The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for August 23, 2002

Copyright © Brakke Consulting, Inc.

>  Boehringer Ingelheim reported results for the first half of 2002. The company reported that the Animal Health business is going through a difficult period in various markets such as the USA and South America. Sales were down slightly by 0.7% cent at EUR 150 million ($150 million). (company website)

>  Nestle S.A. reported that sales for the first half of 2002 in its petcare division were CHF 5.4 billion ($3.65 billion), an increase of 82% over the first half of 2001.  Real internal growth was an increase of 3.7% excluding the effect of the acquisition of Ralston Purina.  (company website)

>  Patterson Dental Company reported results for the first quarter of fiscal 2003 ended July 27.   Sales for Webster Veterinary Supply increased 11% to $47.0 million on a pro forma basis.  Webster Veterinary Supply also recorded strong operating results in this year’s first quarter. Reflecting the growing synergies between the dental and veterinary supply businesses, Patterson’s eMagine order-entry system was rolled out to Webster’s sales force during the first quarter, and is expected to be available to Webster’s customers by the end of the year.  (Business Wire)

>  Biopure Corporation announced its financial results for the third fiscal quarter ended July 31, 2002.  For the quarter, the company reported a net loss of $12.6 million compared with a net loss of $11.9 million for the corresponding period in 2001.  Total revenues were $260,000 for the third quarter of fiscal 2002, compared to $946,000 for the corresponding period in 2001.  This decrease in veterinary sales of Oxyglobin is due to low inventory resulting from the expansion and revalidation of Biopure’s manufacturing facilities.  The company is allocating product produced before the expansion to its largest customers, and expects to fill backorders during the first quarter of fiscal 2003 following regulatory clearance to ship product manufactured at the revalidated facilities. (PRNewswire)

> Smithfield Foods Inc. reported earnings for the first quarter of fiscal 2003, ended July 28, were $11.8 million versus $56.9 million a year ago. Dramatically lower live hog prices adversely affected Hog Production Group earnings, and weak fresh pork margins resulted from the continuing excess supply of chicken, pork and beef in the United States marketplace. Sales in the quarter were $2 billion, 22% above $1.6 billion last year. Sales of recently acquired companies were primarily responsible for the sales increase. (Meating Place)

>  Sanderson Farms Inc. reported net sales for the third quarter of fiscal 2002 ended July 31 were $202.7 million, up 10% compared with net sales of $183.7 million for the same period a year ago. Net income for the quarter was $9.3 million compared with $9.6 million for the third quarter of fiscal 2001.  Sanderson said trends in market prices for poultry products during the quarter continued to be mixed. (Meating Place)

Central Veterinary Conference – Kansas City

The Central States Veterinary Conference concluded this week in Kansas City, MO.  With the largest attendance of veterinarians and support staff to date for this meeting, it continues to grow and succeed.  Congratulations to Dr. Ray Glick, Peggy Shandy, Rebecca Turner Chapman, Marnette Falley and their teams at Thompson Healthcare Communications. 


>  Novartis Animal Health US, Inc. announced that the FDA has approved Deramaxx chewable tablets, the first coxib-class drug to be approved for use in veterinary medicine. A coxib-class drug is a class of drug with a specific chemical structure that selectively inhibits the COX-2 enzyme. Deramaxx is approved for the control of pain and inflammation associated with orthopedic surgery in dogs. Deramaxx tablets are available in beef-flavored 25mg and 100mg tablets.  Tablets can be given once daily for 24-hour control of pain and inflammation and may be given with or without food. (company press release)

>  New England Serum Company announced that it will officially change its name to PetEdge in an effort to more aptly describe its business. The official name change to PetEdge will be made with the arrival of the company’s September pet supply catalog, which reaches groomers, pet supply retailers, veterinarians, kennel operators and breeders in late August.

>  Alltech announced that the FDA has approved Sel-Plex organic selenium for use in pig and turkey feeds.  The product was approved for use in broilers and layers in 2000.  Sel-Plex is more bioavailable at lower inclusion rates than other selenium sources.  (company press release)

>  Tyson Foods Inc. plans to close its company-owned and leased hog farms and end contracts with 132 contract hog producers in Arkansas and eastern Oklahoma. The move to restructure Tyson’s live swine division will result in about 200 job cuts. Tyson said transportation costs were a big factor in the decision to carry out the restructuring. (AP)

>  VetInsite launched Pet Portals at the 2002 Central Veterinary Conference.  Pet Portals are private, password protected web pages for pet owners accessed, from the veterinary practice website.  In addition to Pet Portals, VetInsite provides veterinarians with both on-line and traditional marketing services.  (company press release)

>  SWITZERLAND   Provimi Kliba is being acquired by Cargill, subject to regulatory approval. Until now, the company has been part of family-owned Swiss group Alcorex. Petfoods were first added to its animal feed and flour milling activities about seven years ago.  The petfoods are sold exclusively through specialty pet stores and veterinary clinics, but the company also manufactures private-label dry foods for the country’s largest supermarket chain. (Petfood Industry e-newsletter)

Buy, Sell, or Stay the Same

In the past year, Brakke Consulting has been the finder of record, agent of record or consultant for several projects that have successfully closed.  We have assisted with valuations and due diligence on confidential transactions, and provided executive counsel on a number of potential transactions.

Brakke Consulting has the experience, insight, abilities, and contacts that provide our clients with the highest quality services in the animal health, pet, veterinary, and specialty chemicals markets.  Please contact any of our offices for a confidential consultation on our range of services.  Contact information for all offices is available on our website at


>  POLAND   The second case of BSE has been detected in Poland, in a cow on a farm 25 kilometers from the eastern city of Lublin, following routine abattoir tests on the animal at an abattoir.  All the other animals in the herd were slaughtered on Saturday. (AnimalNet – Agence France Presse)

>  JAPAN   Japan discovered a fifth suspected case of BSE, reviving fears that the government has failed to stem the disease since an outbreak late last year.  The 6-year-old Holstein dairy cow tested positive for the disease during a regular inspection by health officials west of Tokyo.  (AP)

>  UK   Ufac-UK has developed a new product that can be added on a one-on-one basis to replace fishmeal in diets for pigs and poultry.  The product, called Monomega, is available as a free-flowing meal.  According to the company, Monomega is ideal for home mixers and for small, multispecies mills.  (Feed Mix)

>  US   Concerned about the spread of the West Nile virus, zoos across the country are vaccinating some of their most susceptible animals, including zebras, donkeys and miniature horses.  Many zoos are taking prevention a step further, vaccinating both equine and bird populations with the Fort Dodge vaccine for horses, even though the vaccine has not been proven effective in birds. (AP)
>  US   A panel of scientists put together by the National Research Council evaluated risks of animal biotechnology concluded that meat from cloned animals is probably safe but genetically altered animals may pose a risk to the environment. The panel said the federal government needs to balance people’s concerns with allowing genetic technology to advance. The FDA is considering whether cloned animals will require government approval before they can be sold for food. (Wattnet Meatnews)


The Brakke Newsletter you have just read is our 156th weekly newsletter.  Or to say it another way, we have completed 3 years of providing the industry with a summary of the news each week.  The first newsletter was sent to some 200 individuals in the industry.  Today’s newsletter is sent directly to over 3,400 readers and we estimate that it is forwarded to at least another 1,000 individuals making it one of the most widely read weekly publications in the industry. We thank our subscribers for their input and thoughts on how to improve the newsletter.  We always like to hear from you.

I must thank Dr. Lynn Fondon, DVM, MBA (producer/editor) who prepares the newsletter each week for us.  In the next few weeks there will be some changes to the newsletter that will make it more subscriber-friendly. We appreciate the interest each of you show in the newsletter and the positive comments we receive from you.  We look forward to the next editions and hope that the industry can provide us with some exciting and positive news.

[Ron Brakke]

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