The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for April 27, 2012
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon
Brakke news
market research
earnings news
Boehringer Ingelheim Vetmedica
VCA Antech
other news
Pioneer Pet Products
Purina Mills
Sticky Paws
Look Before You Leap
If your firm needs help assessing the feasibility of a new product or technology, identifying the opinions and trends of product consumers, or determining the current market for products, Brakke Consulting, Inc. can build a market study to meet your needs. 
We have an in-house database of veterinarians and the ability to custom-tailor surveys of veterinarians, producers and pet owners.  We also produce syndicated studies in a number of high-interest animal health market areas.   Further information can be found at our website or by calling our Dallas office at 972.243.4033.
> Merck (MSD) announced financial results for the first quarter of 2012. Animal Health sales totaled $821 million for the first quarter of 2012, an 8% increase over the first quarter of 2011. (company press release)
> Sanofi reported financial results for the first quarter of 2012. Merial recorded sales of EUR 578 million ($748 million), down 5%. Frontline family products sales were down 14% from the comparable quarter in the prior year. (company website)
> Bayer reported results for the first quarter of 2012. The Animal Health Division increased sales by 8% to EUR 319 million ($413 million). (company website)
> Eli Lilly and Company announced financial results for the first quarter of 2012. Worldwide sales of animal health division Elanco were $491 million, an increase of 33% compared with the first quarter of 2011. US sales grew 33% due primarily to increased demand and the favorable impact from customer buying patterns. Sales outside the US increased 32% driven primarily by the impact of the acquisition of certain Janssen animal health assets in Europe. (company press release) 
> Boehringer Ingelheim reported financial results for the full year 2011. The Animal Health business increased net sales 6% to EUR 976 million ($1,264 million). The main growth drivers were swine vaccines, led by Ingelvac Circoflex. (company website)
> VCA Antech, Inc. reported financial results for the first quarter ended March 31, 2012. Revenue increased 15% to $410 million; net income increased 21% to $36.3 million. Animal Hospital revenue increased 17% to $316 million driven by acquisitions made in the past twelve months and same-store revenue growth of 3.5%. Laboratory revenue in the first quarter increased 6.5% to $85 million. (company press release)
> Abaxis, Inc. reported financial results for the fiscal year ended March 31, 2012. Veterinary market sales were $122 million for fiscal 2012, up 12% year-over-year. (company website)
> Colgate-Palmolive Company reported results for the first quarter of 2012.  Sales for Hill’s Pet Nutrition increased 1% to $542 million.  (company website)
> Dr. Dirk Ehle has been appointed Head of the Animal Health Division of Bayer HealthCare AG effective May 1, 2012. The 42-year-old succeeds Dr. Jean-Luc Lowinski, who is leaving the company at his own request. Dr. Ehle joined Bayer as an attorney in the Legal Department in 2001. He was most recently Senior Bayer Representative for Central Eastern Europe and Head of Bayer HealthCare in Poland. (company website)
> Virbac Animal Health announced a voluntary recall of one lot of its Iverhart Max Chewable Tablets (ivermectin, pyrantel pamoate, praziquantel) because the ivermectin failed to meet the company’s stability specifications. Virbac tested other lots of Iverhart and confirmed only one lot was affected; no heartworm-related adverse events or illnesses have been reported. (
> Bimeda announced that the company has received approval from the FDA to market GentaMed (gentamicin sulfate) Soluble Powder for the control and treatment of colibacillosis in weanling swine caused by strains of E. coli sensitive to gentamicin, and for the control and treatment of swine dysentery associated with Treponema hyodysenteriae. (Vet Advantage)
> Pioneer Pet Products LLC announced it has acquired FeLines Inc (dba Sticky Paws).  Sticky Paws manufactures and sells cat behavior modification products.  Financial terms were not disclosed. (Pet Product News)
> Purina Mills, a unit of Land O’Lakes Purina Feed, launched its Purina Small Animals line of small animal food and treats. (Pet Product News)
> US – BSE  The USDA confirmed the nation’s fourth case of BSE in a dairy cow in central California.  Officials detected a rare form of BSE in the cow through regular USDA sample testing. The animal was never offered for human consumption. (
> US – BRUCELLA SUIS  Feral pigs screened by the North Carolina State University tested positive for the Brucella suis bacteria, the first time that the disease has been identified in feral pigs in the state. The study aimed to test pigs in North Carolina for several types of bacteria and viruses between September 2007 and March 2010. Around 9% of pigs studied in Johnson County showed exposure to B suis, while levels were at 1% in another 13 sites. (Animal Pharm)
Wow!!  It appears that some of the larger animal health companies are off to a great start in 2012. Will others be able to match those numbers?  Based on feedback from the industry we expect a strong first quarter. Here in Dallas we’re experiencing warm temperatures and plenty of moisture so it should be a great insect season. Revenue needs to be strong to cover the costs of TV advertising for flea/tick items in this market; there are at least four companies with heavy advertising in this market.
On the personal side, I’ve spent the past two weeks recuperating from surgery.  I hope to begin spending time in the office next week, and expect to be back in the swing of things before long.  Thanks to all of you that have expressed your concern and prayers on my behalf the past few days.
Have a great weekend!  I’ll miss seeing many of you at the AVDA meeting this year.
Ron Brakke
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