The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for December 11, 2009

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
Brakke news
2010 Industry Overview
2009 US Flea Control and Heartworm Markets report
earnings news
KMG Chemicals
other news
Halocarbon Products
Pilgrim’s Pride

Brakke Consulting will be presenting its annual US Animal Health Industry Overview at the North American Veterinary Conference and the Western Veterinary Conference in 2010.
NAVC Overview
Monday, January 18th, 2010
2:00 – 4:00 pm
Gaylord Palms, Orlando  
WVC Overview
Date: Tuesday, February 16, 2010
Time: 2:00 – 4:00 pm
Place: The Four Seasons Hotel, Las Vegas
To register, go to and look for the Overview link in the “What’s New” box.  Payment by major credit card is required at time of registration.
> KMG Chemicals, Inc. reported results for its first fiscal 2010 quarter ended October 31.  Animal Health generated net sales of $933,000 or 1% of the total, compared with $1.4 million or 3% of sales a year earlier. (RTT News) 
> Smithfield Foods posted a net loss of ($26.4 million) on consolidated sales of $2.7 billion for its fiscal second quarter ended November 1. That compares to a net profit of $4.2 million for the same period a year ago on consolidated sales of $3.1 billion, but those quarterly profits included income from discontinued operations. (Meating Place) 

Brakke Consulting will soon be publishing our 2009 report on the US Flea Control and Heartworm Markets.  The report includes valuable information on the US market for small animal parasiticides including:
  – an overview of the veterinary and OTC flea control markets
  – Product descriptions, prices, and sales for the leading veterinary flea and heartworm products
  – Overview of advertising expenditures for veterinary flea and heartworm products
The report also includes a 2009 survey of over 200 veterinarians regarding topics such as product usage, brand switching, the effect of the economy on product sale; the impact of product sales outside the veterinary clinic channel; and developing resistance to new-generation products.
The report on the US Flea Control & Heartworm Markets is available for a purchase price of $5,500. 
Please contact Dr. Lynn Fondon at (972) 243-4033 or to order the report, or for more information visit our website at 
> Merial announced the launch of Recombitek rWNV-EWT equine combination vaccine.  The vaccine provides protection against West Nile Virus, Eastern and Western Equine Encephalomyelitis, and tetanus.  (company press release)
> IDEXX introduced the IDEXX H1N1 Influenza Virus RealPCR Test for dogs and cats.  In addition to the stand-alone test, the test is included with the Feline Upper Respiratory Disease and Canine Respiratory Disease RealPCR panels at no additional cost.  Results are typically available within 72 hours. (company website)
> Halocarbon Products Corporation announced it has received approval from the FDA’s Center for Veterinary Medicine to market sevoflurane inhalation anesthetic for veterinary use. (PRLog)
> Novus International Inc. announced its intent to acquire the animal nutrition division of Albion Laboratories Inc.  Products from the acquisition will align with Novus’s Mintrex chelated trace mineral products and further expand its mineral technology. Terms of the proposed deal were not disclosed. (Pig International)
> Arkray, Inc., announced an exclusive distribution agreement with scil animal care company for the SpotChem EZ Chemistry Analyzer. Scil’s first order of business will be to re-introduce the SpotChem EZ, a small bench top chemistry analyzer, to the North American veterinary industry. Other veterinary-use products from Arkray will follow. (PRNewswire)
> DeLaval, maker of dairying equipment, announced it has launched a biosecurity program to help dairy producers manage the health and productivity of their animals. The company is launching new animal health products to control disease in dairy herds. The first of these is a line of insecticides to control flies, including Aptaor L (cyromazine) and Aptaor A (thiamethoxan). (Animal Pharm)  
> Pilgrim’s Pride Corp. announced that the US Bankruptcy Court has approved its joint plan of reorganization with six subsidiaries that are debtors in the company’s Chapter 11 proceedings. Pilgrim’s Pride debtors filed a joint plan of reorganization in September. Under terms of that plan, the company has entered into an agreement to sell 64% of the new common stock of the reorganized Pilgrim’s Pride to JBS USA for $800 million in cash (Meating Place)  
> EUROPE   Pfizer announced the European launch of Naxcel (ceftiofur). The product was approved by the European authorities for use in the treatment of foot rot in cattle. Naxcel has no withdrawal period for dairy cattle producing milk, and a short period of nine days for beef animals. (Animal Pharm)  
> NETHERLANDS – Q FEVER   As a preventative measure, the Swedish health minister and agriculture minister have ordered the slaughter of all pregnant goats and sheep on farms contaminated with Q fever; so far this year, 55 goat farms have been reported as infected. Q fever is caused by the bacterium Coxiella burnetii, which is released when pregnant goats or sheep have spontaneous abortions. It can affect cattle, sheep, goats and other domestic mammals, as well as humans. (Animal Pharm)
> US – PET HEALTH   The FDA launched its pet health and safety widget for consumers as part of an ongoing effort to provide timely, user-friendly, public health information. The widget, a portable application embedded in a Web page that can be copied onto any other Web site or blog, will include topics such as how to report a problem with your pet food, purchasing pet drugs online, and caring for your pet in a disaster. The widget allows users to access content on the FDA’s Web site without having to leave another site or Web page. The pet health and safety widget is available at (FDA)  
> US – VETERINARY ACCREDITATION   The USDA’s Animal & Plant Health Inspection Service (APHIS) has revised its National Veterinary Accreditation Program (NVAP) to strengthen animal health safeguarding activities and increase the training and skills of accredited veterinarians in disease prevention and preparedness for animal health emergencies.  The new program creates two accreditation categories based on the species on which accredited duties will be performed, and includes requirements for supplemental online training to ensure accredited veterinarians receive the latest information necessary to support APHIS’ animal health safeguarding efforts. The revisions also call for accreditation to be renewed every three years where previously accreditation did not require renewal. (Feedstuffs)
It was great to see so many of you in Las Vegas at the AAEP meeting earlier this week.  There were an estimated 4,000 registered attendees at the meeting, with nearly 400 exhibitors displaying their wares.  All of those we visited with felt the meeting was improved from 2008.  It appears that the location selection along with coupling it with the National Rodeo Finals benefitted both programs.  There were lots of hats and boots in Las Vegas this week.
As mentioned in last week’s newsletter, it now appears that some of the recent consolidations in manufacturing and distribution are already having an impact on the 2010 distribution agreements.  With more consolidation yet to occur, we should be in for an interesting 2010 and beyond!! 
Winter has finally arrived in most parts of the US so have a great weekend and don’t forget your favorite consulting firm during this Holiday Season!!
Ron Brakke

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

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