The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for October 12, 2012
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke news
other news
Aurora Pharmaceutical
Merial (DSM)
Merial (Genfar)
Merial (India)
Zacky Farms
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In addition to scheduling interviews, we can arrange travel for the candidate, ensuring that the trip goes smoothly.  Our involvement in every step of the process helps maintain communications with candidates, allowing them to ask questions and get another perspective on the company. 
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> DSM Nutritional Products announced that it has entered into a collaboration with Merial Limited under a Development and Option to License Agreement to develop animal health vaccines using DSM’s proprietary algal expression system. (
> Aurora Pharmaceutical introduced Clarity Ultrasound Gel, Medium Viscosity. Clarity Ultrasound Gel stays put on the probe and its “bubble free” formulation consistently delivers superior image quality. (company press release)
> Zacky Farms LLC, a California poultry processor, has filed for Chapter 11 bankruptcy protection, citing soaring feed costs in its filing. (Feedstuffs, Wall Street Journal)
> COLOMBIA  Sanofi announced it has acquired the animal health product portfolio of Genfar, a leading pharmaceutical company in Colombia, to add to its Merial division. Genfar is the second largest generic drug developer in Colombia and also has sales in Venezuela, Peru, Ecuador and ten other countries in Latin America. Genfar’s combined sales in fiscal 2011 were $133 million. Financial terms were not disclosed. (Animal Pharm) 
> INDIA  Sanofi announced that it will begin selling Merial products in India. (
> EU  Pfizer Animal Health announced the EU launch of Poulvac E coli, the first spray vaccine approved in the EU that is designed to protect poultry against avian pathogenic E. coli (APEC). The vaccine is based on a European E. coli isolate and has been shown to provide protection against field infections found in the region. (Animal Pharm)
> JAPAN  Vivalis announced that The Chemo-Sero Therapeutic Research Institute (Kaketsuken) has received a marketing authorization in Japan from the Ministry of Agriculture, Forestry and Fisheries for a prophylactic veterinary vaccine produced in Vivalis’ EB66 cells against Egg Drop Syndrome (EDS) for use in egg laying hens. It is the first vaccine produced in EB66 cells to be approved by any regulatory authority in the world. (company press release)
> UKRAINE – BSE   A case of bovine spongiform encephalopathy (BSE) has been reported in a cow in the Ukraine. The cow was from a private household in the central Vinnitsa region. (Animal Pharm)
> US – CWD  The Pennsylvania Department of Agriculture confirmed the first positive case of Chronic Wasting Disease (CWD) in the state on a deer farm. The positive sample was taken from a white-tailed deer and tested as part of Pennsylvania’s CWD monitoring efforts. In addition to the farm where the deer was found, the department has quarantined two farms directly associated with the positive deer. To date CWD has not been found in Pennsylvania’s wild deer population. (
> US – DAIRY HERD  The USDA estimates that US milk production is headed for the biggest contraction in 12 years as a drought-fueled surge in feed costs drives more cows to slaughter. Output will drop 0.5% to 198.9 billion pounds (90.2 million metric tons) in 2013 as the herd shrinks 1.1% to 9.11 million head in 2013, the smallest since 2005, according to the USDA. (Business Week)
> US – ANIMAL HEALTH RESEARCH   Washington State University has formally dedicated the Paul G. Allen Center for Global Animal Health. The recently completed 62,000-square-foot, three-story flagship research building is a first-of-its-kind research facility that will house a state-of-the-art infectious disease research center for investigating emerging diseases throughout the world. (Vet Advantage)
>  US – ANIMAL ID   The Texas Animal Health Commission (TAHC) announced animal disease traceability requirements to take effect on January 1. The new rule replaces the previous tagging requirement associated with brucellosis testing. The TAHC expects the Texas rule will put the state’s beef industry in compliance with the anticipated USDA Animal Disease Traceability rule for interstate movement. (CattleNetwork)
There were two stories in the newsletter that should be of concern to the industry for the next year to 18 months. Both involve the impact of the Midwestern drought on the cost of feed grains for production of animal and poultry protein. While one company is a relative small producer of turkey and chicken products, we believe that a number of the larger poultry producers will be reporting disappointing earnings and financial results for similar reasons over the next few quarters. When you add the reported reduction of the dairy herd by USDA and soon-to-be reported reduction in the size of the beef cattle head, it’s will be a challenging period for those companies selling products in food animal and poultry markets.

We’re of the opinion that some consumers, if they’ve not already noticed, will receive a serious wake-up call at the meat and grocery store counters related to pricing in the next few months. How will these increased food and gasoline prices impact the use of veterinary services during the same period? It’s an interesting time.

Have a great weekend!!
Ron Brakke
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