The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for May 21, 2010

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
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Franck’s Pharmacy
Petra Pet
> Patterson Companies, Inc. reported results for fiscal year 2010 ended April 24. Sales of the Webster Veterinary unit increased 17% to $644 million. (Business Wire)
> PetSmart, Inc. reported results for the first quarter of 2009. Net income totaled $55.6 million in the first quarter of 2010, compared to $46.3 million in the first quarter of 2009.  Total sales for the first quarter of 2010 increased 5% to $1.4 billion. Comparable store sales grew 2.8% in the first quarter. (Company website)
> Greenies introduced Greenies Pill Pockets Allergy Formula Treats, combining a novel protein of duck with pea, a novel carbohydrate. Greenies Pill Pockets Allergy Formula Treats will be offered in capsule and tablet sizes for dogs and one size for cats. (Business Wire)
> Franck’s Pharmacy Inc. announced it has voluntarily suspended all veterinary drug compounding pending the outcome of discussions with the FDA.This latest move is a sharp departure from the company’s earlier position, when the company vowed to defend an FDA request for an injunction that would prevent the pharmacy from compounding animal drugs using bulk ingredients that are not FDA-approved. All reference to veterinary compounding — which, according to the government’s petition, accounts for a little less than half of Franck’s approximately annual gross sales — has now been removed from Franck’s website. ( 
> Imperial Capital announced it has acquired Petra Pet, which manufactures treats for pets. The acquisition gives Imperial access to Petra Pet’s Beefeaters brand, whose products range from porkhide and rawhide chews to natural pet treats that contain green tea and chamomile ingredients. Financial terms were not disclosed. (Wall Street Journal)
> US – RECALL  Sampco Inc. announced a recall of about 87,000 pounds of beef products that may contain the animal drug Ivermectin. The products are subject to recall include 12-oz. cans of “Libby’s Corned Beef” distributed to retail locations nationwide; each product package bears “Brasil 337 S.I.F” on either the top or the side, as well as “Product of Brazil” or “Packed under Brazilian Government Inspection.  Since March 15, 2010, samples from cooked beef products imported from Brazil establishment SIF 337 have resulted in 12 instances in which the level of Ivermectin found in the product exceeded the tolerance level established by the FDA of 10 parts per billion in beef muscle. (Meating Place)
> US – NEWCASTLE VACCINE  Scientists at Pennsylvania State University allege that using attenuated live vaccines that protect poultry against Newcastle disease may be altering the genetic makeup of the wild virus strains, making future outbreaks unpredictable and difficult to tackle. The researchers found that one vaccine strain recombined – exchanged genetic material – with at least three wild strains, creating new viruses. (Animal Pharm)
> EU – CLONING   The European Parliament’s Environment, Public Health and Food Safety Committee has voted overwhelmingly in favor of an outright ban on food derived from cloned animals and their offspring. The approved report follows a 2008 Parliament resolution calling for a ban on cloning for food purposes and an embargo on imports of cloned animals, their products and offspring. (Animal Pharm)

Each year, Brakke Consulting develops an overview of the animal health industry.  The Brakke Overview is presented to many animal health executives and investors, who view the Overview as a key tool in their planning process. 
The 2010 Overview includes topics such as:
 – Key industry trends and activities in both companion animal and food animal segments of the market
 – Industry sales estimates, global and US
 – Results of a survey of animal health executives regarding the recent and future business climate
 – report on veterinary clinic business environment
 – 2009 industry acquisition activity
 – overviews of the OTC market, including pet care, pet food, and supplements
 – regulatory environment for animal health products
 – 2010 and beyond
For more information or to schedule your personal Overview presentation, contact

As we move closer to the beginning of summer, and Memorial Day weekend here in the US, it looks like we’re off to improved market conditions in both the companion and food animal sectors. There remains a great deal of discussion and speculation regarding shifts occurring in the marketplace; the one with the highest noise level is the veterinary channel versus the OTC channel for flea/tick control products. Depending on your product line and marketing budgets, it’s easy to have an opinion. The translation of your opinion or view into management actions needs to include the views and desires of the pet owner. Needless to say it’s going to be an interesting summer and fall in this product category.
On the food animal side we’ve been pleasantly surprised by increasing cash prices in the food production area. In some segments where producers have been losing money for the past two or three years, there might be light at the end of the tunnel.  The animal health industry needs prosperous producers as customers.
Have a great weekend!!
Ron Brakke

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