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Brakke Consulting’s
Animal Health News & Notes for August 5, 2011
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
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IN THE NEWS
Brakke news
Practice management
earnings news
Butler-Schein Animal Health
Central Garden & Pet
Nutreco
Pfizer
Pilgrim’s Pride
other news
Bayer
Bioniche
Complete Petmart
Farnam
For the Earth Corp.
Kat Box King
Kennel-Aire
Merial
PCI Animal Health
Petco
Petmate
Pfizer
Plasvacc Holdings
Prestige Pet Products
SentrX Animal Care
Worldwise
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BRAKKE CONSULTING, INC.
PRACTICE MANAGEMENT CONSULTANT PUBLISHES ARTICLE ON GROWTH OPPORTUNITIES FOR CLINICS
Brakke Consulting is pleased to announce that our practice management consultant, Jessica Lee, has authored an article in the online edition of Veterinary Practice News magazine. “Physical Rehab, Integrative Medicine as Growth Opportunities” discusses how veterinary clinics can add these niche service areas to differentiate themselves from competitors and widen their appeal. To read the article, go to http://www.veterinarypracticenews.com/web-exclusives/physical-rehab-integrative-medicine-as-growth-opportunities.aspx.
www.BrakkeConsulting.com
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COMPANY EARNINGS RELEASES
> Pfizer Inc. reported financial results for the second quarter of 2011. The Animal Health unit reported revenues of $1.055 billion, an increase of 18%, in comparison with the same quarter last year, reflecting the positive impact of $87 million, or 10%. The increase was due to the addition of legacy King/Alpharma products, the favorable conditions in global livestock markets and the 5% positive impact of foreign exchange. (company website)
> Henry Schein, Inc. reported record financial results for the quarter ended June 25, 2011. North American Animal Health sales (Butler-Schein Animal Health) increased 11% to $260 million. (MarketWatch)
> Central Garden & Pet Company reported financial results for its fiscal third quarter ended June 25, 2011. Third quarter net sales for the Pet Products segment increased 2% to $227 million. (company website)
> Nutreco reported results for the first half of 2011. Revenues increased by 14% to EUR 2.57 billion ($3.63 billion); operating profit increased 3% to EUR 86.4 million ($122 million), with rapid growth in its fish feed business compensating for a weaker performance in other areas. (Animal Pharm)
> Pilgrim’s Pride Corp. reported results for the second quarter of 2011. Total net sales increased 13% to $1.9 billion. The company reported a net loss of ($128 million) vs. net profit of $32.9 million for the comparable quarter a year earlier. The loss is attributed to record-high corn and other costs and weak consumer demand in a marketplace burdened by excess production. (company website)
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COMPANY NEWS RELEASES
> Pfizer announced the launch of Fostera PCV single-dose vaccine to help prevent Porcine Circovirus Type 2 (PCV2) viremia in swine. (company press release)
> PCI Animal Health announced Merial as a new partner. PCI will now have the opportunity to showcase various Merial products to their customers. (company press release)
> Bayer Animal Health announced a license with SentrX Animal Care to distribute SentrX Animal Care’s equitrX Wound Healing Spray Gel and equitrX Corneal Repair Gel Drops for horses. These two SentrX products will be available to licensed veterinarians. (PRNewswire)
> Bioniche Life Sciences Inc. announced that it will not proceed with the proposed acquisition comprising the business and assets of Plasvacc Holdings Limited as previously announced on July 4, 2011. The parties have failed to reach agreement on definitive transaction documents and have terminated discussions under their letter of intent in connection with the transaction. (PRNewswire)
> Farnam announced the addition of four new products to its Horse Health Products brand: Ambush Insecticide & Repellent; EquiFusion 2-in-1 Shampoo & Conditioner; Reach Joint Supplement; and Shur Hoof Hoof Supplement. (company press release)
> Petco announced the acquisition of Complete Petmart pet specialty stores. Complete Petmart operates 29 stores in Ohio, North Carolina and West Virginia. Financial terms were not disclosed. (Pet Product News)
> Petmate announced it has acquired Kennel-Aire, a manufacturer of pet carriers and kennels. Financial terms were not disclosed. (Pets International)
> For The Earth Corporation announced it has signed a letter of intent to acquire Prestige Pet Products, Inc. Financial terms were not disclosed. The company also announced the acquisition of Kat Box King for $500,000. (Pets International, Pet Product News)
> Mistral Equity Partners announced it has acquired Worldwise, Inc., a manufacturer of pet products and accessories including the SmartyKat, PoochPlanet, and Petlinks. Financial terms were not disclosed. (Pet Product News)
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ANIMAL HEALTH NEWS
> US – PET FOOD SAFETY The Partnership for Food Protection and the FDA announced the launch of the Pet Event Tracking Network (PETNet). PETNet is a voluntary, secure, web based information exchange system that will allow FDA and Federal and State Agencies to share initial information about pet-food related incidents, such as illness associated with the consumption of pet food or pet food product defects. The system will be accessible to PETNet members, who are Federal, State, and Territorial government officials responsible for the regulation of pet food products and the investigation of disease outbreaks in companion animals. (FDA)
> ANIMAL WELFARE The Global Animal Partnership (GAP) announced publication of its draft 5-Step Animal Welfare Rating Pilot Standards for Turkeys and opened a one-week comment period. GAP has used a similar process for the standards it already has in place for chickens, pigs, and beef cattle. Comments must be received by 5.00p EDT on Monday, August 8, 2011. For more information and to download the draft document, visit www.globalanimalpartnership.org/the-5-step-program/our-standards/draft-pilot-turkey-standards/ (Feedstuffs)
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BRAKKE CONSULTING VIEWPOINT
If it’s was not “HOT” where you were this past week, you’re a great planner. The weather and drought in many parts of the US continues to negatively impact the animal health business. The stress of the high temperatures not only reduces productivity, but also affects the attitude of producers and pet owners.
Congratulations to Pfizer Animal Health organization for achieving over $1 billion in revenue in the second quarter of the year. That is an impressive number any way you want to cut it!! Unfortunately the numbers for one of the leading producers of poultry protein showed the impact of high corn prices and other business factors. This same company earlier this week announced the closing of a plant in Dallas, TX, leaving about 1,000 employees without jobs in the coming weeks. It is a challenging time for many segments of the industry.
There were three more acquisitions or mergers reported for the week in the pet industry. Companies and investors still believe there is opportunity in the companion animal business no matter what the product line involves. Indications are that the pet business is holding up reasonably well versus other industries during this time of recession and uncertainty. It also demonstrates that there is cash and financing available if opportunities develop.
Have a great weekend and stay COOL!!
Ron Brakke
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Brakke Consulting, Inc.
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