The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for February 14, 2014

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke Consulting news
2014 Industry Overview
China and Japan Animal Health Market Overview
Strategic planning
earnings news
Central Garden & Pet
Henry Schein
VCA Antech
other news
Bio-Medical Services
Merck (PEDV)
Merck (Panacur)
Zoetis (IBV)
Zoetis (PEDV)

Brakke Consulting, Inc. will present a 2-hour seminar offering an overview of the animal health markets in Japan and China. Yuki Ujimasa, DVM, MS, President and CEO of AHRMS, Inc., will discuss recent important developments in the Japanese animal health industry. Jishu Shi, DVM, Ph.D., principal owner or VaxiAm, LLC, will present an introduction to the Chinese animal health industry.

The seminar will be held from 10:00 am to 12:00 pm at the Four Seasons Hotel in Las Vegas. The registration fee for the 2-hour seminar is $300 per person. To register, please call Brakke Consulting at (972) 243-4033 and ask for Jane Morgan, or email .

> Zoetis Inc. reported its financial results for the full year 2013. The company reported revenue of $4.56 billion, an increase of 5% from the full year 2012. Revenue reflected an operational increase of 7%, with foreign currency having a negative impact of 2%. Net income for the full year 2013 was $504 million, an increase of 16% compared to the full year 2012. (company website)
> Nestle S.A. reported financial results for the year 2013. PetCare sales were CHF 11.24 billion ($12.6 billion), an increase of 4% compared to the prior year. (company press release)
> Henry Schein, Inc. reported financial results for the year 2013. Global animal health sales were $2.60 billion, an increase of 12% compared to the prior year. North American animal health sales were $1.24 billion, an increase of 10%. ( 
> VCA Antech, Inc. reported financial results for the year 2013. Revenues were $1.80 billion, an increase of 6% compared to the prior year. Net income was $143 million compared to net income of $51 million in 2012. Animal Hospital revenues for the year were $1.42 billion, an increase of 7%; Laboratory revenues were $345 million, an increase of 5%. (company press release) 
> Nutreco reported results for the full year 2013. Revenues were EUR 3.87 billion ($5.22 billion), an increase of 1% compared to the prior year. Earnings before interest, tax and amortization expenses (EBITA) were EUR 215.7 million ($291 million), a decline of 4%. (Animal Pharm)
> Central Garden & Pet Company announced financial results for its fiscal first quarter ended December 28, 2013. First quarter net sales for the Pet segment declined 5% from the same period a year ago to $185 million, due in part to lower sales of wild bird feed and aquatics products. (company website)
> ImmuCell Corporation announced the results of its operations for the year ended December 31, 2013. Product sales increased by 12% to $6.0 million compared to the same period in 2012. Net income was $117,000 compared to net income of $90,000 in 2012. (company press release) 
> Zoetis Inc. announced it has obtained a conditional license from the USDA to market the first commercially available vaccine for helping reduce disease caused by the Georgia 08 variant of infectious bronchitis virus (IBV) in poultry. The vaccine is now available in Alabama, Florida, Georgia, Kentucky and Tennessee. (company press release) 
> Zoetis announced a research partnership with Iowa State University (ISU) to identify and test a vaccine candidate to help control porcine epidemic diarrhea virus (PEDV) in the United States. (company press release)
> Merck Animal Health announced a partnership with Utrecht University in the Netherlands to develop a vaccine for porcine epidemic diarrhea virus (PEDV). The two parties will work together for 12 months to test leads towards the vaccine. (Animal Pharm)
> ALK announced the acquisition of Bio-Medical Services. Financial terms were not disclosed. (Business Wire)
> EUROPE   Merck Animal Health announced that the Committee for Medicinal Products for Veterinary Use (CVMP) of the European Medicines Agency has adopted a positive opinion, recommending the granting of a marketing authorization for the veterinary medicinal product Panacur AquaSol (fenbendazole 200 mg/mL) for use in chickens for the treatment of gastro-intestinal nematodes in chickens infected with Ascaridia galli and Heterakis gallinarum. (
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.

> KOREA – AVIAN INFLUENZA  South Korea has reported eleven recent outbreaks of highly pathogenic H5N8 avian influenza in domestic poultry affecting almost 152,000 birds. The outbreaks started between January 19 and February 6 across several regions in the west and south-east of the country. In total, 151,700 ducks and chickens were affected, of which, 11,080 died and the rest have been destroyed. (
> NEW ZEALAND – EHV  Thirteen horses on a single property in New Zealand have contracted equine herpesvirus-1, and seven have been euthanized in the country’s first outbreak of the disease. Investigators don’t know when the virus reached the property, but the owner has implemented biosecurity measures in an attempt to contain the outbreak. (AVMA SmartBrief – TheHorse)
> US – SWINE CORONAVIRUS   The Ohio Department of Agriculture is informing pork producers and veterinarians that a new coronavirus has been detected in pig fecal samples from four different swine farms in Ohio. The clinical signs of the disease were similar to that of porcine epidemic diarrhea (PED) and transmissible gastroenteritis (TGE), which are both caused by coronaviruses. Sequence analysis of the new coronavirus shows that it is a deltacoronavirus, distinct from PED and TGE viruses. The new virus has been designated as Swine DeltaCoronavirus (SDCV). This virus is closely related to a coronavirus that was detected in Hong Kong in 2012. (Feedstuffs)

Brakke Consulting will present the 2014 US Animal Health Industry Overview at the Western Veterinary Conference in Las Vegas, Nevada. The date is:
• WVC: Tuesday, February 18, 2:00 – 4:00 pm, Four Seasons.

Online registration is now closed. To register for WVC, please register on-site immediately prior to the Overview.


Most of the leading animal health companies have reported their 2013 results, so everyone can now start concentrating on results for the first quarter in 2014. At the halfway point of the first quarter it sounds and feels like there is reasonable optimism for most companies. This optimism is restrained by the concern over the lowest number of cattle since 1951 and the porcine epidemic diarrhea virus (PEDV) impacting the swine market. There are several companies with initiatives to attack the PEDV outbreak and hopefully they will all be successful.
As it relates to the companion animal area, Mother Nature is keeping the winter grip on much of the nation, which could slow the uptake of parasite products early in the year, as well as veterinary visits. Thus far, we are encouraged by the number and quality of new products that have been launched in early 2014 which should drive new revenue.

We will be seeing many of you this coming week in Las Vegas. We hope each of you attending Western Veterinary Conference will have an enjoyable and profitable meeting.
Have a great weekend!!
Ron Brakke
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