The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for November 30, 2012
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke Consulting news
OTC market consulting
other news
Becker Underwood
Boehringer Ingelheim Vetmedica
Piedmont Pharmaceuticals
Purina Animal Nutrition
Stockade Brands
Virbac (Q-Biologicals)
Virbac (Centrovet)

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> Pfizer announced it has renamed its Escherichia coli mastitis vaccine as Enviracor J-5.  Previously known as Escherichia coli Bacterin – J5 Strain, the vaccine remains the same product. (Feedstuffs)
> Boehringer Ingelheim Vetmedica Inc. announced it has received conditional licensure for a new vaccine for equine rhinitis A virus (ERAV).  Efficacy and potency test studies are in progress. ERAV has been isolated from Thoroughbred horses with acute respiratory disease in the US, Canada, Australia, Japan, and Europe. (Veterinary Advantage)
> Bayer Animal Health announced the launch of Resultix, a new spray-on formula that kills attached or crawling ticks on dogs and cats. Resultix dissolves the outer wax layer that covers the hard shell (cuticle) of the tick, resulting in uncontrollable water loss and death of the tick within three hours.  Bayer collaborated with Piedmont Pharmaceuticals to bring the product to market. Resultix will be sold through veterinary clinics, pet specialty stores and online retailers. (PRNewswire) 
> Q-Biologicals announced an agreement with Virbac to develop technologies and production processes suitable for Virbac biological projects in animal health. With this agreement, Virbac prolongs the existing relationship with Q-Biologicals and will be able to use the company’s experience in the production of recombinant proteins, viruses, and microbial live cells. (
> VetDC, Inc., announced the completion of a $1.5 million private financing. The funds will be used to advance VDC-1101 towards veterinary approval in canine lymphoma. (company press release)
> Ridley Inc. announced that Ridley Block Operations, a Ridley division, has acquired Stockade Brands Inc., a privately held manufacturer of blocks, loose minerals and dried molasses products for livestock and equine markets. Financial terms were not disclosed. (Feedstuffs)
> Purina Animal Nutrition announced the launch of Ampli-Calf Cool Weather Starter, formulated with the weather in mind. The starter includes the Propel Energy Nugget and AppetiteMAKER, a proprietary additive to stimulate higher feed intake. (Feedstuffs) 
> BASF announced it has completed its $1.02 billion acquisition of Becker Underwood from private equity company Norwest Equity Partners, in a deal that increases its offering of modified seeds for animal nutrition. (Animal Pharm) 
> CHILE  Virbac announced it has acquired a majority stake in Centrovet, the market leading veterinary products business in Chile, for an undisclosed sum. Virbac has purchased 51% of the shares in the Centrovet Group, with an option to acquire the remaining capital after five years. The company is a major producer of fish vaccines. It had 2011 revenues of $58 million, while sales for the first half of 2012 were $42m, lifted by vaccines sales to the expanding salmon farming sector in Chile. (Animal Pharm) 
> BRAZIL  Biogal announced that it has successfully registered in Brazil the Canine ImmunoComb Parvo and Distemper kit and the ImmunoComb Feline Coronavirus (FIP) kit. Biogal’s distributor in Brazil, JMR Trading Ltda., was instrumental in gaining registration approval and will be responsible for marketing these kits in Brazil.  (company communication)
> JAPAN  Fujitsu announced the Japanese launch of Wandant, a dog pedometer that is designed to monitor pet health and obesity. The device is based on motion-tracking technology and an associated cloud computing service that supports health management for dogs. It is worn as a tag on the dog’s collar. It measures and records the number of steps taken; shivering motions and temperature changes.  (Animal Pharm)
> EU – SCHMALLENBERG VIRUS  The European Food Safety Authority reported that the Schmallenberg has been detected in 16 countries to date. In addition to 14 European Union countries, Switzerland has found the virus in domestic ruminants and Norway detected Schmallenberg in biting midges trapped as part of a surveillance program. The number of farms in Europe with laboratory-confirmed cases was 5,955 as of Oct. 30. (AVMA Smartbrief – Bloomberg)
Tomorrow will be December 1st and there is now only one month left to make the annual revenue and profit budgets for the year. Based on our interface with various management teams the past few weeks, it appears that 2012 will go down as another year where many budgets were achieved by increasing prices with limited increases in unit volume. What is the plan for 2013? Will there be significant new product introductions in new product categories to create new revenue? Will the increased number of generic product offerings begin to have an impact on revenues? These are just a few questions to ponder as we prepare for a new year.

In the past three weeks I’ve had the opportunity to travel via car from Central South Dakota to the Southern tip of Texas. I’ve never seen this 1200 mile stretch of the US so dry. The drought is really having a negative impact on the producers of cereal grains and livestock. If there is not significant moisture this winter in the form of snow or rain we could be in for the third year in a row of challenging conditions that will impact the animal health business in several ways.

Do your rain dance and have a great weekend!
Ron Brakke
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