The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for February 19, 2015
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke Consulting news
2016 Industry Overview at WVC
Market research
earnings news
other news
Blue Buffalo
Harris Farms
Manna Pro
Silent Herdsman
St. Francis Group


The KC Animal Health Corridor is now accepting applications to present at the 2016 KC Animal Health Investment Forum on August 30 in Kansas City, Missouri.

Now in its eighth 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 15. To apply, go to For more information, contact Kimberly Young at
> Zoetis Inc. reported its financial results for the full year 2015. The company reported revenue of $4,765 million, flat compared with the full year 2014 (+8% excluding foreign currency effect). Net income for the full year 2015 was $339 million, a decrease of 42% compared to 2014. On an operational basis, adjusted net income for the full year 2015 increased 24%, with foreign currency having a negative impact of 11 percentage points. (company website) 
> Nestle SA reported results for the full year 2015. Petcare sales were CHF 11,488 million ($11,591 million), an increase of 1% compared to the prior year (+6% organic growth). (company website) 
> Nexvet Biopharma announced financial results for the quarter ended December 31, 2015. Nexvet reported a net loss of $(5.7) million, compared to $(2.4) million for the three months ended December 31, 2014. As of December 31, 2015, Nexvet had cash of $43.1 million. ( 
> Trupanion reported results for the full year 2015. Trupanion’s sales were $147 million, an increase of 27% compared to the prior year; net loss was $(17.2) million compared to a net loss of $(21.2) million in the prior year. Total enrolled pets at December 31, 2015 was 291,818, up 26% from December 31, 2014. (company website)
> DSM reported results for the full year 2015. Animal Nutrition & Health sales were EUR 2,359 million ($2,577 million), an increase of 13% compared to the prior year (+9% organic growth). (company website)

Brakke Consulting is pleased to announce the 2016 Industry Overview, featuring consultants Ron Brakke, John Volk, and Dr. Cary Christensen. The 2016 US Animal Health Industry Overview will be presented twice this winter – once at the North American Veterinary Conference in Orlando, Florida and once at the Western Veterinary Conference in Las Vegas, Nevada.
WVC: Tuesday, March 8, 2:00 – 4:00 pm, Four Seasons.

Online registration for the Industry Overview at the WVC is now open.

To register, go to and scroll down to the “What’s New” box. The price is $385 per person for online registration; onsite registration is $425. 
> Manna Pro announced it has acquired Harris Farms LLC, which designs and markets products for the poultry, farm and ranch industries. Financial terms were not disclosed. (Pet Age)
> Blue Buffalo Company announced it has entered into a settlement agreement in the class action lawsuits alleging that certain Blue Buffalo products were not consistent with the “Blue Buffalo Promise.” Blue Buffalo denies any wrongdoing and entered into the agreement, which pays $32 million into a settlement fund, to eliminate the burden of further litigation. The settlement is subject to approval by the court. (Pet Age)
> UK  MWI Animal Health announced the acquisition of St. Francis Group, the United Kingdom’s largest animal health buying group. St. Francis Group represents more than 460 member practices throughout the UK and Northern Ireland. Financial terms were not disclosed. (Business Wire)
> IRELAND  Chanelle announced it is investing EUR 70 million ($79 million) to double production output at its headquarters in Galway, Ireland. The expansion of production facilities, which will add 30,000 square feet of manufacturing plant, will commence in March this year. Chief executive Michael Burke said Chanelle will be expanding into new markets including the US, Central and South America. (Animal Pharm)
> UK  Israeli dairy farm management specialist Afimilk announced it has acquired Silent Herdsman, a UK developer of a neck-collar health monitoring system for cows. Financial terms were not disclosed. (Animal Pharm)
> US – EQUINE HERPESVIRUS  The California Department of Food and Agriculture (CDFA) reported that a polo pony euthanized after developing neurologic signs tested positive for equine herpesvirus-1 (EHV-1). 70 exposed horses have been placed under quarantine, and the CDFA will continue to monitor the situation. (Vet Advantage)
> EU – ANTIMICROBIALS REGULATION  The European Parliament’s environment, public health and food safety committee has supported amendments toughening the 2014 proposals regarding use of antibiotics in livestock. Measures would now include a ban on prophylactic use of antibiotics and the creation of a list of drugs for human use only. Online sales of antibiotics and prescription-only veterinary medicinal products would also be banned. The amended legislation will now go to a plenary session of the European Parliament for final approval in March or April. (
> US – PET NUTRITION  The Pet Nutrition Alliance (PNA), an independent not-for-profit organization dedicated to providing resources to veterinary healthcare teams to help them position nutrition as essential to optimal pet health, officially launched its new website This industry-wide effort involves the collaboration of dedicated professionals from a number of Member Organizations, including the American Veterinary Medical Association, American Animal Hospital Association, and American Academy of Veterinary Nutrition. (organization press release)
> UK – TUBERCULOSIS RESEARCH  UK authorities have awarded GBP 7 million ($10 million) to nine research projects focused on bovine tuberculosis (bTB). The funding was provided by the country’s Biotechnology and Biological Sciences Research Council (BBRSC), the National Centre for the Replacement, Refinement & Reduction of Animals in Research (NC3Rs) and the Department for Environment, Food and Rural Affairs (DEFRA). (Animal Pharm)
Look Before You Leap

Depend on Brakke Consulting to build a market study to meet your company’s needs, whether it is:

• Assessing the feasibility of a new product or technology
• Identifying the opinions and trends of veterinarians, pet owners or producers
• Determining the current market for products

With our in-house database of veterinarians and the ability to custom-tailor surveys of a wide variety of target audiences, we provide reliable insights into this unique industry. We also produce multi-client reports in a number of high-interest animal health market areas. For more information, see our website or call our Dallas office at 972-243-4033.
As the leading animal health companies become more global, changes in currency impact the financial results; actual operational results excluding currency effects can be quite positive. Many companies, including the market leaders, experienced this in 2015. In general, the animal health markets were reasonably strong in 2015 and the first quarter of 2016 continues to show strength. We continue to receive calls on a regular basis from investors desiring to find one or more animal health companies to add to their portfolios.
One story this week involves a large generic company increasing their manufacturing capacity and expanding in the US and other animal health markets. The number of animal health generic drug manufacturers is increasing, along with their success in the marketplace.

Have a great weekend!

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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