The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for April 22, 2011

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
earnings news
other news
Groupe Grimaud
Modern Veterinary Therapeutics
Newsham Choice Genetics
Pen Ar Lan


Since 1986 Brakke Consulting, Inc. has successfully assisted many clients in acquiring exceptional employees at all levels, in the many departments of animal health, pet, veterinary and specialty chemical companies.   We pre-qualify candidates, allowing clients to choose from a few of the best applicants for a position.  Our approach increases the efficiency and effectiveness of the Human Resources Departments of client companies.
> Eli Lilly and Company announced financial results for the first quarter of 2011. Worldwide sales of animal health group Elanco were $370 million, an increase of 28% compared with the first quarter of 2010. US sales grew 28% due to increased demand for food animal products and the US launch of Trifexis. Sales outside the US increased 27%, driven by increased demand and the impact of the acquisition of certain Pfizer animal health assets in Europe. (company press release) 
> Virbac SA reported results for the first quarter of 2011. Consolidated sales in the first quarter reached EUR 160 million ($225 million), an 18% increase compared to the same period of 2010. Sales increased by 14% excluding exchange rates impacts. (company website)
> Vétoquinol reported that net sales for the first quarter 2011 grew by 3% (1% on a constant forex basis), as compared to the same period last financial year, rising to EUR 66.4 million ($93 million). (company website)
> IDEXX Laboratories, Inc. reported that revenues for the first quarter of 2011 increased 9% to $293 million. Companion Animal Group revenues for the first quarter of 2011 were $241 million, a 9% increase compared to the first quarter of 2010. (PRNewswire) 
> Nutreco reported financial results for the first quarter of 2011.  Revenue increased 16% to EUR 1.2 billion ($1.8 billion). Higher sales volumes accounted for an increase of 1%, while price effects accounted for an increase of 12.3%, mainly related to passing on the higher raw material prices. (Animal Pharm) 
> Pfizer Animal Health announced that the FDA has approved Improvest (gonadotropin releasing factor-diphtheria toxoid conjugate) for temporary immunological castration and reduction of boar taint in intact male pigs intended for pork. The technology is approved in 58 other countries around the world under the related global brand, Improvac. (company press release) 
> FidoPharm announced the launch of PetArmor Over-the-Counter Flea and Tick Treatment, a generic fipronil product available on retail shelves nationwide. The ASPCA has selected PetArmor as an official flea and tick treatment. (PRNewswire)
> Modern Veterinary Therapeutics announced the launch of Schebo – Elastase 1 Canine Feces Test in North America and in France. The new Schebo – Elastase 1 Canine Feces Test is indicated for the diagnosis of Exocrine Pancreatic Insufficiency (EPI) in dogs. (company press release)
> Abbott Animal Health announced the launch of a new line of veterinary intravenous crystalloid solutions, the most recent addition to its portfolio of veterinary labeled fluid therapy products. (company communication)
> Luitpold Pharmaceuticals, Inc. announced that, as a result of a recent inspection and a follow-up meeting with FDA, the company has agreed to temporarily suspend distribution of any drug product manufactured at its Shirley, New York facility and marketed by its American Regent, Inc. subsidiary and Animal Health Division. (PRNewswire)
> Bio-Vet announced the launch of ParturX, a supplement for fresh cows that addresses milk fever and ketosis.  ParturX supplies high levels of calcium, vitamins, magnesium propylene glycol, and niacin, as well as a full dose of yeast culture to support rumen function and appetite. (Feedstuffs)
> Groupe Grimaud, parent company of swine breeder Choice Genetics and Newsham Choice Genetics, announced a joint venture with swine breeder Pen Ar Lan, which has operations in Europe and North and South America. Choice Genetics will be the majority shareholder in the joint venture; Newsham and Pen Ar Lan will operate as two companies, but each will benefit from the technological advances of the other. (Feedstuffs)
> SecuraTrac introduced a new pet locating technology called SecuraPAL (Pet Automated Locator) that can send you a text message and email if your pet escapes your yard. The SecuraPets solution consists of a small, lightweight GPS device that attaches to your pet’s collar, and an interactive web platform that allows you to monitor your account and pet’s location from your smartphone or computer. A key feature of SecuraPAL is its ability to report when it leaves boundaries you set called SecuraFences. (Business Wire)
> SOUTH KOREA – FMD  South Korea reported an additional outbreak of foot-and-mouth disease (FMD). Six pigs at a farm southeast of Seoul tested positive for FMD and 10 pigs had already died without clear reasons. The virus found in the infected pigs, serotype O, was the same one the central government has been vaccinating against for months.  The national veterinary service will investigate why FMD broke out at a farm where all the animals were vaccinated in February. (Meating Place)
> US – PLAGUE   New Mexico’s state Health Department confirmed plague this week in a dog in Santa Fe County; lab tests also have confirmed plague cases in another Santa Fe County dog and a cat from Rio Arriba County near Abiquiu. These are the first cases of the year in the state. (
> US – RESEARCH FUNDING   Congress has passed an omnibus appropriations bill that contains $40 million to fund the next phase of the construction of the $650 million National Bio and Agro-Defense Facility (NBAF) in Manhattan, Kansas. The NBAF will be a highly secure biosecurity level 3 and 4 facility on the Kansas State University campus where top government scientists and researchers will study of foreign animal, emerging and zoonotic (transmitted from animals to humans) diseases that threaten the US animal agriculture and public health. (KBA)
> US – ANIMAL WELFARE LEGISLATION   The US House of Representatives has passed a Senate Bill which will phase out the use of battery cages for egg laying hens. Instead, Senate Bill 5487 mandates the use of an American Humane Association-approved housing system for hens requiring more space and the implementation of what is known as the ‘enriched colony model.’  (Animal Pharm) 
> US – ANTIMICROBIAL USE   The American Veterinary Medical Association has created a five-member committee that will provide input to the FDA on policies and regulations governing veterinarians’ involvement in the use of antimicrobials in food animals. The Steering Committee for FDA Policy on Veterinary Oversight of Antimicrobials will work with the FDA Center for Veterinary Medicine to help develop “practical means” to increase veterinary oversight of antimicrobial use. (Veterinary Practice News)
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
The companies reporting results for the first quarter seem to be confirming our belief that 2011 is off to a better-than-expected start on the revenue side.   I can’t recall a time when there were so many moving variables impacting the industry, both positively and negatively.  We have $4 gas and consumers seem to keep expanding their general purchasing. We have $7.50 to $8.00 corn futures and feeder cattle have been selling at record highs. Feed grains are at all-time highs, which will cause food prices to rise even more rapidly than they have to this point.  We have unemployment above 8% with increasing food prices but the general economic climate seems to be positive.  I guess when the Dow Industrials are above 12,000 everything is OK.   
In the animal health marketplace the generic fipronil entries seem to be slowly moving towards OTC retail and veterinary clinic shelves; however, to date those launches seem to be behind schedule. It is going to be an interesting summer monitoring and tracking the goings-on in the companion animal parasite market. 
Have a great weekend & HAPPY EASTER!!
Ron Brakke
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