The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for July 20, 2012

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke news
New study: Companion Animal Practice in 2017 & 2022
earnings news
other news
The Companion Animal Practice in 2017 and 2022

What will companion animal clinics look like in 2017 and 2022? How will these changes impact the delivery of veterinary care to pet owners? As the operation and ownership of companion animal clinics evolves over the coming years, the companies providing products and services may need to change their operational assumptions.

This new Brakke Consulting’s comprehensive market study, “The Companion Animal Practice in 2017 and 2022: A View of the Future” hopes to provide the answers to these and other questions by providing an analysis of current converging trends in the companion animal profession and pet owner utilization of veterinary services. The study will summarize and project the potential implications of these trends for providers.

The study will be available in early 2013. To pre-purchase this important strategic planning tool, or for more information, contact Ron Brakke at or Susan Warren at .
> Virbac reported results for the second quarter of 2012.  Consolidated sales in the second quarter reached EUR 173 million ($212 million), an 12% change compared to the same period of 2011. Sales increased by 9% excluding favorable exchange rates impacts and 10% at constant scope. (company website)
> Vetoquinol announced results for the first half of 2012. Sales reached EUR 146.8 million ($180 million), up 5% over the first half 2011. At constant currency, first half 2012 revenues grew 4% and organic growth came in at 2% over the period. The pet and livestock segments grew 8% and 3% respectively. (company website)
> IDEXX Laboratories, Inc. reported results for the second quarter of 2012. Revenues  increased 6% to $335.6 million compared to the second quarter of 2011. Organic revenue growth1 was 7%. Companion Animal Group (“CAG”) revenues for the second quarter of 2012 were $278.3 million, and increase of 7% compared to the second quarter of 2011. (company website)
> Novartis announced the completion of a new state-of-the-art aquaculture laboratory on Prince Edward Island (PEI) in Canada.  The new $2.8 million research facility in PEI is part of the aqua health division. (Animal Pharm)
> Bimeda announced the acquisition of five ANADA products from Teva Animal Health, Inc. The products include Levamisole Hydrochloride Drench Powder, Levamisole Hydrochloride Soluble Pig Wormer, Oxytetracycline Hydrochloride 10g Powder, Oxytetracycline Hydrochloride 343g Powder, and Griseofulvin Powder. The company plans to re-launch the products as Bimeda branded items with new trade names. Financial terms were not disclosed. (Vet Advantage)
> IDEXX Laboratories announced the launch of IDEXX VetConnect PLUS diagnostic results reporting. This new service enables veterinarians to see, on one screen, a patient’s entire blood work history generated by IDEXX point-of-care equipment and reference laboratories. The patient’s lab work history can be viewed on a desktop, laptop, tablet or smartphone. (company website)
> TAIWAN – AVIAN INFLUENZA   Taiwanese veterinary authorities reported an outbreak of highly pathogenic avian influenza.  The outbreak was caused by the illegal movement of birds; 38 birds were intercepted at Taiwan Taoyuan International Airport earlier this month. Of the 38 susceptible birds, 37 cases were reported. All of the 38 birds were destroyed. (Animal Pharm)
> WORLD – FOOT AND MOUTH DISEASE  A leading UK veterinary health academic has calculated that the total global annual costs of foot and mouth disease (FMD) is now running at around $5 billion. Dr Jonathan Rushton said the financial impact of FMD could be separated into two components: direct losses, due to a reduction in production and changes in herd structure; and indirect losses that relate to the significant costs of FMD control and management, plus poor access to markets and limited use of improved production technologies. (Animal Pharm)

Wow!! What a difference three weeks of 100-degree-plus temperatures and no rain can have on the agricultural community. The grain market futures have skyrocketed because of the impact of the drought conditions in the Corn Belt and other parts of the US. In some areas of the country pastures and water supplies have gone from abundant to desperately low. This could result in many cattle heading to the feedlots early and more herd liquidation, continuing the trend that started last year. Just a few weeks ago we thought maybe we were through the drought for 2012. High commodity prices could add negatives to an already soft economy. Let’s hope it starts raining and cooling down sooner versus later.

Earlier in the news we reported the launch of our new study, “The Companion Animal Practice in 2017 and 2022: A View of the Future.”  This study is the product of conversations which we’ve had over the past several months with a number of senior executives in the industry. One of the questions we’re asked most often is “what do you think our companion animal veterinary customers will look like in 5 or 10 years?” We believe Brakke Consulting has the experience and insights to answer these and other questions that are on the minds of our clients as they plan their organizations and strategies for the future. We look forward to your participation in this new study.

Have a great weekend and stay cool!!

Ron Brakke
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