The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for February 15, 2013

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke Consulting news
2013 Industry Overview
Chinese market overview
OTC market consulting
earnings news
Central Garden & Pet
Henry Schein
VCA Antech
other news
Kane Biotech
Phelps Industries
PRN Pharmacal

In an effort to educate US and European companies on the Chinese Animal Health market opportunities, Brakke Consulting is pleased to present an Overview of the Chinese Animal Health Market at the Western Veterinary Conference.

The speaker will be Dr. Jishu Shi, principal owner of VaxiAm LLC. Brakke Consulting recently joined forces with VaxiAm to expand its consulting services into the Chinese animal health market.
   Date: Tuesday, February 19th
   Time: 10:30 AM to 12:00 PM
   Location: Desert Willow room, Four Seasons Hotel

To reserve your space, call our office at (972) 243-4033 and ask for Jane Morgan. The registration fee is $50 per person.
> Nestle reported results for the full year 2012.  Pet Care sales were CHF 10.8 billion ($11.8 billion), an increase of 11% compared to the prior year. (company website)
> ImmuCell Corporation announced the results for the twelve-month period ended December 31, 2012. Product sales increased by 5.5% to $5.4 million in comparison to 2011. The net income was $90,000 during the year in contrast to a net loss of ($410,000) for 2011.  (company press release)  

> Ridley Inc. reported its financial results for the second fiscal quarter ended December 31, 2012. Ridley’s revenues from continuing operations grew by 7% to $157 million. Consolidated net income for the period was $6.6 million compared to $4.0 million last year. (company website)
> VCA Antech reported financial results for the full year 2012. Revenue increased 14% to $1.7 billion. Net income was $50.1 million compared to $99.8 million in 2011. Results included a non-cash impairment charge of $124 million, or $79 million net of tax, primarily related to the write-down of goodwill and other long-lived assets in the Vetstreet business. (company website)
> Central Garden & Pet Company announced financial results for its fiscal first quarter ended December 29, 2012. First quarter net sales for the Pet segment declined 2% over the prior year to $195 million, due primarily to lower sales of dog and cat products. (company website)
> Henry Schein, Inc. reported record financial results for the year ended December 29, 2012. Animal Health sales were $2.3 billion, an increase of 15% compared to the prior year. The Company is on a 52/53 week fiscal year ending on the last Saturday in December, and 2011 had an extra selling week compared with 2012; local internal sales growth (excluding the extra week and acquisitions) was 10%. North American animal health sales were $1.1 billion, an increase of 13%. (company website)

Whether your business is considering the OTC channels for new business opportunities or you have been distributing in the OTC channels for years, Brakke Consulting’s team can provide significant and quality assistance to businesses seeking to learn more about the details of the OTC channels of distribution.  If you are looking for meaningful insights into the OTC channels, the trends found there, and the opportunities that exist, contact our Dallas office or Joel Adamson at .
> Sogeval announced it has acquired Alstoe Ltd Animal Health, an independent supplier of animal healthcare products for pets and livestock in the UK. The acquisition of Alstoe allows Sogeval to continue its international growth strategy in the UK market. Financial terms were not disclosed. (
> PRN Pharmacal introduced Collasate Silver gel, the first wound healing product for pets to combine collagen and silver oxide. The silver oxide in Collasate Silver is an antibacterial agent; it also maintains a moist wound environment to further inhibit the proliferation of bacteria and microbes, which are readily absorbed into the gel. (company press release)
> Parnell announced the launch of Synchronization Pack to synchronize estrous cycles in lactating dairy cows and beef cows. Synchronization Pack incorporates timed injections of GONAbreed (gonadorelin acetate) and estroPLAN (cloprostenol sodium) to allow for fixed time artificial insemination in commonly used cattle breeding programs. GONAbreed has also been FDA-approved for the treatment of ovarian follicular cysts in dairy cattle. (Vet Advantage)
> Patterson Veterinary announced a new X-ray system for veterinary practices. The digital radiography solution is comprised of an Arcom X-ray table paired with a flat panel RadmediX direct capture flat panel digital X-ray detector and user-friendly software supported by Metron. The system offers a turn-key solution that provides high-quality diagnostic imaging and the ability to access medical records from multiple locations. (company press release)
> Phelps Industries LLC announced its sale to an investment group made up of Phelps management and Wafra Partners LLC. Phelps manufacturers treats and chews for sale in supermarkets and pet stores across the United States and internationally. The company makes in-house and private-label treats as well as goods on behalf of other manufacturers. Terms were not disclosed. (Pet Products News)
> CANADA  Kane Biotech announced the Canadian launch of StrixNB, a drinking water additive for pet oral care. StrixNB is scientifically formulated to work against bacteria associated with dental disease by altering the mouth’s environment. (Animal Pharm)
> US – SWINE DISEASE  The USDA’s Animal and Plant Health Inspection Service (APHIS) announced an action plan highlighting possible modifications that could be made to domestic programs for swine brucellosis (SB) and pseudorabies (PRV). Currently all US states are considered free of SB and PRV. The new action plan incorporates the risk of disease introduction by feral swine, which is not addressed in the existing regulations. APHIS said in recent years it has identified several swine herds in the US infected with SB or PRV. The plan also aims to reduce the regulatory burden, as well as combine the SB and PRV programs into one initiative. (Animal Pharm)
> SPAIN – DIABETES RESEARCH  Researchers from the Universität Autònoma de Barcelona (UAB) have reportedly developed a cure for type 1 diabetes in dogs. The cure uses a single session of gene therapy that led to complete remission of type 1 diabetes symptoms that persisted for 4 years in the dogs. Dogs treated with the gene therapy maintained glucose control after eating and when fasting. There were no episodes of hypoglycemia, and blood sugar levels stayed normal even with exercise. The findings were published in the journal Diabetes. (AVMA SmartBrief –
> US – PRRS RESEARCH  Researchers at Kansas University have discovered a genetic marker that identifies swine with reduced susceptibility to the porcine reproductive and respiratory syndrome (PRRS). The discovery is considered by the researchers to be a first step in controlling and eliminating the syndrome, which costs the US swine industry more than $600 million each year. (Animal Pharm)
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:
• WVC: Tuesday, February 19, 2:00 – 4:00 pm, Four Seasons.

Online registration for WVC is now closed. To attend, please register on-site.
The news this week continues the trend of acquisitions, investments and product entries into both the veterinary and OTC markets.  There is growing interest by the financial community in the animal health, pet and veterinary markets as a result of the successful IPO of Zoetis. This increased interest and awareness increases the value of all the companies involved in serving the animal industry. We’re can confirm this interest by the number of investors that have registered for our Animal Health Industry Overview in Las Vegas next week.

While I’m on the topic of the Western Veterinary Conference, let me remind you of our Overview of the Chinese Animal Health market that will be presented at 10:30 am on Tuesday, February 19th in Las Vegas. There are still a few opening for this presentation. We believe that you’ll find the opportunities and challenges of the Chinese animal health marketplace to be most interesting. Information on registering is found earlier in the newsletter.

Have a great weekend and we’ll see many of you in Las Vegas next week!!
Ron Brakke
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Dallas, TX  75234    USA

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