The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for January 31, 2014
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke Consulting news
2014 Industry Overview
China and Japan Animal Health Market Overview
Market research
earnings news
Spectrum Brands
other news
Clipper Distributing
ECO Animal Health
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 .
> Eli Lilly reported financial results for the full year 2013.  Worldwide sales for Elanco were $2.15 billion, an increase of 6% driven primarily by growth of companion animal products. (company press release)  
> Novartis reported animal health sales of $1.171 billion for the full year 2013, a 7% increase on the previous year. (Animal Pharm)
> Colgate-Palmolive Company reported results for the full year 2013. Sales for Hill’s Pet Nutrition were $2,211 million, a 2% increase compared to the prior year. (company website)
> Spectrum Brands Holdings, Inc. reported record fiscal 2014 first quarter results for the period ended December 29, 2013. The Global Pet Supplies segment reported net sales of $129 million in the first quarter of fiscal 2014, a decline of 8% compared to the comparable period in the prior year. (Business Wire)

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.

To register for WVC, go to  and scroll down to the “What’s New” box. The price is $385 per person for online registration; late registration is $425.

> Zoetis announced the launch of Apoquel (oclacitinib tablet), a twice-daily drug formulated to stop canine pruritus associated with allergic dermatitis and the control of atopic dermatitis in dogs at least 12 months of age.  Apoquel is the first and only Janus kinase inhibitor approved for veterinary use. (company press release)
> Bayer Animal Health announced the introduction of Annihilator Polyzone (deltamethrin), a broad-spectrum premise spray that provides livestock producers with long-term control of crawling, flying and wood-infesting pests. Bayer’s proprietary technology allows the product to withstand aggressive surfaces, weather and wash-off conditions for up to 90 days. (PRNewswire) 
> AgriLabs and SmartVet USA, Inc. announced a long-term partnership to launch the VetGun delivery system across the US to effectively treat horn flies and lice in cattle. The VetGun uses precision-engineered CO2 power to project a precise dosage of AiM-L VetCap to treat the animal. Each VetCap contains an EPA-approved insecticide in a soft gel capsule which can be fired from a safe distance of 20 to 30 feet while cattle graze or feed. (company press release) 
> Harrisvaccines announced it has been granted USDA autogenous licensure of the company’s Rotavirus C vaccine for piglets utilizing its SirraVax RNA Particle Technology. (PR Newswire)
> Aratana Therapeutics, Inc. announced that its canine-specific monoclonal antibody, AT-005, gained conditional approval from the USDA to aid the treatment of T-cell lymphoma in dogs. Aratana gained AT-005 when it acquired Vet Therapeutics in Oct 2013. ( 
> VetDC announced it has been awarded a $250,000 grant by the Colorado Office of Economic Development and International Trade to help develop its VDC-1101 drug to treat lymphoma in dogs and cats. (Animal Pharm) 
> PetSmart announced that, effective April 4, 2014, David Lenhardt has been named the next president and CEO of PetSmart as part of a larger restructuring of its management team and organizational structure in conjunction with the retirement of Joseph O’Leary, president and chief operating officer. (
> Regeneus announced that Lonza, the world’s largest manufacturer of stem cells, will manufacture Regeneus’ off-the-shelf cell therapy, CryoShot Canine, for registration in the US. CryoShot Canine is an off-the-shelf allogeneic cell therapy product for the treatment of musculoskeletal conditions in dogs and is currently under pre-registration trial in Australia. (Proactive Investors) 
> Clipper Distributing announced the release of Phoenix Select sutures, a new line of racetrack-wound sutures designed to hold less memory, making wound closure faster and easier. (company press release)
> EU  Merck (MSD Animal Health in Europe) announced it has received full European approval for its Bovilis BTV8 bluetongue vaccine. The vaccine had been available under an exceptional circumstances authorization to meet the needs of the European industry when the virus first emerged in 2009. (Animal Pharm)  
> EU  ECO Animal Health announced it has received the European approval for the use of Aivlosin 625 mg/g Water Soluble Granules for the treatment of ORT (Ornithobacterium rhinotracheale) in turkeys, making it the first antibiotic to be granted approval in Europe for this specific indication. (company press release) 

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

> CANADA – PEDV  Canada has discovered its first two cases of the Porcine Epidemic Diarrhea virus (PEDv). The Ontario government is investigating a hog farm in the province’s Middlesex County after a laboratory finding of the virus. (Veterinary Advantage)
> US – PEDV DIAGNOSTICS  The University of Minnesota College of Veterinary Medicine announced that it has developed a second diagnostic test for porcine epidemic diarrhea virus (PEDV). The new test can detect evidence of the virus and can also identify which pigs have been exposed to PEDV, even if animals have not shown symptoms of the disease. (Feedstuffs)
> US – FELINE VIRUSES  Researchers at Colorado State University have discovered a family of cancer-causing viruses in several US populations of bobcats, mountain lions and domestic cats, raising questions about whether the previously undetected viruses might be the root cause of some cancers found in housecats. The newly identified viruses are in the same family of gammaherpesviruses that can cause lymphoma and Kaposi’s sarcoma in people, especially those with HIV-AIDS and other immune-suppressing conditions. The research findings were published in the online version of the Journal of Virology. (Veterinary Medicine Executive Briefing –

This week’s newsletter has some of the first companies’ financial reports for 2013. Those reporting had reasonably nice increases compared to 2012. We expect that some additional company reports in the next few weeks will not be as positive.
Based on our early projections for the leading companies we believe the total worldwide market grew about 2.5% in 2013. If we find our projected number to be reasonably accurate it would indicate that unit volume was flat or declined except for some areas where generic products gained market share at lower prices. In the US the sluggishness companion animal revenue reflects a growing concern in consumers minds regarding value.

We will discuss a number of our observations regarding the animal health market 2013 results in more detail, as well as expectations for 2014, in our Annual Industry Overview that is mentioned earlier in this newsletter.

Have a great weekend!!
Ron Brakke
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