Animal Health News & Notes for August 21, 2009

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Brakke Consulting’s
Animal Health News & Notes for August 21, 2009
Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Cargill
PetSmart
Webster
 
other news
Bio-Vet
IDEXX
Medivet
Pet Valu
VDIC
 
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BRAKKE CONSULTING, INC.
DUE DILIGENCE SEMINAR
OCTOBER 27 – 28, 2009
KANSAS CITY
 
Brakke Consulting announces a two day seminar covering the details of due diligence, a key element in the successful acquisition of companies, assets and intellectual property.
 
The seminar is designed to increase a company’s probability of success in a purchase or sale by providing the details to ensure that all the important phases of the due diligence process are included. Speakers at the Brakke seminar will include Ron Brakke, John Mannhaupt and Joel Adamson, Brakke personnel who are well experienced in due diligence, as well as outside speakers from the finance industry and the legal profession.
 
For more information, visit our website at www.BrakkeConsulting.com
 
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COMPANY EARNINGS RELEASES
 
> Patterson Companies, Inc. reported results for the first quarter of fiscal 2010 ended July 25. Sales of the Webster Veterinary unit increased 37% to $169 million.  Internal growth accounted for 8% of this increase, with the October 2008 acquisition of Columbus Serum Company accounting for the balance. (company website)
 
> PetSmart, Inc. reported net income of $39.0 million for the second quarter of 2009 compared with net income of $37.2 million for the second quarter of 2008. Net sales for the second quarter of 2009 increased 5% percent to $1.31 billion compared to the second quarter of 2008.  Comparable store sales grew 0.8% in the second quarter; pet services sales were $154 million, up 10% from the second quarter of last year. (company website)
 
> Cargill reported that earnings for the year ended May 31, 2009 were $3.33 billion, down 16% from a record $3.95 billion in the previous year. Sales for the full year dipped 3% to $116.6 billion. The company noted that it posted record results through November, but in the second half earnings slowed considerably as the world economy contracted for the first time in six decades. (Meating Place)
 
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COMPANY NEWS RELEASES
 
> IDEXX Laboratories announced it is partnering with VDIC, a global provider of telemedicine and cytopathology services to small- and large-animal veterinarians. VDIC also provides local imaging procedures such as MRI and CT scans on a referral basis. (company website) 
 
> Bio-Vet Inc. announced the introduction of Biostart, a new microbial and vitamin paste that contains high levels of live beneficial microbial strains, enzymes, vitamins and nutritional ingredients.  The paste may be fed to cattle, sheep, goats and horses. (Feedstuffs)  
 
> AUSTRALIA   Medivet announced the launch of Bio-Bute Advanced Pain Relief Oil for pets. Completely all-natural and drug free, Bio Bute is a rub-on treatment that uses all natural ingredients including olive oil as a base, eucalyptus oil for fast pain relief, tea tree oil for anti-inflammatory benefits and vanilla to improve localized circulation. (PRWeb) 
 
> CANADA   Pet specialty retailer Pet Valu announced that Roark Capital Group will acquire the company in a deal worth an estimated $130 million.  The acquisition is subject to shareholder and court approval.  (Pet Product News)
 
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ANIMAL HEALTH NEWS
 
> AUSTRALIA – H1N1 FLU   A second piggery in Victoria, Australia, has been quarantined after an outbreak of suspected H1N1 influenza. Australian Pork Limited, the country’s pig industry association, believes that in both cases the pigs were infected by workers, who had previously shown influenza-like symptoms. (Animal Pharm)
 
> KOREA – US PORK BAN LIFTED   The Republic of Korea has decided to inspect only a sample of US pork exports versus 100% of them, and to lift a ban on live-hog imports from the US. The restrictions were originally put in place this spring in the wake of the Type A H1N1 flu outbreak.  In 2008, South Korea was the sixth largest market for US pork, with exports valued at $284 million. (Pork Alert)
 
> WEST INDIES – NEW VETERINARY SCHOOL   The American University of Antigua (AUA) announced the formation of a new school for the study of veterinary medicine on the Island of Antigua, West Indies. In addition, AUA signed an agreement with Virginia-Maryland Regional College of Veterinary Medicine to provide transfer opportunities for qualified AUA veterinary medical students to complete their third and fourth years of veterinary training.  (Business Wire)
 
> US – ANIMAL HEALTH INITIATIVE   The Animal Health Institute (AHI) has developed an education initiative –  Healthy People. Healthy Animals. Healthy Planet. – to unite animal health and public health stakeholders, agriculture organizations and consumer groups who support the notion that animal health is essential to human health. (association press release)
 
> US – ANIMAL ANTIBIOTICS   The AVMA has released a report questioning the validity of the content and review process for a report published in 2008 by the Pew Commission on Industrial Farm Animal Production on the sustainability of the nation’s food animal production systems. The AVMA contends the report is not consistent with the well-documented, science-based reports that the Association has come to expect from the Pew Commission. (NIAA Weekly Bulletin)
 
> US – ASSISTANCE FOR PORK PRODUCERS   The National Pork Producers Council (NPPC) urged the USDA to lend assistance to US pork producers to help them weather a nearly 2-year-old economic crisis. In a letter sent to Agriculture Secretary Tom Vilsack, NPPC requested $250 million in financial assistance and other actions that should help producers, who since September 2007 have lost an average of more than $21 on each hog marketed. (NIAA Weekly Bulletin)
 
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BRAKKE CONSULTING VIEWPOINT
 
This past week I had the privilege of attending the Banfield Pet Healthcare Industry Summit in Portland. This 8th Annual Event provides the industry with an opportunity to discuss various issues and opportunities facing the animal health industry.  Congratulations and thanks to John Payne and the Banfield management team in creating and providing an always interesting and productive conference.
 
Hopefully you noted earlier in the newsletter that in October we will be presenting our Due Diligence Seminar, last presented several years ago.  As in the past, we believe that managers involved in selling, purchasing, licensing or investing in animal health will find this seminar useful and productive. You can learn more about this seminar by visiting our website www.brakkeconsulting.com.  We will be limiting the number of registrations for this seminar so that we can maintain a high quality of interface with the participants and instructors. Next week you and/or your managers will be able to register for this seminary by going to our website. 
 
We believe that this fall is an opportune time for this seminar based on all the current investment activities in animal health.  It’s interesting how animal health has become the market in which to invest in the past two years!  We welcome it and look forward to seeing you at the seminar.
 
Have a good weekend!!
 
Ron Brakke
 
 
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For more information about Brakke Consulting’s services and syndicated studies, visit our website at www.brakkeconsulting.com.
 
Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA