The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for September 25, 2009

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
other news
Boehringer Ingelheim Vetmedica
DRE Veterinary
Fort Dodge
Pets Best Insurance
SA Bioproducts

A comprehensive new national survey of 1,000 US horse owners for the first time estimates the market size for more than a dozen categories of widely used products.  It also shows that the current US recession has had a material, negative impact on horse ownership and product sales.
The study, Equine Market MegaStudy II, includes more than 400 brands in 14 separate product categories.  It examined what brands were purchased, how often they were purchased, where they were purchased, and the amount of money spent.
The 200-page report also includes extensive data on horse owner demographics, media usage, event participation and shopping habits.  The research was conducted by Brakke Consulting and The Pert Group (a recent merger of Market Directions, Pert Survey Research and Pulsar Research and Consulting).
Equine Market MegaStudy II is now available for $9,900.  For more information or to order a report, visit our website or contact, (773) 327-4941.
> Neogen Corporation announced that its revenues for the first quarter of FY 2010 ended August 31 increased 12% from the previous year’s first quarter to $32 million.  First quarter net income increased 18% from the prior year to $4.4 million. Quarterly sales growth for the company’s Animal Safety Division increased 12% to $14.9 million. (company press release)
> Bioniche Life Sciences Inc. announced financial results for its 2009 fiscal year ended June 30, 2009. Consolidated revenues for the fiscal year increased by 21% to $33.3 million as compared to fiscal 2008. Increased sales of animal health products in all markets, combined with favorable exchange rates, contributed to this result. (PRNewswire)  
> Boehringer Ingelheim Vetmedica, Inc. (BIV), announced that it has entered into an agreement with Pfizer to acquire certain assets of Wyeth Pharmaceutical’s Fort Dodge Animal Health business upon the closing of the global Pfizer-Wyeth merger. The deal, which is subject to anti-trust clearance, significantly increases the size of BIV’s companion animal and cattle portfolios.  In the US and Canada, BIV will own and market the pet and cattle vaccine lines as well as a wide range of pharmaceuticals for pets, cattle and other species. In Canada, several swine vaccines are also part of the package. In Australia, BIV will own and market the Fort Dodge pet vaccines and in some European countries and in South Africa, certain cattle vaccines. BIV will also acquire manufacturing and research facilities located in Fort Dodge, Iowa. Financial terms were not disclosed. (company press release) 
> CEVA Santé Animale announced it is investing $15 million in a new world-class poultry vaccine production plant for its US subsidiary, CEVA Biomune. The new 53,000-square-foot operation is being built in Lenexa, Kansas and is scheduled to be operational in the third quarter of 2010.  In addition, CEVA has a new vaccine plant going online in Europe this October. (company press release)
> DRE Veterinary announced it now supplies new and professionally refurbished respiratory ventilators for use with animals of all sizes. (  
> Pets Best Insurance announced that its Pets Best Japan has received government approval and has officially started sales as the ninth pet health insurance company approved in Japan.  (company press release)
> Lallemand Inc. announced it has acquired South African company SA Bioproducts which produces lysine for the animal feed and human markets. This acquisition establishes Lallemand’s position as a leading supplier to the human and animal feed markets in South Africa. Financial terms were not disclosed. (Feedstuffs)  
> EU   Hipra announced the EU launch of Startvac, the first vaccine against bovine mastitis approved for the whole of Europe. The product contains inactivated E. coli and Staphylococcus aureus. (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 on the seminar or to register, visit our website at
> US – LOST PET SERVICE   The American Animal Hospital Association announced that it has created the AAHA Universal Pet Microchip Lookup Tool. The free Internet-based resource is designed to help veterinary hospitals, animal control facilities and shelter staff members reunite lost pets with their owners by checking participating pet recovery services’ registries to determine which registry should be contacted. Participating companies include the American Kennel Club Companion Animal Recovery, HomeAgain by Intervet/Schering-Plough Animal Health, Petlink by Datamars and resQ by Bayer Animal Health; more companies are anticipated to come on board within the next few weeks. (Pet Product News)

In 2002, Brakke Consulting published an overview of the treatment of cancer in dogs and cats.  We are pleased to announce that an update of this highly regarded report will be completed in October 2009.
The 2009 Cancer Study will include up-to-the-minute information on the incidence and treatment of the common veterinary cancers.  The study includes a survey of over 200 general veterinary practitioners as well as interviews with veterinary oncologists.  Reviews of new and developing veterinary cancer chemotherapeutics are included in the report as well.
The report is priced at $8,500, but pre-publication orders placed by October 16 will be eligible for a discounted price of $7,000. 
For more information, please visit our website at or contact Dr. Lynn Fondon at .
We’re now only a few days from finishing up the third quarter of 2009 for most companies.  It’s been a challenging first 9 months and there does not appear to be much relief in the last quarter. 
While a number of companies can’t wait to have 2009 behind them, others have preformed quite well during this uncertain period. The companies that have performed above expectations are the small and medium-sized firms that have new technology or products to offer the marketplace. Even the larger companies with branded consumer-type products have done quite well in the face of a lot of adversity.
It now appears that the two large industry transactions pending and the secondary spin-offs of product lines from these transactions will be completed in the fourth quarter.  This should allow those organizations and the impacted customers to move forward with their planning and execution of those plans for 2010. It appears that 2010 may hold similar challenges to 2009 in some of the key markets.  So, it’s important to complete the integration process, get the new organizations operating and let the customers know where they stand in this process. 
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
Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA

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