The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for October 28, 2011
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM MBA
Brakke news
new address
earnings news
PetMed Express
other news
Central Animal Health
Mars Veterinary
Nuovo Biologics
Veterinary Products Laboratories

Brakke Consulting is pleased to announce a move to our new headquarters location in Dallas, TX.  Our new address, effective October 31, 2011, will be:
12005 Ford Rd., Suite 530
Dallas, TX  75234
Our phone and fax numbers will remain the same:
Tel 972.243.4033
Fax 972.243.0925

> Bayer reported results for the third quarter of 2011. Animal Health sales were EUR 282 million ($392 million), a decrease of 1% from the comparable period in the prior year (unchanged at constant exchange rates). (company website)
> Vétoquinol reported results for the third quarter of 2011.  Sales were EUR 68.4 million ($95 million), a decline of 1% (+1% at constant exchange rates) compared to the comparable quarter in the previous year. (company website)
> Abaxis reported results for the second quarter of fiscal 2012 ended September 30, 2011. Veterinary market sales were $31.5 million, up 18% over last year’s comparable quarter. (company press release)
> Colgate-Palmolive Company reported results for the third quarter of 2011. Sales for Hill’s Pet Nutrition were $537 million, an increase of 3% compared to the third quarter of 2010. (company website)
> Ridley Inc. reported financial results for the first quarter of fiscal 2012 ended September 30, 2011. Sales revenues of $157 million were 23% higher than last year, largely due to higher raw material prices; tonnage volumes were 2.5% higher in the first quarter of fiscal 2012. Net profit after income taxes was $0.7 million compared to $1.6 million last year. (company website)
> PetMed Express, Inc. announced its financial results for its second fiscal quarter ended September 30, 2011. Net sales for the quarter were $58 million, a decrease of 5% compared to  the quarter ended September 30, 2010. Net income was $3.9 million compared to net income of $5.0 million for the comparable period in the prior year. (company website) 
> Central Animal Health, a unit of Central Garden & Pet, launched its new Smart Shield applicator for its Bio Spot Defense and Adams Flea and Tick Spot On products.  The applicator helps part the pet’s fur, prevents spillage and regulates the dose so it is evenly spread. (Pet Product News)
> Mars Veterinary announced the introduction of Optimal Selection, a DNA test for dog breeders. This new test uses a small blood sample to analyze and compare chromosomes of potential breeding pairs, giving the breeder the opportunity to diversify the genetic makeup of their puppies and reduce the risk of recessive medical conditions while still being able to select for the physical and behavioral traits that are important to them.  The analysis provided by Optimal Selection utilizes a scoring system based on the dog’s DNA that can be compared across multiple potential pairings. (PRNewswire) 
> Veterinary Products Laboratories (VPL) introduced Optima 365 Chewable Tablets for Dogs to reduce dander and shedding. Optima 365 Chewable Tablets contain the optimal combination of marine and vegetable Omega 3 and Omega 6 fatty acids, with DHA, EPA and ALA for healthy skin and coat condition. A reduction in non-seasonal shedding can be expected in 2 to 4 weeks. (company press release) 
> Nuovo Biologics LLC announced that the FDA has approved a MUMS (minor use minor species) designation for its Panavira (alpha-neurotoxoid) injection for the treatment of local disease in stage II and III oral malignant melanoma in dogs. (FDA)
> EU  Merck Animal Health announced that it has received marketing authorization in the European Union for Porcilis M Hyo ID Once, the first single-shot vaccine against Mycoplasma hyopneumoniae (M Hyo) infection in pigs for intradermal administration. (company press release)
> US – TUBERCULOSIS   The USDA’s Animal & Plant Health Inspection Service (APHIS) announced that it is amending the bovine tuberculosis regulations to reclassify zones in New Mexico and Minnesota as meeting the criteria for accredited-free status.  (Feedstuffs)
> US – ANIMAL NUTRITION  The National Animal Nutrition Program has been established to facilitate high-priority research regarding the nutrient needs of beef cattle, dairy cattle, swine and poultry. The program is funded by the agricultural experiment stations and administered by the National Institute of Food & Agriculture. Three groups are currently being formed through a competitive process, including (1) a coordinating animal nutrition group, (2) a feed composition group and (3) a modeling group. The function of these groups is described in a document available at (Feedstuffs)
It appears from those companies reporting this week that the softness in the marketplace we’ve been predicting is occurring. With the continued lack of resolution in the financial markets around the world, it’s likely that consumer confidence will continue to be an issue and spill over into the animal health market.
It is informative to be spending time in the Heartland of America this fall. The geographical areas where agriculture dominates the economy are experiencing positive expenditures by producers. It currently is a good year to be a crop and animal producer. Let’s hope that continues!

You read earlier in the newsletter that Brakke Consulting is moving offices for the second time in our 25+ year history. Our continued growth and need for more quality office space are the driving forces for this change. It’s great being in South Dakota while the Dallas staff makes the move. Make sure you have our new mailing address.

Finally, we want to thank our newsletter readers. This week is the 12 anniversary of the newsletter for the industry. Thanks to Lynn Fondon the editor/consultant who writes and manages the newsletter for us every week, and others in the firm that sometimes fill in for her. We hope you enjoy it. Our readership continues to grow worldwide.

Pheasant hunting last week improved because of our strategic planning and implementation on the part of the hunters. Those hunters participating last weekend filled their limit for the three days, which was even better than opening weekend. A new group of hunters will arrive on Friday morning as many of you are reading this newsletter. I’m currently creating a new plan for this weekend’s hunt and will report next week!!

Have a great weekend, and if you’re in the US don’t eat too much Halloween candy!!

Ron Brakke
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Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA


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