The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for March 16, 2018
Copyright © Brakke Consulting, Inc.

Editor: Lynn Fondon DVM MBA

Brakke Consulting news
The Evolving Companion Animal Health Business
Pain Management Products study – pre-order now

earnings news
Aratana Therapeutics

other news
Arm & Hammer Animal and Food Production
Central Garden & Pet Company
Church & Dwight
Crum & Forster Pet Insurance Group
ExeGi Pharma
Foster Poultry Farms
General Pet Supply
Passport Food Safety Solutions
The Veterinary Cooperative

San Antonio, Texas at the Henry B. Gonzalez Convention Center
September 20-23, 2018
Early Bird Registration — Now Until July 18th

Folks are flocking to reserve a spot at the 2018 Southwest Veterinary Symposium — a partnership of the Arkansas, Louisiana, New Mexico, Oklahoma and Texas Veterinary Medicine Associations which provides continuing education for veterinary professionals. Join us this September in San Antonio, Texas where you can learn about the latest innovations and products, network with other veterinary professionals, explore design and renovation ideas and choose from more than 375 hours of quality courses.


• Aratana Therapeutics, Inc. announced its full year 2017 financial results. Total net revenues were $25.6 million, compared to revenues of $38.6 million in 2016. The net loss in 2017 was $(47.5) million compared to a net loss in 2016 of $(33.6) million. (company press release)


• Central Garden & Pet Company announced today it has signed a binding agreement to acquire all business assets of General Pet Supply. Central previously had a partnership alliance with General Pet Supply serving different regions of the country. The acquisition is expected to close in early April 2018. (company press release)

• Petmate announced it has acquired GAMMA2, a manufacturer of airtight containers primarily used to store dry pet food. GAMMA2 is best-known for the Vittles Vault pet food container. Financial terms were not disclosed. (Pet Business)

• ExeGi Pharma LLC announced the launch of Visbiome Vet, a new high potency probiotic for use in dogs to help support normal inflammatory responses in the gastrointestinal (GI) tract and to help normalize gut health. Visbiome Vet is available exclusively to veterinarians and veterinary pharmacies. (PRNewswire)

• PetIQ, Inc. announced the opening of 20 veterinary services clinics in Walmart locations. This marks the beginning of PetIQ’s plan to expand veterinary services to leading retailers following the acquisition of VIP Petcare in January of this year. PetIQ has plans to open more than one thousand additional veterinary services clinics, in retail-partner locations, through 2023. (GlobeNewswire)

• Church & Dwight Co., Inc., the parent company of Arm & Hammer Animal and Food Production, announced it has purchased Passport Food Safety Solutions. With the integration of Passport, Arm & Hammer provides a comprehensive portfolio of nutritional, microbial and pre- and postharvest food safety solutions to optimize the health of production livestock, while reducing the impact of pathogens in animal protein products. Financial terms were not disclosed. (company press release)

• Crum & Forster Pet Insurance Group, the provider of ASPCA Pet Health Insurance, and The Veterinary Cooperative (TVC) have entered into a partnership to improve pet health. TVC is a cooperative of 3,000 independent veterinary hospitals. (Vet Advantage)

• An Arizona federal court jury returned a verdict in the amount of $6.5 million in favor of a 5-and-a-half-year-old child who suffered a brain injury because of a Salmonella Heidelberg infection from chicken produced by Foster Poultry Farms. The jury attributed 30% of the fault to Foster Farms and 70% to family members for their preparation of the chicken. The law firm representing the plaintiff said the verdict establishes a precedent that chicken producers can be held responsible for Salmonella contamination on raw chicken even though the USDA does not consider Salmonella an adulterant. (


When we look at many of the changes occurring in the companion animal business in the US and International markets, we’d like to remind you that in 2015 Brakke Consulting completed a major “Pet Pharmaceutical Market Study” related to the future of the U.S. pet pharmaceutical marketplace. The study explored where pet owners were going or planned to go in the future to purchase veterinary-prescribed medicines. Then in 2016 we conducted another large study related to “Changing Pet Ownership”. This study identified generational and lifestyle-based behaviors and attitudes, including pet-drug purchasing expectations. There were a number of other areas that were explored in depth in this study. If your firm was not a purchaser of either of these studies at the time, we’d encourage you to reconsider. You can contact the Dallas office or visit our website for further information on these two studies.


• MEXICO – AVIAN INFLUENZA Mexico has reported two outbreaks of highly pathogenic H7N3 bird flu virus in the central part of the country. The virus killed 1,380 birds at a rural farm with 1,900 chickens; the remaining birds were culled. Another outbreak was detected among backyard birds in the neighboring state of Queretaro. (Reuters)

• US – LOW PATHOGENIC AVIAN INFLUENZA Outbreaks of low-pathogenic avian influenza have been reported in Missouri and Texas. State and federal agriculture officials quarantined a Jasper County poultry farm because of an outbreak of the low pathogenic H7N1 strain of avian influenza was confirmed in a commercial flock of almost 20,000 turkeys. The outbreak in Texas was in a broiler breeder flock in the northeastern corner of the state, about 350 miles south of the Missouri farm; depopulation of the 24,000 birds at the farm has begun. (Joplin Globe, CIDRAP)

• US – EQUINE HERPESVIRUS Nevada officials are sending warnings to 18 states after a horse from Arizona that participated in a Las Vegas show has been diagnosed with equine herpes virus-1. (Vet Advantage – AP)

• US – CANCER RESEARCH The AKC Canine Health Foundation (AKC CHF) and the V Foundation for Cancer Research announce a collaboration to fund cancer research for dogs that may also benefit people. The first project the AKC CHF and the V Foundation is jointly funding will test a new, targeted immunotherapy against a specific gene mutation that occurs in bladder cancer, which occurs in both dogs and people. (association press release)

• US – SWINE DISEASE INSURANCE James Allen Insurance, Carmel, Ind., has partnered with ONI Risk Partners, Indianapolis, Ind., to offer the hog industry first-of-its-kind insurance coverage for porcine reproductive and respiratory syndrome (PRRS) and porcine epidemic diarrhea virus (PEDV). The new policy covers the financial loss of the operation from actual mortality, loss of weight of the animals and loss of value of the pigs. (Feedstuffs)


Pain management is one of the leading topics in veterinary medicine today. Brakke Consulting’s annual report on Pain Management Products for Dogs and Cats includes such valuable information as:
– overview of acute and chronic pain in small animals
– review of new products, including Galliprant and Nocita
– estimates of US sales and prices of leading products
– pain management products in development
– review of nutritional supplements used for chronic pain
– review of therapeutic diets for joint care
– 2018 survey of 300 small animal veterinarians regarding use of pain management products

Pain Management Products for Dogs and Cats 2018 can be purchased for $4,995 if ordered by March 30, 2018, and $5,750 thereafter. The report will be completed in April. Questions about the study can be answered by project manager Lynn Fondon, DVM, MBA at 972-243-4033, or email


This week some of the industry trends being discussed within many companies came closer to marketplace reality. In several of our recent discussions with management of both manufacturers and distributors, the consolidation of distribution in the veterinary channel and allied channels has been a topic of high interest. The merger of two leading distributors in the OTC pet industry is another indication that consolidation in the animal industry is in full swing. The announcement that PetIQ, Inc. will open 20 veterinary service clinics in Walmart stores could be another shift in where pet owners will be able to obtain veterinary care for their animals.

In 2015 Brakke Consulting completed a large study regarding the future of the “Pet Pharmaceutical Market Place” and then in 2016 we completed another study titled, “Changing Pet Ownership Study”. We believe that these two studies provided important insights as to where the companion animal market was headed. For those of you who purchased these studies we’d recommend that you review the studies again and if needed, we’d be ready to assist you with some further interpretation related to what these studies suggested regarding the marketplace in 2018. The studies are also still available for purchase for those who did not purchase them at the time.

Have a good weekend!!

Ron Brakke

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Brakke Consulting, Inc.
12005 Ford Rd., Suite 530
Dallas, TX 75234 USA

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