The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for March 18, 2011

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
Pain Management report
earnings news
KMG Chemicals
other news
Animal Health International
Digital Angel
Nestle Purina PetCare
Nutramax Labs
OneCARE Company
PCI Animal Health


Pain management is one of the leading topics in veterinary medicine today.  The products represent a substantial market segment with potential still to be tapped. 
Brakke Consulting’s annual report on Pain Management Products for Dogs and Cats includes such valuable information as:
  – overview of acute and chronic pain in small animals
  – review of current products
  – estimates of US sales and prices of leading products
  – pain management products in development
  – review of nutritional supplements used for chronic pain
  – review of therapeutic diets for joint care
  – 2011 survey of over 200 small animal veterinarians regarding use of pain management products
Pain Management Products for Dogs and Cats 2011 can be purchased for $4,995 if ordered by April 1, 2011.  The report will be completed in April.  Questions about the study can be answered by project manager Lynn Fondon, DVM, MBA at 972-243-4033, or email
> KMG Chemicals Inc. reported results for the period ended January 31, 2011. Net sales of animal health pesticides increased 27% to $3.1 million. (
> Elanco announced that Lilly has made an irrevocable, unconditional offer to acquire the animal health business of Janssen Pharmaceutica NV, a Johnson & Johnson Company. Upon deal closing, Elanco would obtain a portfolio of about 50 marketed animal health products; Janssen animal health employees solely dedicated to the animal health business will transfer to Elanco. No manufacturing facilities would be included in the transaction. Financial terms were not disclosed. (company press release)
> Animal Health International, Inc. and Lextron, Inc. announced that they have entered into a definitive merger agreement under which Lextron, with support from investment funds affiliated with Leonard Green & Partners, L.P., will acquire all of the outstanding common shares of AHII for $4.25 per share, or approximately $111 million, plus the repayment of AHII’s outstanding indebtedness, for a total purchase price of approximately $251 million. The new combined company will operate under the umbrella of the Animal Health International, Inc. name. (Globe Newswire)
> Ceva announced the launch of Vectormune HVT-NDV, a novel vaccine that protects poultry against both Newcastle disease and Marek’s disease. Because maternally derived antibodies do not affect its efficacy, Vectormune HVT-NDV can be given in the hatchery and provide lifelong protection to day old chicks. (Animal Pharm)
> Sergeant’s Pet Care Products Inc. announced the introduction of its new fipronil-based flea and tick products: FiproGuard and FiproGuard Plus. They are the first approved generic topical products for fleas and ticks containing fipronil and fipronil/s-methoprene, respectively.  The products will be available through pet specialty retailers nationwide this spring. Sergeant’s also announced the launch of PronylOTC and PronylOTC Plus; these products contain the same active ingredients as FiproGuard and FiproGuard Plus, but were developed for the grocery, mass and drug retailers, according to the company. (PetProductsNews)
> Farnam announced the launch of Bio Spot Defense Spot On Flea & Tick Control for Dogs.  Bio Spot Defense Spot On contains etofenprox and (S)-methoprene and provides fast acting and long lasting flea, tick and mosquito protection for up to one month. (company press release) 
> ImmuCell Corporation announced that it has entered into a sales and marketing collaboration with Agri Laboratories Ltd. AgriLabs will work with ImmuCell to expand market demand for First Defense; the collaborative agreement also covers the development of First Defense Technology, a whey protein concentrate product, as a feed ingredient. (company press release)
> Digital Angel Corporation announced that its subsidiary Destron Fearing will launch two new radio-frequency identification (RFID) readers, FishTRACKER IS001 and FishTRACKER FS2020, and a new passive integrated transponder (PIT) tag, FishID SST2. (Business Wire)
> Vet-Stem announced that the Federal Appeals Court has ruled that Vet-Stem’s licensors, The University of Pittsburgh and Artecel, Inc. are the exclusive inventors of the adipose stem cell, specifically in the patent 6,777,231.  Artecel, Inc. is the human stem cell company that holds all of the rights to this patent portfolio and has exclusively licensed all veterinary rights globally to Vet-Stem. (MarketWire)
> VetSource and Webster Veterinary Supply announced that Purina Veterinary Diets are now available through the Webster VetSource Home Delivery platform. (company press release) 
> PCI Animal Health officially announced its full-line distributor partnership with Novartis Animal Health and Nutramax Laboratories. (company press release)
> Vetstream announced the launch of, an online community for veterinarians and veterinary nurses/technicians, practice managers and receptionists.  Vetsforum is designed to bring the veterinary community together with associations and related commercial organizations. (company press release)
> The oneCARE Company and Purina have partnered to launch a new line of products: Purina ProCare. The line, designed to make pet care easier, includes Ultra Dry Advanced Training Pads and Pet Stain & Odor Eliminator for carpet and upholstery. (Business Wire)
> US – POULTRY CONTAMINATION STANDARDS  The USDA announced implementation of new performance standards for the poultry industry to improve reduction of Salmonella and Campylobacter in young chickens and turkeys. The new performance standard for Salmonella is that no more 7.5% of raw chickens test positive; the Campylobacter standard is that no more than 10.4% of raw chickens and no more than 0.79% of raw turkeys sampled test positive. (Meating Place)
> US – CVM   The Center for Veterinary Medicine’s announced the launch of eSubmitter, a new electronic submission tool designed to make the US drug approval process more efficient and effective. The tool can be used for all animal drug submission types; use of the eSubmitter is voluntary and free of charge. It can be downloaded at (CVM)
> WORLD – VETERINARY NUTRITION   The World Small Animal Veterinary Association (WSAVA) has developed a set of global nutritional guidelines for companion animals, aiming to make nutrition an integral part of assessing an animal’s health and to make veterinarians the primary source of nutritional information for pet owners.  The starting point for the guidelines was recommendations for US veterinarians published by the American Animal Hospital Association last year. The WSAVA has adapted these so that they can be applied not only in developed countries, but anywhere in the world. (Animal Pharm)
> US – VETERINARY EDUCATION   The AVMA Council on Education has granted the National Autonomous University of Mexico School of Veterinary Medicine, Mexico City, full accreditation status for seven years. (

Animal Agriculture Alliance’s
Tenth Annual Stakeholders Summit
May 5-6, 2011
Arlington, Virginia
The 2011 Animal Agriculture Alliance Stakeholders Summit’s theme, “United We Eat: Securing Animal Agriculture’s Future” will help attendees reflect on the challenges of the past decade and new opportunities to strengthen agriculture advocacy efforts in the future.
All registration materials must be submitted in advance of the conference as on-site registration will not be offered. For additional Summit information, contact the Animal Agriculture Alliance at (703) 562-5160 or by e-mailing Registration materials are also available at
It was another interesting week in animal health.  Two of the large animal health distributors, Animal Health International and Lextron, agreed to merger terms.  This merger, when completed, will create a new distribution company with well over $1 billion in revenue. 
At almost the same time Elanco announced that it intends to purchase Janssen Animal Health in Europe from Johnson & Johnson. This acquisition will provide Elanco with an entry into the European companion animal market. 
So, consolidation continues in the industry with numerous additional rumors regarding other possible transactions occurring in the near future.  By the end of 2011 the industry could have two manufacturers with $3.5 – 5 billion in revenue.  Now it appears that we’ll also have at least three distributors with revenue in excess of $1 billion by year end. These are large companies with significant assets to support their growth and expansion both in the US and International markets. 
One other story confirms that the flea & tick products (fipronil) marketplace wars are about to go into full swing.  Others familiar with this market believe there will be a number of additional product introductions before the season ends.  Let’s hope for all those companies involved that the revenue from this product area does not decline in 2011.
Have a great weekend!!
Ron Brakke

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Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA

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