The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for May 14, 2010

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
Brakke news
strategic planning
earnings news
Digital Angel
other news
Boehringer Ingelheim Vetmedica
Vets Now
AUGUST 31, 2010
now accepting applications

The KC Animal Health Corridor is now accepting applications for the second annual KC Animal Health Investment Forum on August 31, 2010, in Kansas City, Missouri.
The forum will showcase animal health and nutrition companies from throughout the world. The selection committee will consider companies that meet the following criteria:
– Seeking $500,000 to $20 million in funding
– Revenue projections of $20 million within 5-7 years
If your company meets these criteria and you would like to apply to present, please go to our application web site at Applications must be submitted by June 25, 2010.
For inquiries about the application process, email Chris Walsh at All other inquiries can be directed to Lynn Parman at
> Bioniche Life Sciences Inc. announced financial results for its Fiscal 2010 third quarter, ended March 31, 2010. Consolidated revenues for the quarter totaled $15.6 million, an increase of 111% over the same period in Fiscal 2009. This figure includes $9.5 million in licensing and research collaboration revenues. This positive result is somewhat offset by decreased sales of Animal Health products in the quarter as compared to last year. (PRNewswire)
> Digital Angel announced financial results for the period ended March 31, 2010. Revenues were $12.3 million in the quarter compared to $13.9 million in the comparable quarter in the prior year; revenues from the animal identification segment rose from the first quarter of 2009.  (company website)
> Immunovaccine announced the results for the first quarter of 2010. Reported revenues in the first quarter  were $58,000 compared to no revenues during the three month period ended March 31, 2009. These revenues were generated through the Company’s animal health business. The company reported a consolidated net loss of ($1,498,000) compared to a loss of ($1,007,000) in the comparable period in the prior year. (Market Wire)
> PetMed Express, Inc. announced its financial results for the fiscal year ended March 31, 2010. Net income was $26.0 million, an increase of 13% over the prior year. Net sales for the year were $238.3 million, an increase of 9%. (company website)
> Boehringer Ingelheim Vetmedica and Intercell announced an agreement wherein Boehringer Ingelheim Vetmedica will have the right to use certain antigens from Intercell’s antigen identification program to develop animal vaccines. Intercell will receive upfront, option and milestone payments as well as royalties on product sales. (Reuters)
> Aventix announced the release of Florentero, a symbiotic composed of two prebiotics, four probitotics and group B vitamins for use in dogs, cats, rabbits.  Florentero is indicated for diarrhea, motility disorders, diet and climatic stress, seasonal or dietetic changes, food poisoning and organic weakening due to parasitic and infectious diseases of the digestive tract. (company press release) 
> PetSmart and General Nutrition Centers Inc (GNC) have entered a partnership to develop a line of vitamins and supplements aimed at all stages of a pet’s life.  The products will be manufactured by GNC and sold exclusively at PetSmart retailers beginning this fall. (Phoenix Business Journal)
> UK   Lifelearn announced the licensure of its small animal products and services to Vets Now Ltd. for the UK and Ireland. From 1996 until recently, Lifelearn products and services were marketed by Lifelearn Ltd. in Newmarket, England, a majority owned subsidiary of Lifelearn Inc. (company press release)
> EU   QuantRx Biomedical Corporation announced that it has entered into a two-year agreement with VetRed BV for the European distribution of products developed by QuantRx (QN Diagnostics) for veterinary applications. This is the first distribution agreement for QuantRx in the animal healthcare market and marks the commercial launch of its first product developed for the segment, a thyroid panel diagnostic kit. (Business Wire)
> INDIA  Innoves Animal Health Private Ltd was launched as a new company on the Indian animal health market. The company’s key business assets will be dairy, poultry, and companion animal health care. In addition, Innoves will offer veterinary diagnostics through Vetlab, which is part of Innoves sister company Happypet Solutions Private Ltd.  The dairy range will be the first introduced, after which the pet products will hit the market. (Vetsweb)
> JAPAN   Japan’s Ministry of Agriculture, Forestry and Fisheries has ordered a mass culling of pigs and cattle to prevent the spread of its first foot-and-mouth disease outbreak in a decade. The government has ordered the destruction of 73,653 pigs in Miyazaki prefecture; about 6,600 beef cattle and cows will also be slaughtered. (Business Week)
> US – ANIMAL WELFARE   USDA’s Animal and Plant Health Inspection Service will begin issuing press releases announcing the outcome of enforcement actions that the agency takes in response to violations of the Animal Welfare Act. At one time, the agency had issued press releases of this nature, but discontinued the practice in 2002. (Pork Magazine)

Brakke Consulting is an excellent resource in the strategic planning process.  Brakke Consulting’s past assistance in strategic planning has included:
 – reviewing the revenue estimates and success probability of the product pipeline;
 – reviewing the timing of various new product introductions versus probable timing of competitive introductions, and estimating the impact of various scenarios; and
 – benchmarking various functions against company competitors in the larger markets, which might include sales force size, technical services, and/or R&D spend vs. sales
Brakke Consulting can provide insights and professional assistance that improves the likelihood of success.  Please contact us if you would like the benefit of professional assistance in any of these areas. Contact information for all offices are available on our website at
Most of the companies announcing new products or technologies appear to be focusing on the companion animal market. As many of you observed at our 2010 Industry Overview, the past decade has been the companion animal era.  During that period the companion animal portion of the business grew at a compounded annual growth rate of 12% while the food animal segment showed limited growth.  The number of new products that have been developed for companion animals the past 10 years has been impressive.  When new technology is combined with increased consumer advertising, the revenue results can be impressive. 
We are often asked to identify the next areas for significant revenue growth.  Similar to 10 to 15 years ago, there seems to be only a limited number of areas for new revenue growth; however, for those companies that are creative and listen to the producer and consumer, there remain enough unsolved health problems to fill the R&D pipelines for a number of years. If you have vision and willing to take some risks, the opportunities are there. 
If you’re having trouble identifying new opportunities, give us a call, we might be able to assist in some creative thinking. As a friend of mine reminded me recently, “if you’re doing the same thing you were doing last year or the past few years, you need assistance.” 
Have a great weekend!!
Ron Brakke

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