The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for September 4, 2009

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
Animal Health Int’l
Del Monte
other news
Norbrook Labs
Pilgrims Pride
Spectrum Brands
Brakke Consulting is pleased to announce the launch of The US Animal Health Industry: Its pioneers and legacy of innovation.  The book documents the history of the companies and associations that significantly impacted the evolution and growth of the animal health industry, and captures the voices of many of the principal players in the industry’s early days.
The book is now available for ordering at $35.00 per copy (plus shipping & handling). For more information, visit our website at
> Dechra Pharmaceuticals reported results for the fiscal year ended June 30, 2009.  Total revenue was GBP 350 million ($578 million), an increase of 15% compared to the prior year. Pharmaceuticals division revenue was GBP 85 million ($140 million), an increase of 57% compared to the prior year; this included the full year effect of the acquisition of VetXX in January 2008. (company website)
> Ridley reported results for the fiscal year ended June 30, 2009. The company reported revenues of $603 million, a decline of 5% compared to the prior year. The net loss for the year was ($1.3 million) compared to net income of $6.0 million in the prior year. (company website)  
> Animal Health International, Inc. announced results for its fiscal year ended June 30, 2009.  Net sales for the year declined 7% to $667 million. Net loss was ($27.1 million) compared to net income of $11.1 million last year. (Reuters)
> Del Monte Foods reported net sales for the first quarter fiscal 2010 ended August 2, 2009.  Pet Products net sales were $412 million, an increase of 20% over the prior year period. The increase in Pet Products net sales was driven by strong base unit volume growth (particularly in Pet Snacks) and the benefit of fiscal 2009 pricing actions. (company website)
> Merck announced that it will restructure into five divisions after it completes its buyout of rival Schering-Plough. The new company will have five primary divisions, including Global Human Health, Animal Health, Consumer Health Care, Merck Research Laboratories, and Merck Manufacturing.  Raul E. Kohan, currently senior vice president and president of Intervet Schering-Plough Animal Health, will lead the new Merck’s animal health business. (Yahoo finance) 
> JBS S.A. has made a $2 billion offer to acquire Pilgrim’s Pride Corp., according to the Wall Street Journal. The acquisition would make JBS, the third-largest beef and third-largest pork processor in the US, one of the two largest chicken integrators in the US, substantially tied with Tyson Foods. Pilgrim’s Pride had fiscal 2008 sales that totaled $8.5 billion.  The company filed for bankruptcy protection and reorganization last year after recording a fiscal 2008 loss of almost $1 billion. (Feedstuffs)
> Spectrum Brands, Inc. announced that it has emerged from bankruptcy. In conjunction with its emergence from Chapter 11, Spectrum Brands closed on its new $242 million exit financing facility provided by several financial institutions led by GE Capital. The company’s old common stock has been extinguished and no financial distribution will be made to holders of the old common stock. The Company’s bondholders are being issued a total of approximately 27 million shares of new common stock and $218 million in 12% Senior Subordinated Toggle Notes due 2019.  In addition, approximately 3 million shares of new common stock are being issued to supplemental and sub-supplemental participants in the Company’s debtor-in-possession loan facility pursuant to an equity fee provision. (company website)  
> EU  Norbrook Labs announced the approval of Closamectin Pour-on, the first pour-on livestock flukicide approved in Europe. Closamectin Pour-on is a combination of the active ingredients closantel (20%) and ivermectin (0.5%) for the treatment of cattle for adult and immature fluke, as well as worms and external parasites. (Animal Pharm)  
> US – FEED LABELS AVAILABLE ONLINE   The FDA’s Center for Veterinary Medicine (CVM) announced the availability of many approved “Blue Bird” Type B and Type C medicated feed labels on its web site as a way to help ensure feed safety. Blue Bird labels are representative labels used to guide feed manufacturers when labeling Type B and C medicated feeds. (Feedstuffs)
> AUSTRALIA – HENDRA VIRUS   Animal health authorities in Queensland, Australia, have imposed movement restrictions on 15 properties in Cawarral following an outbreak of Hendra virus. Hendra virus infection was confirmed in a horse that died on August 8 after a short illness; two other horses have died on the property. All horses on the property are being regularly monitored, as are those on neighboring properties at Cawarral and those that have been traced to other locations. (Animal Pharm)
OCTOBER 27 – 28, 2009

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
Central Veterinary Conference
Aug 29 – Sept 1, 2009
Kansas City
CVC Kansas City concluded this week with over 6,000 attendees, including over 2,000 veterinarians.  The meeting included 680-plus hours of continuing education.  New programs in shelter medicine and expanded sessions for technicians were highlights for this year’s conference. 
What an excellent weekend for animal health in Kansas City last week!  On Monday evening, there was the Homecoming event, where we introduced the History of the Animal Health Industry book and Fintan Molloy received the Iron Paw Award from the KCAHC for his contribution to the industry.  This made for an entertaining evening, particularly the time that Fintan and his sons spent on the stage sharing some Irish stories.  It was great to be able to share these two events with the 750+ in attendance. The efforts of the Kansas City Animal Health Corridor made the Homecoming one of the largest events in the animal health industry. Where else do you find this number of animal health managers and investors in one room?  Great job!!
We followed up on September 1st with the first ever Animal Health Investment Forum, which was attended by 175 participants.  We have heard some very positive feedback on this meeting from both the presenters and the investors in the room.  As one investor told me, “this event just saved me 6 or 8 trips to see companies.”  Based on the results of this first forum we are already beginning to think about next year’s event. 
We wish all of you in the US an enjoyable Labor Day Weekend!!
Ron Brakke
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For more information about Brakke Consulting’s services and syndicated studies, visit our website at

Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA

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