The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for May 13, 2011

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
market research
earnings news
Animal Health Int’l
Spectrum Brands
OurPet’s Company
other news
American Dehydrated Food
Destron Fearing
Digital Angel
R&D LifeSciences

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Further information can be found at our website or by calling our Dallas office at 972.243.4033.
> Bioniche Life Sciences Inc. announced financial results for the third quarter of its 2011 fiscal year ended March 31, 2011. Consolidated revenues related to Bioniche Animal Health product sales for the third quarter were $7.2 million, as compared to $6.1 million in the third quarter of fiscal 2010. (PRNewswire)
> Animal Health International, Inc. reported its financial results for the Company’s third fiscal quarter, which ended March 31, 2011. Net sales increased 10% to $181 million, compared to the same period a year ago. Net income was $0.5 million compared to $0.1 million in last year’s third quarter. (company press release) 
> Spectrum Brands Holdings, Inc. announced fiscal 2011 second-quarter financial results for the period ended April 3, 2011. The Global Pet Supplies Business segment reported net sales of $144 million for the second quarter of fiscal 2011, a decline of 3% compared to the comparable year-ago period. The lower revenues were attributable to continued softness in the North American aquatics category. (Business Wire) 
> OurPet’s Company reported record financial results for its first quarter ended March 31, 2011. Net revenue increased 32% to a record $4.8 million compared to the same period in 2010. Net income declined 10% to $236,254 due to income tax expense for the 2011 first quarter compared to a tax benefit the prior year. (Market Wire)
> JBS S.A. reported that the company’s first-quarter profit increased 48% to $91.8 million on higher sales in Brazil and the US.   Sales rose 20% to $9 billion in the quarter.  (Meating Place) 
> Tyson Foods reported results for its second fiscal quarter ended April 2, 2011.  Net earnings were $156 million on sales that totaled $8.0 billion, compared with net earnings of $156 million on sales that totaled $6.9 billion in the comparable quarter last year. (Feedstuffs)
> Digital Angel Corporation announced that it has entered into a definitive agreement with Allflex USA, Inc. to sell its animal identification business, Destron Fearing Corporation, for a purchase price of $25 million. (Business Wire)
> Abaxis, Inc. announced that it was awarded a three-year, $650,000 grant from the Kansas Bioscience Authority to help set up a laboratory testing facility for veterinarians in Olathe, Kansas.  The lab is the result of a strategic alliance with Kansas State University, K-State Veterinary Diagnostic Lab and the National Institute for Strategic Technology Acquisition and Commercialization (NISTAC), the commercial arm of K-State. (company website)
> Kemin Industries announced it will purchase a pet food ingredients plant from American Dehydrated Foods.  Kemin plans to install processing equipment to make flavoring there, and use American Dehydrated’s spray-drying technology to apply its flavoring to premium pet food. Terms were not released. (Des Moines Register)
> R&D LifeSciences, LLC, introduced Trigestamace Liquid as the latest addition to its line of products.  The 3-in-1 digestive enhancement formula includes the benefits of mannin oligosaccharides (MOS), beta glucans and enzymes, which have been shown to not only enhance digestion, but also improve health and increase production when given to both dairy and beef cattle, calves, poultry and swine. (company press release)
> EU  The Committee for Medicinal Products for Veterinary Use (CVMP) of the European Medicines Agency (EMEA) has recommended granting marketing authorization for Recuvyra, a transdermal fentanyl solution for dogs. Recuvyra was developed under license by Elanco, which has an exclusive worldwide license to develop and commercialize animal health products utilizing Acrux’s technology to deliver drugs through the skin. (
> UK – RESEARCH INITIATIVE   The UK’s Department for Environment Food and Rural Affairs (DEFRA) announced the formation of an international network, funded by the EU, linking thousands of scientists across the world. It will allow them to exchange research, establish common goals and collaborate on developing future controls. . Examples of major diseases of concern are: Avian Influenza; Porcine Reproductive and Respiratory Syndrome Virus (PRRS); and African Swine Fever. (
The news this week reflects some continuing consolidation and innovation occurring in the industry outside of the normal pharmaceutical, nutritional and vaccine categories.  It’s often easy to overlook the many companies that serve pet owners, veterinarians and food animal producers with quality products and services that are outside of pharmaceuticals, nutritional and vaccine categories.  In some cases the products or services they provide are just as important as the ones we normally think of when we think animal health.
I’ve spent most of this week in the upper Midwest, and weather conditions are not currently conducive to agriculture. In a number of areas heavy rains and cool weather is impacting the planting of key cereal grains.   All the new tractors, planters and pickups are ready to go but are bogged down with wet fields. In our state of Texas there remain significant droughts in some key cow/calf areas.  So, it’s a mixed bag with only one thing for sure, “Mother Nature” does have an impact on the animal health industry. 
Have a great weekend!!
Ron Brakke
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