The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for September 10, 2010

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
Brakke/Bayer veterinary research initiative
market research services
earnings news
Animal Health International
other news
AKC Canine Health Foundation
Heartland Pet Care
Milk Products
Nestle Purina PetCare
scil animal care
Seasons Pet Food
Veterinary Metrics
> Dechra Pharmaceuticals PLC released preliminary results for the year ended June 30, 2010. Group revenue increased 5.5% to GBP 369 million ($556 million) for the year.  Total European Pharmaceuticals sales for the year were GBP 85 million ($128 million), while US Pharmaceuticals sales were GBP 11 million ($16 million). (company website) 
> Bioniche Life Sciences Inc. announced financial results for its 2010 fiscal year ended June 30, 2010. Total revenues were C$46 million (US$44 million), an increase of 38% compared to the prior year. Consolidated revenues related to Bioniche Animal Health product sales for the fiscal year were $C27 million (US$26 million), a 19% decline as compared to fiscal 2009. (MarketWire)
> Animal Health International, Inc. reported its financial results for the company’s fiscal year ended June 30, 2010. Net sales for the fiscal year were $669 million, compared to $667 million for the same period a year ago. Net income was $1.3 million compared to a loss last year of ($36.9 million). (company website)
> Bayer HealthCare’s Animal Health Division and Brakke Consulting announced a comprehensive research initiative that will investigate reasons for the decline in companion animal veterinary visits during the past decade and identify ways to reverse the trend. Bayer and Brakke are collaborating on the study with the National Commission on Veterinary Economic Issues (NCVEI); they expect to have preliminary results by the end of 2010. (company press release)
> Pfizer Animal Health and the American Kennel Club Canine Health Foundation, Inc. have formed an exclusive research partnership which will focus on both basic and applied research initiatives, as well as sharing leadership and scientific expertise. Pfizer Animal Health is the sole biopharmaceutical partner of the AKC Canine Health Foundation (CHF) in the new alliance, providing an initial commitment of $500,000 over two years. (company press release)
> ULURU Inc. announced that it has signed a worldwide distribution agreement appointing Novartis the exclusive distributor of a veterinary version of Altrazeal wound-healing product for marketing to the animal health sector. (PRNewswire)
> Abbott Animal Health announced the launch of a new, advanced line of veterinary-labeled peripheral IV catheters.  The new catheters feature sharper needles, clear catheter hubs, and bevel-up orientation that can be determined without looking at the needle. (company press release)
> Webster Veterinary Supply announced that the full line of Hill’s Pet Nutrition Science Diet and Prescription Diet products are now available through Webster’s VetSource Home Delivery platform. (company press release)
> Nestle Purina PetCare announced plans to construct a $15 million Learning & Training Center at its Checkerboard Square headquarters.  The new 56,000 sq.ft. building is expected to be completed by December 2011. (Feedstuffs)
> Milk Products announced the addition of Scours & Pneumonia Treatment products to its calf management product line.  The product, which contains high levels of neomycin and oxytetracycline, is available as a complete medicated calf milk replaces and as a medicated feed concentrate. (Feedstuffs) 
> The Hartz Mountain Corporation reported a voluntary recall of one specific lot of Hartz Naturals Real Beef Treats for Dogs due to concerns that one or more bags within the lot may have been potentially contaminated with Salmonella. Hartz is fully cooperating with the FDA in this voluntary recall. (PRNewswire)
> Scil animal care announced the launch of the scil Vet ABC Plus Hematology Analyzer. The machine  requires only 10 uL of EDTA blood to run a sample, receiving results in 60 seconds. It features pre-installed settings for 8 species: dog, cat, horse, rabbit, mouse, ferret, rat, sheep and pig, and provides 18 essential parameters. (WiredPRNews)
> Heartland Pet Care LLC announced the launch of Pro Active Balance, a daily pet food supplement that can be added to pets’ regular food. Using a proprietary blend of shelf-stable ingredients, Pro Active Balance delivers probiotics and prebiotics and improves nutrient absorption. Pro Active Balance is available for both canine and equine care. (Business Wire)
> Seasons Pet Food Co. announced plans to launch what is being billed as the world’s first climate-specific dog food. The pet food is created via a patented manufacturing process that is designed to address changes in pets’ nutritional needs brought on by a change in season. (Veterinary Advantage)
> HealthyPet announced it has acquired Veterinary Metrics (Vet Met). Financial terms were not disclosed. (company press release) 
> digitalDVM announced the launch of virtualVet Rep, a virtual sales, support, and e-detailing service designed to increase manufacturer and  distributor access to veterinary professionals. virtualVet Rep offers customized one-on-one virtual sales calls that include streaming video messages, live chat, sample requests, and immediate literature downloads. In addition, the service connects veterinarians directly with their field sales representative. (company press release)
> EU  Intervet/Schering-Plough announced the re-introduction in Europe of its EQUILIS StrepE, the only strangles vaccine for horses in Europe.  The vaccine was voluntarily withdrawn from the market in 2007 for stability reasons.  (Feedstuffs)
> UK   IDEXX Laboratories announced the release of the IDEXX SNAP BVD Test in the United Kingdom. This simple, in-clinic test detects bovine viral diarrhea virus (BVDV) antigen using serum or ear-notch samples in only 20 minutes. The SNAP BVD Test is the first IDEXX rapid assay for livestock, and it marks the debut of a new series of tests the company will offer specifically for large-animal veterinary surgeons. (company website)

Throughout the year, Brakke Consulting, Inc., performs market research surveys and studies for client companies.  If your firm needs help assessing the feasibility of a new product or technology, identifying the opinions and trends of product consumers, or determining the current market for products, Brakke Consulting, Inc. can build a market study to meet your needs.  We have a database in place of several thousand small animal veterinarians and the ability to custom-tailor surveys of other animal health consumers.  We also produce syndicated studies in specific animal health market areas.
For more information, go to
> NETHERLANDS – BSE   A 10-year-old cow in the Netherlands has tested positive for BSE, the first such result in more than two years according to the Dutch government. (Animal Health SmartBrief)
> US – BSE DIAGNOSIS   Researchers at Iowa State University have found that cattle infected with BSE seem to have glowing eyes caused by the buildup of lipofuscin, or colored waste material, in the retina. They hope the finding could pave the way for simple eye tests that could be used to accelerate the diagnosis of prion diseases and other neurological conditions in animals. (AVMA SmartBrief)
It’s been an interesting week in animal health.  Most of the news involves new products or technologies for companion animal products, which continues to be the growth segment of the industry the past few years.  Most companies’ portfolios of new food animal products remains shallow; however, new technologies are being developed. There are just not many of them.  So, as we’ve indicated a number of times, keep marketing the current food animal products because the probability of replacement products will not occur for some time. 
We were encouraged by the new large animal product companies presenting in Kansas City last week.  We’re not quite sure all of these companies understand what they are about to run into when they hit the FDA/CVM approval process.  Like other companies that have gone before them, they could well be in for some timing delays.  We continue to seek information regarding the large number of new products that were supposed to be approved by CVM this year.  It’s possible under the current snail’s pace of approvals that we could see another year of declining approvals. We also understand from our industry clients that USDA approvals seem to be experiencing similar delays. If you’re budgeting new products for 2011 you might need to be conservative.
Have a great weekend now that fall has arrived in most parts of the US!!
Ron Brakke
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