The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for October 5, 2012
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke news
Industry Roundtable
earnings news
OurPet’s Co.
other news
Arovit Acquisitions
Avalon Medical
C&D Foods Group
DMS Laboratories
Macleod Pharmaceuticals
Nestle Purina
Royal Canin
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> Animalcare Group reported results for its fiscal year 2012. Sales declined 8% GBP 10.9 million ($17.6 million); net income fell from GBP 2.3 million in 2011 to GBP 1.7 million. (Animal Pharm) 
> OurPet’s Co. reported results for the second quarter of 2012.  Net revenues were $4.7 million, a decline of 8% compared to the year-earlier period. (Pet Age)
> Neogen Corporation announced that it has acquired the stock of Macleod Pharmaceuticals, the original manufacturer of Uniprim, a popular antibiotic for horses. Macleod’s revenues for its most recent 12 months were approximately $4 million. Financial terms were not disclosed. (company press release)
> Abaxis announced it has entered into a definitive distribution agreement with MWI Veterinary Supply. MWI will inventory, market and promote the full line of Abaxis veterinary products throughout the US beginning January 2, 2013. (
> Heska Corporation announced the addition of the Element DC Veterinary Chemistry Analyzer to its diagnostic blood analyzer suite. The Element DC will be manufactured by FUJIFILM Corporation. (
> DMS Laboratories announced the launch of RapidVet-H Feline IC, a new blood typing system for cats. The test identifies the three known feline blood groups using advanced immunochromatographic technology.  The canine version of the product is expected to launch in the near future. (Products 360)
> Royal Canin announced the availability of Veterinary Diet Calm, a complete and balanced diet for the nutritional management of stress in dogs and cats.  The diet contains alpha-casozepine, L-tryptophan and nicotinamide to reduce anxiety and relieve stress. (Products 360)
> Purina Veterinary Diets announced the addition of three new therapeutic nutrition options for overweight and diabetic patients: OM Select Blend Overweight Management Canine Formula; OM Savory Selects Overweight Management Feline Formula in Gravy; and DM Savory Selects Dietetic Management Feline Formula in Gravy. (Products 360)
> The Nutro Company introduced a new line of feline treats with targeted health benefits: Greenies SmartBites Treats includes Hairball Control, Digestive Care and Healthy Skin and Fur. (Products 360)
> Avalon Medical announced the launch of its PeriSeal Surgical Tissue Patch for the veterinary market.  PeriSeal is a stabilized collagen tissue patching material made from porcine pericardium. (Products 360)
> Orabrush, Inc. announced the launch of its latest product, the Orapup, a novel tongue cleaner to help cure dogs’ bad breath. The Orapup combines ultra-soft pointed bristles with four in-line scrapers, which collect and remove bacteria from the dog’s tongue. A formula developed to help prevent gum disease and reduce tartar is applied to the surface of the Orapup to entice dogs to lick the brush, allowing them to clean their own tongues. (Business Wire)
> The American Animal Hospital Association (AAHA) and Vetstreet have decided to part ways after sustaining a preferred provider agreement for the last four years. Since 2008, the two groups have collaborated to produce the PetsMatter e-newsletter for pet owners, in addition to an annual state of the industry report that was presented at AAHA’s yearly conference. (Vet Advantage) 
> UK  Norbrook Laboratories introduced Norfenicol Solution for Injection (florfenicol) in the UK and the Republic of Ireland. Norfenicol is licensed for the treatment of pneumonia in both cattle and pigs. (Animal Pharm)
> EUROPE  Pet food manufacturer C&D Foods Group announced it has acquired Arovit Acquisitions to become the second-biggest pet food private label operator in Europe. The deal will give the enlarged company turnover of about EUR 320 million ($520 million). Arovit produces 250,000 tonnes of product annually and has a turnover of EUR 200 million ($325 million). Financial terms were not disclosed. (Pets International Enews)
> US – INNOVATION CENTER  The Center for Animal Health Innovation, or CAHI, has closed its doors after the  Kansas Bioscience Authority failed to renew an annual grant for a second year and efforts by animal health industry executives failed to raise enough cash to keep it operating. CAHI opened in April 2011, thanks to a $1 million seed grant from the Kansas Bioscience Authority, a state-financed group charged with building the state’s life sciences industry. It was one of four “centers of innovation” statewide aimed at fostering research in key tech areas; KBA eliminated financing for three of the four innovation centers. (Kansas City Business Journal)
First Steps in Commercialization:
Market Research and Intellectual Property Issues

Following their successful inaugural roundtable in June, Brakke Consulting and Stinson Morrison Hecker LLP will hold the second Animal Health Breakfast Roundtable in Kansas City on October 10. The Roundtable will feature John Mannhaupt and Susan Warren, both from Brakke Consulting, who will lead discussions on resources for evaluating the animal health marketplace as well as intellectual property issues to consider for animal health products, including compounding and new uses for existing products.

The program will begin at 8 a.m. at 1201 Walnut Street, Suite 2900 in Kansas City. There is no charge, but you must register to attend. The deadline for online registration is Monday, October 8. To register online, go to 
This week’s news covers a number of interesting product launches or transactions. While none are likely to be game-changers to the industry, it does demonstrate the continued activities to find new products or technology to solve health problems in animals.
At the same time there is not a lack of unsolved health problems in animals. I recently viewed a couple of organizations’ websites that are involved in acquiring funding for animal health research projects. I was amazed at the number of research projects listed seeking financial support. For the most part the research projects are from quality scientists in major universities around the globe. Several of them carry some hefty price tags.
Quality research is expensive and time consuming, but research is the lifeblood of the future. We believe the difficulty of finding research funding in the current economic climate is reflected in the relatively limited number of new products and technologies being introduced into the market. This needs to change!!

Have a great weekend!
Ron Brakke

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