***********************************
Brakke Consulting’s
Animal Health News & Notes for January 4, 2013
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
************************************
IN THE NEWS:
Brakke Consulting news
2013 Industry Overview
other news
Animal Supply
Bayer
Imaxio
Lone Star Pet Supply
Merial
MWI
Neogen
Norbrook Labs
Novus
Nutramax Labs
Patterson Veterinary Supply
PCI Animal Health
Scidera Genomics
scil animal care
Simcyp Ltd.
Teva
US Arkray
Webster
***********************************
BRAKKE CONSULTING, INC.
2013 INDUSTRY OVERVIEW
ONLINE REGISTRATION NOW OPEN
Brakke Consulting will present the 2013 US Animal Health Industry Overview twice this winter – once at the North American Veterinary Conference in Orlando, Florida and once at the Western Veterinary Conference in Las Vegas, Nevada. These dates are:
• NAVC: Monday, January 21, 2:00 – 4:00 pm, Gaylord Palms.
• WVC: Tuesday, February 19, 2:00 – 4:00 pm, Four Seasons.
Registration for the Industry Overview at the NAVC and WVC is now open. To register, go to www.brakkeconsulting.com and scroll down to the “What’s New” box. The price is $385 per person for online registration; late registration is $425.
www.BrakkeConsulting.com
************************************
COMPANY NEWS RELEASES
> Imaxio announced the signing of an option for a license agreement with Merial to develop an animal health vaccine based on Imaxio’s immune-enhancing IMX313 technology. (Worldpoultry.com)
> Bayer HealthCare LLC announced that it has received the necessary regulatory approvals to complete the acquisition of the US-based animal health business of Teva Pharmaceutical Industries Ltd. Bayer will pay up to $145 million following the achievement of successful manufacturing and sales targets. The transaction includes a manufacturing site in St. Joseph, Missouri and nearly 300 employees. (PRNewswire)
> Norbrook Laboratories, Ltd. announced that its new non-steroidal anti-inflammatory, Loxicom (meloxicam) Injection, is now available for use by veterinarians in the US. Loxicom Injection is approved for the control of pain and inflammation associated with osteoarthritis in dogs and for the control of postoperative pain and inflammation associated with orthopedic surgery, ovariohysterectomy and castration when administered prior to surgery in cats. The product is available immediately to veterinarians in either 10 mL or Norbrook’s exclusive 20 mL bottles. (company press release)
> Nutramax Labs announced that it will introduce Cosequin for Dogs and Dermaquin Plus into Walmart stores. (Pet Product News)
> Novus International introduced Avimatrix, a new proprietary feed solution that optimizes broiler performance by acting on the gut environment through the targeted release of compounds that affect the intestinal microbiota balance. (Feedstuffs)
> Neogen Corporation announced that it has acquired the assets of Scidera Genomics, LLC, an animal genomics business. The company, formerly operated as MetaMorphix, Inc., or MMI Genomics, was a pioneer in the development of cattle, poultry, swine, and canine genetic testing. The acquisition, effective as of Jan. 1, will be reported as a part of Neogen’s animal safety segment. Financial terms were not disclosed. (company press release)
> U.S. Arkray, Inc. announced that effective immediately scil animal care company is the exclusive distributor for the SpotChem clinical chemistry product line in North American veterinary market. This includes the analyzer, reagents, and spare parts for EZ and EL models. (PRNewswire)
> MWI Veterinary Supply, Inc. announced that it has completed the acquisition of substantially all of the assets of Prescription Containers Inc. (“PCI Animal Health”) for approximately $17 million. Founded in 1957, PCI Animal Health is a distributor of companion animal health products to over 2,000 veterinary practices, primarily in the Northeastern US. PCI Animal Health had total revenues of approximately $33 million for its calendar year ended December 31, 2012. (company press release)
> Patterson Companies, Inc. announced that the Webster Veterinary Supply, Inc. name will change to Patterson Veterinary Supply, Inc., effective January 1, 2013. (company press release)
> Animal Supply Co. announced the acquisition of Lone Star Pet Supply. The combined pet product distributors will cover 20 states and more than 4,000 pet stores. Financial terms were not disclosed. (Pet Product News)
> Simcyp Ltd. announced it has reached an agreement with the FDA to further develop the Simcyp Dog Model for the evaluation of drug products in different canine breeds. The project aims to deliver physiologically based pharmacokinetic dog models designed to streamline veterinary drug development and evaluation. Simcyp already provides a simulator for the beagle, rat and knockout mouse. (Veterinary Practice News)
***********************************
ANIMAL HEALTH NEWS
> US – ANTIFREEZE The Consumer Specialty Products Association (CSPA) and the Humane Society Legislative Fund jointly announced that the antifreeze and engine coolant industry will now voluntarily add a bitter flavoring agent to products for sale on the consumer market in all 50 states. (DVM360)
> RUSSIA – RACTOPAMINE Russia announced that it will begin enforcing the country’s ban on pork and beef imports produced using ractopamine. Products must be accompanied by a document issued by the exporting country that confirms that the products were manufactured without using ractopamine. (Feedstuffs)
> US – TRACEABILITY The USDA issued its final traceability rules, revamping them in response to roughly 1,600 comments received from across the country. The rules require animals being moved over state lines to have official identification and a veterinary certificate of inspection as well as other paperwork, with some exclusions. The formal press release can be found at http://www.usda.gov/wps/portal/usda/usdahome?contentid=2012/12/0366.xml&contentidonly=true . (AVMA Smartbrief, USDA.gov)
> CHINA – AVIAN INFLUENZA RESEARCH Researchers from the South China Agricultural University College of Veterinary Medicine found a number of strains of avian influenza in addition to two swine influenza subtypes in Chinese pigs. Because re-assortment of influenza can occur in pigs, the researchers urge improved surveillance of the viruses across the pork industry to advance pandemic preparedness and help prevent transmission to humans and other species. (AVMA SmartBrief – Redorbit)
> US – CAT ANCESTRY The UC Davis Veterinary Feline Genetics Laboratory has introduced a cat ancestry test. It uses a DNA sample from a cat to determine if the pet’s parents or grandparents belong to one of 29 common cat breeds. According to the lab, the results are 90% accurate. (ABCLocal.go.com)
***********************************
BRAKKE CONSULTING VIEWPOINT
It appears from the news this week that many of our client companies were in the office closing some last minute transactions or agreements during the holidays. Acquisitions and in-licensing are major factors in the growth of some of the leading companies. It takes consolidation to create double-digit growth in a market place that is only growing in the low single digits when adjusted for inflation. With no significant new product categories and a limited number of innovative products for current categories, it’s becoming more difficult for management to continue to create that double-digit growth. This week’s stories also reflect the shifts and importance of the developing OTC channel in companion animal products. This is a trend that we believe will continue during 2013.
We cover a number of industry trends in our 2013 Animal Health Industry Overview which will be given in Orlando and Las Vegas. We would encourage senior managers and investors who would like our perspective on key industry trends to register for our presentations while there is still space available.
Have a great weekend and Happy New Year!!
Ron Brakke
**********************************
This electronic newsletter is the sole property of Brakke Consulting, Inc.
Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting, Inc.
For more information about Brakke Consulting’s services and syndicated studies, visit our website at www.brakkeconsulting.com.
Brakke Consulting, Inc.
12005 Ford Rd., Suite 530
Dallas, TX 75234 USA
English (United States) 
Portuguese