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Brakke Consulting’s
Animal Health News & Notes for August 8, 2014
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
Market research
earnings news
Avacta
Henry Schein
Nestle
Zoetis
other news
AgriLabs
Camp Bow Wow
Cannabis Therapy Corp.
Canna-Pet
Epitopix
IDEXX
Mars
Modern Veterinary Therapeutics
Procter & Gamble Pet Care
Sergeant’s
VCA
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BRAKKE CONSULTING, INC.
MARKET RESEARCH SERVICES
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 multiclient 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.
www.BrakkeConsulting.com
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COMPANY EARNINGS RELEASES
> Zoetis Inc. reported its financial results for the second quarter of 2014. The company reported revenue of $1.2 billion for the second quarter of 2014, an increase of 4% from the second quarter of 2013. Net income for the second quarter of 2014 was $136 million, an increase of 6% compared to the second quarter of 2013. (company website)
> Henry Schein, Inc. reported record financial results for the quarter ended June 28, 2014. Animal Health sales of $755 million increased 13%, consisting of 11% growth in local currencies and 2% growth related to foreign currency exchange. (Wall Street Journal)
> Nestle S.A. reported results for the first half of 2014. Petcare sales were CHF 5.41 billion ($6.1 billion), representing 5% organic growth. (company press release)
> Avacta reported results for the fiscal year ended July 31, 2014. Animal health revenues were GBP 1.6 million ($2.7 million), a 7% increase compared to the prior year. The rise in animal health sales came as a result of growth in reference laboratory services and diagnostic kits. (Animal Pharm)
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2014 KC Animal Health Investment Forum
Tuesday, August 26, 2014
Kansas City Convention Center
The sixth annual KC Animal Health Investment Forum will feature more than a dozen presenting companies seeking business partnerships and opportunities. Hear about the latest up-and-coming pharmaceutical, biological and diagnostic innovations, with applications serving the companion animal, livestock, and equine markets as well as the overall animal health industry.
The event will be held Tuesday, August 26 from 7:30 a.m. to 5 p.m. at the Kansas City Convention Center Grand Ballroom.
Visit http://www.kcanimalhealthforum.com/index.php/register-now/ for full details and registration.
www.kcanimalhealth.com
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COMPANY NEWS RELEASES
> IDEXX Laboratories, Inc. announced the launch of the IDEXX RealPCR BVDV RNA Test, expanding its bovine viral diarrhea virus (BVDV) portfolio. The IDEXX RealPCR BVDV RNA Test provides full strain coverage, detecting BVDV types 1 and 2, HoBi-like pestivirus (BVDV type 3) and border disease virus. The test is ideal for use in low-prevalence situations using pooled samples (ear notches, serum/plasma), or to confirm results of other screening tests. (company press release)
> VCA announced an agreement to acquire Camp Bow Wow for an undisclosed sum. Camp Bow Wow’s core business offers day care for dogs at franchise-owned facilities as well as overnight boarding. Camp Bow Wow’s system-wide sales in 2013 were $71 million. (Wall Street Journal)
> AgriLabs and Epitopix announced the launch of an autogenous Klebsiella pneumonitis mastitis vaccine with SRP technology for dairy cows. (company press release)
> Sergeant’s Pet Care Products announced the launch of Sentry Petrodex Advanced Dental Care Calming Kit. The kit includes Triple Action Calming Toothpaste, a Dual-Ended Toothbrush and a Finger Toothbrush. (PRNewswire)
> Mars Inc. announced it has successfully completed its acquisition of the Iams, Eukanuba and Natura brands in North America, Latin America and other select countries from The Procter & Gamble Company. Mars said it will exercise the option to purchase P&G’s petfood business in some parts of Asia Pacific, Middle East and Africa, including Australia, Japan and Singapore. (PetFoodIndustry.com)
> Cannabis Therapy Corp., announced the execution of a definitive licensing agreement with Canna-Pet, LLC. Under the terms of the agreement, Cannabis Therapy Corp., in exchange for sales royalties, has an exclusive worldwide license and rights to the technology and products currently developed by Canna-Pet, LLC and the possibility for co-development of future animal health products. The agreement covers production and sale of animal health and pet products made from hemp, a low-THC cannabis plant. (Money.cnn.com)
> CANADA Modern Veterinary Therapeutics, LLC announced that the Canadian Veterinary Drugs Directorate (VDD) has approved Cloprostenol Veyx (cloprostenol injection) for use in cattle and heifers. (company press release)
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ANIMAL HEALTH NEWS
> US – VETERINARY MOBILITY ACT President Barack Obama has signed the Veterinary Medicine Mobility Act (H.R. 1528) into law, making it legal for veterinarians to provide complete medical care to your patients beyond their clinics or across state lines. The new law states that a registrant who is a veterinarian shall not be required to have a separate registration in order to transport and dispense controlled substances in the usual course of veterinary practice at a site other than the registrant’s registered principal place of business or professional practice, so long as the site of transporting and dispensing is located in a State where the veterinarian is licensed to practice veterinary medicine and is not a principal place of business or professional practice. (AVMA)
> RUSSIA – POULTRY BAN Russia has banned US poultry imports as part of a decree signed by President Vladimir Putin. Putin earlier signed an order banning or limiting imports of agricultural products from countries which have imposed sanctions on Russia. (cnbc.com)
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BRAKKE CONSULTING VIEWPOINT
The reports in this week’s newsletter continue to reflect a less-than-robust first 6 months of the year in animal health. When we total up the growth for the leading companies, we find the combined growth rate to be in the 2% range compared to the first 6 months of 2013. There does not appear to be a surge of additional new product introductions or increased purchasing at consumer level to drive the revenues higher than prior year in the second half. A summary observation is that the industry has moved into a lower revenue growth phase than was budgeted and expected by companies and investors. It will be interesting to observe how the last 6 months of the year plays out.
We want to encourage investors and business development managers from companies to attend the 2014 KC Animal Health Investment Forum on Tuesday, August 26, 2014. There will be a number of early-stage companies making presentations on their new technology and products at this meeting. If you’ve not already registered, please do so in the next few days; you’ll be glad you did.
Have a great weekend!
Ron Brakke
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