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Brakke Consulting’s
Animal Health News & Notes for November 2, 2012
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke news
2012 flea & heartworm study
earnings news
Bayer
Hill’s
Pfizer
Vetoquinol
other news
Bimeda
Ceva
H. H. Backer
JBS United Animal Health II
Jurox
Pet Age
Pfizer (Hendra)
Pfizer (Japan)
Radio Systems
Sparhawk Labs
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BRAKKE CONSULTING, INC.
COMING IN DECEMBER:
US FLEA CONTROL & HEARTWORM MARKETS
2012 UPDATE
ORDER NOW FOR EARLY-BIRD DISCOUNT
Brakke Consulting will soon be publishing our 2012 report on the US Flea Control and Heartworm Markets. The report includes valuable information on the US market for small animal parasiticides including:
– discussion of the impact of generic fipronil products
– an overview of the veterinary and OTC flea control markets
– Product descriptions, prices, and sales for the leading veterinary flea and heartworm products
– 2012 survey of over 200 veterinarians
– 2012 survey of 500 pet owners
The report on the US Flea Control & Heartworm Markets will be available for a purchase price of $6,995 if ordered by TUESDAY, NOVEMBER 20, and $7,500 after that date.
Please contact Dr. Lynn Fondon at (972) 243-4033 or lfondon@brakkeconsulting.com to pre-order the report, or for more information visit our website at
www.BrakkeConsulting.com
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COMPANY EARNINGS RELEASES
> Pfizer Inc. reported financial results for third-quarter 2012. Animal Health unit revenues declined 2% to $1,017 million. Excluding the effects of foreign exchange, revenues increased 4% in comparison with the same quarter last year. (company website)
> Bayer announced results for the third quarter of 2012. Sales of the Animal Health Division came in at EUR 340 million ($439 million), an increase of 21% over the third quarter of 2011 (foreign exchange & portfolio adj. +11%). (company website)
> Vetoquinol reported financial results for the first nine months of 2012. Sales were EUR 221 million ($286 million), an increase of 6% over the comparable period in 2011. (company website)
> Colgate-Palmolive Company reported results for the third quarter 2012. Hill’s net sales decreased 1.5% during third quarter 2012 to $528 million. Unit volume decreased 2.5%, pricing increased 4.0% and foreign exchange was negative 3.0%. (company website)
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COMPANY NEWS RELEASES
> Ceva Santé Animale announced it will receive EUR 100 million ($130 million) in funding from AXA Private Equity, one of Europe’s leading private equity firms. This deal follows AXA’s previous equity investment in Ceva in 2007, when it provided EUR 30 million in funds. Ceva said that this flexible bond financing line will allow it to enter the next phase of development and pursue its international build-up strategy. (Animal Pharm)
> The FDA announced the approval of a new animal drug application for Jurox Pty’s Alfaxan (alfaxalone) for the induction and maintenance of anesthesia and for induction of anesthesia followed by maintenance with an inhalant anesthetic, in cats and dogs. (FDA)
> Bimeda announced that the company has received approval from the FDA to market AmproMed P for Poultry (amprolium) 9.6% Oral Solution. This coccidiostat is indicated for the treatment of coccidiosis in growing chickens, turkeys and laying hens. (company press release)
> The FDA announced the approval of a new animal drug application for JBS United Animal Health II’s OvuGel (triptorelin acetate) for the synchronization of time of insemination in weaned sows to facilitate a single fixed-time artificial insemination. (FDA)
> The FDA announced the approval of an abbreviated new animal drug application for Sparhawk Laboratories’ SparMectin Plus Clorsulon (ivermectin and clorsulon) for the effective treatment and control of gastrointestinal roundworms, lungworms, liver flukes, grubs, sucking lice and mange mites in cattle. (FDA)
> Radio Systems Corp, which owns PetSafe, Invisible Fence and Drinkwell, announced it will open a European headquarters in Ireland. (Pet Product News)
> H. H. Backer announced that it has sold Pet Age magazine to Journal Multimedia. Journal Multimedia produces a variety of publications, events, web products, video and software for niche markets. Financial terms were not disclosed. (Pet Product News)
> AUSTRALIA Pfizer Animal Health announced the Australian launch of Equivac HeV vaccine, an equine vaccine against Hendra virus. The vaccine was developed in collaboration with Australian and US animal health laboratories. (Animal Pharm)
> JAPAN Pfizer Animal Health announced the launch of Simplicef Tablets (cefpodoxime proxetil) for the treatment of bacterial skin infection in dogs onto the Japanese market. (Animal Pharm)
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ANIMAL HEALTH NEWS
> IRELAND – SCHMALLENBERG The Schmallenberg virus (SBV) has been confirmed in Ireland, the most westerly case of the nine European countries so far found to have the virus. The Irish Department for Agriculture, Food & Fisheries is carrying out tests to establish the source of infection. (Animal Pharm)
> US – INFLUENZA Two studies conducted by Ohio State University researchers found that more than 80% of swine at county fairs in Ohio that tested positive for influenza were asymptomatic and that people and swine were infected with the same influenza strain. According to the CDC, 107 people in Ohio contracted H3N2v since July, and most of those cases involved contact with pigs at fairs. (AVMA SmartBrief – ScienceDaily)
> US – JERKY TREATS The FDA reported that the number of pet illnesses associated with consumption of chicken jerky treats from China has increased from 1,800 reports to over 2,200, and the death toll has increased from 300 to 361. Despite extensive testing, the cause of the illnesses has not been identified. (DVM News)
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BRAKKE CONSULTING VIEWPOINT
The third quarter financial reports from several of the leading companies in animal health indicate that a factor to be considered now and in 2013 is the effects of currency exchange changes. Currency exchange is most often left to the CFO to deal with, but sooner or later it filters back to operations and marketing management in one form or another. The industry is becoming more global and, with a limited number of large multi-nationals increasing market share, we’re likely to see more references to the impact of currency on revenues in the future.
What is more concerning is that some companies are reporting declines in unit volume, which would indicate to us that the price-value relationship of products and services may be peaking for pet owners and producers. It does appear that the FDA had a productive week in new product approvals. New products and innovation are needed to support the pressure being put on revenue increases.
Our concerns and prayers go out to our clients and friends in the Northeastern US who have been dealt a major blow by Mother Nature. We wish each of you the best as you recover from this catastrophic event.
Have a good weekend!!
Ron Brakke
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