The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for March 11, 2011

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
sales force update
earnings news
other news
Riemser Arzneimittel
> Heska Corporation reported financial results for the year ended December 31, 2010. Net revenue for the year was $65 million, a decline of 13% compared to the prior year. Net income was $18,000 compared to net income of $2.2 million in 2009. The company attributed the decline to the discontinuation of a line of handheld blood analysis instruments and affiliated consumables, which accounted for over $10 million in 2009 revenue. (company press release)
> Dechra Pharmaceuticals reported results for the six months ended December 31, 2010. Total revenue for the period was GBP 192 million ($254 million), an increase of 4% over the comparable period in the prior year.  Total pharmaceuticals revenue for the period was GBP 50.2 million ($66.5 million).  (company website) 
> Smithfield Foods Inc. reported results for its fiscal 2011 third quarter Jan. 31. The company reported net earnings of $203 million on sales that totaled $3.2 billion, compared with net earnings of $37.3 million on sales of $2.9 billion in its fiscal 2010 third quarter. (Feedstuffs)

Brakke Consulting is pleased to announce the availability of the 2011 update of our annual report on US animal health sales force headcounts.  The report includes estimates of the field sales, managers, and field veterinarians for 28 manufacturers and 10 distributors, including breakouts by species segment.
This table-styled report is available for the price of $2,500.  To order your copy or for more information, please contact Dr. Lynn Fondon at or 972.243.4033.
> Elanco announced the addition of Keto-Test to its current portfolio of productivity products for dairy producers.  Keto-Test is a color-changing test strip for milk that indicates the presence of ketones in milk. (Feedstuffs)
> Aratana Therapeutics Inc. announced it has acquired two licenses from RaQualia Pharma Inc. to develop two compounds for companion animal use. The first compound Aratana will develop for companion animal use reduces pain without becoming addictive or blocking enzymes that are helpful to the body; the other compound helps encourage eating and increases strength. Financial terms were not disclosed. (Kansas City Business Journal)
> Nylabone announced its newest product line, Nylabone Cat Toys and Treats. (Pet Business)
> EU  Belgian animal health company Ecuphar announced it has acquired a large part of the German Riemser Arzneimittel’s veterinary medicines business, with the deal expected to complete by the end of March 2011. Ecuphar says that the acquisition will give it direct access to the German veterinary market, which will be important in meeting its European expansion and growth strategy. Financial terms were not disclosed. (Animal Pharm)
> CANADA – BSE   The Canadian Food Inspection Agency has confirmed a case of BSE in a 77-month-old dairy cow in Alberta, Canada. No part of the animal’s carcass entered the human food or animal feed systems. (Meating Place)
> JAPAN – AVIAN INFLUENZA   Around 33,000 broiler chickens were culled at a poultry farm in southwestern Japan, after avian influenza (AI) was confirmed.  The cull brought the total number of chickens slaughtered at poultry farms in the prefecture to around 990,000 since the first infection was confirmed January 22 in the city of Miyazaki. (Meating Place)
> VETERINARY EDUCATION   The American Veterinary Medical Association (AVMA) Council on Education (COE) has voted to grant full accreditation status to St. Kitts’ Ross University School of Veterinary Medicine’s (RUSVM) Doctor of Veterinary Medicine degree program.  (
> US – ANTIBIOTIC LEGISLATION   Congresswoman Louise Slaughter reintroduced the Preservation of Antibiotics for Medical Treatment Act, a bill aimed at limiting the use of certain classes of antibiotics in animal agriculture. The Congresswoman specified that her bill would only apply to the subtherapeutic use of antibiotics. (Food Safety News)

> US – ETHANOL  A bill was introduced in the US Senate that would repeal the Volumetric Ethanol Excise Tax Credit (VEETC), which gives 45 cents per gallon to ethanol blenders. The US Government Accountability Office (GAO) said in a report issued last week that the ethanol tax credit is largely unneeded today to ensure demand for domestic ethanol production. (Meating Place)
The story this week regarding the announcement that a bill has been introduced in the Senate to repeal the subsidy for ethanol production is very positive in my view.  The fact that 40% of the corn being produced in the US is going to ethanol production puts a great deal of pressure on usage of feed grain for animal and human food. This is a subsidy that creates more issues in our economy than it solves. 
Yes, I understand that we need to become more energy efficient in the US and reduce our dependence on foreign oil.  However, this program encourages the transfer of wealth from everyday citizens in the US to corn farmers and oil companies.  No wonder the price of land has reached record highs!!  During this time of belt tightening in the US, it’s also time for elected officials to take a hard look at this and other farm program subsidies. 
Have a good weekend!!
Ron Brakke

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