The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for April 15, 2011

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA

Brakke news
Pain Management report
earnings news
Nestle Purina Pet Care
Skystar Bio-Pharmaceutical
other news
Cody Ventures
KMG Chemicals
Paw4mance Pet Products
Thorne Vet


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 $5,500. Questions about the study can be answered by project manager Lynn Fondon, DVM, MBA at 972-243-4033, or email
> Nestle reported results for the first quarter of 2011.  Pet Care revenues were CHF 2.44 billion ($2.65 billion), representing organic growth of 2%. (company website)
> Skystar Bio-Pharmaceutical Company (China) announced full financial results for fiscal year ended December 31, 2010.  Revenues totaled $47.5 million, up 41%. (SYS-CON media) 
> Intervet/Schering-Plough introduced Circumvent PCV M, a ready-to-use combination swine vaccine that provides protection against porcine circovirus and Mycoplasma hyopneumoniae. (Feedstuffs) 
> The FDA has approved an original new animal drug application (NADA) filed by Novartis Animal Health US, Inc. The NADA provides for the veterinary prescription use of Onsior (robenacoxib tablets) in cats for the control of postoperative pain and inflammation. (Federal Register)
> Thorne Vet introduced ImmunoVET, an immunoglobulin concentrate of bioactive proteins derived from purified bovine serum that contains at least 45% immunoglobulin G (IgG), plus lesser amounts of other immunoglobulins and bioactive proteins.  ImmunoVet products are available for horses, dogs and cats. (company communication)
> KMG Chemicals announced the launch of Buzz Off, a ready-to-use, synergized insecticide developed specifically to combat a wide array of equine pests.  Buzz Off contains permethrin and piperonyl butoxide and is approved for use on horses and foals. (Feedstuffs)
> Danisco Animal Nutrition announced the launch of Axtra XAP, a multi-enzyme product designed for complex broiler diets. (Feedstuffs) 
> Aurora Pharmaceutical introduced PRO-TEC Chlorhexidine Gluconate 16% Concentrate. The product’s 1/8-oz pump delivers the exact amount of product needed for final dilution. (company press release) 
> Cody Ventures Corporation announced the acquisition of Paw4mance Pet Products. Paw4mance Pet Products was formed in 1993 to develop and distribute naturally preserved, chemical free, high end holistic dog and cat food and natural treats, delivered direct to the customers’ door. Financial terms were not disclosed. (Business Wire)
> EU – VETERINARY PRESCRIBING   The European Parliament rejected a proposal to restrict the ability of veterinarians to prescribe and sell veterinary medicines, a measure intended to combat increasing resistance to medicines, particularly antimicrobials. The original cross-party amendment tabled by the AGRI committee said antimicrobial resistance was increasing and EU member states needed to consider restricting veterinarians from, in non-acute cases, selling veterinary medicines directly to farmers and other animal owners. (Animal Pharm)
It was 25 years ago today – April 15, 1986 – that I filed the “Doing Business As” paper work for Brakke & Associates, later to become Brakke Consulting, Inc. It’s clearly been a great ride, thanks to many in the industry. A lot of water has passed under the bridge these past 25 years and it keeps on flowing.  I’m often not sure whether the current activities (flow) is good or bad, but “it is what it is” and thankfully there continues to be significant opportunities in the animal health industry. 
When I started BCI in 1986, we were in the business cycle of early-stage biotechnology investment, with significant amounts of venture capital available. Our first client was Advanced Genetics Research Institute (AGRI) which was an investment startup of Hambrecht & Quist Life Science Venture Partners in San Francisco.  The second client was Molecular Genetics, Inc. which had been funded by several Minnesota life science venture funds.  These companies and the technologies or products they were developing have been absorbed into other firms today. It was clearly thought at that time that the new, innovative biotechnologies would replace many of the products on the market at that time.  A couple of the most successful of these ventures were IDEXX Labs’ many diagnostic products and Monsanto’s rBST product Posilac. 
The largest company in 1986 was Pfizer Animal Health with global sales of $492 million, with a large percentage of its revenue derived from medicinal feed additives.  The next two companies were Rhone-Poulenc and Hoffman-La Roche, which were both in medicinal feed additives. 
In 1986 the value of US animal health market was $2.1 million; 50% of the volume was in medicinal feed additives. 
The top 5 companies globally in animal health in 1986 represented 20% of the market; today the top 5 companies represent 60% of the market.
Only 5 of the top 25 companies in 1986 remain as animal health companies today: Pfizer, MSD-AgVet (Merial), Elanco, Bayer and Boehringer Ingelheim. Consolidation has played a major role in the growth of the active companies today, both in manufacturing and distribution.  And yes, we think consolidation will continue!! 
On this anniversary we want to THANK all of our past and current clients. Those several hundred of you have made Brakke Consulting what it is today. I also want to THANK our current and past consultants who have served the firm over the years with great dedication of time and energy.  This group has made it possible for you to be reading this newsletter, ordering our industry reports and retaining us for consulting and executive search.
The Animal Health Industry is a small sector of the worldwide economy with a bright future. The expanding worldwide population needs a nutritious and safe supply of animal protein and companion animals to be part of their families. We’re honored to be a part of the industry and to make contributions that improve the quality of life of the animals and people around the world.
What does the next 25 years look like?  We’ll try to answer that in the coming weeks, but for now I’m taking off most of Friday afternoon to enjoy a nice late spring day in Dallas!!  Have a great weekend and THANKS for all of your support these past 25 years. 
Ron Brakke

Joel Adamson
Ken Berkholtz
Ray Collier
Lynn Fondon
Atsuo Hata
Jessica Lee
Jay Lockhart
John Mannhaupt
Susan Mannhaupt
Richard Miles
Jane Morgan
Kevin Scott
John Volk
This electronic newsletter is the sole property of Brakke Consulting, Inc.
Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting, Inc.

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

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