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Brakke Consulting’s
Animal Health News & Notes for April 26, 2013
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
recruiting
earnings news
Bayer
Boehringer Ingelheim
Elanco
Hill’s
IDEXX
Nutreco
VCA Antech
other news
Abaxis
Animalcare
Elite Veterinary Products
Fabiani Saúde Animal
Mars Veterinary
Merck (Vetsulin)
Merck (SE Guard)
Natura
Tortuga
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AAVPT BIENNIAL SYMPOSIUM
AND AAVPT-CVM WORKSHOP
May 20 – 24, 2013
LAST WEEK FOR EARLY REGISTRATION DISCOUNT
Join the American Academy of Veterinary Pharmacology and Therapeutics for their Biennial Symposium in Potomac, MD on May 20-24. The program will focus on three main themes: the latest requirements for bioanalytical method validation; cutting edge utilization of pharmacokinetics; and improving veterinary drug labels.
In addition to the symposium, AAVPT is co-sponsoring a CVM workshop titled “Animal Drugs in Feeds”. This meeting will immediately follow the symposium and will cover regulatory requirements for approval of veterinary drugs in feeds.
Register by Thursday, April 18 to receive the early registration discount.
To register or for more information, go to https://m360.aavpt.org/event.aspx?eventID=58865
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COMPANY EARNINGS RELEASES
> Eli Lilly and Company announced financial results for the first quarter of 2013. Worldwide sales of animal health division Elanco were $499 million, an increase of 2% compared with the first quarter of 2012. US sales grew 9% to $295 million, due primarily to increased demand for Trifexis; sales outside the US decreased 8%. (company press release)
> Bayer reported financial results for the first quarter of 2013. Animal Health sales were EUR 327 million ($425 million), an increase of 2.5% compared to the comparable quarter in the prior year. (company website)
> Boehringer Ingelheim reported results for the full year 2012. Animal Health reported sales of EUR 1.06 billion ($1.40 billion), representing sales growth of 9% compared to the previous year (currency-adjusted +4%). The main growth drivers were swine vaccines from the product family Ingelvac. (company website)
> IDEXX Laboratories, Inc. reported results for the first quarter of 2013. Revenues increased 3% to $332 million; Companion Animal Group (“CAG”) revenues increased 3% to $277 million. Net income for the quarter was $45 million, an increase of 10% compared to the first quarter of 2012. (company website)
> VCA Antech reported financial results for the first quarter ended March 31, 2013. Revenue increased 7% to a first quarter record of $439 million. Animal Hospital revenue increased 8% to $341 million; Laboratory internal revenue in the first quarter increased 4% to $87 million. Net income declined 12% to $30.5 million. (company press release)
> Colgate-Palmolive reported results for the first quarter of 2013. Hill’s Pet Nutrition sales decreased 1.5% compared to the comparable period in the prior year. Unit volume decreased 3%. (company website)
> Nutreco reported results for the first three months of 2013. Revenues were EUR 1.14 billion ($1.49 billion), an increase of 1% compared to corresponding quarter in 2012. Overall group animal nutrition revenues increased by 3% to EUR 818 million ($1.07 billion); fish feed revenues of EUR 325 million ($425 million) were 3% lower than the first quarter of 2012. (Animal Pharm)
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COMPANY NEWS RELEASES
> Merck Animal Health announced that the FDA has approved the reintroduction of Vetsulin (porcine insulin zinc suspension) to the US veterinary market. The product has been off the market since 2011. (DVM360)
> Merck Animal Health announced the launch of SE Guard vaccine to control the threat of Salmonella enteritidis in both broiler breeders and layers. (PoultrySite.com)
> Abaxis, Inc. announced the addition of the new color HM5 veterinary hematology system to its point-of-care laboratory system product line. (Vet Advantage)
> Mars Veterinary announced the launch of Wisdom Panel 2.0, offering breed testing for more than 200 breeds and varieties, including 100% of American Kennel Club registered breeds. (PRNewswire)
> Natura Pet Products voluntarily recalled all dry pet food and treats that expire by March 24, 2014, expanding a recall initiated in March because the food may be contaminated with Salmonella. (AVMA SmartBrief – International Business Times)
> Elite Veterinary Products introduced ORGreens, surgical clothing and drapes designed for veterinarians. ORGreens’ proprietary technology manipulates the structure and form of traditional synthetic yarns to synthesize a polymer-carbon blend fabric that both wicks moisture away from the skin and simultaneously repels external fluids for maximum bio-protection. (company press release)
> BRAZIL Fabiani Saúde Animal has been formed from the non-nutrition assets of Tortuga by the Fabiani family, the founders of Tortuga. The company has a portfolio of 26 products dedicated to animal health, from vitamin and mineral supplements to antibiotics and anthelmintics. Earlier this month, Dutch pharmaceutical firm DSM finalized a $573 million deal for the animal nutrition assets of Tortuga. (Animal Pharm)
> UK Animalcare announced the UK launch of Marbocare (marbofloxacin), a fluoroquinolone injectable solution for cattle and pigs. Marbocare is indicated for daily injections for three days against E. coli mastitis and bovine respiratory disease (BRD), plus a single intramuscular high dose for BRD. Marbocare is also licensed to treat metritis mastitis agalactia syndrome in pigs. (Animal Pharm)
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ANIMAL HEALTH NEWS
> US – VETERINARY WORKFORCE STUDY The American Veterinary Medical Association’s (AVMA) recently released its workforce study, “2013 U.S. Veterinary Workforce Study: Modeling Capacity Utilization.” The highly anticipated study described an overall 12.5% excess-capacity in the profession, and noted that gaps between capacity and demand vary among geographic regions and specific sectors of professional practice. To read the Workforce Study, go to https://www.avma.org/News/PressRoom/Pages/2013-AVMA-Veterinary-Workforce-Report-Confirms.aspx (AVMA)
> US – VETERINARY HOSPITALS The American College of Veterinary Emergency and Critical Care (ACVECC) has approved nine veterinary hospitals and clinics in the U.S. to be provisionally designated as Veterinary Trauma Centers in a new initiative designed to improve treatment outcomes of animal trauma cases. (Newswise)
> US – ANTIMICROBIAL RESISTANCE The FDA issued a statement cautioning the interpretation of antimicrobial resistance data after the Environmental Working Group (EWG) recently issued a report of its interpretation of the 2011 Retail Meat Annual Report of the National Antimicrobial Resistance Monitoring System (NARMS). The FDA said it believes the EWG report oversimplifies the NARMS data and provides misleading conclusions. (Feedstuffs)
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BRAKKE CONSULTING, INC.
EXECUTIVE AND SALES FORCE RECRUITING
Recruiting Means More than Resumes
At Brakke Consulting we find the right person to fit your company’s needs. As part of our executive recruiting services, we manage the entire process of identifying and recruiting top candidates, including:
• Developing metrics to help rank candidates
• Scheduling interviews and arranging for travel
• Maintaining communications with candidates
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.
For more information about our recruiting services, visit our website or call one of our consultants:
• John Mannhaupt at 972.243.4033
• Ken Berkholtz at 772.223.3079
• Jay Lockhart at 314.821.3368
www.BrakkeConsulting.com
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BRAKKE CONSULTING VIEWPOINT
Earlier in this newsletter was the announcement of the AVMA’s new 2013 Veterinary Workforce Study. It confirmed data originally published in the Bayer Veterinary Care Usage Study regarding excess capacity in veterinary practice. The new Workforce Study documented that there are serious surpluses in nearly all categories of veterinary practice, with no relief in sight based on long range estimates of supply and demand.
This information is sobering news, particularly in light of reduced animal populations, declining pet visits to veterinarians, stagnating salaries, and skyrocketing student debt. Hopefully it will put to rest once and for all the misguided talk of veterinarian “shortages” and the need for more veterinary schools.
The most important thing is that the profession now has better data to work with in planning its way out of this dilemma. The AVMA Workforce Advisory Group, a panel of distinguished practitioners and experts chaired by Dr. Link Welborn, is to be commended for a job well done.
Obviously the heavy lifting isn’t finished; it’s just beginning. The more difficult challenge will be finding ways to bring supply and demand into better alignment so current and future veterinarians can have brighter economic prospects. We wish AVMA, AAHA and the other professional organizations well in tackling this daunting task.
John Volk
Ron Brakke
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