The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for February 26, 2010

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
Brakke news
Recruiting services
earnings news
Animalcare Group
other news
Church & Dwight
OncoPet Diagnostics
Veterinary Enterprises & Trading

Since 1986 Brakke Consulting has successfully assisted many clients in acquiring exceptional employees at all levels, in the many departments of animal health, pet, and veterinary companies.   We pre-qualify candidates, allowing clients to choose from only the best applicants for a position.  Our approach increases the efficiency and effectiveness of the Human Resources Departments of client companies. For more information, visit our website and click on the “Recruiting” link under Our Services.
> Bayer reported results for the full year 2009.  Animal health revenues were EUR 977 million ($1,400 million), an increase of 1% compared to the prior year. (company website)
> King Pharmaceuticals, Inc. announced results for the year ended December 31, 2009. Net revenue from the Alpharma Animal Health business totaled $359 million, unchanged from the prior year. (company website)
> Dechra Pharmaceuticals reported results for the half-year ended December 31.  Total revenue was GBP 185 million ($294 million), an increase of 7% compared to the comparable period in the prior year.  Net pharmaceuticals revenue was GBP 40.6 million ($65 million), a 14% increase over the comparable period in the prior year. (company press release)
> Heska reported financial results for 2009. Revenues for the year were $75.7 million, a decline of 7% compared to the prior year.  Net income was $2.2 million compared to a net loss of ($850,000) in 2008. (company press release)
> UK-based Animalcare Group plc reported results for the six months ended 31 December 2009. Revenue for the first half rose to GBP 8.9 million ($14.2 million) from GBP 7.8 million in the year-earlier period, largely driven by revenues from companion animal division. Six-month profit grew to GBP 547,000 ($871,000) from GBP 65,000 in the prior-year period. (RTTNews)
> Lloyd, Inc. announced the introduction of Butorphic (butorphanol tartrate) sterile solution. Butorphic (10mg/mL) will be packaged in convenient 20 mL, multi-use vials. (company website)
> BioCurex announced the launch of OncoPet RECAF, a new test for the detection of cancer in dogs. The product works by detecting the presence of Recaf, a marker for malignant cell growth in humans and animals. The company has established a subsidiary company, OncoPet Diagnostics, to offer the new testing service to veterinarians and animal clinical laboratories. It will market and commercialize the service globally, both directly and through local and international partnerships. (Animal Pharm)
> scil animal care company, inc., announced an elite partnership with Aesculap, a division of the B. Braun Group.  Scil is now the exclusive distributor of Aesculap’s Power Systems surgical product line for the North American veterinary market. (company press release) 
> PBI/Gordon Corp. announced it has acquired  the Lambert Kay line of pet products from Church & Dwight Co.  The acquisition strengthens PBI/Gordon’s presence in the consumer petcare marketplace, adding to the company’s Trophy and Prozyme product lines.  Financial terms were not disclosed. (company press release)
> UK   Veterinary consolidator CVS announced the acquisition of Veterinary Enterprises & Trading. Veterinary Enterprises operates under the Pet Doctors brand and has 27 veterinary surgeries across the southeast of England. The company also owns the veterinary diagnostic and laboratory business Greendale.  CVS now operates over 170 veterinary surgeries across the country. (
> US – BRUCELLOSIS VACCINATION  Montana’s state veterinarian is pushing for brucellosis vaccinations for all sexually intact female calves, arguing that the move is necessary to control disease and keep Big Sky cattle marketable, and would bring Montana in line with measures already taken in Wyoming and Idaho. Members of two of Montana’s largest livestock groups, the Montana Stockgrowers Association and Montana Farm Bureau Federation, have formalized policies officially opposing the vaccination of all sexually intact female calves because they think it’s unnecessary. (AVMA SmartBrief)
> US – VETERINARY PUBLIC HEALTH  The Center for Public & Corporate Veterinary Medicine, part of the Virginia-Maryland Regional College of Veterinary Medicine, has partnered with the U.S. Animal Health Assn. (USAHA) to create mentoring, education and networking opportunities for veterinarians and veterinary students. In response to increased demands for veterinarians in the public sector, the center is working to expand its activities in the areas of public health, public policy, international veterinary medicine, organizational leadership and the One Health Initiative. (Feedstuffs)
Company financial year-end results for 2009 continued to be a mix of some companies showing increases and others declining.  As noted in prior newsletters, 2009 was a challenging year, and if it were not for price increases the revenue growth for the year would have been below the already projected decline of 2% for the year.
We continue to be concerned with the reduced number of new products that were launched in 2009 and is occurring again in 2010.  Without significant new products to assist in driving sales growth, 2010 appears to be heading for a repeat of last year. 
We believe the declining number of new products can be attributed to reduced total research and development budgets along with increasing difficulty of obtaining FDA and USDA approval for products in the regulatory system.  The good news is that there are a number of new technologies seeking funding or licensing deals in the pipeline. Hopefully the regulatory agencies will have the internal expertise and structure in place to properly evaluate and move these new technologies through the maze of regulatory hurdles.  
Have a good weekend!!
Ron Brakke
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