The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for August 10, 2012
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke news
practice management
earnings news
Spectrum Brands
other news
Ceva – headquarters
Ceva – vaccines
Meiji Seika Pharma
Nexcyon Pharmaceuticals
Nexvet Biopharma
Pegasus Labs
Spectrum Group
Tuesday, August 28, 2012
Kansas City
This year’s KC Animal Health Investment Forum will feature presentations from 13 animal health companies from around the world. Presentations will include diagnostics, delivery systems, biologicals, pharmaceuticals, devices, growth promotants, enzymes and oncology among others.
To register, go to
> Heska reported financial results for its second quarter ended June 30, 2012. Consolidated revenue was $18.3 million, an increase of 5% compared to the second quarter of 2011. Net income was $262,000 compared to net income of $457,000 in the second quarter of 2011. Core Companion Animal Health revenue was $15.7 million, a 12% increase over the second quarter of 2011. (MSN Money)
> Nestlé S.A. reported results for the first half of 2012. Pet Care revenues increased 8% to CHF 5.2 billion ($5.3 billion).
> Spectrum Brands Holdings reported financial results for the third quarter of fiscal 2012. The Global Pet Supplies segment reported net sales of $158 million for the third quarter of fiscal 2012, an increase of 10% over the comparable period in the prior year, driven primarily by revenues of $10.4 million from the FURminator acquisition. (Business Wire)
AVMA Annual Convention
San Diego, CA
August 3 – 7, 2012
The AVMA annual convention in San Diego hosted over 8,600 attendees, including 3,800 veterinarians and veterinary technicians.  In addition to offering over 1,000 hours of CE opportunities and an exhibit hall with hundreds of exhibitors, the AVMA previewed results from its 2012 U.S. Pet Ownership and Demographics Sourcebook and announced the launch of The Partners for Healthy Pets Practice Resources Toolbox.
> Novartis received FDA approval for Interceptor Spectrum Chewable Tablets (praziquantel and milbemycin oxime).  In addition to prevention of heartworms, Interceptor Spectrum is indicated for treatment and control of adult A. caninum, T. canis, T. leonine, T. vuplpis, and Taenia pisiformis, Echinococcus multilocularis and E. granulosus (tapeworm). (Veterinary Practice News)
> Virbac Animal Health Inc. received FDA approval for Rilexine (cephalexin) Chewable Tablets for Dogs for the treatment of secondary superficial bacterial pyoderma in dogs caused by susceptible strains of Staphylococcus pseudintermedius. (Veterinary Practice News)
> Ceva Holdings, Inc. announced the consolidation of all North America headquarters operations to its Lenexa campus. The move is expected to result in better synergies between key business functions and allow Ceva to serve its customers more efficiently for both Ceva Biomune and Ceva Animal Health. (company press release)
> Ceva announced that Transmune IBD and Vectormune ND can now be mixed in diluent and administered in the hatchery (in-ovo or subcutaneously at day old) as a single dose giving life-long protection against Newcastle, Gumboro and Marek’s disease. (company press release)
> IDEXX Laboratories, Inc. announced it has agreed with MWI Veterinary Supply, Inc. (MWI) on the terms of a revised distribution relationship under which MWI will continue to sell IDEXX products to veterinary customers in the US, and in the future also will be able to sell products that compete with IDEXX’s products. Under the new arrangement, which is expected to become effective January 1, 2013, IDEXX will reduce the discount from list price at which it sells its products to MWI. (company press release) 
> Pegasus Laboratories, Inc. announced the launch of Vetadryl for dogs & cats, the first Veterinary labeled option for flavored diphenhydramine tablets. Vetadryl is available in 10 mg and 30 mg flavored tablets and is scored for flexible dosing. (company press release) 
> DSM announced it has entered into a definitive agreement to acquire Tortuga Companhia Zootécnica Agrária (Tortuga) for approximately EUR 465 million ($575 million). The final price depends on Tortuga’s 2012 EBITDA result, up to a maximum of EUR 490 million.  Tortuga is expected to generate sales of EUR 385 million ($475 million) in 2012. (Animal Pharm)
> The Spectrum Group announced it will now process individual Canine VacciCheck titer testing in its laboratory in addition to selling the self-contained testing kit to veterinary clinics, shelters, rescues and kennels. (company press release)
> Lohmann Animal Health announced the appointment of Frank Sterner as chief executive of the company’s US operations. Mr. Sterner had previously served as president of US operations since 2009. (Animal Pharm)
> Neogen Corporation announced the launch of ANSR for Listeria, providing results after only 20 minutes of reaction time. (company press release)
> Nexcyon Pharmaceuticals Inc. received FDA approval for Recuvyra (fentanyl) Transdermal Solution for control of postoperative pain associated with surgical procedures in dogs.  (Veterinary Practice News) 
> Nexvet Biopharma announced its first major commercial deal with Meiji Seika Pharma. The deal covers exclusive rights to Nexvet’s first product in dog inflammation across numerous Asian territories. (company press release) 
> INDIA   MSD Animal Health (known as Merck Animal Health in the US and Canada) announced the Indian launch of Ovilis PPR, a new vaccine against Peste des Petits Ruminants (PPR). The vaccine was developed in a public-private partnership between the Indian Veterinary Research Institute (IVRI) and MSD Animal Health. Ovilis PPR is a live attenuated vaccine based on the Sungri/96 vaccine strain, which was developed by IVRI. (company press release)
> UK  Bioniche Life Sciences Inc. announced that the Veterinary Medicines Directorate (VMD) of the Department for the Environment, Food and Rural Affairs in United Kingdom has approved the importation of the Company’s cattle vaccine against E. coli O157 for use under the conditions of a Special Treatment Certificate (STC). STCs are issued to veterinary surgeons when an appropriate remedy for an animal disease is not available in the UK, but can be accessed from another country. (MarketWatch) 
> CHINA   Genus’ porcine genetics division, PIC, announced it has formed a joint venture with Shaanxi Yangling BeSun Agricultural Group (BeSun), a large-scale integrated pork production business in China. Genus will own 49% of the equity following an investment of GBP 8.7 million ($13.5 million). It will also provide the management for the recently completed, state-of-the-art nucleus farm, and will provide the pure line pig breeding stock from the PIC global high health pyramid to stock the farm. (Animal Pharm)
>  US – VESICULAR STOMATITIS  The state of Colorado announced that a horse in Las Animas County has tested positive for vesicular stomatitis (VS), the first case of the disease in Colorado this year and the first confirmed since 2006. (Animal Pharm)
> US – LEGISLATION   H.R. 1406 (the “Fairness to Pet Owners Act”), a US House of Representatives bill that would require veterinarians to provide their clients with a written prescription for any medication they prescribe, is “dead this year,” according to the director of the Governmental Relations Division for the American Veterinary Medical Association (AVMA). According to Dr. Mark Lutschaunig, there is no Senate version of the bill, and it has not been discussed since it was referred to committee. However, he believes there is a good chance the bill will be reintroduced next year. (DVM360)
> WORLD – RABIES PREVENTION  The Global Alliance for Rabies Control, in cooperation with the US Centers for Disease Control and Prevention, announced the third Annual World Rabies Day Webinar to be held Sept. 20-21, 2012. The Webinar brings together noted leaders in rabies research, One-Health advocates, professionals, students and World Rabies Day event planners in real-time to discuss the important public health issue of rabies while providing a forum for dialogue within and across disciplines. There is no cost to attend. For more information, visit (Vet Advantage)

Jessica Goodman Lee, Brakke Consulting’s practice management consultant, announced the publication of her article “Client-Centricity: The New Business Reality” in the latest issue of Veterinary Practice News.  For more information about Jessica’s services, contact her at or 919.444.3279.
This week’s news has a couple of additional revenue and earnings report for the year. The activity and results in the industry remains positive though the second quarter. What is most encouraging is the number of smaller and medium sized companies that reported one or more new growth initiatives this week. It takes new technology, products and funding to grow the industry.

Congratulations to Dr. Ron DeHaven and the entire AVMA team for an excellent annual meeting held in San Diego this past week. A highlight of the meeting was the announcement and release of a comprehensive set of tools to help veterinarians grow their practices by increasing preventive care to pets. The tools were prepared by the Partnership for Pet Preventive Healthcare, a consortium of professional organizations and industry sponsors under the leadership of AVMA and the American Animal Hospital Association (AAHA).
The tools are available to companion animal practitioners free of charge at the Partnership’s website,  They include materials to help veterinarians implement preventive care guidelines developed by AVMA and AAHA, information on developing a more cat-friendly practice, techniques for communicating the value of preventive care, instructions on leveraging the Internet and social media, and comprehensive materials to help practices initiate preventive healthcare (wellness) plans. Brakke consultants Jessica Lee and John Volk were engaged by the Partnership to develop the preventive healthcare materials.
Have a great weekend and stay cool!!
Ron Brakke
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