The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for November 5, 2010

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
market research
earnings news
other news
Bayer (management)
Bayer (Bomac)
Sedona Pure Pets
Veterinary Diagnostics Institute
> Pfizer Inc. reported financial results for third-quarter 2010. Animal health revenues were $860 million, an increase of 27%, reflecting the addition of the Fort Dodge legacy products in October 2009. (PRNewswire)
> MWI Veterinary Supply, Inc. announced financial results for its fiscal year ended September 30, 2010. Total revenues were $1.23 billion for fiscal year 2010, 31% higher than revenues for fiscal year 2009. 14% of the increase was due to organic growth in the US and 17% was related to the acquisition of Centaur Services Ltd in February 2010. Net income was $33.4 million for fiscal year 2010, 34% higher than net income for fiscal year 2009. (company website)
> Bayer announced the appointment of Jean-Luc Lowinski as the new head of its animal health division, effective November 1, 2010. In his new position, he succeeds Lykele van der Broek who will be appointed COO of Bayer CropScience. Previously Mr Lowinski held the position as BHC representative in Japan and country head for Bayer Schering Pharma Japan. (Datamonitor)
> VetCentric, Inc. announced it has raised $3 million during its continued round of Series B funding. Sherbrooke Capital, the Asset Management Company and the Nestle Venture Capital Fund, part of Nestle S.A., supported the investment equally. (Vet Advantage)
> Veterinary Diagnostics Institute (VDxI), Inc., announced that Webster Veterinary will be VDxI’s exclusive distributor for the VDxI-TK specialty diagnostic test, a highly specific blood test to detect canine lymphoma and hemagiosarcoma. (
> Sedona Pure Pets introduced a veterinary line of three holistic supplements for pets. The new products include iFlora Multi-Probiotic Healthy Pets, Sedona Putre Pets Colostrum, and Permoveo Joint & Bone Mobility Complex. (Natural Products Marketplace)
> NEW ZEALAND   Bayer announced an agreement to buy Bomac Group. Bomac has a broad range of 290 products, especially in the area of food animals; the main focus is on the treatment of mastitis with dairy cattle and parasiticides in sheep. Financial terms were not disclosed. (Dow Jones)

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> US – BRUCELLOSIS   The Montana Department of Livestock reported that a cow on a ranch near Bozeman, Montana, has been diagnosed with brucellosis and had to be euthanized. Two other cows from the herd have been quarantined to determine whether they have been exposed to the disease. (Washington Post)
> US – HORSE CARE   The American Association of Equine Practitioners released guidelines for veterinarians who treat racehorses. The document, “Clinical Guidelines for Veterinarians Practicing in a Pari-Mutuel Environment,” promotes medical practices the AAEP believes place the appropriate emphasis on the health, safety and welfare of the racehorse. The central focus of the guidelines is the practice of administering medical treatment to a horse based on the entry date for its next race. (Vet Advantage)
> US – DOG BREEDING REGULATION  The “Puppy Mill Cruelty Prevention Act,” or Proposition B (Prop B) ballot initiative in Missouri was adopted yesterday by a narrow vote, with 51% of voters approving the measure. The initiative, carried to the ballot by The Humane Society of the United States (HSUS), with assistance from the American Society for the Prevention of Cruelty to Animals, limits commercial breeders to no more than 50 female breeding dogs and requires that those dogs be bred no more than twice every 18 months. It also increases living space for dogs, requires indoor housing with unfettered access to outdoor exercise yards, requires that dogs be fed daily and requires that dogs be examined annually by veterinarians. Missouri is said to be the largest dog breeding state in the US, with an estimated one of every three or four of puppies sold in pet stores in the US having been born in the state. (
The financials reported this week indicate that there is continued revenue growth in the industry.
The time I have spent in the Midwest this past week has been useful in obtaining some interesting insights into the food animal segment for this fall and 2011.  It appears that the cow/calf business is going to be positive for the next couple of years.  This assumes that the weather cooperates so that there is plenty of grass.  The high corn prices are likely to put some pressure on the feedlot profits, but the reduced supply of beef should allow for higher feed cattle prices.  The agricultural economy is currently the best it’s been for some time. The new Congress will start working on the new farm bill in early 2011 so we’ll all watch this activity closely.  
We had another successful pheasant hunt last weekend with the hunters filling their limit early all three days. Hunters 88, pheasants 55.  A new group arrives to restart the process for one more weekend.  Then it’s back to Dallas where it’s a bit warmer. 
Have a great weekend!!
Ron Brakke
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