Animal Health News & Notes for February 24, 2023

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Brakke Consulting’s
Animal Health News & Notes for February 24, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Earnings News
Avivagen
Elanco
ImmuCell

Other News
Antech Diagnostics
Artie
Beach Point Capital Management
Big Creek Foods
BiomEdit
Chewy
Healers PetCare
Mazen Animal Health
Merck
Nutreco
Nylabone
Open Door Veterinary Collective
PetDesk
Scholtus Group
Shield Products
TheraVet
Vetpharma
Vetsource
Wet Noses
Zoetis

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EARNINGS NEWS RELEASES

• Elanco Animal Health Incorporated reported financial results for the full year 2022. Total revenue was $4,418 million, a year-over-year decline of 7% (-3% at constant exchange rates). Reported net loss was $(74) million compared to a net loss of $(482) million in the prior year. (company press release)
• ImmuCell Corporation announced its unaudited financial results for the year ended December 31, 2022. product sales were $18.6 million, a year-over-year decline of 4%. Net loss was $(2.5) million compared to a net loss of $(78,000) in the prior-year period. (company press release)
• Avivagen reported its audited financial results for the year ended October 31, 2022. Revenues were $939,173, a year-over-year decline of 28%. Comprehensive loss was $(6.1) million, compared to a comprehensive loss of $(6.4) million in the prior year. (company press release)

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COMPANY NEWS RELEASES

• The FDA has approved an expanded indication for Merck‘s Banamine Transdermal (flunixin transdermal solution). The new indication is for the control of pyrexia (fever) due to acute mastitis with a short milk withhold of 48 hours, meaning the product can be given to lactating cows. (Dairyherd)
• Zoetis announced Synovex Exact10 applicator, a new advanced implant applicator designed specifically for user ease and precision. The Exact10 is compatible with every Synovex implant cartridge. (Feedstuffs – subscription)
• Antech Diagnostics announced that KeyScreen GI Parasite PCR will detect a new mutation for treatment-resistant canine hookworm by mid-April. (Businesswire)
• Chewy announced it has launched its first pet wellness brand, Vibeful, with a line of 20 supplements and vitamins. (Pet Product News)
• TheraVet announced the signing of an exclusive distribution agreement with Vetpharma for the distribution of Biocera-Vet product range. Biocera-Vet will be distributed in Scandinavia, Eastern Europe, Latin American countries, South Africa, Australia and in selected Asian countries. (Businesswire)
• Nylabone is launching four new product lines that feature chew toy shapes inspired by everyday objects with a fun twist; multi-flavored Basted Blast chew toys; the Sneaky Snacker chew & treat toy; and Healthy Edibles Meaty Center chew treats. (Businesswire)
• Nutreco announced it has taken a minority stake in BiomEdit after recently entering into a long-term strategic research and commercial partnership. (Feedstuffs – subscription)
• Shield Products, a subsidiary of Digital Ally, Inc., announced a strategic partnership with Healers PetCare to expand the Shield product line into new markets. Shield products are cleansers and disinfectants that contain hypochlorous acid. (Globenewswire)
• Mazen Animal Health announced it has been issued a patent for its transformative technology to produce orally delivered animal vaccines. The United States Patent and Trademark Office (USPTO) issued U.S. Patent US-11566255-B2, “Expression of PEDV Sequences in Plants and Plant Produced Vaccine for Same” on January 31, 2023. The patent covers foundational technology for the company’s first vaccine product, which is anticipated for launch in 2024. (Feedstuffs – subscription)
• Vetsource announced a new payment processing service, the latest addition to Vetsource’s portfolio of solutions for the veterinary industry. The new payment processing platform will enable veterinary practices to offer modern, convenient and flexible payment methods. (company press release)
• PetDesk announced its newest product, PetDesk Starter, a client engagement starter pack built for clinics who prefer to adopt new technologies at their own pace. PetDesk Starter bundles together the PetDesk platform’s essential, easiest-to-use tools, including PetDesk’s pet health mobile app, appointment reminders, and world-class support. (Streetinsider)
• Beach Point Capital Management‘s Tactical Fund announced it has acquired a controlling stake in Wet Noses, a manufacturer of human-grade, natural and organic pet food and treats, following its minority investment in the company in December 2019. (Pet Business)
• Scholtus Group announced it has acquired Georgia-based Big Creek Foods through its US subsidiary Scholtus Petcare. Financial terms were not disclosed. (GlobalPets)
• Artie introduced their new portioned pet meals that are gently cooked and ready to serve in minutes at the touch of a button. Artie meals – packaged in recyclable and shelf-stable cups and shipped directly to a pet owner’s door each month – are prepared at home through the innovative Artie countertop appliance. (Prnewswire)
• Open Door Veterinary Collective, a national non-profit 501(c)(3) network and collaborative forum, announced the launch of an online locator tool called PetHelpFinder.org. The online tool connects pet families with financially friendly veterinary care, pet food and supplies, temporary boarding, behavioral support and other services. PetHelpFinder.org is utilized by 211 national services and will also support Pets and People Together, a national public service campaign made in partnership between the Ad Council, Maddie’s Fund, and the Humane Society of the United States. (Globenewswire)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• BRAZIL – BSE Brazil’s Ministry of Agriculture and Livestock (MAPA) announced that it is investigating a suspected case of bovine spongiform encephalopathy (BSE). Country awaits confirmation from OIE laboratory in Canada. In September 2021, Brazil officials confirmed two cases of atypical BSE in cows. (Feedstuffs – subscription)
• US – CVM The FDA announced that Tracey Forfa, J.D., a distinguished 30-year veteran of the agency, is the new director of the FDA’s Center for Veterinary Medicine. Ms. Forfa has been acting in the position since December 2022, and is the first non-veterinarian to hold the CVM directorship. However, the agency soon will name a Chief Veterinary Officer to advise on a wide variety of veterinary issues. (FDA)
• US – AVIAN INFLUENZA The USDA’s February report “Livestock, Dairy, and Poultry Outlook” reported that the total 2022 annual turkey production was 5.222 billion pounds, a decrease of 6% compared to the 2021 total and the smallest annual production since 1995. Since avian influenza the outbreak began a year ago, total losses of turkey meat birds exceed 9.5 million. (Feedstuffs – subscription)
• CANADA – ANTIBIOTIC RESISTANCE Researchers at the University of Saskatchewan identified an antimicrobial resistance gene in bacteria linked to bovine respiratory disease that inactivates macrolide antibiotics, which are frequently used to treat BRD, liver abscesses and other diseases in livestock and companion animals. The gene encodes for an enzyme that disrupts macrolides’ structure, rendering them ineffective. The research was reported in Proceedings of the National Academy of Sciences. (AVMA SmartBrief)
• US – VETERINARY EDUCATION The Clemson Board of Trustees voted to take the next step towards founding the first college of veterinary medicine in the state of South Carolina by approving a recently-completed feasibility study. The facilities will include teaching labs and a research building; however, a teaching hospital will not be included in the design, with students doing clinical learning through a distributed model. A bill to fund the construction of the new school is currently working its way through the state legislature and has been received very positively. (com)

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BRAKKE CONSULTING VIEWPOINT
We are getting close to the end of earnings release season and with only a couple of the top companies left to report, it’s looking like the global animal health industry grew just a bit over 5% in 2022 versus 2021, correcting for exchange rates.  This seems like tepid growth compared to the growth in 2021, which we estimated was 12%, but in reality, we are back to normal growth rates now.

This topic and more were covered in our annual Industry Overview, which was presented this week and the Western Veterinary Conference held in Las Vegas.  Thanks to all those that attended the Overview during WVC and previously at the VMX.  Both conferences were very well attended, and the trade show floor seemed very busy – all seemed better than normal.

I would also like to thank all our panelists who offered their ideas on “Managing AH Companies in Times of Uncertainty” – at WVC, Nicki Baty, from Hill’s Pet Nutrition, George Fennell, from IDEXX, and at VMX, Scott Bormann, from Merck AH, Kurt Green, from Vetsource, and Kevin Pohlman, from Patterson.  If you attended Overview, I am sure you picked up some great insight, from managing people, supporting customers and strengthening supply chains thanks to these remarkable leaders.

Bob Jones
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YOUR VIEW

Last week we asked for your thoughts on an enhanced medical role for certified Veterinary Technician Specialists.  Three quarters of the respondents said that this would help the profession to provide more available and timely care, while just less than 10% said that would have no effect on patient care.  And about 20% said that it would create competition for graduate veterinarians taking clients and revenue from practices.

This week

This week, let’s see what you think of the always talked about issue of the supply of veterinarians in the US.  As you will see from above, South Carolina will soon have their first college of veterinary medicine, which makes the fourth proposed veterinary college announced in the last 12 months.

Which statement best reflects your views?