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Brakke Consulting’s
Animal Health News & Notes for July 8, 2016
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
Transaction assistance
earnings news
ECO Animal Health
other news
Advit
ANIMART
C&D Foods
Continentale Nutrition
Cross Vetpharm
Evonik
Fujita Pharmaceutical
Kemin
Laboratoire M2
Med-Pharmex
Merck
Neogen
NOREL
Nuscience
Nutral
Nutreco
Orix
Stockmen’s / Midwest Supply
Vallee SA
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2016 KC Animal Health Corridor Events
August 29-30, 2016
Kansas City, MO
The KC Animal Health Corridor hosts a trifecta of exceptional industry events during Global Animal Health week this year. Early bird registration ends August 1.
Market Insight Seminar
August 29, 3:30 – 5:00 pm
click here for details http://kcanimalhealth.thinkkc.com/events/market-insight-seminar
Animal Health Corridor Homecoming Dinner
August 29, 5:00 – 9:00 pm
click here for details http://kcanimalhealth.thinkkc.com/events/homecoming
Animal Health Investment Forum
August 30, 7:30 am – 5:00 pm
Click here for details http://kcanimalhealth.thinkkc.com/events/investment-forum
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COMPANY EARNINGS RELEASES
• ECO Animal Health reported results for the full year ended March 31, 2016. Sales for the year increased by 21% to GBP 47.1 million ($68 million). Pre-tax profits rose 51% to GBO 7.7 million ($11 million). (Business Wire)
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BRAKKE CONSULTING, INC.
TRANSACTION ASSISTANCE
Let Brakke Consulting provide assistance for all your transactions.
Brakke Consulting has been the finder of record, agent of record or consultant for a number of successfully completed projects. We assist with valuations and provide due diligence on confidential transactions as well as offering executive counsel on a number of potential transactions.
Brakke Consulting has the experience, insight, ability and contacts to provide clients with the highest quality services in the animal health, pet, veterinary and specialty chemicals markets. Please contact any of our offices for a confidential consultation.
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COMPANY NEWS RELEASES
• The FDA announced the approval of an Abbreviated New Animal Drug Application for Cross Vetpharm’s FerroForte (gleptoferron) injection for the prevention and treatment of baby pig anemia due to iron deficiency. (FDA)
• Med-Pharmex announced that Mometavet Otic Suspension, a triple combination antibacterial, anti-inflammatory, and antifungal treatment for canine otitis externa, is now available. (Vet Advantage)
• Kemin Industries announced that the FDA has approved Kemtrace Chromium (chromium propionate) as a source of chromium in broiler chicken diets. According to the company, it is the first trace mineral approved for broiler diets in the US for more than 40 years. (Animal Pharm)
• ANIMART, LLC announced it has acquired Stockmen’s / Midwest Supply, a premier animal health product supplier with offices in North Dakota, Missouri and Minnesota. Financial terms were not disclosed. (WisconsinAgConnection.com)
• Neogen announced it has launched two new tests to detect Mycobacterium avium paratuberculosis (MAP), which causes Johne’s disease in cattle. The two new tests, which are both National Veterinary Services Laboratories (NVSL) accredited, are polymerase chain reaction (PCR) tests that detects the presence of MAP bacteria in fecal material. Neogen’s new tests are offered through the veterinary laboratory of its GeneSeek subsidiary. (Animal Pharm)
• BRAZIL Merck announced that it would acquire a 93% interest in Vallee SA, a producer of animal health products in Brazil, for $400 million. The Brazilian company has a portfolio of over 100 products from parasiticides to vaccines for livestock, horses and pets. The company has operations outside of its home country in Paraguay, Venezuela, Mexico and Bolivia. (Business Wire)
• JAPAN Orix announced it will purchase all outstanding shares in veterinary medicine maker Fujita Pharmaceutical. Fujita Pharmaceutical’s revenue totaled about 5.5 billion yen ($53.6 million) in the year ended November 30. Financial terms were not disclosed. (asia.Nikkei.com)
• FRANCE Irish company C&D Foods announced it has acquired French pet food manufacturer Continentale Nutrition. With the acquisition, C&D now has nine factories spread across seven countries, and is now the largest private label pet food manufacturer in Europe, according to European Supermarket Magazine. Financial terms were not disclosed. (Petfoodindustry.com)
• SPAIN Evonik announced it will acquire the probiotics business of Spanish feed additive specialist NOREL. NOREL is based in Madrid and has a portfolio featuring a range of probiotic products for poultry, pigs and aquaculture. Financial terms were not disclosed. (Animal Pharm)
• SOUTH AFRICA Nutreco announced it has acquired South African premix and feed additive specialist Advit. The firm had previously been working with Trouw Nutrition, Nutreco’s animal nutrition business, since 2015. Financial terms were not disclosed. (Animal Pharm)
• URUGUAY Nuscience announced it has reached an agreement to acquire Uruguayan company Solapa S.A., known under its commercial name Nutral. Nutral is a manufacturer of premixes and other nutritional products for dairy and beef cattle. Financial terms were not disclosed. (WattAgNet.com)
• CANADA Laboratoire M2 announced Health Canada’s approval of Thymox Hoof as a veterinary drug for the control of Digital Dermatitis in dairy cattle. (Finance.yahoo.com)
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ANIMAL HEALTH NEWS
• CANADA – ANIMAL HEALTH REGULATION The Canadian government is proposing new rules for veterinary drugs used in livestock that would restrict the importation of some veterinary drugs used in livestock, require drug manufacturers to follow stricter rules regarding the quality of active ingredients and allow for increased monitoring of drug sales. Health Canada said it is also working to phase out growth promotion claims on antimicrobial drugs used in food animal production by the fall of 2017. The proposed changes will align Canada with policies in the United States and the European Union. (Citynews.ca)
• JAPAN – ANIMAL HEALTH TECHNOLOGY In collaboration with Utsunomiya University, Panasonic has developed a new type of insulated cow barn with ventilating fans for intake/exhaust air operated by sensors to control appropriate temperature and humidity automatically. Cows fed in the new style of shed increased their milk lactation by an average of 7kg per head per day when compared to the cows fed in a conventional shed. Panasonic expects to market these new cow sheds in 2018. (Animal Pharm)
• US – ANTIBIOTIC REGULATION The FDA released its fifth progress report highlighting its recent actions to promote the judicious use of antimicrobials in food-producing animals following the publication of Guidance for Industry (GFI) #213 in December 2013. There were 293 applications initially affected by GFI #213. Four applications have been converted from over-the-counter to prescription dispensing status; production indications have been withdrawn from one application; and 41 affected applications have been completely withdrawn. The agreed-upon timeframe for aligning their product with GFI #213 is the end of 2016, and all of the affected drug sponsors have committed in writing to making the changes described in the guidance by the end of 2016. (FDA)
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BRAKKE CONSULTING VIEWPOINT
It is amazing how the industry continues to consolidate. In this week’s newsletter alone there are 7 acquisitions announced in various parts of the world. There were probably additional acquisitions that were not reported that could be added to the list. It remains a seller’s market for those firms wishing to convert their equity in animal health into cash or stock in another company. The animal health markets continue to be of high interest to investors and companies already participating in the growth and profitability of the industry. We anticipate this interest to continue for the foreseeable future, which is good for all the parties involved. Let us know if we can help you find the right buyer for your business.
You have hopefully noticed by now that the graphics for the Brakke newsletter changed this week. We hope you enjoy this upgrade and will encourage others to subscribe to what is already the largest newsletter serving the animal health industry.
Have a great weekend and stay cool here in the US!
Ron Brakke
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