The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for June 1, 2012

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke news
market research
earnings news
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Animal Care Technologies
Look Before You Leap
If your firm needs help assessing the feasibility of a new product or technology, identifying the opinions and trends of consumers and producers, or determining the current market for products, Brakke Consulting 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.
> Immunovaccine reported results for the first quarter of 2012. The company recorded a net loss of ($1.4 million) compared to a loss of ($1.9 million) in Q1 2011. The company successfully completed a private financing during the period raising approximately $2.8 million. (Animal Pharm)
> Nutreco announced that Knut Nesse will take over as the chief executive officer on August 1 2012. He will replace the outgoing Wout Dekker who has spent 30 years at the firm, the last 12 years as chief executive. Mr Nesse is currently chief operating officer of the firm’s aquaculture division and has been with Nutreco since 1995. (Animal Pharm)
> VetEnvoy, Inc. and Animal Care Technologies, Inc. (ACT), announced a joint venture to develop a portal to assist a veterinarian with a host of services such as filing pet insurance claims, registering microchips, communicating with referring hospitals, and processing laboratory data, for example, directly with the supplier, all through the clinic’s existing practice management software. (company press release)
> EU   Merck (MSD Animal Health) announced it has received regulatory approval in 21 European countries for Cobactan LA 7.5% (cefquinome) for the treatment of swine respiratory disease (SRD). The long-acting antibiotic formulation is effective against three major SRD pathogens in growing and finishing pigs – Actinobacillus pleuropneumoniae, Haemophilus parasuis and Pasteurella multocida – and requires only two intramuscular injections 48 hours apart, compared to Cobactan 2.5%, which requires three daily injections. (company press release)
> US – POULTRY RESEARCH   The USDA’s Agricultural Research Service (ARS) has used metagenomic techniques to discover a new poultry virus with the potential to provide an alternative to antibiotics. The ‘phiCA82’ is the type of virus that naturally kills bacteria and belongs to a group known as ‘microphages’ or phages and could potentially be used as an alternative to antibiotics in order to tackle multi-drug-resistant pathogens in poultry. (Animal Pharm)
> US – VETERINARY WORKFORCE STUDY  The National Research Council (NRC) of the National Academies released its findings from its long-awaited study of “Workforce Needs in Veterinary Medicine.” The report concludes that there are sectors of unmet need for veterinarians, but the researchers found little evidence of widespread workforce shortages at the current time. The study did find an imbalance in the distribution of veterinarians, and expressed concern about the state of the veterinary workforce in critical areas of veterinary medicine, such as the public sector. In addition to assessing the current state of the veterinary medical workforce, the study makes projections on future needs across all sectors, and recommendations for meeting those needs. The preliminary report is available at (MarketWatch)
Based on the limited number of press releases this week, a number of you must either be enjoying an extra long Memorial Day weekend or scrambling to make your May revenue numbers. Our reading in the marketplace is that sales volumes are positive in all sectors with the flea & tick area blowing through new sales levels. The weather and heavy consumer advertising are moving products off the shelves at record levels.
While there are a few bumps in the road for the food animal sector, the positive impact of some reduction in feed grain prices and the reduced number of animals are keeping values high. It looks like the industry is going to have a more positive 2012 than was anticipated 6 months ago. Gasoline prices have declined and it looks like $5.00 per gallon gasoline is not going to occur in the US. Almost all sectors of the general economy are demonstrating a steady slow recovery. In addition, the animal health market growth is significantly better than the general economy the first few months of the year.

Have a good weekend!!

Ron Brakke

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