The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for March 22, 2002
Copyright © Brakke Consulting, Inc.


Brakke Consulting is pleased to announce that Jay Lockhart has joined the firm as a Senior Consultant after completing a 33-year career with Ralston Purina (now renamed Nestle Purina PetCare after being acquired by Nestle, SA last December).

Jay’s career included sales and marketing assignments in the livestock feed business, pet food, and litter products.  Many of you probably have met Jay over the 25 years he represented and led Purina’s sales and marketing efforts in the veterinary market.  He established Purina’s US veterinary sales organization, developed and managed Purina’s veterinary distributor organization, and was part of the senior leadership team that introduced Pro Plan brand pet foods and Purina therapeutic diets to the pet specialty and veterinary markets respectively.

During his tenure with Ralston Purina, Jay was active in various industry-wide efforts and served on various task forces for the veterinary profession, and was twice elected to serve on the Board of Directors of the American Veterinary Distributors Association.

Special areas of expertise include executive and sales force recruiting, sales force assessment and improvement, distribution planning, and distributor program development.  

Jay will be establishing a new St. Louis, MO office for Brakke Consulting.  He can be reached at (314) 821-3368 or


Company Earnings Releases
>  Vetoquinol reported group sales of 139 million euros ($123 million) for the year 2001, an increase of 25% over 2000.  The company acquired the Chassot group, the veterinary division of Switzerland’s Asklia, in 2001, broadening its geographic reach.  It also announced the recent acquisition of IGI’s Companion Pet Products division in the US.  (Feedstuffs)

Company News Releases

>  Citing numerous violations, including trademark infringement and false advertising, Novartis Animal Health US, Inc. has filed a lawsuit against PetMed Express Inc., Drs. Fosters & Smith, Inc., and Savemax, Inc., online retailers of pet-care products.  The suit challenges those retailers’ unlawful sale of foreign versions of pet medicines sold under the Sentinel Flavor Tabs and Interceptor Flavor Tabs brands. The CEO of Novartis stated that the company felt compelled to take legal action in order to protect the integrity of their products.  The complaint alleges that PetMed Express and the other defendants are illegally selling pet medications in the United States that were made specifically for the Australian and other foreign markets. These foreign medicines are not approved by the FDA for sale in the United States. In fact they are materially different from Novartis Animal Health US products in a number of ways, including in the formulation of the products and in their instructions for use. (AnimalNet)

>  Bayer Corporation filed a Notice of Participation with the FDA, the next step toward a hearing where the company will present an analysis of new government data supporting the continued use of Baytril (enrofloxacin) in food animals.  In October 2000, the FDA’s Center for Veterinary Medicine (CVM) proposed the withdrawal of Baytril in part to address concerns about a reported national increase in fluoroquinolone-resistant Campylobacter infections in people during 1999.  Based upon a scientific review, Bayer disagreed with CVM’s conclusion about Baytril and requested a hearing to review the science on the issue.  On February 20, 2002, the Agency granted Bayer’s request for the hearing.  The hearing date has not yet been announced.

>  Farnam Companies, Inc., is introducing two new Farnam-owned brands of ivermectin and related deworming products.  The first is Ivercare, a broad spectrum ivermectin paste that kills 35 species and stages of worms and bots in a single dose.  The Ivercare syringe features a precise sure-lock setting for easy, accurate dosing.   Farnam also is introducing Rotation 1 (ivermectin), part of an effective, easy-to-use deworming system designed for horse owners who prefer a year-round rotational program.  Rotation 2 (pyrantel pamoate) completes the rotational system.  The Rotation program alternates two compounds that are not chemically related, so there is no concern about parasites developing resistance.  Farnam Horse Health Products is introducing Horse Health Equine Ivermectin in a cost-saving multi-dose syringe.  The multi-dose syringe treats up to three 1,250 pound horses, or a total of 3,750 pounds.  It is also available in a convenient single-dose syringe.  The Zimectrin and Equimectrin names will both become Merial property.  (company press release)


Due Diligence Seminar in Dallas
Tuesday & Wednesday April 23 & 24th

Registration, Agenda, Information online at

Registration is $1,100 if registered on or before April 1, and $1,250 if registered after April 1. Registration is limited.

Animal Health News

>  SWITZERLAND   A new case of BSE was discovered in Switzerland, raising the number of infected cows detected this year to six.  The cow was born in 1997, seven years after the European Union banned the use of animal feed, which is thought to spread the disease.  In 2001, Switzerland found 42 cases of BSE, while it found 33 in 2000. (AnimalNet – Agence France Presse)

>  FINLAND   Finland has reported a second suspected case of BSE. The cow, which had shown signs of the disease, has been slaughtered and samples taken for testing. The results of the tests will be known shortly. (Wattnet Meatnews)

>  GERMANY   About 1,100 pigs have been slaughtered after a case of swine fever was confirmed in the western German state of Rhineland-Pfalz. It is the fourth case in the state this year and the fifth since October 2001. Wild pigs are the suspected source, as in the other cases. The state has a very large wild pig population and this month received permission from the European Union to start inoculating wild animals. Swine fever is a highly infectious pig disease but not dangerous to humans. (Reuters)

>  ITALY   Italy is battling an outbreak of bluetongue disease among sheep and cattle that is disrupting livestock trade. Bluetongue disease was detected in Sardinia in 2000 and has since emerged in south and central mainland Italy, as far north as Tuscany. Most of the infections in cattle are inapparent, but a few may develop the classical syndrome seen in sheep. Bluetongue disease poses no threat to humans.  (AnimalNet – Reuters)

>  UK   Spinal cord has been found in two consignments of beef imported from Poland into the UK.  Bovine spinal cord is the part of an animal most likely to contain BSE infectivity and is classified as specified risk material (SRM).  Beef from Poland entering the European Union (EU) must meet EU standards, including the removal of SRM immediately after slaughter, before the beef is exported.  These finds of SRM in imported beef are the 25th and 26th instances since 1 January 2001. They are the first ones to involve carcass beef from a non-EU country. (Wattnet Meatnews)

>  FRANCE   France faces fines of up to Euro 630,000 ($555,000) a day for not raising the ban on the import of British beef.  This week the European Commission kicked off infringement proceedings against France by issuing a formal letter of intent.  Under the EU-Treaty a Member State is obliged to implement a judgment of the European Court of Justice.  Up to now no measure implementing the Court judgment has been communicated to the European Commission. The Commission therefore sent a letter of formal notice to France identifying France’s infringement of the Court judgment.  France is expected to submit its observations within 30 days. (Wattnet Meatnews)

Brakke Consulting Viewpoint

We continue to hear good reports about sales for the first quarter of the year. There has been a consistency of growth reported by both manufacturers and distributors.  Also, during the past few months we’ve also been advised of some special terms being given on some products to hold them in the market place.  Excessive credit terms are just another form of price reductions to cover for too much inventory in the market place.  Someday, these policies have to be reconciled with actual movement of product to consumers or users.  As we have been saying for sometime, the industry needs programs that increase sales and revenue for everyone.  Discounting of sales prices and extreme credit terms does not accomplish that objective.

We are pleased to announce the appointment of Jay Lockhart to the firm as a senior consultant.  Jay brings an area of expertise and insights that will be useful to our clients. 

For those of you starting your Easter Holiday this week, please travel safely and enjoy yourself.

[Ron Brakke]

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