The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for July 16, 2010

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
mergers, acquisitions, divestitures, licensing
earnings news
other news
Animal Airways
Antech Diagnostics
DRE Veterinary
Infectious Disease Research Institute
Natural Wonder Products
Nature Vet
Orsco Laboratoire Vétérinaire
Paraco Technology
Pet Pet Group
Piedmont Pharmaceuticals

Are you interested in growing your business by purchasing another company, product line or technology?  Have you been thinking about selling, licensing or divesting? Have you considered merging your company with another firm to improve shareholder value?
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> Novartis reported results for the first half of 2010. Animal Health has contributed double-digit growth through the first half, fueled by continuing growth of Sentinel and Interceptor in the US Companion Animal Business and Milbemax in Europe, and by cattle vaccines in the US Farm Animal Business. (company press release) 
> Merial Ltd. and the Infectious Disease Research Institute (IDRI) announced they have agreed to cooperate regarding the research and development of certain vaccines for animals.  The agreement consists of a license option agreement and a sponsored research agreement. Under the agreements, Merial has an option to use IDRI’s proprietary subunit antigens and adjuvant in a particular vaccine and will then be responsible for any vaccine development and commercialization. Further, Merial will sponsor research at IDRI to evaluate the combination of IDRI’s and Merial’s vaccine technologies for second-generation vaccines. (PRNewswire)
> Bayer Animal Health and Paraco Technology Limited, a 100% owned subsidiary of New Zealand’s AgResearch Crown Research Institute, announced they have signed an option agreement allowing Bayer exclusive access to Paraco’s current lead molecules for testing and development in animal health. The focus in the foreseen activities lies in the research of parasiticides. ( 
> Ceva Santé Animale and Nature Vet Lt.
announced an agreement finalizing the Ceva group’s acquisition of the Australian veterinary laboratory. Nature Vet specializes in the development and marketing of products intended for companion animals, particularly horses. Financial terms were not disclosed. (company press release)
> Vétoquinol and Orsco Laboratoire Vétérinaire announced the signature of an exclusive contract for the distribution of Zylkene in North America.  Zylkene, which contains a patented decapeptide, was developed to help companion animals overcome periods of stress.  Zylkene has been marketed in Europe since 2006. (company website)
> Antech Diagnostics announced the immediate availability of molecular diagnostic tests for common infectious causes of canine and feline diarrhea, with test results available in just 1-3 days.  The FastPanel PCR Canine GI Profile tests for nine infectious agents by real-time polymerase chain reaction (PCR); the FastPanel PCR Feline GI Profile tests for ten infectious agents. (company press release) 
> Dechra Pharmaceuticals announced an agreement with Piedmont Pharmaceuticals LLC which gives Dechra exclusive worldwide rights to the sale and distribution of veterinary products which use Piedmont’s proprietary soft chew platform to deliver the active ingredient. Financial terms were not disclosed. (
> SmartPak announced it was recently awarded the Veterinary Verified Internet Pharmacy Practice Sites (Vet-VIPPS) certification from the National Association of Boards of Pharmacy (NABP). SmartPak is the fifth veterinary pharmacy to receive Vet-VIPPS certification. (company press release)
> PetSmart announced the launch of Martha Stewart Pets, now available exclusively at PetSmart. The new line includes a wide range of pet products such as apparel, collars, leashes, bedding, feeding, grooming and bathing supplies. (company website)
> DRE Veterinary introduced the DRE Teres V-400, an all-in-one veterinary dental unit that incorporates state-of-the-art microchip circuitry and enables veterinary dentists to easily switch from polishing to scaling to cutting. (PRWeb)
> FirmCloud Corp announced the general release of VetBlue, its web-hosted software system for veterinary clinics. VetBlue is accessible online, is subscription-based and requires only a modern web browser to operate. VetBlue helps manage all the key areas of a veterinary practice like clients, patients, scheduling and appointment booking, patient visits and medical records, invoicing and payments, reminders and more. (PRWeb)
> ISRAEL  Animal Airways announced the launch of an Israel-based 24/7 international flight with veterinarian service and crew that speaks 10 languages. The company has subcontracted with Terminal4Pets to launch a full-time, global veterinarian support and guidance service. The service will allow families traveling with pets to access a veterinarian 24 hours a day, seven days a week, in ten languages. (
> ASIA   Natural Wonder Products announced an agreement with Pet Pet Group Ltd. of Hong Kong to introduce Natural Wonder’s DentaSure All-Natural Oral Care Spray and Gel to pet owners and their animal companions in the Asian market. (PRNewswire)
> US – ANIMAL WELFARE  Animal-welfare groups, led by the Humane Society of the United States, have agreed to abandon an Ohio fall ballot issue against animal cruelty as part of a deal with state farm groups brokered by Ohio’s governor. The pact, as yet unsigned, is the fifth such negotiated agreement in the nation. The deal calls for the governor, the Humane Society, the Ohio Farm Bureau and their partners to join forces in favor of tougher laws governing farm animals, including provisions that ban certain crates and cages and the use of strangulation as a form of euthanasia. It also calls for setting felony-level penalties for cock fighting, cracking down on puppy mills and promoting a ban on future exotic pet purchases. (Pork Magazine)
There were a number of stories this week related in licensing and marketing activities of new technologies.  Evidently innovation is not dead in animal health, according to some of the press releases. What it does indicate is that some of the larger companies are becoming more dependent on smaller technology companies and research institutions as a source of their new and improved products.  The internal resources within many companies seem to not be providing the innovation that is required to keep new product introductions flowing satisfactorily.  I’d like to encourage you once again to attend the 2010 Animal Health Investment Forum in Kansas City on August 31.  There will be 20-plus new companies presenting their innovative technologies and products in early stage of development.
On a sad note, in the past two weeks the animal health industry has lost two significant participants. Dr. Robert J. Danielson, our friend and industry-icon, passed away on July 6th.  Throughout his 43-year career, Dr. Danielson made many great contributions to the veterinary profession and industry. Bob played an important part in the development of several companies and organizations within the industry.
Early this week we learned that Roger Cummings, a former Brakke Consultant who helped form our Veterinary Practice Management Group, passed away on July 9th. Roger was a longtime supporter of the veterinary profession and those companies serving the veterinarian. He was the former President of the VetPartners consultant organization and was a key participant in the creation of this group.  Roger was a frequent speaker at veterinary conferences, so he was well known by many appreciative veterinarians. Roger made a number of significant contributions during his tenure at Brakke Consulting, and we will miss him as a both a colleague and a friend.
Have a great weekend and stay cool!!
Ron Brakke

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