The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for November 12, 2010

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
2010 Flea Study
earnings news
Digital Angel
other news
Australian Veterinary Stem Cells
JGB Distributing
Radio Systems

Brakke Consulting will soon be publishing our 2010 report on the US Flea Control and Heartworm Markets.  The report includes valuable information on the US market for small animal parasiticides including:
  – an overview of the veterinary and OTC flea control markets
  – Product descriptions, prices, and sales for the leading veterinary flea and heartworm products
The report also includes a 2010 survey of over 200 veterinarians regarding topics such as product usage, brand switching, the effect of the economy on product sale; the impact of product sales outside the veterinary clinic channel; and developing resistance to new-generation products.
The report on the US Flea Control & Heartworm Markets will be available for a purchase price of $4,995 if ordered by WEDNESDAY, NOVEMBER 24, and $5,500 after that date. 
Please contact Dr. Lynn Fondon at (972) 243-4033 or to pre-order the report, or for more information visit our website at 
> Bioniche Life Sciences Inc. announced financial results for the first quarter of its 2011 fiscal year (ended September 30, 2010). Consolidated revenues related to Bioniche Animal Health product sales for the first quarter were C$6.7 million (US$ 6.7 million), as compared to C$5.9 million in the first quarter of fiscal 2010. (company website)
> ImmuCell Corporation announced the results of its operations for the three-months ended September 30, 2010. Product sales decreased by 14% to $874,000 in comparison to the same period in 2009. The net loss was $(197,000) in comparison to a net loss of $(19,000) during the same period in 2009. (company press release) 
> Digital Angel announced financial results for the period ended September 30, 2010. Total revenues for the third quarter of 2010 were $9.1 million, compared to $9.9 million in the same period last year.  Revenues in animal identification segment increased 6% in the third quarter to $7.2 million from $6.8 million in the same period of 2009. (company website)
> Putney, Inc. announced the launch of its newest FDA- CVM approved product, generic ketamine hydrochloride.  (company press release) 
> Neogen Corporation announced that its rapid test for Salmonella enteritidis (SE), Reveal for SE, has received approval from AOAC International. Reveal for SE is the only rapid test available for SE that follows the FDA’s sample enrichment protocol and has received AOAC approval.  (company press release)  
> Vet-Stem, Inc. announced that a sub-license agreement with Australian Veterinary Stem Cells LTD (AVSC) has been completed which secures Vet-Stem’s third affiliate to deliver its cutting-edge stem cell services to veterinarians for treating horses, dog and cats.  AVSC is now authorized by Vet-Stem to deliver these stem cell services in Australia, New Zealand and Singapore. (PRNewswire) 
> Radio Systems Corporation (RSC) announced it has acquired JGB Distributing, the largest distributor of RSC’s Invisible Fence Brand products. JGB Distributing provides Invisible Fence Brand products and services to over 105 dealers in 22 states and 11 Canadian provinces and territories. Financial terms were not disclosed. (Business Wire) 
Our industry-specific online job board,, currently has dozens of positions available for experienced animal health professionals.  New jobs are posted every week, so visit the site often!
For more information, go to .
> US – MEAT PRODUCTION   USDA raised its forecast of total U.S. meat production in both 2010 and 2011 in its monthly World Supply and Demand Estimates report.  The increase included beef, pork and broiler production. USDA also raised cattle price forecasts for 2010 and 2011 to reflect continued strong demand for cattle, while pork prices were forecast lower and broiler prices were unchanged. (Meating Place)
It appears that companies are so busy completing their 2011 plans and forecasts that they’re failing to create current news.  As we now approach the last 6 weeks of 2010 it’s time to start putting on the creative caps to figure out how to address the issues that you’ll face next year.  We believe there will be a number of them including high feed grain prices for the food production area.  High feed grain prices will also impact the cost of raw materials for most pet foods. 
Another issue of importance is the trends in leading veterinary flea and tick products selling in the OTC market.  How will Bayer’s move to the OTC channel impact the market?  Will other firms attempt to change their market channel strategy in 2011?  How many new generic flea & tick products will enter the major flea & tick markets in 2011? 
Hopefully, every company will be launching new innovative products in 2011 so the industry will see new revenue growth.  At the present time there seems to be a “hush” related to new product introductions for 2011.  Is that because there are very few, or are new products tied up in the regulatory process?  During our last visit to one of the regulatory bodies in 2010 we were told that this agency would be approving a record number of new products in 2010.  Maybe we’re missing the press releases on the new product approvals!!  There are additional issues that companies need to be concerned about in 2011 that we’ll address in future newsletters.
Finally, I’m back in Dallas after four great weekends of hunting the wily ringneck pheasant in South Dakota. Thanks to all of those that participated. Each of you assisted in making this one of our most successful hunts in several years. The final combined score was hunters 305 and pheasants 210. 
Have a great weekend and enjoy some of this beautiful fall weather!!
Ron Brakke
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Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting, Inc.
For more information about Brakke Consulting’s services and syndicated studies, visit our website at
Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA

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