The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for January 15, 2016

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
Brakke Consulting news
2016 Industry Overview at NAVC
Strategic planning
other news
Animal Supply Company
Beacon Heat Detectors
Chr. Hansen Group
DiaSys Diagnostic Systems
Guardian Food Technologies
Henry Schein
Livestock Improvement Corporation
MediVet Biologics
MVP Laboratories
Nutrition Physiology Holdings
Pancosma & Associates
Virtual Imaging
Yung Shin Pharmaceutical

Brakke Consulting is pleased to announce the 2016 Industry Overview, featuring consultants Ron Brakke, John Volk, and Dr. Cary Christensen. The 2016 US Animal Health Industry Overview will be presented twice this winter – once at the North American Veterinary Conference in Orlando, Florida and once at the Western Veterinary Conference in Las Vegas, Nevada. These dates are:
• NAVC: Monday, January 18, 2:00 – 4:00 pm, Gaylord Palms.
• WVC: Tuesday, March 8, 2:00 – 4:00 pm, Four Seasons.

Online registration for the Industry Overview at the NAVC is open until 5 pm today (WVC registration will open shortly). After that time, please register onsite immediately prior to the Overview.

To register, go to and scroll down to the “What’s New” box. The price is $385 per person for online registration; onsite registration is $425. 
> Phibro Animal Health Corporation announced an agreement to purchase the assets of MVP Laboratories, Inc. In addition to its vaccine business, MVP is a global supplier of adjuvant systems for animal vaccines. Financial terms were not disclosed. (company press release)
> The Halifax Group announced that its portfolio company, NPC Guardian Holdings LLC, has signed an agreement to sell its interest in Nutrition Physiology Holdings LLC and Guardian Food Technologies LLC (collectively “NPC”), to The Chr. Hansen Group. NPC is a leading provider of probiotics for livestock. The deal values NPC at $185 million. Financial terms were not disclosed. ( 
> MediVet Biologics announced the appointment of Jeff Baker as the company’s President and Chief Operating Officer. Most recently, Mr. Baker served as Vice President of Sales for Patterson Veterinary. (company press release)  
> TyraTech announced the imminent launch of its new range of agricultural insect-control products into the US poultry market. The new product line will be expanded from poultry to swine, dairy/beef and cow/calf operations over time. The PureScience range, which provides non-toxic insect control in livestock and production animal facilities, will be distributed in the US by MWI Animal Health. (
> Henry Schein, Inc. announced an agreement to acquire RxWorks, Inc., a provider of veterinary practice management software primarily to customers in Australia, New Zealand, the UK and the Netherlands, and other countries around the world. RxWorks had sales for the 12 months ended June 30, 2015 of approximately $7 million. Financial terms were not disclosed. ( 
> WellPet L.L.C., announced it has acquired Sojos, a family-owned company offering a line of raw, freeze-dried pet food for dogs and cats. Financial terms were not disclosed. (Petfood Industry) 
> Virtual Imaging, a wholly owned subsidiary of Canon U.S.A., Inc., introduced the RadPRO1 OMNERA 50 Veterinary Digital Radiographic System. (Business wire) 
> The veterinary division of DiaSys Diagnostic Systems announced the availability of its next-generation, fully integrated respons920VET Clinical Chemistry Analyzer. The respons®920VET offers greater testing capacity to higher-volume veterinary laboratories with a guaranteed throughput of 200 tests per hour. (PRNewswire)
> Animal Supply Company announced it has named Donald P. McIntyre its new chief executive officer, effective February 1, 2016. Prior to joining ASC, Mr. McIntyre served as president of the Western region as well as SVP of national supply chain and strategy at United Natural Foods, Inc. (  
> TAIWAN  Zoetis has agreed to sell its 55% stake in a Taiwanese manufacturing site to Yung Shin Pharmaceutical Industrial for $13 million in cash. Zoetis will also divest a portfolio of products associated with the site, including medicated feed additives, anti-infective medicines and nutritional premixes for livestock. These products are sold primarily in Taiwan but also in international markets. (Animal Pharm) 
> MEXICO  Dechra Pharmaceuticals announced it has acquired Mexico-based veterinary pharmaceuticals business Brovel for $5 million in cash on completion and a further $1 million dependent upon the newly acquired business reaching registration milestones for Dechra products in Mexico. Brovel has a turnover of $3.7 million. ( 
> JAPAN  Sumitomo announced it will acquire pet food and pet supplies wholesaler COCORO Corporation, one of the largest online vendors of pet supplies in Japan. Sumitomo will make the transaction through its subsidiary Soukai Drug, which specializes in online sales of nearly 180,000 products. Financial terms were not disclosed. (Animal Pharm) 
> AUSTRALIA New Zealand’s Livestock Improvement Corporation (LIC) announced it has agreed to purchase 75% of Beacon Heat Detectors. Beacon has a long-standing relationship with LIC, with one of its products specifically developed to work exclusively with the farmer-owned co-operative’s in-shed automated heat detection camera and drafting system, Protrack EZ Heat. Financial details were not disclosed. (Animal Pharm) 
> BRAZIL Pancosma & Associates announced it has acquired Btech, a leading player in the Brazilian feed additive market. Btech specializes in the development, production and distribution of products and solutions for animal nutrition. Financial terms were not disclosed. (Feedstuffs) 
> SCOTLAND – AVIAN INFLUENZA A low pathogenic case of H5N1 avian influenza has been discovered in a farm in Fife, according to the Scottish Government. The Government has introduced a one kilometer Temporary Control Zone around the farm, as well as culling all 40,000 birds on site. (
> US – PORCINE PARAINFLUENZA  Researchers in the Kansas State University Veterinary Diagnostic Laboratory have successfully published the first formal identification and characterization of porcine parainfluenza virus 1 from U.S. pigs, which previously had only been detected in Asia. The research found considerable genetic variability for porcine parainfluenza virus 1 between the 300 samples tested. The findings were published in the Nov. 17, 2015, issue of the Journal of General Virology. (Feedstuffs)
> WORLD – VACCINATION GUIDELINES The Vaccination Guidelines Group (VGG) of the World Small Animal Veterinary Association (WSAVA) has updated the Vaccination Guidelines it offers to veterinarians. Guidelines for both veterinarians and owners/breeders are available for free download at . (association press release)
> JAPAN – FELINE THYROID DISEASE  Researchers in Japan have released a study in the journal Environmental Science & Technology suggesting that pollutants such as polychlorinated biphenyls (PCBs) and polybrominated diphenyl ethers (PBDEs), which occur naturally in fish, are being passed along to cats in their food and may be contributing to the rising incidence of feline hyperthyroidism. (FierceAnimalHealth)
> US – AVIAN INFLUENZA CONTROL New research from Auburn University suggests that Anitox’s Termin-8 feed additive product, a blend of formaldehyde, propionic acid, terpenes and surfactant, designed to stop the spread of microbes through feed, can be effective in stopping the spread of highly pathogenic avian influenza (HPAI) through mash feed. Anitox is working with the U.S. Poultry and Egg Association, which co-funded the research with Anitox, to do additional research into HPAI, its transmission through feed products, and effectiveness of its additive in stopping viral spread through the feed supply. (Watt Feed enews)

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.
I believe I counted eight stories this week related to either an acquisition and/or a divestiture of a company, assets, or technology in animal health. The consolidation within the animal health remains robust with companies retooling, adding to or reducing their portfolios or picking up opportunities in other geographies of the world that strengthens their position.

We believe this activity reflects the continued interest in the industry because of its recent growth, which is outpacing many other industries. There remain companies and investors with funds that they would like to apply to the animal industry through one type of investment or the other to obtain a return. On the other hand, in the past few weeks a number of the recent animal health IPO companies have found investors selling their stock and driving their market caps much lower. As we enter the new year, it is again an interesting time in animal health.

We will be discussing a number of the topics above and additional areas of interest to managers and investors in the industry at our annual animal health industry overview in Orlando next Monday afternoon. We have been presenting this industry overview for over 25 years and it has become a must-attend session for many participants in the industry. We will see you in Orlando!! Travel safe.
Ron Brakke

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