The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for December 3, 2005
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
See below
earnings news
Del Monte
Smithfield Foods
other news
Avian Technology Int’l
Cedara Software
Lohmann Animal Health
Radio Systems
Reilor Holdings
ZAO Rybflotprom
Each year, Brakke Consulting produces a directory of the leading animal health manufacturers, distributors and service providers in the US.  The 2006 Directory is now available for purchase.   For pricing and to order the Directory, please email Jane Morgan at or call 972-243-4033.
>  Del Monte Foods Company reported results for the second quarter ended October 30, 2005. For the second quarter, Pet Products net sales were $208.8 million, a decrease of 4.0% versus the prior year period. The decline in Pet Products net sales was driven primarily by an expected decrease in volume from existing products as compared to the prior year period, which included the positive volume impact of the fiscal 2005 9Lives restage and Kibbles ’n Bits wet new product introduction. Pet Products operating income increased 5.7% from $31.5 million in second quarter fiscal 2005 to $33.3 million in second quarter fiscal 2006.  (company website)
> Smithfield Foods, Inc. reported net income for the second quarter of fiscal 2006 was $51.6 million versus net income last year of $58.4 million. Sales were $2.9 billion, compared with $2.7 billion a year ago. (Wattnet Meatnews)
As we’ve done for the past several years, Brakke Consulting has published 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, advertising expenditures, and information on new and developing products.
The 2005 report also includes a survey of over 180 small animal veterinarians regarding flea, tick and heartworm products.  Veterinarians shared their thoughts on retail sales of products, prescription fulfillment services, incentive programs, and other current topics affecting flea and heartworm product sales, and even supplied open comments to the product manufacturers.  Shouldn’t you know what your clients are thinking?
The report on the US Flea Control & Heartworm Markets  available for a purchase price $4,995. 
Please contact Dr. Lynn Fondon at (972) 243-4033 or to order the report or for more information.
> Novartis Animal Health US, Inc. announced it has acquired Vetsuite, an integrated package of veterinary software tools, from Intelligent Content Corporation (ICC).  Vetsuite is used by veterinarians across the United States for Web site development and for providing their clients with educational information about pet health and pet health products.  More than 2,200 veterinary clinics subscribe to Vetsuite at present, using the tool as a complete solution for client and staff education, medical information and Internet marketing. Financial terms were not disclosed. (company press release)   
> ViaGen announced that the USDA has approved ViaGen’s groundbreaking DNA verified beef program. The new program trademarked AnguSure, uses genetic testing to verify the genetic heritage of animals sold as “Angus.” The program is supplemental to existing requirements for all USDA-certified Angus programs. (Business Wire) 
> Cedara Software announced a strategic partnership with Eklin Medical Systems Inc.  As part of the partnership, Eklin will distribute Cedara’s medical software solutions for the veterinary market and both companies will collaborate to investigate new solutions for animal healthcare. The two companies will exclusively co-market and co-brand these solutions.  (PRNewswire)  
> Avian Technology International announced it has purchased the existing assets and business of the vaccination equipment division of Lohmann Animal Health International.  As part of the agreement, ATI now has worldwide distribution rights for the machinery and parts formerly offered through the LAHI vaccinator equipment division.  Financial terms were not disclosed. (Feedstuffs)
> Innolytics, LLC announced that it has received regulatory approval from the EPA for OvoControl, a new product designed to humanely reduce the growth of resident Canada goose populations. The new technology, developed in collaboration with scientists at the USDA National Wildlife Research Center in Fort Collins, CO, can help reduce bird populations by decreasing the number of hatched eggs during the breeding season.  (company press release)  
> EUROPE  Kemin’s European unit and Adisseo have formed a partnership whereby Kemin will market, distribute and support Adisseo’s range of ruminant products in Europe beginning in January.  Products include Smartamine, MetaSmart and Microvit A Supra Ruminant.  (Feedstuffs)
> RUSSIA   Provimi announced it has acquired 80% of the Russian premix company ZAO Rybflotprom from the Sodrugestvo Group, making Provimi the largest premix and concentrate producer in the country.  In 2004, the ZAO had annual turnover of EUR 30 million.  Financial terms were not disclosed. (Feedstuffs) 
> UK   Radio Systems Corporation of the US announced that it has acquired UK-based Reilor Holdings, parent company of the Staywell brand of pet doors. Radio Systems Corporation is the maker of the PetSafe brand of pet doors and is the market leader in pet training categories such as underground pet containment, bark control and remote training.  Staywell will continue to operate in  England as a solely owned subsidiary of Radio Systems. (PETS International)   
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.
Early registration is $325 for the first company attendee and $300 for additional attendees at the same presentation.  To register, call Jane Morgan at 972-243-4033 or email
> ROMANIA – AVIAN INFLUENZA   A turkey and 10 chickens have tested positive for the H5 subtype of avian influenza in Romania. Further tests to be carried out in Britain will determine whether the birds were infected with the H5N1 strain of the virus.  (, Meating Place)
>  LUXEMBOURG – BSE   A new case of BSE has been reported in Luxembourg, according to the country’s Ministry of Agriculture and Livestock. This is Luxembourg’s third case of the disease. The two previous incidents occurred in 1997 and 2001. The cow was a 4-year-old Charolais. There are no indications as to how the cow contracted BSE. On the farm to which the animal was traced, 15 cattle have been slaughtered as a precaution.  (Drovers Alert)
> CHINA – AVIAN INFLUENZA China confirmed a new outbreak of avian influenza in poultry.300 fowls died Nov. 24 in Xinyuan, a county in the far northwestern region of Xinjiang.  The Ministry of Agriculture confirmed the poultry deaths were due to the virulent H5N1 strain of bird flu. Authorities culled more than 118,000 poultry within a three-kilometre radius as a precaution. The Xinjiang region has reported previous outbreaks.  (AnimalNet – Globe and Mail)
> EU – FUNDS APPROVED TO FIGHT ANIMAL DISEASE   The European Commission approved a financial package of 185 million euros to support programs to eradicate, control and monitor animal diseases in 2006. Some of the targeted diseases include: brucellosis (14.91 million euros for cattle and 11.76 million euros for sheep and goats), rabies (8.215 million euros), bovine tuberculosis (7.9 million euros) and transmissible spongiform encephalopathies (88.3 million euros).  (Feedstuffs online)
>  US – DECLAW BAN STRUCK DOWN   The California Veterinary Medical Assn. (CVMA) announced that the California Superior Court has ruled in favor of CVMA and against the city of West Hollywood, Cal., in overturning the city’s ordinance banning animal declawing within city limits. CVMA successfully asserted that local ordinances may not infringe upon licensed professionals’ state-granted rights to practice within the scope of their licenses. (Feedstuffs online)
> US – UC DAVIS NOW OFFERING CANINE INFLUENZA TEST   The Lucy Whittier Molecular and Diagnostic Core Facility at UC Davis will offer a PCR test as part of a canine respiratory panel for $75 per sample. Veterinarians can send deep pharyngeal swab samples taken within the first 72 hours of onset of clinical symptoms to be tested with a validated real-time PCR assay for the emerging canine influenza virus H3N8. Turnaround time for a canine respiratory panel result is 24-48 hours. (AAHA NewStat)
> US – DUAL DEGREE IN VETERINARY MEDICINE AND PUBLIC HEALTH   The College of Veterinary Medicine at the University of Illinois and the School of Public Health at the Chicago campus have offered a program since the spring of 2005, designed to award both the Doctor of Veterinary Medicine and Master of Public Health degrees. The joint program allows students to complete both degrees in five years. First, students in the program must satisfy the required four years of the professional veterinary medicine program of the study and must satisfy the required 39 to 41 semester hours of the Master of Public Health Professional Enhancement Program. (Daily Illini)
> US – VETERINARY STEM CELL THERAPY INSTRUMENT UNVEILED   Bio-Matrix Scientific unveiled a prototype of a Veterinary Stem Cell Instrumentation for stem cell therapy at the recent American College of Veterinary Surgeons’ Symposium.  In a move towards less invasive stem cell extractions, Bio-Matrix has developed a full line of disposable veterinary stem cell extraction surgical tools. These surgical tools of therapeutic tubular needles are used to extract, transfer and re-introduce stem cells. The Company believes the instruments currently being beta tested are close to production stage in their development. (Genetic Engineering News)
The news for the week is a bit limited.  It appears that most companies are now in the final stages of wrapping up 2005.  It’s generally been a good year for most companies.  Most of the economic indicators would suggest that 2006 is going to be another good year for the industry.  Some of the predictions of higher energy costs and interest rates don’t seem to be damping the enthusiasm of the pet owners and producers.   With record grain harvests producers we are going to have low feed grain costs which is still the highest input cost to producing animal protein.
We’re pleased with the positive steps many of the companies are taking in expanding their sales forces and management teams. It’s great to be talking expansion versus restructuring.
Have a great weekend. 
Ron Brakke
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