The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for May 22, 2015

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke Consulting news
strategic planning
earnings news
other news
Sanderson Farms  

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, which might include sales force size, technical services and/or R&D spending vs. sales.

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. 
> Patterson Companies reported results for its fiscal year ended April 25, 2015. Patterson Veterinary sales for the year were $1.46 billion, an increase of 21% compared to the prior year. (Business Wire)
JUNE 15 – 17, 2015

CanCog Technologies will hold this year’s Canine Cognition and Aging Conference on June 15-17 at the Queen’s Landing hotel in Niagara on the Lake, Ontario.

This year’s topic will be “Aging, Cognition and Behavior In Companion Animals.” The conference will include an optional 5 course wine pairing gourmet dinner at the Peller Estates winery. An workshop on laboratory animal research will also be offered on June 14 and 15th.

For details and registration visit
> Elanco has removed online promotional materials for Denagard plus CTC (previously a Novartis product) after the FDA sent a warning letter about off-label claims that the product can be used for weight gain in pigs. Denagard is approved by the FDA for the control of: swine dysentery associated with Brachyspira hyodysenteriae susceptible to tiamulin; swine bacterial enteritis caused by Escherichia coli and Salmonella choleraesuis sensitive to chlortetracycline; and bacterial pneumonia caused by Pasteurella multocida sensitive to chlortetracycline. (Animal Pharm) 
> Neogen Corporation announced the availability of revised Igenity-Select and new Igenity-Essential testing options, new genomic tests that offer commercial dairy producers essential information on the genetic potential of replacement dairy heifers, at a significantly lower cost. Merck Animal Health will market these new testing options as part of the strategic agreement between Merck and Neogen. (company press release) 
> Dechra Veterinary Products US announced it has inventory of Animax Ointment (nystatin, neomycin sulfate, thiostrepton, triamcinolone acetonide ointment) available for immediate shipment. (Vet Advantage)
> Harrisvaccines announced plans to test an experimental vaccine that could protect poultry from avian influenza strain H5N2, which has affected nearly 34 million birds in the Midwest. The trials could begin as early as this week and are expected to last one to two months. The company has already begun mass production and expects to be able to supply the vaccine to the entire poultry industry, pending USDA approval. (FierceAnimalHealth) 
> Jaguar Animal Health went public last week, offering 2.86 million shares at $7 apiece. The stock price was $6.78 at the close of the first day of trading. (
> Prommune Inc., a startup animal vaccine research and development company, announced that it will locate its global commercial operations in Overland Park, Kansas. (company press release) 
> The chief executive of Sanderson Farms has become the first key opinion leader in the US to refuse a reduction in antibiotics for food-producing animals. Joe Sanderson said his firm will carry on ensuring its poultry’s health by using antibiotics, as alternative treatments are not yet viable. Sanderson Farms is the third-largest poultry producer in the US and produces around 9.4 million chickens each week. (Animal Pharm) 
MAY 21, 2015

The Innovation Stockyard, in partnership with Stinson Leonard Street LLP, hosted animal health consultant Ron Brakke for a premiere Animal Health Roundtable presentation titled “Trends Impacting Animal Health and Pet Care.”
The event was held on May 21, 2015 at the Innovation Stockyard in St. Joseph, Missouri. Topics of discussion included; developing market channel transformation, changing economics of U.S. households, lack of emerging new product categories, U.S. animal population trends, and slowing market growth in largest product categories.
> US – COMPOUNDING As part of its overall efforts to address compounded drugs, the FDA released a draft “Guidance for Industry (GFI) #230, Compounding Animal Drugs from Bulk Drug Substances.” Current law does not permit compounding of animal drugs from bulk drug substances, but the FDA recognizes that there are limited circumstances when an animal drug compounded from bulk drug substances may be an appropriate treatment option. The draft guidance is available for public comment for 90 days from the date of publication of the notice of availability in the Federal Register. The public also has 90 days to submit nominations for the list of bulk drug substances that may be used by outsourcing facilities to compound drugs. To electronically submit comments to the docket, visit  and type the docket number in the search box. FDA-2003-D-0202: Draft Guidance for Industry #230: Compounding Animal Drugs from Bulk Drug Substances; FDA-2013-N-1524: Request for Nominations: List of Bulk Drug Substances That May be Used by an Outsourcing Facility to Compound Drugs for Use in Animals. (FDA)
> US – ANTIMICROBIAL USE The FDA is proposing revisions to its annual reporting requirements for drug sponsors of all antimicrobials sold or distributed for use in food-producing animals in order to obtain estimates of sales by major food-producing species (cattle, swine, chickens, and turkeys). The FDA is accepting public comments on this proposed rule beginning on May 20, 2015. To submit your comments electronically to the docket, go to and type FDA-2012-N-0447 in the search box. (FDA)
> US – COOL  The World Trade Organization has sided with Canada and Mexico in their challenge of the US’ mandatory country-of-origin labeling law, the fourth time a panel or appellate body has decided against the rule that was first written into the 2002 Farm Bill and implemented after the 2008 Farm Bill. The latest move from the WTO rejects an appeal by the US of the October 2014 ruling that the COOL law discriminates against Canadian cattle and pigs and Mexican cattle, and paves the way for those countries to place tariffs on US imports. (Feedstuffs)
> CHINA – ENHANCED BEEF  Scientists in China have found a way of genetically altering cattle to provide beef rich in the beneficial omega-3 fatty acids normally associated with fish oils. In a study published in the journal Biotechnology Letters, a research team from Northwest A&F University and the National Beef Cattle Improvement Centre explained how they have successfully introduced the fat1 nematode gene into fetal cells from Luxi Yellow cattle. The fat1 gene converts omega-6 polyunsaturated fatty acids to omega-3. (Animal Pharm)
> US – RABIES  Officials in New Mexico reported that a previously undocumented strain of rabies has been identified. Using genetic sequencing of a sample taken from an infected fox, scientists found a strain that resembles but is distinct from the virus carried by bats. (AVMA SmartBrief – Albuquerque Journal)
MAY 16 – 20, 2015

The 31st annual Alltech Conference was held in Lexington, KY, this past week, drawing more than 3,000 attendees from 62 countries. Under the title “Alltech Rebelation” – a combination of “rebel” and “revelation” – the theme of this year’s event was innovation. The conference featured several well-known speakers, as well as individual breakout sessions focused on beef, dairy, pork, poultry, aquaculture, digital media, food, marketing, mergers and accessions, brewing and distilling, and crop sciences.

In addition, Alltech presented two Young Scientist Awards. Now in its tenth year, the Alltech Young Scientist Award program attracted 9,000 applications from more than 60 countries.
Kudos to Dr. Pearse Lyons and his team on a spectacular annual conference this past week. What other industry event kicks off with a song-and-dance number by dozens of pre-teen children, features performances by a world-renowned operatic tenor, and offers simultaneous translation in six languages for non-English-speaking attendees?

The theme of this year’s conference, “Rebelation,” challenged attendees to focus on innovation. Many prominent speakers presented initiatives that have successfully altered the status quo in their industries, or are novel inventions on the cusp of commercialization.

Alltech itself is a remarkable story. Started just 35 years ago by Dr. Pearse Lyons, an Irish yeast scientist, the company is approaching $1 billion in sales, and will nearly double that with the recently announced acquisition of Ridley. As Dizzy Dean, an American baseball icon, once said: “it ain’t bragging if you done it.”

Sometimes innovation is thrust upon us, with news that at least one company is testing a vaccine for avian influenza strain H5N2. This horrific disease has been devastating to the US turkey and layer industries. Hopefully experts will get it under control soon.

Enjoy the US Memorial Day weekend!

John Volk, Senior Consultant
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