The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for November 22, 2013

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke Consulting news
US Flea Control & Heartworm Markets report – last chance to pre-order
Transaction assistance
earnings news
DS Pharma
Nippon Zenyaku Kogyo
Spectrum Brands
other news
Compan Pharmaceuticals
Kindred Biosciences
Mammoth Pet Holdings
Vireo Systems

Brakke Consulting will soon be publishing our 2013 report on the US Flea Control and Heartworm Markets. The report includes valuable information on the US market for small animal parasiticides including:
 – Product descriptions, prices, and sales for the leading veterinary flea and heartworm products
 – an overview of the veterinary and OTC flea control markets
 – discussion of the impact of generic fipronil products
 – 2013 survey of 300 veterinarians
 – 2013 survey of 500 pet owners

The report on the US Flea Control & Heartworm Markets will be available for a purchase price of $6,995 if ordered by TUESDAY, NOVEMBER 26, and $7,500 after that date.

Please contact Dr. Lynn Fondon at (972) 243-4033 or  to pre-order the report, or for more information visit our website at
> Patterson Companies, Inc. reported results for its fiscal second quarter ended October 26, 2013. Sales for the Patterson Veterinary unit increased 67% from the prior year period to $308 million. When adjusted to exclude the consolidated sales contribution from the UK-based NVS acquisition, US sales were up 3.3% to $190 million. (
> Nippon Zenyaku Kogyo Company reported that its revenue for the first half of fiscal 2013 from April 1 to September 30, 2013 increased by 2.7% to JPY 12,130 million ($123 million) compared to the same period of fiscal 2012. (company communication)
> DS Pharma Animal Health Company reported for its first half of fiscal 2013 ended September 30, 2013. Sales rose by 3.5% to JPY 5,900 million ($60 million) compared to the first half of last year. (company communication)
> Spectrum Brands Holdings, Inc. announced results for fiscal 2013 ended September 30, 2013. Global Pet Supplies sales for the fiscal year were $622 million, an increase of 1% compared to the prior fiscal year. (company website)
> Kansas State University and Merck Animal Health have partnered to open a new Microbial Surveillance Lab on the University’s Olathe, Kansas, campus. Merck Animal Health provided a donation for the development of the Microbial Surveillance Lab at K-State Olathe. The lab will provide diagnostic support services that will initially meet the unique needs of Merck Animal Health, followed by other animal health industry partners. (Feedstuffs)
> IDEXX Laboratories announced the SNAP Pro Mobile Device, an advanced point-of-care instrument that automatically activates SNAP tests, captures and saves images of the results and records invoice charges in the patient record. (company website)
> Phibro Animal Health Corporation and Epitopix have entered into a partnership to manufacture and market biological products for chickens in the US based on Epitopix’s novel SRP technology. Additionally, the parties intend to collaborate on a global basis to develop unique poultry biological products based on this technology. ( 
> The FDA reported that Compan Pharmaceuticals has received Minor Use Minor Species (MUMS) designation for piroxicam for the treatment of transitional cell carcinoma of the bladder in dogs. (FDA)
> Vireo Systems announced the introduction of CanineActiv, an alternative to NSAID pain relievers for dogs. The capsules contain an anti-inflammatory ingredient, Alpha-GEE, a unique compound made up of naturally occurring amino acids, along with a special formulation of homeopathic compounds for dogs. (PRNewswire)
> Immunovaccine Inc. reported it has closed the previously announced private placement of its securities, raising gross proceeds of $4.2 million. Under terms of the financing, a total of 10,511,209 common shares of Immunovaccine were sold at a price of $0.40 per Common Share. ( 
> Kindred Biosciences announced it will seek $57.5 million in funding through an Initial Public Offering on the NASDAQ this year.  The company’s goal is to take human health drugs to commercial realization in the companion animal sector. Its first product, CereKin, is an oral cytokine inhibitor currently in clinical trial for treating osteoarthritis in dogs. (Animal Pharm)
> AUSTRALIA  Australian veterinary services company Greencross announced a merger agreement with Mammoth Pet Holdings, which operates 100 Petbarn pet specialty stores in Australia, and 24 Animates pet specialty stores in New Zealand (the latter through a 50:50 joint venture with EBOS Group). Once combined, projected revenue for FY2014 is $443 million. The scrip-for-scrip offer will have Greencross issue about 52.6 million shares to Mammoth shareholders, which will represent 58.25% of the merged company’s share register. ( 
> ARGENTINA  Vetanco has received approval for a new poultry vaccine for the prevention of avian salmonellosis from the Argentine national health and food safety authority SENASA. It will be available both on the domestic market and for export. BiotechVac, designed using recombinant genetic engineering technologies, is described as a safe, orally administered inactive subunit vaccine – the antigen is neither live-attenuated nor injectable. The vaccine works by activating the mucosal immune system. (Animal Pharm) 
> US – BETA AGONISTS  USDA has launched a certification program that allows companies that produce livestock, beef and pork products to market their products using “Never Fed Beta Agonists” labels. USDA’s Agricultural Marketing Service requires companies seeking to participate in the Never Fed Beta Agonists program to submit documentation that meet several of the agency’s specific Process Verified Program (PVP) or Quality System Assessment (QSA) program requirements, among others. (Vet Advantage)
> US – CVM  The FDA’s Center for Veterinary Medicine (CVM) announced the disbanding of its Veterinary Medicine Advisory Committee (VMAC), a group of outside experts retained as special government employees to offer opinion on animal drug and food issues. CVM said it will instead utilize other forums to seek expert and public opinion on regulatory matters. CVM said it believes that VMAC is no longer necessary because of other opportunities for input; the last VMAC meeting was in 2010 and the committee has met only six times in the last decade. (Feedstuffs)
When the Time Is Right

Buying, selling or merging? We can help!

Brakke Consulting assists many clients with mergers, acquisitions and divestitures. Our transaction experts can provide the insight, ability and contacts you need in the animal health, pet, veterinary and specialty chemicals markets. Please contact any of our offices for a confidential consultation.

This is the last newsletter before the 2013 holiday season goes into full swing with Thanksgiving day here in the US next week. We want to take this opportunity to thank all of our clients for the business they have provided to us in 2013. We appreciate every one of you!!
It’s been another positive year for the industry and it appears to us that 2014 could provide similar growth. With reduced feed grain prices and a recovering economy 2014 could be an exceptionally positive year for the food animal sector. The competitive environment in some of the leading categories in companion animal may reduce the growth potential in this area.

Have a great Thanksgiving holiday week, and eat lots of animal protein!

Ron Brakke

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