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Brakke Consulting’s
Animal Health News & Notes for May 15, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
COVID-19: Impact on Pet Care report – NOW AVAILABLE
Earnings News
Covetrus
ImmuCell
Kindred Biosciences
Ouro Fino Saúde Animal
Zomedica Pharmaceuticals
Other News
Alivira Animal Health
Astaria Global
CA Harbor Investments
Carlyle Group
CID Lines
Ecolab
Elanco
Kindred Biosciences
Leiters Enterprises
LifeLearn Animal Health
Merck (Sentinel)
Merck (VetsDeliver)
PetIQ (Capstar)
PetIQ (whiskerDocs)
Petriage
Scopio Labs
Sequent Scientific
SYNLAB UK
Tejas Discovery and Research
Veterinary Pathology Group
VetriScience Laboratories
Virbac
Wedgewood Pharmacy
whiskerDocs
Wildlife Pharmaceuticals
Zoetis
ZooPharm
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COVID-19: IMPACT ON PET CARE
A 2020 STUDY IN 3 WAVES
WAVE 1 RESULTS NOW AVAILABLE
The pandemic that struck the US and the rest of the world in early 2020 is an event that has altered personal lives and business operations unlike any other event. What lasting impacts will the pandemic have on pet owners regarding the way they purchase pet medications and veterinary services?
“COVID-19: Impact on Pet Care” is a new study by Brakke Consulting that will help answer this question. The study is based on online surveys of a nationally representative sample of 1,000 pet owners, conducted every few weeks beginning in May. The study not only documents the financial impact of the COVID-19 pandemic on pet owners, it also shows the change in how pet owners were able to receive care for their pets at veterinary clinics. Furthermore, it shows how pet owner purchasing behaviors for pet medications and pet food changed during the stay-at-home orders.
The study will deliver 3 reports, roughly 4 – 6 weeks apart, beginning in May; the May report is now available. The cost of the study is $17,500. For more information, contact John Volk at john@volkonline.com
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COMPANY EARNINGS RELEASES
- Ouro Fino Saúde Animal reported results for the first quarter of 2020. First-quarter sales reached R$112 million ($19 million), an increase of 23% over the prior-year quarter. Adjusted EBITDA for the quarter was R$5.2 million ($0.9 million), compared to R$0 million at this point last year. (Animal Pharm)
- Covetrus announced financial results for the first quarter of 2020. Net sales for the first quarter of 2020 were $1.07 billion, an increase of 13% compared to the first quarter of 2019. On a pro forma basis, which includes Vets First Choice for the full quarter in the prior year period, net sales increased 10%. Net loss in the first quarter of 2020 was $(33) million compared to Net loss of $(13) million in the first quarter of 2019. Non-GAAP adjusted EBITDA was $48 million for the first quarter of 2020 versus $50 million in the prior year on a pro forma basis. (company press release)
- Kindred Biosciences, Inc. announced financial results for the first quarter of 2020. Product revenues for Mirataz were $0.6 million compared to $0.5 million for the same period in 2019. Net product revenues for Zimeta IV, which became commercially available in December 2019, were $7,000 in the first quarter. KindredBio reported a net loss of $(22.8) million as compared to a net loss of $(16.1) million for the same period in 2019. (PRNewswire)
- ImmuCell Corporation announced unaudited financial results for the quarter ended March 31, 2020. Total product sales were $4.9 million, an increase of 11% versus the comparable period during 2019. Net loss was $(122,000) in contrast to net income of $145,000 during the quarter ended March 31, 2019. (company press release)
- Zomedica Pharmaceuticals reported consolidated financial results for the first quarter of 2020. Zomedica, a development-stage company, had no revenues for the period. The company recorded net loss of $(2.5) million compared to a loss of $(11.7) million for the three months ended March 31, 2019. Zomedica had cash and cash equivalents of $1.5 million as of March 31, 2020. (Globenewswire.com)
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COMPANY NEWS RELEASES
- Zoetis announced that it has agreed to sell $1.25 billion of senior notes, consisting of $750 million aggregate principal amount of 2.000% senior notes due 2030 and $500 million aggregate principal amount of 3.000% senior notes due 2050, in an underwritten public offering. (company press release)
- Merck Animal Health and Virbac announced that the companies have signed a definitive agreement under which Merck will acquire the US rights to Sentinel Flavor Tabs and Sentinel Spectrum Chews. Merck will make a cash payment of approximately $400 million to acquire the Sentinel branded products in the US at closing of the acquisition. (company press release)
- PetIQ, Inc. announced its intention to offer $125 million aggregate principal amount of convertible senior notes due 2026 in a private offering to qualified institutional buyers. PetIQ also expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $18.75 million principal amount of notes. PetIQ intends to use the proceeds to fund PetIQ’s previously announced acquisition of the Capstar portfolio from Elanco Animal Health, among other things. (company press release)
- KindredBio and Astaria Global, LLC, announced a marketing and sales partnership on Alpha2EQ, a system designed for equine veterinarians to concentrate autologous Alpha-2 Macroglobulin (a2M) for use in management of articular and soft tissue injuries in the horse. (company press release)
- VetriScience Laboratories introduced a new heart health product to its Pro Line of supplements for dogs and cats, developed with and exclusively for veterinarians. VetriScience Pro Line Cardio Pro features the Hawthorn Phytosome herb to support circulation, blood flow, and normal blood pressure; the formula also contains vitamins, minerals, and amino acids. (company press release)
- Wedgewood Pharmacy announced a definitive agreement to purchase the San Jose, California-based assets of Leiters Enterprises. These assets comprise the equipment and facilities in a 22,000 square-foot, FDA-registered 503B outsourcing facility that is licensed in 45 US states. The company will operate as Wedgewood Connect. The company also has agreed to acquire Wildlife Pharmaceuticals, Inc., and its wholly owned pharmacy subsidiary, ZooPharm, which serve veterinarians and patients in the wildlife and zoo markets; Wedgewood Pharmacy intends to maintain the ZooPharm brand. Financial terms were not disclosed. (company press release)
- Tejas Discovery and Research (TDR) announced it has been awarded a US patent covering a vaccine that protects pets and horses against snake bite venom, and has submitted a USDA application for approval of the vaccine. The vaccine provides for encapsulation and a steady, slow release of detoxified venom to the immune system, resulting in a high titer, long-lasting antibody response without any local or systemic adverse events. (Animal Pharm)
- PetIQ, Inc. announced the launch of its telehealth service in partnership with whiskerDocs. The telehealth service is complimentary and available to pet parents who have visited one of PetIQ’s service locations in the past. (company press release)
- LifeLearn Animal Health announced a new collaboration with Petriage to add the veterinary technology company’s telehealth platform to LifeLearn’s suite of Practice Solutions. (company press release)
- Ecolab, announced it has closed on its acquisition of CID Lines, a leading global provider of livestock biosecurity and hygiene solutions. The new division will enable a focus on the livestock biosecurity and dairy farm markets. Financial terms were not disclosed. (APNews)
- UK MSD Animal Health (Merck) announced it has added a telemedicine system to its VetsDeliver platform in the United Kingdom, which allows practices to set up online consultation rooms, hold online appointments on Zoom and charge owners in advance. (Vetsurgeon.org)
- BRAZIL Elanco announced the launch of Galliprant (grapiprant tablets) in the Brazilian market for osteoarthritis pain relief for dogs. (Animal Pharm)
- INDIA The Carlyle Group announced that, together with CA Harbor Investments, an affiliated entity of CAP V Mauritius Limited, it has agreed to acquire an equity stake of up to 74% in SeQuent Scientific Limited, the largest pure-play animal healthcare company in India, for a purchase price of INR 86 per share. SeQuent’s revenue for the twelve months ended December 2019 was INR 11,606 million ($155 million) and profit after tax (before minority interest) for the same period was INR 851 million ($11 million). Sequent’s animal health formulations business, Alivira Animal Health, contributed 69% to its revenue in fiscal 2018-19. (company press release, Economictimes.indiatimes.com)
- UK Scopio Labs and SYNLAB UK & Ireland’s Veterinary Pathology Group (VPG) announced that they have signed an exclusive distribution partnership agreement. VPG will now offer customers in the UK and Ireland the ScopioVet Digital Cytology System, providing 24/7 access to its clinical pathologists for results within 1 hour. (PRnewswire)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – FDA-CVM SUBMISSIONS In response to the Coronavirus Disease 2019 (COVID-19) public health emergency, FDA’s Center for Veterinary Medicine (CVM) announced is offering alternative options for industry to submit certain documents to the center. CVM expects this to be relevant to only a small number of industry submissions. For more information, click here. (FDA)
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BRAKKE CONSULTING VIEWPOINT
I was struck by a Wall Street Journal article published Monday about data on the rapid changes seen in how human pharma sales representatives under national coronavirus lockdowns call on doctors. The WSJ authors worked with Veeva Systems, Inc, a supplier of pharma CRM systems, and reported that in April, companies conducted almost 317,000 remote meetings with doctors and sent 7 million emails globally as reps stayed home. This is just a little higher than the almost 5,000 remote meetings and 1.2 million emails in January. Wow. The article also stated that doctors only open 10% of the emails they receive. Wow again.
Will remote meetings and emails work? We know that many pharma companies have delayed product launches because they worry about the effectiveness of “remote” selling. Our veterinary industry at the beginning of the year was buzzing about the pending launch of Zoetis’s Simparica Trio, the new “triple combination” parasiticide. No one planned for a Spring launch under lockdown.
It is hard to plan for the changes caused by the lockdown – but data will help. That’s why we’ve launched a time-based study on the impact of COVID-19 on how pet owners receive veterinary care and purchase products. Will the pet owner behavior change last past the pandemic? Will remote meetings and emails work past the pandemic? The data will soon tell us.
Bob Jones
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YOUR VIEW
Last week, we asked this question, “How many of you have experienced animal protein shortages in your local grocery stores? Most of you are seeing shortages – 55% said you’ve seen spot stock outs and 14% said that the grocery shelves in the meat/poultry sections are getting bare. We know that many stores have put purchase limits of meat products to recue hoarding. Reports indicate that processing plants are slowly returning to normal and meat prices are up – big time.
For this week, lets focus on changes in field-based selling during the pandemic. I’ll share the data with you next week, so let’s try to get as many of our readers (and your non-reader sales colleagues and friends) that are in sales or sales management positions to respond. (Responses are completely anonymous.)
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