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Brakke Consulting’s
Animal Health News & Notes for June 10, 2011
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
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IN THE NEWS:
Brakke news
practice management
earnings news
KMG Chemicals
other news
Abaxis
ADM Alliance Nutrition
Alpharma
Animal Health International
Bayer
Cattleman’s Choice Loomix
Farmagricola SA
Lextron
Meridian Animal Health
Neogen
Novartis
Pfizer
Vetoquinol
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BRAKKE CONSULTING, INC.
KNOW YOUR CUSTOMER
A knowledgeable sales representative is a successful one. Brakke Consulting’s practice management consultant can educate industry sales personnel on the issues currently being faced by veterinary practices, and suggest ideas for how they can gain a foothold in these practices by offering non-product recommendations and services. For more information, contact Jessica Lee at jglee@brakkeconsulting.com or 919.444.3279.
www.BrakkeConsulting.com
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COMPANY EARNINGS RELEASES
> KMG Chemicals, Inc. announced financial results for its fiscal third quarter ended April 30, 2011. Net sales of animal health products in the third fiscal quarter were flat at $3.2 million compared to the prior year period. (Business Wire)
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COMPANY NEWS RELEASES
> Pfizer Animal Health, with its Alpharma subsidiary, announced that it will suspend sales of its 3-Nitro brand roxarsone medicated feed additive in response to an FDA request based on a study FDA conducted using new methodology for testing inorganic arsenic (organic arsenic is a component of roxarsone). The new methodology found extremely low levels of inorganic arsenic in the livers of chickens fed roxarsone compared to control chickens that were not fed roxarsone. Pfizer emphasized that there is no imminent risk to human health from consuming chicken fed roxarsone and there is no need for consumers to alter chicken consumption practices. (Feedstuffs)
> Bayer Animal Health announced that the FDA has approved Baytril 100 (enrofloxacin) Injectable for treatment of Mycoplasma bovis. With this approval, Baytril 100 is now labeled and proven effective as a single-injection treatment for all major pathogens of BRD in cattle and non-lactating dairy heifers less than 20 months of age. (CattleNetwork)
> Novartis Animal Health US, Inc., announced the launch of two new flea and tick control products for dogs and cats, to be available exclusively through veterinarians in the US. Parastar for dogs and EasySpot for cats are species-specific formulations of fipronil. (company press release)
> Vetoquinol announced the acquisition of 100% of the equity of Brazilian company Farmagricola SA. Farmagricola primarily sells anti-infective and parasiticides products for cattle and generated revenues of around 18 million reals in 2010 ($11 million). The acquisition establishes a foothold for Vetoquinol in the world’s second-largest animal health market. (company website)
> Neogen Corporation announced it has received approval from the FDA and National Conference on Interstate Milk Shipments (NCIMS) for its BetaStar Plus dipstick assay, developed for use in the US to detect dairy antibiotic residues, including ceftiofur, in milk. (company press release)
> Meridian Animal Health announced the launch of EctoAdvance flea and tick products for dogs and cats. EctoAdvance contains fipronil and (S)-methoprene and is available only through veterinarians. (company communication)
> ADM Alliance Nutrition announced the acquisition of Cattleman’s Choice Loomix, a leading producer of liquid animal feed supplements. The acquisition marks ADM Alliance Nutrition’s entrance into the liquid feed business. Financial terms were not disclosed. (Feedstuffs)
> Abaxis, Inc. announced the launch of two new rapid diagnostic tests, the VetScan Canine Parvovirus Rapid Test and the VetScan Giardia Rapid Test. (PRNewswire)
> Animal Health International Inc. said Wednesday that a majority of shareholder voted at a special meeting to approve the company’s sale to Lextron Inc. The sale is expected to close on June 10. (Globe Newswire)
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ANIMAL HEALTH NEWS
> KOREA – ANTIBIOTICS South Korea plans to ban the use of antibiotics in animal feed beginning in July. Under the revised rules, the use of eight types of antibiotics will be prohibited, along with one kind of antimicrobial agent. However, veterinarians will be permitted to inject antibiotics into sick animals. (Meating Place)
> US – EQUINE LAMENESS Cornell University’s Department of Biomedical Engineering has developed a battery-operated ultrasound system that horses can wear inside leg wraps designed to help heal their legs. The UltrOZ Elite System, which provides up to 6 hours of ultrasound therapy, is being marketed by ZetrOZ, a business spinoff from the Department. (wbng.com)
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KC ANIMAL HEALTH INVESTMENT FORUM
AUGUST 30, 2011
NOW ACCEPTING APPLICATIONS
The KC Animal Health Corridor is now accepting applications for the third annual KC Animal Health Investment Forum in Kansas City, Missouri.
The forum will showcase animal health and nutrition companies from throughout the world. The selection committee will consider companies that meet the following criteria:
• Seeking $500,000 to $20 million in funding
• Revenue projections of $20 million within 5-7 years
Applications must be submitted by June 24, 2011. All companies will be contacted by July 22 regarding their acceptance. To apply online, go to http://www.kcanimalhealthforum.com/apply.php or contact Chris Walsh at cwalsh@stlrcga.org.
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BRAKKE CONSULTING VIEWPOINT
Well the flea & tick product wars are heating up as we enter into summer. We’ve learned this week that at least two new fipronil generics are entering the veterinary channel. Now veterinarians will have several brands of fipronil to select from if they desire to compete with the retail channel in order to maintain their position with clients. Weather conditions are excellent in most parts of the US so there should be plenty of fleas and ticks to treat.
I’ve just returned to Dallas after two weeks in the Midwest where I experienced some interesting weather conditions. The heavy rains in Montana and North Dakota have forced the core of engineers to order history-making releases of water from the Missouri River reservoirs, and the repercussions are just beginning to be felt downstream. Some of the most productive farm land in the country is the Missouri River bottoms which, if flooded, will be another negative for US corn and soybean production.
On the trip I was able to make two stops in the Kansas City area to visit with various clients and to attend the Kansas Governor’s Summit on Animal Health. The activities in the animal health industry in the Kansas City Animal Health Corridor are just amazing. The cooperation between government and industry is a model that is beneficial to all parties. Additional investments in the corridor will result in more important meetings and programs that will add value to the animal health industry. If you’re firm is looking to relocate, expand or build a new facility you should consider the Kansas City area.
Finally, for new US & international firms seeking venture funding we encourage you consider the Animal Health Investment Forum in KC. The firms that have presented the last two years have raised over $25 million, as well as closing a number of important licensing deals. It’s the place to be the end of August.
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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