The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for June 17, 2011

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
transaction assistance
earnings news
Smithfield Foods
other news
Animal Health International
Hendrix Genetics
Laboratorias Hipra

Are you interested in growing your business by purchasing another company, product line or technology?  Have you been thinking about selling your company, product line or technology? Have you considered merging your company with another firm to improve shareholder value?
Brakke Consulting, Inc. assisted many clients with licensing transactions, mergers, acquisitions and divestitures over the last few years.  For more information, you can find contact information for all offices on our website at
> Smithfield Foods Inc. reported results for its fiscal 2011 year ended May 1.  Full-year income was $521 million on sales of $12.2 billion, versus a loss of ($101 million) on sales of $11.2 billion in its previous year. More than two-thirds of profits were earned in the pork business segment. (Feedstuffs)
> Merial announced the US Patent and Trademark Office (USPTO) reconfirmed the patentability of formulation claims covering Merial’s Frontline Plus. The company expects some of the generic products introduced this year may infringe the formulation claims and will be removed from the market. (company press release)
> Bayer Animal Health introduced Credo D with DStar adjuvant for control of darkling beetles in poultry operations. Credo D contains DStar and imidacloprid and offers more control of both larval and adult darkling beetles compared to other imidacloprid products. (PRNewswire)
> Lextron, Inc. and Animal Health International, Inc. (AHII) announced the close of their transaction and completion of the merger. Lextron has acquired all of the outstanding common shares of AHII for $4.25 per share, or approximately $111 million, plus the repayment of AHII’s outstanding indebtedness, for a total purchase price of approximately $251 million. (company website)
> Spanish animal health company Laboratorias Hipra announced it will build a vaccine manufacturing plant at Ames, Iowa, its first operation in the US. (Animal Pharm)
> Hendrix Genetics B.V. announced that it has completed the acquisition of the Landcatch salmon breeding divisions of Lithgows Ltd., expanding poultry and swine breeder Hendrix into aquaculture. Financial terms were not disclosed. (Feedstuffs)
> GERMANY  Intervet/Schering-Plough Animal Health introduced BacuCheck, a simple ELISA test for confirmation of vaccination status with Porcilis PCV of piglets against porcine circovirus type 2. The BacuCheck ELISA test was developed to be able to discriminate PCV2-vaccinated piglets from non-vaccinated animals; the test is also able to verify if the animals have received the full vaccine dose. (company press release)
> JAPAN  Canadian company Innovotech Inc. launched InnovoSCEPT, a new animal-infection test kit, into the Japanese veterinary market. The InnovoSCEPT line of veterinary tests will assist veterinarians in the selection of the most effective antibiotic treatment of infections caused by both gram-positive and gram-negative bacteria in both small and large animals. (Reuters) 
> US – BOVINE TB  A steer brought into Arizona to be used as rodeo stock has tested positive for bovine tuberculosis, Arizona’s first case of the disease since 1978. The rodeo stock operation has been quarantined. (MSNBC)
> ANIMAL HEALTH RESEARCH   The Global Strategic Alliances for the Co-ordination of Research on the Major Infectious Diseases of Animals and Zoonoses (STAR-IDAZ) was launched this week.  STAR-IDAZ is funded by the European Commission and coordinated by the UK’s Department for Environment, Food and Rural Affairs (Defra). Bringing together thousands of scientists from research organizations across five continents, as well as the pharmaceutical industry and international animal health bodies, the network seeks to improve coordination of research activities to improve the control of the major current challenges and future disease outbreaks. (Business Wire)
> US – PETFOOD REGULATION   The American Feed Industry Association reported that the USDA’s Animal and Plant Health Inspection Service (APHIS) announced the online availability of its new health certificates for processed petfoods and dog chews. More information can be found on the AFIA’s website. (Petfood Industry)
> UK – VETERINARY DRUG REGULATION  The UK’s Veterinary Medicines Directorate has dropped controversial plans for a new veterinary medicines category – POM EA (prescription-only medicine extended administration). The original purpose was to provide a new category under which a veterinary surgeon would make a clinical assessment and, if appropriate, issue a Veterinary Permission of Extended Administration (VPEA) allowing the animal holder to obtain the prescribed POM EA medicine (from a veterinarian, pharmacist or SQP) for up to 36 months from the date of authorization. (
>  BRAZIL – POULTRY PRODUCTION  The Food and Agriculture Organization (FAO) released figures that show Brazil occupying first place as poultry exporter, topping the US as the top poultry exporter around the world. As a result, Brazil would dominate one-third of the global trade. (Meating Place)
AUGUST 30, 2011

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 or contact Chris Walsh at
When there’s not much else to talk about, one can always talk about the weather.  As most of you know weather impacts the animal health markets in many ways and often not in a positive manner.  Here in the Southwest we are experiencing very high temperatures and limited amounts of rain, so cattle are being taken off the grass and headed for feedlots or to other areas where there is pasture. The Midwest, on the other hand, continues to experience lots of rain and cool weather. 
Earlier this week I noted that one of the large financial firms believes that corn could hit $9 per bushel this fall if growing conditions do not improve.  At the same time, this week the Senate is debating reducing the ethanol subsidy to blenders.  In this time of reducing government spending one would think that the $50 billion handed out in this program might get the boot!!  However, I guess if you’re in the corn belt of the US this subsidy is needed to keep the farm vote in line. 
On another note, we continue to wonder where all the new FDA approvals are at in the system. It seems that everyone is so focused on the generic fipronil that we’re letting the FDA off the hook when it comes to increasing the efficiency of the approval process.  I’ll hopefully get one or two emails from FDA managers suggesting that a number of approvals are just around the corner and approvals are up over last year.
If you’ve not yet done so please remember to sign up for the Animal Health Investment Forum in Kansas City in late August.  A great program is being planned.
Have a good weekend and keep COOL!!
Ron Brakke
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Dallas, TX  75234    USA

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