The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for May 17, 2013
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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Hartville Group
Pet King Brands
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• Assessing the feasibility of a new product or technology
• Identifying the opinions and trends of veterinarians, pet owners or producers
• Determining the current market for products

With our in-house database of veterinarians and the ability to custom-tailor surveys of a wide variety of target audiences, we provide reliable insights into this unique industry. We also produce multiclient reports in a number of high-interest animal health market areas. For more information, see our website or call our Dallas office at 972-243-4033.
> Heska announced financial results for the first quarter of 2013.  Consolidated revenue decreased 1% to $19.0 million compared to the first quarter of 2012. Net loss was ($352,000) compared to net income of $584,000 in the first quarter of 2012. (company press release)
> ImmuCell Corporation announced financial results for the three-month period ended March 31, 2013. Product sales increased by 8% to $1.85 million in comparison to the same period in 2012. Net income was $204,000 in comparison to net income of $155,000 during the same period in 2012. (company press release)
> Zoetis, Inc. announced that the FDA has approved Apoquel (oclacitinib tablet) for the control of pruritus associated with allergic dermatitis and the control of atopic dermatitis in dogs at least 12 months of age. Apoquel is the first Janus kinase (JAK) inhibitor approved for veterinary use that targets the itch and inflammation pathway. (Business Wire)
> Bayer introduced seven dermatology products to the market as the company continues the integration process following the recent acquisition of Teva Animal Health Inc. ChlorhexiDerm 4% Shampoo, Free Form Liquid, Malaseb Flush, OtiRinse, Relief Creme Rinse, and Relief Spray were re-introduced and are now available. In addition, Preva Medicated Wipes were launched to veterinarians. (PRNewswire)
> Bioniche Life Sciences Inc. announced that it has engaged a financial advisory firm to assist the Board of Directors and management in its divestment of the Animal Health business. (company press release)
> Pet King Brands announced the introduction of Zymox Brushless Enzymatic Oral Care Therapy for dogs and cats. The patented enzyme systems replenish the protection and defense mechanism that is naturally found in healthy saliva. (company communication)
> VetIQ introduced a line of high quality pet prescription medications, over-the-counter flea & tick control and other health and wellness supplements for dogs and cats. VetIQ products are now available at traditional retailers nationwide, including Walmart, Costco, Kroger, Kmart and Sam’s Club. (PRNewswire)
> The Hartville Group, Inc. announced that it has signed a merger agreement with Crum & Forster’s United States Fire Insurance Company, a wholly owned subsidiary of Fairfax Financial Holdings Limited. Hartville provides pet insurance plans in all 50 states and the District of Columbia under several brand names, including Hartville Pet Insurance and the Petshealth Care Plan; Hartville also provides and administers plans under the ASPCA Pet Health Insurance name. Crum & Forster has underwritten Hartville’s pet insurance plans since October 2006. Financial terms were not disclosed. (PRNewswire) 
> US – EDUCATION   Kansas State University’s Master of Agribusiness (MAB) distance degree program is now offering an MAB tailored to individuals working in the animal health industry. The Master of Agribusiness combines an M.B.A. and an M.S. in agricultural economics with a focus on professionals working in the animal health and agribusiness industries. Applications are now being accepted for the cohort starting in August. (university press release)
> CHINA – AVIAN INFLUENZA  The United Nations’ Food and Agriculture Organization (FAO) reported that it is continuing to work with China and neighboring countries to contain the avian flu virus H7N9 which first emerged in the north east of China around Shanghai in early April. The FAO noted China had strengthened the monitoring of migratory birds and established two monitoring sites in the Nandagang and Haixing wetlands. The FAO recently drew up plans to conduct improved surveillance for any virus spill-over in countries neighboring China and to deal with further outbreaks of H7N9. (Animal Pharm)
> US – DRUG LEGISLATION  Legislation was introduced in the US Senate that would correct a restriction in the Controlled Substances Act (CSA) which prevents veterinarians from transporting or using controlled substances outside of their registered places of business. The new Senate bill (S. 950) is a companion to the House’s Veterinary Medicine Mobility Act of 2013 (H.R. 1528) introduced last month. (Feedstuffs)

This week’s news has a combination of new product launches, the re-launch of a dermatological line and the possible divestiture of a line of products. Most of these products will provide additional alternatives to veterinarians and pet owners in a competitive, crowded marketplace. There is one new product registration that reflects an investment in R&D to create a new innovative product to solve a health issue. In my travels the past few days I have made a number of stops at retail outlets, pharmacies and veterinary clinics. The one thing that is clear from these stops is that the pet owner has a number of options regarding product availability and price.

This week we’ve finally enjoying what looks like the end of our variable spring weather and moving directly into summer in many areas. The sunshine and rains covering much of the US should increase the need for more parasite products for all species. The rain will take some of the immediate pressure off the drought areas, but it’s still a long time until the harvest.

Have a great weekend!
Ron Brakke

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