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Brakke Consulting’s
Animal Health News & Notes for September 9, 2011
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
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IN THE NEWS
Brakke news
practice management
earnings news
Dechra
Smithfield
other news
Aventix
Luitpold
Mars Veterinary
Merck (Zuprevo)
Merck (expansion)
Merial
Nestle Purina
Trouw Nutrition
Virbac
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BRAKKE CONSULTING, INC.
VETERINARY CE SEMINARS
If you are a manufacturer or distributor in animal health, Brakke Consulting’s practice management consultant, Jessica Lee, speaks on a wide array of topics that can provide added value to your veterinary customers. Consider booking Jessica to present Veterinary Continuing Education seminars for lunch or dinner meetings, or to moderate at all-day workshops for your veterinary customers. For more information on how to book Jessica for speaking engagements, contact her at jglee@brakkeconsulting.com or 919.444.3279.
www.BrakkePracticeConsulting.com
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COMPANY EARNINGS RELEASES
> Dechra Pharmaceuticals reported results for the fiscal year ended June 30, 2011. Revenue for the year increased 5% to GBP 389 million ($623 million). Pharmaceutical revenue was GBP 105 million ($168 million), up 11% over the prior year. Reported operating profit was GBP 21.7 million ($34.8 million), an increase of 9% compared to the prior year. (company website)
> Smithfield Foods Inc. reported results for its first fiscal 2012 quarter ended July 31, 2011. The company reported net earnings of $82.1 million compared with earnings of $76.3 million in the prior year, Sales totaled $3.1 billion in the current quarter, compared with sales of $2.9 billion in its first fiscal 2011 quarter. (Feedstuffs)
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COMPANY NEWS RELEASES
> Merck Animal Health announced the official launch of Zuprevo (tildipirosin), a novel macrolide antibiotic indicated for the treatment and prevention of bovine respiratory disease associated with Mannheimia haemolytica, Pasteurella multocida and Histophilus somni. The product is approved for use in non-lactating beef cattle, including veal calves. It is expected to be available in 18 EU states in the next few months and in the US and Canada in 2012. (company press release)
> Merck Animal Health announced a $13.5 million investment to upgrade and expand its animal health vaccine facility in Omaha, Nebraska. The improvements include adding a high-speed vaccine vial filling line that is the only one of its kind in North America. (Animal Pharm)
> Luitpold Pharmaceuticals announced that it received a Warning Letter from the FDA resulting from an inspection of Luitpold’s facilities held by FDA from February 9 through March 15, 2011. Luitpold believes that it has already taken corrective actions to address most if not all of the observations in the Warning Letter, described in monthly updates submitted after April 5, 2011, and will submit a complete and detailed response to the Warning Letter to FDA by no later than September 22, 2011. Luitpold has and will take all necessary action to resolve FDA’s concerns as expeditiously as possible. (company press release)
> Mars Veterinary announced it has expanded its range of dog DNA analysis products with two new one-of-a-kind genetic tests. Wisdom Panel Purebred and Wisdom Panel Designer Dog certification tests evaluate the genetic patterns within a dog compared with the genetic signatures observed in Mars Veterinary’s database of known purebred dogs. (PRNewswire)
> AUSTRALIA Virbac Animal Health has officially re-opened the former Fort Dodge Animal Health production facility in Australia after a refurbishment program. The company plans to invest A$10 million (US$10.6 million) in the site over the coming years and make it the supply hub for the entire country. (Animal Pharm)
> EU Merial announced that Previcox has been approved in the EU for the relief of pain and inflammation associated with dental surgery, making it the only NSAID with the specific claim for the relief of post-operative dental pain. (Animal Pharm)
> CANADA Aventix announced the completion of renovations on its 17,500 square foot building in Burlington, Ontario, which now houses the Head Offices and the company’s Health Canada-licensed warehouse. The completed renovations coincide with the company’s 10th anniversary in the veterinary pharmaceutical and instrumentation industry. (company press release)
> HUNGARY Nestle Purina announced an addition to its pet food factory in Hungary that will enable the company to meet an increase in demand in Central and Eastern Europe. The 108,000 square foot addition was a $54 million investment that added four new production lines and new pouch-packaging technology. (Pet Product News)
> EU Trouw Nutrition International launched a new branded range of animal health products in the EU. The Farm-O-San portfolio includes 20 existing Trouw products that aim to improve food animal health and productivity through the nutritional channel in ruminants, swine and poultry. (Animal Pharm)
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ANIMAL HEALTH NEWS
> US – PREVENTIVE HEALTH The American Veterinary Medical Association (AVMA) and the American Animal Hospital Association (AAHA) announced the publication of new health guidelines for dogs and cats. The guidelines are designed to provide the foundation for the veterinary practice team to promote preventive veterinary medicine. The Guidelines are available at http://www.aahanet.org/Library/PreventiveHealthcare.aspx. (Vet Advantage)
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BRAKKE CONSULTING VIEWPOINT
Mother Nature has its way of humbling all of us. Here in Texas the temperature has dropped but still no rain. Last night our local 10 p.m. news indicated that there were still 170 separate fires burning across the State with no rain in sight. In the same newscast one can observe the flooding in the Northeast part of the country. I just returned from two trips to the Midwest, and the temperature and lack of rain is starting to reduce the outlook for the cereal grain crops. The USDA has already reduced its estimate for the fall harvest and there are still a few weeks to go before it hits the bin. These mixed weather conditions make for some interesting speculation related to the impact on the already soft economy for the balance of 2011.
What we hear from our manufacturer and distributor clients is that the revenue the past two months has been soft (below expectations). Some of this is likely inventory burn based on caution on the part of veterinary clinics and retail outlets, but we think it’s fair to assume that the animal health industry will be part of reduced growth during the last 6 months of the year.
Have a great fall weekend and depending on where you are located stay cool or dry!!
Ron Brakke
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Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX 75234 USA
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