The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for April 4, 2014
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke Consulting news
Global Equine Market Study
US Animal Health Industry Webinar
strategic planning
earnings news
China Animal Healthcare
Skystar Bio-Pharmaceutical
other news
DRE Veterinary
Henry Schein
Kindred Biosciences (X-Body)
Kindred Biosciences (offering)
Three Dog Bakery
X-Body Biosciences
The KC Animal Health Corridor is now accepting applications to present at the 2014 KC Animal Health Investment Forum on August 26 in Kansas City, Missouri.

Now in its sixth year, the Forum is one of the only opportunities in the world for early-stage companies in the animal health sector to present their vision, business plan and technology to potential investors.

The selection committee will consider companies that meet the following criteria:
– Seeking $500,000 – $20 million in funding
– Revenue projections of $20 million within 5-7 years

Applications are due on April 18. To apply, go to For more information, contact Kimberly Young at
> China Animal Healthcare reported financial results for the full year 2013. The firm posted sales of CNY915 million ($148 million), a 6% increase compared to 2012. The company’s net income reached CNY211.5m, which was a 65% improvement on the previous year. (Animal Pharm)
> Skystar Bio-Pharmaceutical Company announced full financial results for fiscal year ended December 31, 2013. Revenues totaled $42.5 million, up 27% year-over-year. Net income increased 70% year-over-year to $10.5 million. (Marketwatch)  
Wednesday, April 16, 2014
11 a.m. to 1 p.m. CDT

The two-hour presentation will include a review of the current issues impacting the U.S. animal health industry and veterinary profession, data on size of the animal health market and growth trends, sales of leading companies, and expectations for the coming year. This year will also highlight pet insurance and preventive care plans and their effect on veterinary medicine. Participants will also have an opportunity to ask questions of the presenters.

Registration cost is $385.00 per person. To register or for more information, go to and scroll to the “What’s New” section.

> The Journal of the American Veterinary Medical Association (JAVMA) has published the findings of the “Bayer Veterinary Care Usage Study III: Feline Findings” in their April edition. The study was conducted by Bayer HealthCare in collaboration with the American Association of Feline Practitioners (AAFP) and Brakke Consulting. The study found that more than half (52%) of America’s 74 million cats are not receiving regular veterinary care, potentially putting their health at risk. (PRNewswire)  
> Phibro Animal Health has set a price range of $16-$18 per share for its upcoming initial public offering (IPO). The firm will offer around 11.8 million shares, meaning proceeds of the IPO could range between $188.8 million and $212.4 million. (Animal Pharm) 
> Heska announced the appointment of Kevin Wilson to the role of chief executive and president. Mr. Wilson was previously Heska’s president and chief operating officer. He replaces Robert Grieve, who will become the company’s executive chairman. (Animal Pharm)
> Kindred Biosciences, Inc. and X-Body Biosciences announced an exclusive alliance in which X-Body will discover fully canine, feline, and equine antibodies for companion animal health, and Kindred Bio will develop and commercialize these antibodies. Kindred Bio will provide an upfront payment, research funding, milestones, and royalties. (PRNewsWire) 
> Kindred Biosciences, Inc. announced the pricing of its public offering of 3,000,0000 shares of its common stock at a public offering price of $18.00 per share. All of the shares are being offered by Kindred Bio. (PRNewswire)
> Patterson Veterinary announced the addition of a new, exclusive line of AccuWave monitors to veterinary practices: the AccuWave Pro; AccuWave Plus; AccuWave Portable Pulse Oximeter; and an AccuWave Portable Pulse Oximeter model that captures electrocardiogram and heart rate readings in addition to pulse oximetry. (company press release) 
> DRE Veterinary announced the addition of the DRE RCX Digital Wireless Veterinary Dental X-Ray System to its line of veterinary dental equipment. ( 
> VetriScience Laboratories announced the launch of the veterinarian-exclusive Immuno DMG Pro, a broad  spectrum supplement that combines extensively researched ingredients to support cell mediated immunity. (company press release) 
> Three Dog Bakery, Inc. announced it has been acquired by a private equity group. Financial terms were not disclosed. (Pet Age) 
> UK  Merial announced that SBVvax Schmallenberg virus vaccine is now available in the UK. ( 
> EU   Novartis Animal Health announced the EU launch of Strenzen (amoxicillin, clavulanic acid) oral water medication for pigs indicated for the treatment of gastrointestinal infections and for respiratory tract infections. Strenzen is first launched in Denmark, France, Germany, Italy, the Netherlands, Portugal, Spain and UK. (company press release)
> EU  The European Medicines Agency (EMA) has granted Minor Use Minor Species (MUMS) designation for Nexcyon’s adrenocorticotropin (ACTH), a synthetic peptide for the diagnosis of hypoadrenocorticism in dogs. (company press release) 
> POLAND   Henry Schein, Inc. announced that it has completed the acquisition of an approximate 80% ownership position in Medivet, a leading distributor of animal health products and services in Poland. Medivet had 2013 sales of approximately $86 million and serves approximately 2,200 customers. (Marketwatch)
Brakke Consulting is an excellent resource for your company’s strategic planning. Some of the services we offer include:
• Reviewing revenue estimates and success probability of your product pipeline
• Reviewing the timing of various new product introductions and estimate the impact of various scenarios
• Benchmarking various functions against company competitors in the larger markets
Through strategic planning, Brakke Consulting can help improve the likelihood of success for your company’s future endeavors.

Contact us for professional assistance in any of these areas.

> US – ANTIBIOTIC GUIDANCE  The FDA Guidance for Industry #213 released in December 2013 invited animal health companies to commit to seek the withdrawal of approvals for any production uses of affected drug applications and to change the remaining therapeutic uses of their products from over-the-counter (OTC) to use by Veterinary Feed Directive (VFD) or prescription only. There are 26 companies affected by the guidance, and 25 of them have now confirmed their intent in writing to engage with the FDA’s Guidance #213. The FDA estimates that these 25 companies are responsible for 99.95% of the total sales of products affected by Guidance #213, based on 2011 data. (Animal Pharm)
Brakke Consulting and Ipsos Agriculture and Animal Health are planning to conduct a comprehensive study of the equine animal health market in seven major horse-owning countries – Australia, Brazil, Canada, France, Germany, Spain and UK.

The global study will be fielded in May, with completion by Aug. 15. Companies that order by April 15 and pay in advance receive a $1,000 early-order discount. Purchasers of the 2014 Equine Market MegaStudy will receive an additional $1,000 discount. Upon publication, the price of the global study is $29,000.

For more information, contact John Volk, Senior consultant, (773) 327-4941; 
The first quarter of 2014 is in the books, and what we are hearing from the leading companies prior to official reporting is that January and February were soft because of weather events in the US. March bounced back nicely for some companies but not enough to cover the shortfalls of the first two months. There have been several significant new product launches in 2014 that are driving some nice growth. At least two of these launches were so successful that the manufacturers are back ordered on some product sizes.

This week’s news covers two stock offerings; one is an IPO and the other an additional public offering following the companies IPO in late 2013. The dollars generated by these two offerings represents new capital into the animal health industry. We expect additional public offerings in the near future. The financial community is currently very supportive of the industry and we believe this will continue for the next few months and years.

In the event you missed it earlier, if you are an early stage company in need of financing we encourage you to apply to the Animal Health Investment Forum, which is mentioned earlier in the newsletter. This forum has generated significant amounts of capital and increased visibility for a number of smaller companies the past 5 years.

Have a great weekend!! It looks like Spring is finally here!!
Ron Brakke

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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
Brakke Consulting, Inc.
12005 Ford Rd., Suite 530
Dallas, TX  75234    USA


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