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Brakke Consulting’s
Animal Health News & Notes for November 18, 2016
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
Transaction assistance
2016 US Flea Control & Heartworm Markets report – pre-order discount ends Wednesday!
earnings news
J.M. Smucker
Jaguar Animal Health
Ouro Fino Saúde Animal
Spectrum Brands
other news
Avivagen
BioZyme
Boehringer Ingelheim Vetmedica
Central Life Sciences
Elanco (Itrafungol)
Elanco (Imvixa)
Hartville Pet Insurance
Merial
Neogen
PetSmart
PRN Pharmacal
Shaanxi Jintai Mining
SwedenCare USA
Veterinary Products Laboratories
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BRAKKE CONSULTING, INC.
US FLEA CONTROL AND HEARTWORM MARKETS REPORT
EARLY ORDER DISCOUNT ENDS WEDNESDAY!
Brakke Consulting will be publishing our 2016 report on the US Flea Control and Heartworm Markets in the next few weeks. 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 new flea and tick products, including Frontline Gold, Simparica, Bravecto topical solution, and the generic imidacloprid products
– 2016 survey of 300 veterinarians
– 2016 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 WEDNESDAY, NOVEMBER 23, and $7,500 after that date.
Please contact Dr. Lynn Fondon at (972) 243-4033 or lfondon@brakkeconsulting.com to pre-order the report, or for more information visit our website at:
www.BrakkeConsulting.com
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COMPANY EARNINGS RELEASES
• Ouro Fino Saúde Animal reported results for the third quarter of 2016. Sales were R$125.5 million ($36.5 million), a 16% decline compared with the same period of last year. The company suffered from Brazil’s ongoing financial crisis, which cut sales of products for both food animal and companion animals. (Animal Pharm)
• Jaguar Animal Health reported financial results for the third quarter of 2016. Revenues were $50,357 compared to revenues of $77,666 for the comparable prior-year period, a decline of 35%. Net loss was $(3.4) million compared to net loss of $(3.0) million in the comparable prior-year period. The company had cash and cash equivalents of $1.8 million as of September 30, 2016. (company website)
• J.M. Smucker reported financial results for the second quarter of fiscal year 2017. Pet food sales were $531 million, a decline of 6% over the comparable prior-year period. (company website)
• Spectrum Brands Holdings, Inc. reported record results for fiscal year 2016 ended September 30, 2016. Pet Supplies net sales were $826 million, an increase of 9% over the prior year. (company website)
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COMPANY NEWS RELEASES
• Boehringer Ingelheim Vetmedica Inc. announced it will relocate its North American animal health headquarters from St. Joseph, Missouri to Duluth, Georgia, as part of its integration with Merial. The company’s U.S. animal health leadership team will be based at the existing site of Sanofi’s Merial facility in Duluth; the Boehringer Ingelheim site in St. Joseph will continue to research, develop, manufacture and export animal health products. (NewsPressNow.com)
• The FDA announced the approval of Elanco’s Itrafungol (itraconazole oral solution), a new animal drug for treating dermatophytosis caused by Microsporum canis in cats. (FDA)
• Elanco announced that fish treated with its anti-sea lice drug Imvixa in Chile are now accepted for trade with major export markets, including the US, EU, Norway, Chile, Japan and Brazil. Chile is the first country to grant marketing authorization for the treatment. (Undercurrentnews.com)
• Pegasus Laboratories, Inc. doing business as PRN Pharmacal announced the acquisition of Veterinary Products Laboratories’ (VPL) animal health assets. VPL is a division of Central Life Sciences. Financial terms were not disclosed. (company press release)
• BioZyme announced the launch of HydraBoost a nutrient-rich, liquid supplement for commercial swine and poultry. HydraBoost is powered by natural feed additive prebiotic AO-Biotics. (company press release)
• SwedenCare USA introduced ProDen PlaqueOff Dental Bites for Cats to help cat owners manage plaque and tartar buildup. (DVM360)
• Hartville Pet Insurance Group announced the launch of a new Complete Coverage plan for pet parents. Pet parents can visit any veterinarian, specialist or emergency clinic in the U.S. or Canada, then submit the bill – online, by mail or fax – and reimbursement will be paid based on a percentage customers select when enrolling for coverage: either 90%, 80% or 70%. Deductibles and coverage limits apply on an annual basis and can be customized to fit the needs of the pet and owner. (company press release)
• PetSmart announced the launch of its redesigned, mobile-friendly website offering same-day, scheduled deliveries and subscriptions, among other new features. PetSmart shoppers can opt to subscribe to frequent orders through a new “auto-ship” option that lets you choose to have items delivered on a schedule you prefer – anywhere from between 2 to 8 weeks – in exchange for a 5% discount, along with free shipping. (APPA SmartBrief – Techcrunch.com)
• SCOTLAND Neogen announced it has been selected by the Scottish Government to perform genomics testing as part of a program to improve the quality of the country’s beef herd. Neogen’s new European GeneSeek laboratory at Ayr in Scotland will be responsible for the project’s animal genotyping and supply of sampling kits. (Animal Pharm)
• CHINA Avivagen Inc. announced an agreement with Shaanxi Jintai Mining Co. Ltd. to form a joint venture to commercialize OxC-beta Livestock in the People’s Republic of China. The JV will be owned 51% by Jintai and 49% by Avivagen, with equal representation on the board of directors and joint decision-making. The agreement specifies that Jintai will invest up to RMB 6.0 million (C$1.2 million) into the JV. (company press release)
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ANIMAL HEALTH NEWS
• GERMANY – AVIAN INFLUENZA A flock of 30,000 chickens has been destroyed in the northern Germany after highly pathogenic avian influenza was detected in their enclosure. The virus has been identified as the H5N8 strain. (USA Today)
• INDIA – AVIAN INFLUENZA The OIE reported that there has been an outbreak of highly pathogenic H5N8 avian influenza in southwest India. Some 21,130 chickens were destroyed out of a susceptible flock of 157,760 birds. All birds will likely be destroyed. Quarantine restrictions are in place and farms have been disinfected; a vaccination strategy cannot be implemented. (Animal Pharm)
• SWEDEN – NEWCASTLE DISEASE The OIE reported that there has been a large outbreak of Newcastle disease among poultry in southeast Sweden near the Danish border. 18,000 chickens were seen as susceptible to the disease and will likely be culled by local animal health officials. A quarantine order is in effect and farm premises have been disinfected. A vaccination strategy is prohibited. (Animal Pharm)
• US – AUTOGENOUS VACCINE REGULATION The Veterinary Services (VS) division of the USDA’s Animal and Plant Health Inspection Service (APHIS) recently issued a memorandum detailing its Guidelines for Autogenous Biologics. The memorandum can be read online at https://www.aphis.usda.gov/animal_health/vet_biologics/publications/pel_4_16.pdf. (bovine veterinarian)
• US – FOOD TRACEABILITY The Innovation Center for U.S. Dairy announced it has reached its goal of 80% coverage, set when it released its traceability best practices in 2013. 26 processors have pledged to follow best practices established by The Innovation Center, and more than 80% of the U.S. milk supply is now covered by voluntary dairy traceability guidelines. (Feedstuffs)
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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.
www.BrakkeConsulting.com
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BRAKKE CONSULTING VIEWPOINT
What a mix of news this week. Revenue for three of the firms reporting was negative; however; the fourth firm, serving the pet business, showed nice growth. Based on a number of stories from reputable economists and actual in the field work the past few weeks, the food animal market is facing some challenges as we close out 2016 and move into 2017. Producers in the US are producing more beef, pork and chicken than the local market is prepared to consume. Hopefully the export markets will purchase some of the excess inventory at the current low prices.
Here in the US, next week is Thanksgiving week, where we all relax a bit and reflect upon how blessed we have been this past year. We want to thank all of our clients for utilizing the various services of Brakke Consulting the past year. We hope each of you have an enjoyable and relaxing Holiday Weekend. Be sure to consume lots of animal protein to assist in reducing the inventory!
Ron Brakke
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