The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for September 11, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA


Earnings News

Other News
Bluestar Adisseo
DuPont Animal Nutrition
Forthglade Foods Limited
FRAmelco Group
Hygieia Biological Laboratories
IK Investment Partners
Proteon Pharmaceuticals


  • Dechra Pharmaceuticals reported results for its fiscal 2020 year ended June 30. Annual sales totaled GBP 515.1 million ($679.1 million), a 7% improvement in revenues compared to fiscal 2019. In North America, annual sales climbed 5% to GBP 191.6 million ($253 million), due in part to the acquisitions of the Mirataz portfolio from Kindred Biosciences and veterinary contract manufacturer Ampharmco. (IHS Markit Connect)
  • Chewy, Inc. announced its financial results for the second quarter of fiscal year 2020 ended August 2, 2020. Net sales were $1.70 billion, an increase of 47% year-over-year. Net loss was $(32.8) million, including share-based compensation expense of $37.8 million. Adjusted EBITDA was $15.5 million, an improvement of 153% year-over-year. (company press release)


  • Merck Animal Health introduced Nasalgen 3-PMH, a modified-live, intranasal vaccine that protects beef and dairy cattle from the five most common pneumonia-causing viral and bacterial pathogens. Nasalgen 3-PMH offers six-and-a-half-month duration of immunity (DOI) against infectious bovine rhinotracheitis (IBR), an 11-week DOI against bovine respiratory syncytial virus (BRSV), three-month DOI against parainfluenza 3 (PI3), as well as a four-month DOI against Mannheimia haemolytica and Pasteurella multocida. (company press release)
  • Elanco announced it has terminated its collaboration with PharmAust to develop cancer therapeutics for both humans and animals. PharmAust’s lead candidate is monepantel, a small molecule currently registered and marketed as a treatment for parasite infections in food animals. (IHS Markit Connect)
  • According to media reports, CVC Capital Partners and Canada Pension Plan Investment Board are exploring a sale or initial public offering of Petco Animal Supplies. CVC and the Canadian pension fund acquired Petco for $4.6 billion from PE firms TPG and Leonard Green in 2016. (
  • Hygieia Biological Laboratories announced that the USDA’s Center for Veterinary Biologics has issued a conditional license for its epizootic bovine abortion (EBA) vaccine (also called foothill abortion disease) to prevent fetal loss in first-calf heifers from the bacteria Pajaroellobacter abortibovis. The vaccine can be given to open animals of six months of age or older at least 60 days prior to the initiation of breeding. (Feedstuffs)
  • ezyVet announced that their practice management software now seamlessly integrates with Openpay to offer pet parents interest-free payment plans that are approved within 90 seconds. The integration between ezyVet and Openpay works like any other payment method and allows for easy reconciliation at end of day. (company press release)
  • TeleVet announced the launch of ClinicConnect, a new platform that reduces appointment scheduling and communication burdens for veterinary clinics. ClinicConnect offers a convenient interface for phone-free communications between clients and the veterinary staff. (Business wire)
  • Vivos announced that IsoPet – an yttrium-90 based injectable brachytherapy device for the treatment of tumors in animals – is now available to treat solid tumors in horses. (IHS Markit Connect)
  • JAPAN Vetoquinol announced that the Japanese Ministry of Agriculture, Forestry and Fisheries (JMAFF) has approved Upcard (torasemide) Tablets for the improvement and maintenance of clinical signs – including edema, effusion, dyspnea and cough – related to congestive heart failure in The product will be marketed by Vetoquinol-Zenoaq, a joint venture between Vetoquinol and Nippon Zenyaku Kogyo that was established in 2016. (IHS Markit Connect)
  • UK IK Investment Partners announced it has acquired a majority stake in Forthglade Foods Limited, a UK-based natural pet food brand. Forthglade is set to generate over GBP 22 million ($29 million) in sales in the year to September 2020. Financial terms were not disclosed. (GlobalPets)
  • EU DuPont Animal Nutrition announced a collaboration with Proteon Pharmaceuticals to bring bacteriophage technology to the poultry market in “selected countries”. Polish firm Proteon sells its Bafasal poultry feed additive in Europe to help prevent and eliminate Salmonella. (IHS Markit Connect)
  • NETHERLANDS Bluestar Adisseo announced that it has signed an agreement to acquire FRAmelco Group, a Netherlands-based feed additive company (FRAnklin Group BV and its wholly owned subsidiaries). FRAmelco Group generates gross sales of about EUR 30 million per year, primarily from glycerides (short- and medium-chain fatty acids) as well as from lysolecithins to improve feed digestibility. Financial terms were not disclosed. (Feedstuffs)


*Thursday market closing prices


  • GERMANY – ASF Germany has confirmed its first case of African swine fever (ASF) in a wild boar carcass found in the state of Brandenberg, which is a few kilometers from the border with Poland. ASF has been causing problems in eastern Poland since 2014 but has only been present in the west of the country since March of this year. Germany is currently the second largest European supplier of pork to the Chinese market behind Spain. (IHS Markit Connect
  • US – CLONING San Diego Zoo Global announced the birth of the first successfully cloned endangered Przewalski’s horse. The horse was cloned from DNA of a male Przewalski’s horse cryopreserved by the zoo in 1980. (
  • US – CBD GUIDELINES The American Veterinary Medical Association (AVMA) released a new guide to help veterinarians navigate the complex and emerging landscape of cannabis-related pet products. The guide is available for AVMA members on the association’s website. (Vet Advantage)
  • US – PRACTICE GUIDELINES The American Animal Hospital Association (AAHA) announced the release of a new publication, Preventive Care Protocols and Practice Economics, which was developed with the support of an educational grant from IDEXX. (association press release)

During our 2020 Mid-Year Animal Health Industry Overview, Randy Freides touched on the topic of resilience in animal health companies.  He focused on knowing your customer and being able to adjust business models and how this has led to first half stock price growth in animal health companies. We closed the Overview with a few more thoughts on building resilience in animal health companies and I’ve continued to keep resilience on my radar screen.

Here is a blip on that screen…  A recent article from the Gallup organization summarized the work that led them to develop four strategies to build business resilience.  These four strategies are: 1) Reimagine your customer experience, 2) Reshape your culture, 3) Reignite your leadership and 4) Reignite your workforce.

Through the COVID-19 pandemic, we have reported how pet owners have changed their purchasing behaviors and how companies have adapted and responded to these changes.  They “reimagine” their changing customer.  Gallup describes how a company’s purpose drives culture, but skims over how behavior of its leaders drive culture.  Nevertheless, a resilient company is one where its culture is an ally to disruption.  The third and fourth strategies are simply “all about people”.

I’ll keep the radar searching for more on the topic of resilience – think we will need it.

Bob Jones

Last week we asked about your thoughts on the growth of generic pet medication products.  38% of the respondents thought that they would grow well above the overall industry average growth rates and 34% thought they would grow slightly above the industry average.  That’s a rather positive view on the growth of generics.

This week

This week, let’s stay centered on resilience.

Of the four strategies mentioned in the recent Gallup article, please choose which one you think is the most important for a company in the animal health and nutrition industry to be resilient:

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