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Brakke Consulting’s
Animal Health News & Notes for May 4, 2012
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon
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IN THE NEWS:
Brakke news
transaction assistance
earnings news
Dechra
DS Pharma
MWI
Nippon Zenyaku Kogyo
Orion
Pfizer
Pilgrim’s Pride
other news
Diamond Pet Foods
Hartz
Igenity
Impromed
LifeLearn
Merial
Neogen
Spectrum Surgical Instruments
Vet-Stem
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KC ANIMAL HEALTH INVESTMENT FORUM
AUGUST 28, 2012
NOW ACCEPTING APPLICATIONS
The KC Animal Health Corridor is now accepting applications for the fourth annual KC Animal
Health Investment Forum in Kansas City, Missouri.
The forum will showcase animal health and nutrition companies from throughout the world.
The selection committee will consider companies that meet the following criteria:
• Seeking $500,000 to $20 million in funding
• Revenue projections of $20 million within five to seven years
Applications must be submitted by June 22, 2012. All companies will be contacted by July 27
regarding their acceptance. Apply online at www.kcanimalhealthforum.com. For questions, email Kimberly Young at young@thinkkc.com or call 816.374.5627.
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COMPANY EARNINGS RELEASES
> Pfizer reported results for the first quarter of 2012. Animal Health sales were $1,206 million, an increase of 4% compared to the first quarter of 2011. (company website)
> Nippon Zenyaku Kogyo Company reported financial results for the fiscal year ended March 31, 2011. Net sales of animal health products declined by 3% to Y23.9 billion ($299 million) compared to fiscal 2010. (company communication)
> DS Pharma Animal Health Company reported financial results for the year ended March 31, 2011. Full year sales decreased by 1% to Y11 billion ($138 million) compared to the prior year. Although companion animal product sales rose by 0.2%, farm animal and aquaculture product sales declined 5.7% and 30.7% respectively. (company communication)
> Dechra Pharmaceuticals reported results for the 6 months ended December 31, 2011. Total revenue was GBP 210 million ($325 million), an increase of 9% over the comparable period in the prior year. Pharmaceutical revenue was GBP 58 million ($90 million), an increase of 15%. (company website)
> Orion Corp. recorded animal health sales of EUR 18 million ($23.7 million) in the first quarter of 2012, a 6% increase over the same period in 2011. (Animal Pharm)
> MWI Veterinary Supply, Inc. announced financial results for its second quarter ended March 31, 2012. Total revenues were $507 million for the quarter, 38% higher than revenues for the same period in the prior fiscal year. Excluding the impact of the acquisition of the assets of Micro Beef Technologies, Ltd., revenue growth in the US was 23%. Net income was $13.2 million for the quarter, an increase of 28%. (company website)
> Pilgrim’s Pride Corp. reported results for the first quarter of 2012. The company recorded net earnings of $39.2 million on sales of $1.9 billion, compared to a loss of ($120.8 million) in its first quarter last year. (Feedstuffs)
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COMPANY NEWS RELEASES
> Neogen Corporation announced that it has acquired the assets of the Igenity animal genomics business from Merial Limited. Igenity will operate as a part of Neogen’s GeneSeek subsidiary. Terms of the acquisition were not disclosed. (company press release)
> Hartz announced the launch of Hartz UltraGuard Pro Flea and Tick Treatment for Dogs and Puppies. UltraGuard Pro contains phenothrin and (s)-methoprene, and is sold with the patent-pending Pro-Glide applicator. (PRWeb, company website)
> Spectrum Surgical Instruments Corp. announced its new Veterinary Orthopedic Drill Kit. The Drill kit includes an improved, variable-speed Makita Drill, extra battery, battery charger, new larger-size drill shroud, chuck key, storage case, and choice of Spectrum’s patented Dual Chuck, Mini Dual Chuck, or Extend-a-Chuck. (PRWeb)
> Vet-Stem launched StemInsure, a new service storing cryopreserved stem cells. Fat is collected during an anesthetized procedure, processed, and the stem cells cryopreserved and stored in Vet-Stem’s facility. The stem cells can later be cultured if the dog needs the therapy later in life. (Veterinary Practice News)
> Diamond Pet Foods announced it is expanding a voluntary recall to include one production run and four production codes of Chicken Soup for the Pet Lover’s Soul Adult Light formula dry dog food, as well as several lots of Puppy Formula dry dog food. One bag of the product has tested positive for Salmonella. No dog illnesses have been reported. (FDA)
> LifeLearn announced a collaboration with ImproMed, LLC, to integrate ClientEd Online with ImproMed Infinity 5.0. Infinity 5.0 users now have the ability to easily access pet-owner friendly articles and tie these articles to practice codes directly from their veterinary software. (company press release)
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ANIMAL HEALTH NEWS
> US – FMD VACCINE Scientists at Plum Island Animal Disease Center have developed a foot-and-mouth vaccine that contains only part of the virus and cannot replicate. The vaccine also includes an antibody test that will enable regulators to tell the difference between a vaccinated and naturally infected animal. The vaccine is expected to be licensed in the next few months. (Pork Network)
> US – PIGEON FEVER The Texas Animal Health Commission (TAHC) has revealed that there has been a sharp rise in the equine disease Pigeon Fever. TAHC said it obtained over 350 positive horse cultures for Corynebacterium pseudotuberculosis in 2011 compared with less than 100 cases each year from 2005/2010. At the same time the Texas Veterinary Medical Teaching Hospital diagnosed more than four times as many cases in 2011 compared with 2010. (Animal Pharm)
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BRAKKE CONSULTING, INC.
TRANSACTION ASSISTANCE
Are you interested in growing your business by purchasing another company, product line or technology? Have you been thinking about selling your company, product line or technology? Have you considered merging your company with another firm to improve shareholder value?
Brakke Consulting, Inc. assisted many clients with mergers, acquisitions and divestitures. Contact information for all offices is available on our website at www.brakkeconsulting.com.
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BRAKKE CONSULTING VIEWPOINT
The animal health industry revenue results for the first quarter remain impressive and far exceed the growth in the national economy in the US, which was just reported at 2% growth for the quarter. No wonder the investment community interest in animal health continues to be strong! What other markets besides iPads and iPhones offer revenue growth in double digits?
If one projects the first quarter results forward to year-end it appears that we could have one company with $5 billion in annual revenue, two over $3 billion and another over $2 billion in 2012. There will be several others with revenue between $1 and $2 billion. Those are some impressive numbers that we’d have thought unlikely 10 years ago. One has to be impressed over how the industry has both consolidated and grown organically the past few years.
Now, what does the future hold? Where is the next big new product category? What role will generics play in growing the market?
Have a good weekend!!
Ron Brakke
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