The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for February 20, 2009

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
VCA Antech
other news
Baltzell Agri Products
Bayer (scanner)
Bayer (vouchers)
Boehringer Ingelheim
Dainippon Sumitomo Pharma
DRE Veterinary
National Beef Packing
Prince Agri Products
Sergeant’s (Chomp)
Sergeant’s (collar)
Smithfield Foods
> Patterson Companies, Inc. reported consolidated sales for the third quarter of fiscal 2009 ended January 24. Sales of the Webster Veterinary unit increased 35% in the third quarter to $145 million, reflecting the October 2008 acquisition of Columbus Serum Company. (Business Wire) 
> Nestle S.A. reported results for the full year 2008.  Pet Care sales were CHF 12.5 billion ($11.8 billion), representing 12% organic growth and 5% real internal growth. (company press release)
> VCA Antech reported financial results for the year ended December 31, 2008.  Revenue increased 11% to a twelve-month record of $1.28 billion. Net income increased 10% to $133 million. (company press release)  
> Phibro Animal Health Corporation announced that Prince Agri Products, Inc., a subsidiary of the Company, has agreed to acquire the Baltzell Agri Products trace minerals business. BAP serves customers in all animal feed segments, including cattle, dairy, swine, poultry, and companion animals. Financial terms were not disclosed. (MSNBC)  
> Advantage from Bayer Animal Health announced the “Help Your Pet, Get to the Vet Campaign” with a mission to distribute more than $250,000 in $20 Veterinary Vouchers and offer valuable money-saving information to help offset costs and concerns for pet owners nationwide. The Campaign is giving up to 13,000 pet owners the chance to receive a $20 Veterinary Voucher by visiting a special website between February 16 and 28. The website also includes money-saving tips on pet care. (PRNewswire)
> Vivalis and Boehringer Ingelheim Animal Health announced the signing of a research license agreement to use Vivalis’ EB66 cell line for the production of several veterinary vaccines. The Agreement includes an option to enter into a commercial license agreement to use this cell line platform for production of vaccines to protect animals. (company press release)  
> JBS S.A. announced that it has terminated the acquisition process of National Beef Packing Co. LLC. JBS announced its intention to acquire National Beef on March 4, 2008. The Department of Justice had filed a suit to block the deal on Oct. 20, 2008, on competition grounds. All related litigation with the Department of Justice also will be terminated. (Meating Place)
> UK-based PetScreen announced that the company has chosen Columbia, Missouri for its US headquarters. PetScreen focuses on developing novel detection and treatment tools for major age-related diseases in dogs and cats. (company press release)
> DRE Veterinary introduced the DRE VSE Series, a line of surgical and exam tables. In addition to DRE VSE Series veterinary surgery and exam tables, DRE Veterinary sells DRE WVT Series veterinary wet tables and grooming tables. (PRWeb)
> VetCentric, Inc. announced an affiliation with Dechra Veterinary Products. The agreement provides VetCentric’s partner clinics with access to the entire Dechra otic, dermatological and ophthalmic product line, including Vetoryl Capsules. (PRNewswire)
> Sergeant’s Pet Care Products, Inc. announced that it has reached an agreement to acquire Chomp, Inc., a manufacturer of innovative, all-natural dog and cat treats and supplements with wide national distribution. Financial terms were not disclosed. (Business Wire) 
> Sergeant’s Pet Care Products, Inc. introduced the Sentry HC Good Behavior Pheromone Collar for Dogs. The collar is available at pet specialty stores nationwide. The cat version of the behavioral health care product is expected to hit the market in early March. (MarketWire)
> ANoxA Corp, a startup veterinary research company, announced it is relocating its corporate headquarters and operations from New York to Lawrence, Kansas.  The company recently patented its Eiphisol technology, which is envisioned as a treatment to control Exercise Induced Pulmonary Hemorrhage, or EIPH, in horses. (
> Smithfield Foods announced a major restructuring that includes reducing the number of independent operating companies from seven to three, and closing six plants by December 2009, resulting in a net reduction of approximately 1,800 jobs in the pork group. (Meating Place) 
> UK   Bayer has introduced a new microchip scanner in the UK which is capable of reading all chips, including encrypted ones. The new Tracer Advance Isomax V scanner offers exceptional reading distances of more than twice those of other scanners on the market. (
> JAPAN   Dainippon Sumitomo Pharma announced the Japanese launch of a new veterinary product named PRONAMID Tablets (mosaprid citrate) for the improvement of anorexia and vomiting in dogs. (company communication)
> SOUTH AMERICA – SCREWWORM   Two hundred million irradiated flies are being released over cattle farms in the Brazil-Uruguay border region as part of an experimental project to eradicate screwworms. The insects are being released in an area 100 km wide in the two countries. The female flies have been exposed to radiation, rendering them infertile; they are expected to mate and produce eggs that will not hatch, thus causing a decrease in the fly population. (Pharm Fresh)
> US – CALIFORNIA VETERINARY TAX   A tax on veterinary services is officially off the table in California. Legislators passed a 17-month budget after months of negotiation. The final bill, approved by state Senate and Assembly, does not include a veterinary service tax included in previous versions of the budget proposed by the Governor. (DVM360)
>  US – VETERINARY RESEARCH FOUNDATION   The American Academy of Veterinary Pharmacology & Therapeutics (AAVPT) has contributed the start-up funds for the Veterinary Pharmacology Research Foundation (VPRF). VPRF will provide grant funding to support research into new and currently approved medications for combating diseases of companion and food animals, projects that ensure the safety of food products from treated livestock and training programs for veterinary pharmacologists. (Feedstuffs)
FEBRUARY 15-19, 2009
The Western Veterinary Conference was held this week in Las Vegas, Nevada.  The Conference hosted over 13,000 attendees, including over 7,500 veterinarians, technicians and staff, and over 3,000 exhibitors.
The WVC also hosted the Grand Opening of its new Oquendo Center for Clinical Education. The  venue is more than 66,000 square feet dedicated to and specifically equipped for training in techniques applicable to most species.
It was great seeing so many of you in Las Vegas earlier this week.  Preliminary indications are that it was a successful meeting for most companies.  I’m sure some of you made your personal annual contribution to Las Vegas’ local economy.
This week’s news regarding the general economy has not been encouraging.  There were record numbers of individuals filling for unemployment assistance, with additional firms announcing additional layoffs.  The stock market decline is a reflection of the attitudes of most consumers and companies. 
We continue to believe that the animal health market will be impacted negatively by the general economy, but not to the degree that other segments such as automobiles and housing.  So, we suggest that you continue to be positive and invest in building your business in this difficult period in the general economy.  In Las Vegas we met with several investors who continue to believe that the animal industry is an interesting market for investment.  We believe they are correct in their assessment.
Have a good weekend!!
Ron Brakke
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