The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for August 5, 2022
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting News
Cancer in Dogs and Cats – pre-order now

Earnings News
Adisseo
Central Garden & Pet
Covetrus
Hill’s
IDEXX
Nestlé
Royal DSM
Swedencare
Trupanion
Zoetis

Other News
ALR Technologies
Amlan International
Basepaws
Beyond Indigo Pets
BioChek
Champion Petfoods
Chewy
Exodus Breeders
Felix Pharmaceuticals
FirstVet
Heiland
Hill’s Pet Nutrition
Huvepharma
Infinovo Medical
Mars Petcare
Oil-Dri Corporation of America
Pegasus Laboratories
Petwise
Pharmgate
Phillips Pet Food & Supplies
Portland Pet Food Company
Red Collar Pet Foods
Revival Animal Health
Terravet Real Estate Solutions
VetFamily
Vimian Group
Wedgewood Pharmacy
Zoetis

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2022 ANIMAL HEALTH SUMMIT
August 29-30, 2022
Location: Arvest Bank Theatre at the Midland | Kansas City, MO
Registration is now open for the 2022 Animal Health Summit.

Register today! The Animal Health Summit features two days of networking, 1:1 business partnering, industry thought leaders, panel discussions, speakers and emerging company presentations. Learn more.

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EARNINGS NEWS RELEASES

  • Zoetis announced financial results for the second quarter of 2022. Revenue was $2.1 billion, an increase of 5% compared with the second quarter of 2021. Net income was $529 million, an increase of 3%. Revenue in the U.S. segment was $1.091 billion, an increase of 9% compared with the prior year quarter (company press release)
  • IDEXX Laboratories, Inc. announced results for the second quarter of 2022.  Revenues were $861 million, a year-over-year increase of 4% (+6.5% organically). Gross profits increased 5% as reported and 7% on a comparable basis. Net income was $132 million, a decline of 35% reflecting impacts from $80 million of discrete R&D investment and operating expense growth related to investments in commercial capabilities. Companion Animal Group generated revenue growth of 5% (+7% organically). (company press release)
  • Covetrus announced financial results for the second quarter of 2022. Net sales were $1.22 billion, an increase of 2% with the second quarter of 2021. Net income attributable to Covetruswas $36 million, compared to net loss attributable to Covetrus in the fourth quarter of 2021 of $(31) million. (company press release)
  • Nestlé SA reported results for the first half of 2022. Petcare sales were CHF 8,589 million ($9,045 million), an increase of 16% over the prior year quarter (5% real internal growth). Underlying TOP (trading operating profit) was CHF 1,635 million ($1,722 million), an increase of 4%. (company website)
  • Colgate-Palmolive Company reported results for second quarter 2022. Sales for the Hill’s Pet Nutrition division were $909 million, a year-over-year increase of 14.5%. Division operating profit was $212 million, flat compared to the prior-year quarter. (Businesswire)
  • Swedencare reported results for the second quarter of 2022. Turnover was SEK470.9 million ($46 million), a year-over-year increase of 194% with performance mostly fueled by M&A (organic growth was 4%). Swedencare has made seven acquisitions since June 2020. (IHS Markit Connect – subscription)
  • Trupanion announced financial results for the second quarter of 2022. Total revenue was $219.4 million, an increase of 30% compared to the second quarter of 2021. Net loss was $(13.6) million, compared to net loss of $(9.2) million in the prior-year quarter. Total enrolled pets (including pets from our other business segment) was 1,348,145 at June 30, 2022, an increase of 32%. (company press release)
  • Central Garden & Pet announced financial results for its fiscal 2022 third quarter ended June 25, 2022.  Net sales for the Pet segment were flat to prior year at $508 million. Pet segment operating income decreased 12% to $63 million. (company press release)
  • Adisseo, a subsidiary of China National BlueStar, reported results for the first six months of 2022. Revenues were Rmb7.2 billion ($1.1 billion), a 20.4% year-on-year increase. (IHS Markit Connect – subscription)
  • Royal DSM reported results for the second quarter of 2022. The animal nutrition and health business posted revenues of EUR 958 million ($980 million), an increase of 19% (+11% on an organic basis). (IHS Markit Connect – subscription)

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BRAKKE CONSULTING
2022 CANCER IN DOGS AND CATS REPORT – COMING IN SEPTEMBER
EARLY ORDER DISCOUNT NOW THROUGH AUGUST 26

Did you know that cancer is the #1 cause of death in adult dogs?  It’s also a leading health concern of dog owners.  So how is cancer addressed by the veterinary profession, and what kind of market is there for veterinary cancer therapies?

Brakke Consulting’s new 2022 Cancer in Dogs and Cats report includes information on the incidence, diagnosis, and treatment of the common veterinary cancers.  It covers currently approved veterinary therapies and those in development, as well as estimates of the numbers of pets treated.

The study includes a survey of 300 general veterinary practitioners about incidence of cancer and frequency of treatment; as well as a survey of 1,000 pet owners to determine what they are willing to pay to treat a pet with cancer.

The report is available for pre-order for $7,995 until August 26, and will be published in September; after August 26 the price will be $8,500. For more information, please contact Dr. Lynn Fondon at lfondon@brakkeconsulting.com.

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COMPANY NEWS RELEASES

  • Basepaws, a Zoetis company, announced the launch of a comprehensive portfolio of genetic and oral microbiome screening tools for disease risk exclusively for veterinary professionals. Basepaws Veterinary genetic tests screen for 64 feline health markers and over 210 canine health markers associated with known genetic diseases; the oral microbiome tests analyze more than 600 relevant oral microbes to assess risk for the most common feline dental disease. (company press release)
  • Colgate-Palmolive Company plans to purchase three dry pet food manufacturing plants in the U.S. from Red Collar Pet Foods for $700 million to support the global growth of its Hill’s Pet Nutrition The plants – in South Carolina, Oklahoma, and Ohio – will be integrated into Hill’s global supply network to produce dry pet food for Hill’s Science Diet and Prescription Diet brands. (Businesswire)
  • Mars Petcare announced an $82 million investment to expand the company’s dog and cat treat manufacturing facility in Kansas City. The expansion will increase production capacity for the company’s Greenies products by more than 940 million treats annually, a 75% increase from current production numbers. (Petfoodprocessing)
  • Chewy announced the launch of CarePlus, an exclusive suite of pet-first wellness and insurance plans that increases the access to affordable and high- quality pet healthcare. CarePlus is now available in 31 states and will expand nationwide by late 2022. (Company Press Release)
  • The FDA announced it has approved Pegasus Laboratories, Inc.’s Firocoxib Tablets for Horses, the first generic firocoxib tablets for pain and inflammation associated with osteoarthritis in horses. (FDA)
  • The FDA announced it has approved Felix Pharmaceuticals’ generic Meloxicam Injectable Solution for dogs and cats. (FDA)
  • The FDA announced it has approved Pharmgate Inc.’s Pennchlor (chlortetracycline) and Rumensin (monensin) Type A Medicated Feed Article for use in beef calves, steers and heifers. (FDA)
  • The FDA announced it has approved Huvepharma’s Experior (lubabegron) and Monovet (monensin) and Tylovet (tylosin) Type A Medicated Feed Article for use in beef steers and heifers; and Experior and Monovet Type A Medicated Feed Article for use in beef steers and heifers. (FDA)
  • Revival Animal Health announced the addition to the Revival family of Exodus Breeders, a distributor of equine and canine reproductive supplies. The two companies have worked together to sell Exodus Breeders’ canine products for many years; the new partnership marks Revival’s first major foray into the equine market. (company press release)
  • ALR Technologies SG Pte. Ltd announced the Company has received manufacturing approval from Infinovo Medical , Ltd. to place the first purchase order for the GluCurve Pet CGM, the first and only continuous glucose monitoring system for diabetic cats and dogs, with an expected delivery date of October 2022. (Globenewswire)
  • BioChek announced that the BioChek Salmonella qPCR reagents have been granted a Full National Poultry Improvement Plan (NPIP) approval as a rapid test for the detection of Salmonella spp. in primary production samples. With this approval, BioChek can now provide the US poultry industry the Salmonella qPCR solution. (Vet Advantage)
  • Portland Pet Food Company, a manufacturer of human-grade dog food toppers and treats, announced it has expanded its distribution presence by partnering with Phillips Pet Food & Supplies in an agreement to enter seven of their distribution centers covering most of the East Coast and Midwest. (Pet Business)
  • Champion Petfoods announced that ACANA Indoor Entree cat food has received FDA approval for hairball control. This is the first FDA claim for and ACANA food, and for Champion Petfoods. (Pet Business)
  • Wedgewood Pharmacy announced that it has been named the American Animal Hospital Association’s (AAHA) preferred provider for compounding services for AAHA’s more than 4,500 accredited veterinary practice and hospital members. (company press release)
  • FirstVet announced a partnership with Petwise for video appointments, entitling Petwise customers to unlimited video appointments via their mobile device, tablet or computer. (Pet Gazette – subscription)
  • Beyond Indigo Pets announced the launch of VetMarketingTalk, a new online forum tailored to building connections within the veterinary industry, discussing industry trends, and empowering veterinary professionals looking for DIY marketing solutions. (Newswire)
  • Terravet Real Estate Solutions, a real estate group focused on veterinary practice real estate, announced the launch of Terravet REIT, Inc., the company’s first private real estate investment trust. Terravet REIT, Inc. will provide owners of veterinary real estate an opportunity to diversify their real estate holdings by participating in a pool that is expected to scale to several hundred large general practice facilities and specialty/emergency veterinary hospital facilities nationwide. (Businesswire)
  • GERMANY Vimian Group announced its Veterinary Services segment VetFamily has acquired Heiland GmbH, a leading online ordering platform offering veterinary pharmaceuticals and other veterinary products to veterinary clinics across Germany. Heiland has annual revenues of around EUR 1.5 million ($1.5 million); financial terms were not disclosed. (Yahoo)
  • BRAZIL Oil-Dri Corporation of America announced that the Brazilian Patent Office has issued a Patent titled “Clay Product and Uses Thereof,” with Oil-Dri as the inventor. The patent protects the novel, mineral-based formulation used in Amlan International’s existing natural feed additives, Varium for poultry and NeoPrime for swine, that provide swine and poultry producers with natural solutions to optimize intestinal health. (Globenewswire)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

  • US – VETERINARY TELEHEALTH A group of leading professional and industry organizations – including the AVMA alongside both corporate and industry association partners – have formed the Coalition for Connected Veterinary Care with the goal of seeking to enhance and expand patient care through wider use of telehealth in veterinary medicine. The coalition will collaborate across the veterinary and animal health industry to enhance and expand veterinary care by leveraging technology, while safeguarding the health and welfare of animals and the people who care for them. (DVM360)
  • US – VETERINARY TELEHEALTH The Veterinary Virtual Care Association (VVCA) announced the release of the industry’s first Model Telemedicine Regulations as a framework to provide support and direction for practitioners, associations, legislatures, and state boards of veterinary medicine, all of which play a role in safeguarding real-world standards of practice. Click here to see the regulations. (association press release)
  • US – VETERINARY DIVERSITY Journey for Teams, a sweeping new initiative to enhance diversity, equity, and inclusion (DEI) throughout the nation’s veterinary profession, was announced by the American Veterinary Medical Association (AVMA) and Veterinary Medical Association Executives (VMAE). The program builds upon the VMAE’s original Journey program that was launched in 2021 to provide executive directors and elected leaders at veterinary medical associations with tools and resources to advance DEI. (DVM360)
  • AUSTRALIA – VETERINARY CARE Victoria, Australia’s MP announced a proposal to create a Medicare-like scheme – dubbed “Veticare” – that would help make animal health care more affordable while also tackling a national vet shortage. The model – which is not fully costed – would see an annual fee charged to domestic animal owners who would receive a Veticare card. It would allow pensioners and concession card holders to bulk-bill vet care at new public clinics, while a means-tested subsidy would apply for other clients. (com)

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BRAKKE CONSULTING VIEWPOINT

In this space last week, Bob Jones published a thought-provoking Viewpoint on the topic of FDA Animal Drug User Fees. He asked if readers felt that the User Fee amounts are reasonable. Not surprisingly, 57% said the fees are too high.

I recently read “Flying Blind: The 737 MAX Tragedy and the Fall of Boeing” by Peter Robison. Robison outlined the issues regarding the 737 MAX and the accidents that resulted. A recurring theme is the policy of the Federal Aviation Administration (FAA) to “outsource” oversight of airplane development to the manufacturers themselves. Boeing made decisions about the development of this plane and the training for its pilots that would have been visible to a competent and independent regulator; unfortunately, the FAA lacked the understanding to challenge these decisions and 346 people died in 2 crashes, resulting in the grounding of the airplane and one of the costliest corporate scandals ever.

So…what does this have to do with Animal Health? The industry agreed to support CVM’s efforts through the User Fee system maintaining expertise and providing for certainty in the review process. Yes, it can take a lot of money to register a new compound or a new generic drug; however, the regulatory system continues to help our industry maintain a position in our society that we can be proud of. And that has a value that is certainly real.

Jim Kroman
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YOUR VIEW

Last week, as Jim alluded to above, we asked you about what you thought about FDA/CVM user fees and do they impact innovation in the AH industry.  A very small number of respondents, 6%, thought that user fees are reasonable and don’t stifle innovation.  About 37% of respondents thought that user fees were somewhat high and may stifle innovation, especially at smaller companies, while 57% thought that user fees are unreasonably high and stifle innovation for companies of all sizes.  Like us, it seems like a lot of our readers are concerned about bringing innovation to animal health.

This Week:
This week, let change gears to a topic you have been thinking about for a while, that perhaps the pandemic has turned endemic.  Now that we are over two years dealing with COVID-19, which sentence best describes you:

You have not had COVID
You have had COVID once and recovered
You have had COVID more than once

Thank you