The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for March 25, 2011

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
Pain Management report
earnings news
other news
AB Science
Nelson Labs


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 early April.  Questions about the study can be answered by project manager Lynn Fondon, DVM, MBA at 972-243-4033, or email
> Ceva Santé Animale reported results for the full year 2010.  The company recorded sales of EUR 468 million ($650 million), an increase of 19% over the prior year (9% excluding currency factors). (company press release)
> Neogen Corporation announced that its net income for the third quarter of FY 2011, which ended Feb. 28, increased 27% from the previous year to $4.9 million. Third quarter revenues increased 25% to $42 million. Neogen’s Animal Safety Division led the company’s third quarter revenue increase, with sales up 53% to $21.6 million in the current year; organic sales growth was 17%. (company press release)
> Merck and sanofi-aventis announced the mutual termination of their agreement to form a new animal health joint venture by combining Merial with Intervet/Schering-Plough. As a result, each party will keep its current, separate animal health assets and businesses. The companies are discontinuing their agreement primarily because of the increasing complexity of implementing the proposed transaction, both in terms of the nature and extent of the anticipated divestitures and the length of time necessary for the worldwide regulatory review process. (company press release)
> MWI Veterinary Supply, Inc. announced that it has completed the acquisition of substantially all of the assets of Nelson Laboratories Limited Partnership for approximately $7 million. Nelson had total revenues of approximately $35 million for its calendar year ended December 31, 2010. (Market Wire)
> The Provimi Group announced an agreement to sell its pet food activities, Provimi Pet Food (PPF), to private equity firm Advent International for an enterprise value of EUR 188 million ($267 million).  PPF recorded total sales of EUR 236 million ($335 million) in 2010 and serves customers in 27 countries throughout Europe. Provimi has managed its pet food business separately from its core animal nutrition business; following this sale, Provimi will concentrate on the extensive growth opportunities available in the animal nutrition industry. (company press release) 
> AB Science received FDA a new animal drug approval for Kinavet-CA1 (masitinib mesylate) for the treatment of recurrent or nonresectable Grade II or III cutaneous mast cell tumors in dogs.  (FDA)
> Novus International introduced Cibenza DP100, a new dietary enzyme product that the company says allows poultry producers to use diets formulated with proteins and amino acids that are 5% to 10% lower than recommended industry standards with no sacrifice in animal performance. (Animal Pharm)
> TAIWAN – FMD   Nearly 1,000 pigs have been culled in Taiwan following the discovery of foot-and-mouth disease in 30 pigs, the second such outbreak. (Meating Place)
> US – ANTIBIOTIC CLARIFICATION   USDA officials have issued a clarification to recent statements made about livestock producers overusing antibiotics and about that overuse leading to antibiotic resistance in humans.  The original statements were presented at a House Appropriations Committee’s agriculture subcommittee and were wrongly interpreted in a March 16, The Wall Street Journal article by Bill Tomson, which reported that “hog farmers are overusing antibiotics on their herds and that may be creating antibiotic-resistant bacteria that pose a threat to human health.”  In its clarification statement, USDA ARS said: “Dr. Knipling never said that swine producers were overusing antibiotics in the herds.” The released statement also emphasized that Knipling specifically pointed out, that “some of that data and trends show the resistance is not developing to the extent as otherwise might be portrayed.” (Pork Network)
> US – VETERINARY EDUCATION   The North American Veterinary Medical Education Consortium (NAVMEC) is seeking input from the field of veterinary medicine on its draft report, “Roadmap for Veterinary Medical Education in the 21st Century: Responsive, Collaborative, Flexible,” on how to make certain veterinary medical education in North America continues to meet changing societal needs.  NAVMEC invites all members of the community to help by providing feedback to the report and its recommendations by logging on to (NAVMEC)
It has been another interesting week in animal health.  With the breakup of the Merial and Intervet/Schering merger, it appears that at least for now we’ll not have a $5 billion manufacturer in animal health.  In some ways it’s not that surprising that the parties were unable to complete the transaction.  From an outsider’s viewpoint, there were a number of obstacles to overcome that finally caused the deal to collapse. 
We’re pleased to still have two good companies (clients) in business to provide services to.  We’re a bit amused to hear all the new speculation related to what will happen to these two companies now that they are not merging. 
The marketplace seems to be moving along positively and we expect some excellent revenue results for the first half of the year.  With livestock prices trading at record highs it should be a strong year in the food animal sector and the companion animal segment is showing some positive signs of revenue growth. 
Have a great weekend!!
Ron Brakke

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