few as 10 minutes, and uses simple menu-driven choices.  (company press release)  
> Pets Best, insurance for pets and a division of General Fire & Casualty Company, announced that it will begin providing comprehensive insurance plans for pet owners and their pet family members. Initially, the company intends to offer its programs in 24 states, including California, and anticipates expanding into additional states by the end of the year. (PRNewswire) 
> John C. Alborough Ltd, publisher of Veterinary Review magazine, announced the acquisition of the assets of Vetstream, a leading provider of electronic clinical information to veterinarians.  Financial terms were not disclosed.  (company press release)  
>  Universal Medical Systems, Inc. unveiled the Vet-MR Grande, the world’s first dedicated dual-purpose magnetic resonance imaging (MRI) system for all small and large animals. UMS has already sold 10 Vet-MR Grande systems, including one to the University of Pennsylvania School of Veterinary Medicine. (PRNewswire)  
>  PetCARE Television, Inc. announced that it has signed a Distribution Agreement with Lifelearn, Inc.   The three-year agreement grants exclusive Canadian distribution rights to Lifelearn for all of PetCARE TV’s veterinary client-education products. PetCARE TV also announced a distribution agreement with Butler Animal Health Supply in the US. (company press release)
> OurPet’s Company reported the successful acquisition of all the operating assets of Pet Zone Products, Ltd.  Pet Zone has developed and markets approximately 75 products, including healthy cat and dog feeders, storage bins, dog houses, cat furniture, cat and dog toys, waste management products and bird feeders. (Business Wire) 
Brakke Consulting will once again be presenting our 2006 Industry Overview at the North American Veterinary Conference and the Western Veterinary Conference.
The 2006 Industry Overview will be presented on Monday, January 9 from 2pm – 4pm at the Gaylord Palms. 
The 2006 Industry Overview will be presented on Tuesday, February 21 from 8:30am – 10:30 am at the Four Seasons hotel adjacent to the Mandalay Bay.
January 30, 2006
1:30pm – 4:30pm
The Princeton Club
Early registration is $325 for the first company attendee and $300 for additional attendees at the same presentation.  To register, visit our website at, or call Jane Morgan at 972-243-4033 or email
> CHINA – AVIAN INFLUENZA   More than 1,800 birds died from the H5N1 strain of avian influenza in southwest China’s Sichuan province, the country’s third most populous province.  Almost 13,000 birds in the area have been culled to prevent the virus from spreading, and two ministry officials have gone to the site to survey avian influenza prevention and control work.  (Meating Place)
> UKRAINE – AVIAN INFLUENZA   Ukrainian television reported that a new outbreak of suspected avian influenza has been discovered in a village near Simferopol on the Crimean peninsula. A large number of fowl have died in Soniatchne village and preliminary analysis confirmed the presence of the virus. It is not yet known if the latest outbreak is the H5N1 strain. (AnimalNet – Agence France Presse)
>   EU – ANTIBIOTICS BANS IMPLEMENTED   An EU-wide ban on using antibiotics as growth promoters in animal feed went into effect Jan. 1. This is the final step in EU’s strategy to phase out antibiotics used for non-medicinal purposes. The following four substances will be removed: salinomycin sodium used for piglets and finishing pigs; avilamycin used for young pigs, finishing pigs, chickens and turkeys; flavophospholipol used for rabbits, laying hens, market chickens, turkeys, pigs, calves and cattle; and monensin sodium used for market cattle. (Pork Alert)
> US – AVIAN INFLUENZA TESTING   The US commercial chicken industry announced a testing program to ensure that chicken flocks and the food products made from them are free of potentially hazardous forms of avian influenza. Participating companies will test every flock to ensure that it is safe. Under the National Chicken Council (NCC) program, participating companies will take samples from each flock while it is still on the farm. Tests will be conducted under procedures approved by the National Poultry Improvement Plan (NPIP), an existing federal/state cooperative program. NCC is currently accepting signups by companies in the industry. Companies with more than 90% of chicken production in the United States have already enrolled. (National Chicken Council)
What does 2006 look like for the animal health industry?
The economic and market conditions seem to be appropriate to support another year of revenue growth in the range of 5 – 7% in 2006.  There will be personnel increases and additional investments in the companion animal segment of the market.  The production animal sector will show some revenue growth, but is likely to experience some reductions in personnel because of changing market dynamics.
There will be a limited number of significant new product introductions during 2006, but it appears that research and innovation investments are increasing in total dollars.
These and many other industry observations are presented in our State of the Industry Overview, scheduled for Orlando, New York, and Las Vegas.  We’ll see many of you in Orlando at the North American Veterinary Conference, and wish everyone of you and your companies good health and financial success in 2006.
How about those Texas Longhorns!
Ron Brakke
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