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Brakke Consulting’s
Animal Health News & Notes for May 22, 2009
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
earnings news
JBS
Pet DRx
PetSmart
Webster
other news
Abaxis
Fujita Pharmaceuticals
Kyoritsu Seiyaku
Luitpold
Novartis
Nutro
Perdigao
Sadia
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ANIMAL HEALTH INVESTMENT FORUM
SEPTEMBER 1, 2009
The first annual Animal Health Investment Forum will be held Tuesday, September 1, in Kansas City, Missouri. This forum offers the only opportunity in the world for companies exclusively in the animal health sector to present their vision and business plan to potential investors. Because of its industry concentration, the KC Animal Health Corridor offers a uniquely supportive environment for start-up and early stage entrepreneurs in the animal health industry. Visit www.kcanimalhealthforum.com to learn more or to register to attend.
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COMPANY EARNINGS RELEASES
> Patterson Companies reported results for the fourth fiscal quarter ended April 25, 2009. Sales of the Webster Veterinary Supply unit increased 33% to $159 million, due primarily to the Columbus Serum acquisition. (company website)
> PetSmart, Inc. reported net income of $46 million in the first quarter of 2009, compared to net income of $41 million in the first quarter of 2008. Net sales for the first quarter of 2009 increased 10% to $1.33 billion compared to the first quarter of 2008. Comparable store sales grew 4% in the first quarter. (company website)
> Pet DRx Corporation announced financial results for the first quarter ended March 31, 2009. Revenue in the first quarter of 2009 for continuing operations was $16.7 million, compared to revenue of $17.4 million in the first quarter of 2008. The reported net loss in the first quarter of 2009 from continuing operations was ($21,000) compared with a net loss in the first quarter of 2008 of ($2.9 million). The net loss was significantly reduced as a result of the $2.0 million gain recognized from the change in fair value of the Company’s warrant liabilities on its balance sheet. (GlobeNewswire.com)
> JBS S.A. reported that its first-quarter loss widened largely on debt servicing costs and losses in its Argentine beef business. The quarterly loss was 323 million reals ($155.4 million) from a loss of 6.6 million reals ($3.2 million) in the year-ago period. Sales rose 58% to 9.27 billion reals ($4.42 billion) as the company integrated Australia’s Tasman Group and Smithfield Beef Group. (Meating Place)
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COMPANY NEWS RELEASES
> Novartis Animal Health and Luitpold Pharmaceuticals announced an agreement that grants marketing rights for Adequan Equine to Novartis in all major equine markets outside the US. The first launch of Adequan Equine by Novartis will take place in Canada. Luitpold will continue to market Adequan Equine in the US. (company press release)
> Abaxis, Inc. announced that it has signed an agreement with Abbott’s Point of Care business, giving Abaxis exclusive worldwide marketing rights in the animal health field to the i-STAT system, including the i-STAT 1 analyzer, a handheld instrument and cartridges such as those for blood gas, electrolyte, basic blood chemistry and immunoassay testing. (company press release)
> Nutro Products announced a voluntary recall of select varieties of Nutro Natural Choice Complete Care Dry Cat Foods and Nutro Max Cat Dry Foods. This recall is due to incorrect levels of zinc and potassium in our finished product resulting from a production error by a US-based premix supplier. Affected product was distributed to retail customers in all 50 states, as well as to customers in Canada, Mexico, Japan, Korea, Thailand, Malaysia, Singapore, Indonesia, New Zealand, and Israel. (company press release)
> JAPAN Fujita Pharmaceuticals and Kyoritsu Seiyaku have introduced MyFleaGuard, a product that controls fleas and ticks on dogs and cats, to the Japanese market. The product is the first generic fipronil to be launched in Japan. (Animal Pharm)
> BRAZIL Perdigao announced it will acquire smaller rival Sadia, joining Brazil’s top two poultry and pork processors to create a global industry leader with annual sales topping $10 billion. The new company, called Brasil Foods, will control almost a quarter of the global poultry market, overtaking Tyson Foods as the world’s biggest poultry company by market value. (PoultrySite Newsletter, Forbes.com)
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ANIMAL HEALTH NEWS
> CANADA – BSE The Canadian Food Inspection Agency has confirmed a case of BSE in an 80-month-old dairy cow from Alberta. No part of the animal’s carcass entered the human food or animal feed systems. The animal’s birth farm has been identified, and an investigation is underway. The age and location of the infected animal are consistent with previous cases detected in Canada. (FSNet – CFIA)
> CALIFORNIA – ANIMAL WELFARE The University of California (UC) has established the UC Animal Welfare Advisory Council to review issues of animal welfare related to animal agriculture and to promote the development of recommendations based on sound science to improve the welfare of livestock and poultry. The council is comprised of veterinarians, animal science professionals and other experts from the UC system, the California State University system, Colorado State University and the private sector. (Feedstuffs)
> US – SWINE WELFARE GUIDELINES The American Association of Swine Veterinarians has developed a guide for developing anti-cruelty policies as a way to help swine veterinarians work with clients in developing policies for good animal husbandry. The committee’s recommendations are a list of minimal guidelines thought to be important for any pork-producing organization’s anti-cruelty policy or employee educational materials. (AVMA)
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COMING IN AUGUST
The U.S. Animal Health Industry:
Its pioneers and their legacy of innovation
ORDER BY JUNE 20 FOR EARLY-BIRD DISCOUNT
Brakke Consulting is pleased to announce the imminent publication of an all-new book chronicling the history of the animal health industry in the US. This professionally produced 108-page hardcover book traces the evolution of the industry, from its beginnings in the late 19th century battling hog cholera to today’s $5 billion industry.
Don’t miss the opportunity to own this unique look at our industry. Orders placed before June 20 are eligible for a 30% discount. For more information, contact Jane Morgan at jmorgan@brakkeconsulting.com or 972.243.4033.
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BRAKKE CONSULTING VIEWPOINT
Please mark your calendar for Tuesday, September 1 for the first annual Animal Health Investment Forum presented by the KC Animal Health Corridor. This event will be held the day after the Corridor’s Annual Homecoming event in Kansas City and offers the only opportunity in the world for companies exclusively in the animal health sector to present their business ventures to potential investors.
Brakke Consulting is partnering with the Corridor on this program. We hope to provide young animal health companies that are currently raising capital an opportunity to present their business concepts to an audience of venture capital firms and business development representatives. If you are an animal health and/or nutrition company seeking up to $20 million in capital, you can apply online to be a part of the Forum at www.kcanimalhealthforum.com.
We could not help but notice the good results for PetSmart in the earnings reports. These results would indicate that the OTC pet business is remaining strong and should have positive implications for other companion animal market channels.
Those of you in the US enjoy the Memorial Day weekend!
Ron Brakke
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Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX 75234 USA
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