The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for August 26, 2011

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
earnings news
other news
Amarillo Biosciences
American Veterinary Supply 
Colorado Serum Company
Instituto Sanidad Ganadera
Pet King
Quaker Pet Group
Watson’s Senior Pet Supplies
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> Norbrook Laboratories reported results for the fiscal year ended July 31, 2011.  Sales of veterinary products were GBP 175 million ($280 million) for the year. (Animal Pharm)
> Patterson Companies, Inc. reported results for the first quarter of fiscal 2012 ended July 30, 2011. Sales of the Webster Veterinary unit increased approximately 8% on a comparable basis from the year-earlier period to $180 million. (company website) 
> Skystar Bio-Pharmaceutical Company reported unaudited second quarter fiscal year 2011 earnings for the period ended June 30. Revenue increases 10% to $9.1 million. (Market Wire) 
> Merck announced the appointment of Richard R. DeLuca Jr. as executive vice president and president, Merck Animal Health, effective September 15, 2011.  DeLuca will succeed Raul Kohan, who has decided to retire from the company.  Kohan will remain with the company until the end of the year to ensure a smooth transition. (company press release) 

> Ceva announced it has acquired Argentinian company Instituto Sanidad Ganadera (ISG), a family-owned business specializing in the development and production of ruminant vaccines. The acquisition marks Ceva’s first direct entry into Argentina. Financial terms were not disclosed. (Animal Pharm)
> Bimeda announced the acquisition of Assin Ltd, a division of Phibro Animal Health. Assin markets a wide range of products to the animal health market in Kenya and has sales of $4.5 million. The acquisition gives Bimeda one of the largest shares of the Kenyan market. (company press release) 
> Teva Animal Health announced that The Luxury You Trust (LYT) family of cleansing and grooming products have returned to commerce with the addition of a new aloe and oatmeal formulation called AvenaLyt.  The LYT family of products is available exclusively to veterinarians. (company press release) 
> Webster Veterinary Supply announced the acquisition of American Veterinary Supply Corporation (AVSC), a full-service veterinary distributor serving the New York metropolitan area. AVSC has sales of approximately $25 million and 14 field sales representatives. Terms of the transaction were not disclosed. (company website) 
> Amarillo Biosciences, Inc. announced that Colorado Serum Company has agreed to help evaluate ABI’s technology for animal health applications.  Using a method developed by ABI, CSC will manufacture bovine protein extract, an immune-system-boosting dietary ingredient that can be incorporated into products for use in animal health. (Market Wire)
> OtoVet has acquired the assets of the veterinary division of Medrx, which specializes in video-otoscopy, and renamed the company OtoVet-USA.  Financial terms were not disclosed. (company press release)
> Pet King Brands announced Zymox Enzymatic Ear and Skin Care veterinary products, formerly available only through veterinarians, will be available for over-the-counter sales. The line features products for managing common ear issues and skin care issues. (Pet Business)
> Quaker Pet Group announced it has acquired Watson’s Senior Pet Supplies, extending the company’s commitment to the aging pet market. Watson’s Pet Supplies designed the Bottoms Up Leash that improves mobility for senior pets. Financial terms were not disclosed. (Pet Business)
> US – EEE   Officials in Oswego County, New York reported the death of a dog from eastern equine encephalitis, better known as EEE. EEE is more commonly seen in horses, and is rare in other animals. (
> US – PET FOOD REGULATION   The Association of American Feed Control Officials unveiled its new website, “The Business of Pet Food,” which was developed to address frequently asked questions about US petfood regulatory requirements. The site,, includes explanations and links to resources from the states and US government with information about registration and licensing, ingredient listing, labeling requirements and laboratories and analyses. (Pet enews)
> US – VETERINARY INITIATIVE   The AVMA Executive Board approved an action plan designed to advance the profession toward easing the economic burdens facing its members. The vision statement, “Veterinary medicine is a personally and financially rewarding profession,” was approved and serves as the basis for creating a $5 million Strategic Economics Initiatives fund to improve the economic situation of its members over the next 5 years.  Other recommendations include (1) establish a Veterinary Economic Strategy Committee; (2) create a Veterinary Economics Division within the AVMA; (3) authorize the continuation of the Economics Vision Steering Committee; and (4) develop an economics communication strategy. (AVMA)
> US – AG EDUCATION   The University of California-Davis announced it is launching an undergraduate major focused on agricultural sustainability. The bachelor of sciences degree in Sustainable Agriculture and Food Systems “uniquely integrates several subjects to provide students with a thorough understanding of the many issues facing modern farming and food systems, including production, processing, distribution, consumption and waste management.”  The announcement did not define the term “sustainable agriculture.” (Feedstuffs)
The Kansas City Animal Health Corridor cordially invites the animal health industry to join us for an exclusive gathering of animal health CEOs and industry leaders from across the country and around the world.  Highlights include celebrity guest Ty Murray, the “King of Cowboys,” and Iron Paw honoree Joerg Ohle.
For details or to register for the event, go to
It’s interesting how the consolidation of the industry keeps progressing.  Again this week there are three acquisitions or mergers mentioned in the news.  While those reported this week are not large or game changers, they do represent several millions of revenue that is moving into larger firms. 
When you consider that at least 3 to 6 of these types of mergers or acquisitions are announced each month, it ends up to amounting to 40 to 60 per year worldwide.  The acquiring companies end up with additional revenue for critical mass and often geographical expansion.  Yes, we believe consolidation will continue at the pace of the past few years.  If you’re interested in selling or purchasing companies in animal health, Brakke Consulting can be of assistance. 
Congratulations to Raul Kohan upon his retirement from Merck Animal Health.  Raul was one of the most tenured executives managing a top 10 animal health company for the past 16 years. During his tenure Raul managed the integration of several other companies into what became Intervet/Schering-Plough Animal Health and now Merck Animal Health.  Raul has played an important role in making the animal health industry what it is today.  We wish him the best in his retirement.
Yes, Dallas has now had a full two months with temperatures over 100 degrees Fahrenheit.  We’re only 11 days from establishing a new record and have had virtually no rain this summer.  So, if you’re a livestock producer in the Southwest, it’s been a difficult summer and fall does appear to offer much relief at this point.
Have a cool weekend!!

Ron Brakke

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