The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for June 16, 2000
Copyright © Brakke Consulting, Inc.
Company Earnings Releases

>   H.J. Heinz Company reported fourth quarter sales in pet products of $306,997, an increase from $301,927 for the same period last year.  For the fiscal year ending May 3, 2000 the pet product sales were $1.2 billion, down from $1.3 billion for the fiscal year ending April 28, 1999.  (PRNewswire)

>  Paradigm Genetics, Inc. reported a net loss for the first quarter, ending March 31, 2000, of approximately $4.8 million compared to a net loss of approximately $2.0 million for the same period in 1999.  Total revenues during the first quarter were $593,000 compared to $332,000 for the same period in 1999.

>  Polydex Pharmaceuticals Ltd. today reported first quarter sales of $3.4 million a 7% increase over last year.  Sales for the same period in 1999 were $3.2 million.  Net income for the first quarter 2000 was $189,601 as opposed to net income for the same period in 1999 of $365,641. (PRNewswire)

>  Innovative Medical Services announced their fiscal third quarter financials for the quarter ending April 30, 2000.  The company posted revenues of $357,000 for the quarter compared to $1.2 million for the same quarter last year, a decrease of 69%.  The company recorded a net loss of $622,300 compared to a net income of $196,300 for the same period in fiscal 1999.  (Business Wire)

Company News Releases

>  The Animal Health business group of Bayer Corporation’s Agriculture Division agreed to sell the group’s U.S. and Canadian livestock and equine biologicals business to Intervet Inc.  The Bayer unit manufactures biological vaccines for cattle, swine and horses.  This transaction is related to Bayer’s U.S. animal health business only and does not affect the Bayer Group’s animal health biologicials business in the rest of the world. (PRNewswire)

> Ralston Purina Company has joined with 48 other leading consumer product companies to create a global business-to-business (B2B) electronic marketplace called  The new for-profit company will enable consumer products companies to streamline business transactions with their suppliers, buyers and distributors via the Internet. To launch Transora, the companies have made investment, which totals nearly $250 million.  Transora plans to roll out its first service offerings in the fourth calendar quarter of 2000. (PRNewswire)

> has entered into an agreement to acquire key assets and strategic partnerships of  These assets include a strategic, equity relationship with, Inc., an affiliate company of the Animal Planet cable network, both owned by Discovery Communications. In addition, will form a strategic relationship with Safeway Inc.  (Business Wire)

>  H. J. Heinze will launch new 9-Lives vitamin enhanced pet food and new hairball treatments in both wet and dry cat food this summer.  (PRNewsire)

>  Heska Corporation introduced the HESKA® Feline ImmuCheck™ Assays in its Veterinary Diagnostic Laboratories.  This diagnostic product is used to determine seum levels of antibodies that are specific to three common viral diseases of cats:  feline panleukopenia virus (FPV), feline herpesvirus (FHV), and feline caliciviurs (FCV).  (Company Press Release)

>  PETsMART, Inc. launched a new marketing campaign aimed at promoting the breadth and quality of the company’s product and service selection.  The campaign includes television advertising, as well as newspaper inserts, in-store promotions and consumer brochures nationwide. The first cycle of the campaign is aimed at educating owners about pet nutrition. Customers will receive a free, 64-page pet nutrition guide with any food or treat purchase during the initial promotion and $3 off any premium pet food brand.  (Business Wire)

>  GPC Biotech AG of Germany, a genomics-based drug discovery company, and Karo Bio USA, a company focused on small molecule discovery for genomics-derived targets and the U.S. arm of Karo Bio AB of Sweden, are collaborating in the development of a new generation of broad-spectrum antibiotics, based on a novel class of genomics-derived targets.   (PRNewswire)

>  Rapid Ascent Inc.’s, latest client-partnership is with     One2OneCare is a provider of Web-based client communications tools for the veterinary industry. It includes a consumer Internet portal where consumers can log on to visit their own vets online, request appointments, track their pet’s health, and access veterinarian-supported information and resources. (Business Wire)

Animal Health News

>, an online resource dedicated to finding places that people and dogs can enjoy together and Replacements Ltd., are teaming up to encourage employers and employees to participate in the second Take Your Dog To Work Day on Friday, June 23, 2000…and everyday. (Business Wire)

>   A recent survey finds that while pet owners are aware of the Web sites (pet oriented web sites), most aren’t buying from them.  According to a report by market-research firms NPD Group Inc. and Media Metrix, 75% of the pet owners who go online are aware of Web pet stores, up from 55% in September.  However, only 27% have shopped at them, while a mere 14% made an actual purchase.  (WSJ)

Agribusiness News

>   A chicken has tested positive for the West Nile virus in the same area of New York as last year’s deadly outbreak, city officials said.  (AP)

>  Aspen Technology, Inc., a supplier of manufacturing enterprise optimization and extended supply chain solutions for the process industries, has successfully implemented its Aspen MIMI™ supply chain solution at two plants in Bayer’s Basic and Fine Chemicals Division (CH).  The deployment of Aspen MIMI will provide Bayer with greater flexibility in the utilization of its plant assets by coordinating business-wide integrated manufacturing schedules. (PRNewswire)

>  The FDA amended the animal  drug regulations to reflect approval of a supplemental new animal drug application (NADA) filed by Fort Dodge Animal Health, Division of American Home Products Corp. The supplemental NADA provides for topical  use of a 0.5 percent moxidectin solution on dairy cattle of breeding age for treatment and control of infections and infestations of certain internal and external parasites. FDA is also amending the regulations to establish a tolerance for moxidectin residues in milk.  (Animal Net)

>  Neogen Corporation has entered into a joint agreement with Agdia, Inc., of Elkhart, IN., to produce and market rapid, onsite tests to detect genetically modified grains, oilseeds and vegetables.  The joint agreement enables the two companies to use their respective strengths to develop and market new diagnostic test kits.  (PRNewswire)

>  Ecolab, Inc. filed with the FDA a food additive petition to use peroxyacetic acid as a red meat carcass antimicrobial treatment.  Ecolab’s patented peroxyacetic acid technology is a proven antimicrobial treatment on red meat surfaces, effective against E. coli O157: H7, Salmonella typhimurium, and Listeria monocytogenes.  (PRNewswire)

>  The parent company for Maine Biological Laboratories (MBL) has acquired the Vineland Laboratories division of IGI Inc., creating one of the world’s largest producers of poultry vaccines.  (Business Wire)

>  Origen Therapeutics Inc. and Embrex Inc. will collaborate on research aimed at combining Origen’s avian embryonic stem-cell technology with Embrex’s in-ovo technology. The goal is to develop methods that enhance poultry production and chick quality early in embryonic development. (Animal Net)

>  SCT, an e-engineering company of the process industries, announced that Foodbrands America licensed SCT’s iProcess.sct as its supply chain management solution. Foodbrands America is a leading manufacturer and marketer of quality frozen and refrigerated food products, and is a wholly owned subsidiary of IBP. IBP is the world’s largest producer of fresh beef, pork and related products. Foodbrands plans to deploy iProcess.sct to over 50 facilities to support existing business units and several recent acquisitions, and to increase visibility across the entire supply chain. (PR Newswire)

 >  lama Ltd., Australia’s largest agricultural merchandise distributor, sold its Vetsearch nutritional products unit to Virbac Australia for over $4.7 million.  The sell off is part of a reorganization of the company aimed at restoring profitability.   Virbac  Australia will take ownership of Vetsearch on July 1st and continue to supply lama.  (Bloomberg)

>  Biotechonology Australia, a government organization of Australia, commissioned a survey of consumers in Australia and found they do not rate GM (genetically modified) foods as their primary food concern.  The top concerns about food issues related to food poisoning, pesticides and human tampering of foods.  (Retail World Australia)

>  Three herds totalling 425 cattle were destroyed in France after the discovery of two new cases of mad cow disease.  (Reuters)

>  Up to 400 cattle on British farms may be carrying a deadly disease previously unknown in that country after being infected accidentally at a government-backed research institute. Farmers and
government vets are trying to track down the cattle after the deaths from Theileria, or Mediterranean fever, of two cattle on a farm near Edinburgh run by the Roslin Institute, the research establishment most famous for creating Dolly, the cloned sheep. Twenty-two other cattle have been destroyed at Blythbank Farm, after tests indicated that they could also be infected with the disease, which is caused by a parasite. (The Daily Telegraph)

>  Monsanto Agriculture Co. has changed the name of the company¹s swine genetics business to DeKalb Choice Genetics.   (Feedstuffs)

>  Rocco Enterprises, Inc. has joined with Harmony Products and Duke Solutions to transform poultry litter into an organic-based fertilizer and to use litter as fuel in its fertilizer process. The business, which will be known as Harmony Shenandoah Valley, will be located in Harrisonburg, Va., and will use up to 50,000 tons of excess litter to produce a variety of value-added fertilizers for home and commercial markets throughout the eastern United States.  (Animal Net)

>  Food Technology Services Inc. and Colorado Boxed Beef Company announced Florida consumers will be the first to try irradiated fresh ground beef, now available at independent retail grocers throughout Florida.  (PRNewswire)

>  The supermarket chain Iceland announced it will switch its entire brand of frozen vegetables to organic – at no extra cost to consumers.  The company claims to have purchased nearly 40% of the world’s organic vegetable crop to meet the growing demand from customers. (The Guardian Unlimited)

>  A Texas beef processor that’s at the center of a dispute over meat-safety standards was asked by the US Agriculture Department to voluntarily shut down.  Supreme Beef Processors Inc., which supplies ground beef to the national school systems food program, flunked a set of microbial tests for the fourth straight time. (AP)

>  The US Agriculture Department announced it will require more stringent testing for bacteria contamination in school system food programs. (Business Wire)

The 137th annual convention of the American Veterinary Medical Association will be held in Salt Lake City, UT July 22 – 26, 2000.  Brakke Consultants attending the meeting are Richard Wilson (816) 822-2872,, John Volk (773) 327-4941,, and Roger Cummings (972) 243-4033,  Please contact these consultants directly if you would like to make an appointment with them while attending the AVMA meeting. 

Brakke Consulting Viewpoint

The main news for the past two weeks has focused on the continuing consolidation in one form or another in the animal health, pet and veterinary markets.  Intervet’s acquisition of Bayer’s US large animal vaccine business puts Intervet in the number three position in animal health excluding nutritional feed additives.’s purchase of the assets is the first of many that will occur in the dotcom area.  A number of these companies are discovering that positive cash flow is the new measure of investment attractiveness.

[Ron Brakke]
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