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Brakke Consulting’s
Animal Health News & Notes for March 1, 2002
Copyright © Brakke Consulting, Inc.
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Company Earnings Releases
> Embrex announced fourth-quarter revenues for 2001 were $11.6 million, an increase of 15% over the same period in 2000. Fourth-quarter net income was $1.9 million, an increase of 4% over net income of $1.8 million for the same period in 2000, after a write-off of $0.2 million of unamortized leasehold improvements. Sales of Bursaplex in ovo bursal disease vaccine were up 43% over the fourth quarter of 2000, contributing to the revenue increase. For the year ended December 31, 2001, revenues were $44.7 million, a 15% increase over revenues of $38.8 million during the same period of 2000. Net income for the full-year 2001 rose 20% to $8.0 million from $6.6 million for the full-year 2000. (company website)
> OurPet’s Company released financial results for the fourth quarter and year ended December 31, 2001. Fourth quarter sales were $1.56 million versus $1.83 million in the year-earlier period. Net income for the quarter was $77,295 versus $181,325 in the fourth quarter of 2000. For the full year, sales totaled $5.51 million, an increase of 5.9% over 2000 yearly sales of $5.21 million. 2001 net income of $93,770 compared to a loss of ($144,844). In the year 2001, OurPet aggressively expanded its European business and entered the Japanese pet market. (Business Wire)
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Company News Releases
> The FDA is amending the animal drug regulations to reflect approval of a new animal drug application (NADA) filed by Boehringer Inhelheim Vetmedica. The NADA provides for use of an intranasal aerosol of albuterol sulfate for relief of bronchospasm and bronchoconstriction in horses. The product will be marketed under the name Torpex Aerosol. (Feedstuffs)
> Idexx announced that it has signed a licensing agreement with Canadian-based CardioComm Solutions for the latter’s ECG acquisition, storage and display software technology. CardioComm’s technology will allow Idexx to incorporate ECG capabilities into its new workflow management system for use by its veterinary cardiac monitoring service. (Veterinary Practice News)
> The FDA is amending the animal drug regulations to reflect approval of an abbreviated new animal drug application (ANADA) filed by First Priority, Inc. The ANADA provides for topical use of chlorhexidine ointment for surface wounds on dogs, cats, and horses. (AnimalNet – Federal Register)
> Embrex, Inc. reported that seven U.S. patents were issued to the company during 2001 bringing the total number of U.S. issued patents controlled by Embrex to 36. Similarly, the company said it now has 96 foreign patents assigned to it. Patents issued or allowed in 2001 enhanced the proprietary position on existing products and developmental programs at Embrex. The seven issued patents cover Method of Treating Viral Disease in Animals; Automated In Ovo Injection Apparatus; Concurrent In Ovo Injection and Detection Method and Apparatus; Method and Apparatus for Classifying Eggs; Method of Targeting Allantois for Injection in Poultry Eggs; and two patents for Egg Removal Apparatus. (company website)
> Ivy Animal Health announced the completion of the purchase of AgSpan, Inc., an information service for cattle producers. AgSpan will operate as Ivy’s information management division and will be responsible for the recently introduced Benchmark Performance program for cow-calf producers and stocker operators. (Bovine Veterinarian)
> Oncolytics Biotech reported that it has terminated its agreement with Pfizer to develop the reovirus as an animal healthcare product, instead focusing on developing the human reovirus. The reovirus is reportedly able to selectively kill cancer cells in humans. All studies of the therapy for animal health care have been terminated. (Veterinary Practice News)
> PETsMART, Inc. announced its intention to redeem, on March 25, 2002, the remaining $97.5 million of its 6.75 percent Convertible Subordinated Notes. All Notes were scheduled to come due in November 2004. This redemption will complete the company’s buy-back of all its Convertible
Subordinated Notes. A partial redemption of $75 million in Convertible Subordinated Notes was successfully completed earlier this month on February 22, 2002. (Business Wire)
> BCP Veterinary Pharmacy announced that it is now carrying 100% Bovine Protamine Zinc insulin for diabetes. The PZI is available in three strengths. (Veterinary Practice News)
> Perdue Incorporated has announced it will no longer use fluoroquinolone antibiotics to treat any of its chicken or turkey flocks. The zero-tolerance policy takes effect immediately throughout the company and will be applicable to all breeder, broiler, Cornish, OVEN STUFFER roaster and turkey flocks. (AnimalNet)
> BELGIUM Agitronics has unveiled a device that could make life a lot easier for cow breeders: a detector that sets off a blinking light when a cow is in heat and ready to be inseminated. The unit, which fits into a patch of hessian stuck on the animal’s back, takes the guesswork out of knowing when a cow is ready for sperm. By using a pressure-sensitive unit to count the number of same-sex mountings and feeding that back to a breeder in the form of light flashes, it allows the cow’s fertility cycle to be accurately deduced. (AnimalNet – Agence France Presse)
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BRAKKE CONSULTING, INC. announces
Due Diligence Seminar in Dallas
After successful Due Diligence seminars in New York and Chicago in 2001, Brakke Consulting Inc. is presenting a due diligence seminar in Dallas, TX on April 23rd & 24th, 2002.
Whether your company is licensing, buying or selling, the Brakke Due Diligence Seminar will help you design an efficient, effective due diligence process to assist you to test strategic assumptions, determine fair value, uncover potential problems, and avoid costly mistakes or surprises. Seminar participants receive an outline notebook for use in future due diligence investigations.
Registration is $1,100 if registered on or before April 1, and $1,250 if registered after April 1. Registration is limited. Please contact Roger Cummings or Jane Morgan at the Dallas office 972-243-4033 or by email at rcummings@brakkeconsulting.com or jmorgan@brakkeconsulting.com for further information.
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Animal Health News
> RUSSIA Russia has indicated that it plans to ban poultry meat imports from the U.S. While some newswires report the head of the Ag Ministry’s press service as confirming the ban, it’s not clear if the ban has taken place, or when. Earlier this week, Russian ag leaders said a ban could be enacted, as the Russian said they were concerned about the use of antibiotics in the meat, questioning its safety for human consumption. Earlier this year, Ukraine halted U.S. poultry meat imports on the same issue. (AgWeb)
> UK The British agriculture ministry DEFRA this week banned livestock movements in the North of England because of fears over another outbreak of foot and mouth disease. The movement ban is for an 8km (5 mile) radius around a farm at Hawnby, near York, as a precaution, after suspect lesions were found in the mouths of two sheep. The sheep were examined as part of an inspection visit required by DEFRA when farms restock after foot and mouth. The initial tests on the sheep proved negative, but further tests are being taken. (Wattnet Meatnews)
> HONG KONG Hong Kong planned to destroy 340,000 more chickens on eight farms located close to the 15 farms where chickens were found to be infected with a strain of avian influenza earlier this month. The culling will bring the total number of birds destroyed on all 23 farms to 860,000. According to a government spokeswoman in Hong Kong, the exact strain of the H5 virus has yet to be identified. (Wattnet Poultry)
> UK Research by the UK’s Veterinary Laboratories Agency has almost completely removed the possibility that BSE can be transmitted from one generation of cattle to the next. Animals can contract the disease only by eating contaminated meat and bone meal (MBM). The main concern is that there is still a possibility of cross contamination of feeds, because of the way that feed is traded around the world. (Wattnet Meatnews)
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Agribusiness News
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Brakke Consulting Viewpoint
A few weeks ago, we asked for your feedback on innovations occurring in your company for 2002 that you could share with us. Here are the ones that merited mention in our newsletter:
• Novartis: Fortekor added indication for feline chronic renal failure in 2001
• Prolinia: delivering improved genetics to breeders via cloned cows and sows
• Abaxis: new blood chemistry profile for avian/reptiles
• DBL.7: solo-tech mobile lifting table and the canis major fixed lift table
• Veterinary Oncology Partners: system for diagnosing and treating cancer in pets
• Western Veterinary Conference: new delivery system for Conference Notes
We are guessing that there were a number of you that would have liked to provide us with examples of new products in registration. We appreciate the fact that, until the FDA or EPA approval is received, you cannot and should not share the information with us for publication. We’re glad to see that you’re keeping the FDA and EPA busy. The industry needs innovation and it looks like many of you are working hard to deliver.
[Ron Brakke]
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