Animal Health News & Notes for April 25, 2025

***********************************
Brakke Consulting’s
Animal Health News & Notes for April 25, 2025
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
************************************

IN THE NEWS:
Brakke Consulting News
Brakke Search

Earnings News
Merck
Nestlé

Other News
Glenmark Pharmaceuticals
Hill’s
Kersia Group
Neogen
Otto
Phibro Animal Health
Tractor Supply

*****************************************
Brakke Search
Hiring managers and talent professionals! We know that talent and teamwork make our organizations successful. We owe it to ourselves to maximize our chances of attracting the best talent and organizing our teams to let them shine. In this competitive environment where we’re selling more than buying we need an advantage.

Brakke Consulting and Brakke Search can help. We’ve been serving our industry exclusively since 1986, focusing our executive recruiting on our clients’ specific needs. Let us put our extensive network and vast experience to work for you

Our consultants have led many of the key players in our industry. Whether it’s a commercial, financial, scientific/R&D, operations/manufacturing, veterinary, or other technical role, we know what it takes to succeed. And how to attract top talent to your team.

Jeff Santosuosso leads our efforts. He’d be pleased to speak with you to understand your needs. You can reach him at jeff@brakkeconsulting.com. Learn more at www.brakkeconsulting.com, his LinkedIn page, and the Brakke Search page, where he provides tips and best practices for hiring managers and talent professionals. We look forward to hearing from you.

www.BrakkeConsulting.com 

*********************************************
EARNINGS NEWS RELEASES

• Merck announced financial results for the first quarter of 2025. Animal Health sales were $1,588 million, a year-over-year increase of 5% (+10% currency adjusted). Growth was primarily due to higher demand for Livestock products, as well as inclusion of sales from Elanco aqua business that was acquired in July 2024. (company press release)
• Nestlé SA reported results for the first quarter of 2025. PetCare sales were CHF 4,704 million ($5,695 million), an increase of 2.5% (+1.6% organic growth). (company press release)

***********************************
COMPANY NEWS RELEASES

• Hill’s Pet Nutrition announced it is enhancing the Hill’s Science Diet adult and senior lifestage dry dog and cat portfolio with the introduction of ActivBiome+ Multi-Benefit technology, which supports digestion, immune system and organ health with a special blend of prebiotic fibers and antioxidants. (prnewswire)
• Neogen Corporation announced it has entered into a definitive agreement to sell its global cleaners and disinfectants business for use in livestock applications to Kersia Group for $130 million in cash at closing plus contingent consideration tied to the future performance of the business. The business had approximately $60 million of annual revenue. (company press release)
• Phibro Animal Health Corporation announced that the FDA has approved Paqflor, a 50% florfenicol premix for use in freshwater-reared salmonids, catfish, freshwater-reared finfish and warmwater finfish. (com)
• The FDA announced a recall of nearly 40 different kinds of common generic medications manufactured by Glenmark Pharmaceuticals, Inc. All of the recalled drugs were manufactured at a Glenmark Pharmaceuticals factory in India, and were flagged by the FDA as deviating from “current good manufacturing practice.” Recalled products included gabapentin tablets, metformin hydrochloride extended-release tablets, diltiazem hydrochloride extended-release capsules, and clindamycin hydrochloride capsules, among others. (AVMA SmartBrief – com)
• Otto announced the launch of automatic write-back functionality for its AI-powered Recap feature, offering AI-generated SOAP note integration with practice information management systems (PIMS). The new functionality is part of the suite of AI capabilities, free for Otto Flow subscribers. (businesswire)
• Tractor Supply Company announced the launch of Tractor Supply Rx, the Company’s convenient and low-cost pet and animal pharmacy offering. Customers can now shop for pet and animal medications, enroll in automatic delivery through the Autoship program and access expert pharmacy advice. (company press release)

*********************************************
ANIMAL HEALTH STOCK PRICE TRACKER

***********************************
ANIMAL HEALTH NEWS

• US – FEED REGULATION The Association of American Feed Control Officials (AAFCO), in collaboration with the Kansas State University Olathe Innovation Campus, announced that it is introducing the new ingredient review process called the Scientific Review of Ingredient Submissions (SRIS) program.  This program will offer a fast and accurate scientific assessment of new animal food ingredients that will be accepted by state regulators across the U.S. AAFCO is set to begin accepting applications later this year. (Feedstuffs)
• US – SCREWWORM The USDA’s National Veterinary Accreditation Program has developed the training module, “Module 41: New World Screwworm: A 21st Century Perspective.” It goes over signs of NWS, its life cycle, control measures, and reporting methods. The presentation, released in early April, also covers the potential animal, human, and financial impacts associated with an incursion of NWS. The USDA recommends that every veterinarian and veterinary technician, regardless of practice type, review this module to learn how to recognize and respond to NWS. (AVMA SmartBrief)
• US – DAIRY TESTING The FDA is suspending a quality control program for testing of Grade A raw milk and finished products due to reduced capacity in its food safety and nutrition division. The FDA is actively evaluating alternative approaches for the upcoming fiscal year. (AVMA SmartBrief – Reuters)
• US – ANESTHESIA GUIDELINES The American College of Veterinary Anesthesia and Analgesia (ACVAA) has revised and expanded its guidelines for monitoring small animal patients during sedation and anesthesia, marking the first major update since 2009. Developed in collaboration with the North American Veterinary Anesthesia Society and the Academy of Veterinary Technicians in Anesthesia and Analgesia, the 2025 guidelines contain updated recommendations on monitoring cardiovascular function, oxygenation, ventilation, body temperature, neuromuscular blockade, and anesthetic depth in canine and feline patients. The guidelines were published online in the journal Veterinary Anaesthesia and Analgesia. (AVMA SmartBrief)
• US – PET INSURANCE Florida’s governor has signed into law pet-insurance bill HB 655, which includes regulation of issues that are similar to issues that arise in human health care. For example, the bill will require pet insurers to disclose whether policies exclude coverage for such things as chronic conditions and pre-existing conditions; and will require insurers to provide information about claim payments and benefit schedules. The bill will take effect Jan. 1. (com)
• US – CANNABIS USE The AVMA has issued an updated report on the use of cannabis-derived products in veterinary medicine that includes new information on the safety, pharmacokinetics and effectiveness of cannabidiol in dogs and cats; results of clinical trials involving dogs, cats and horses; and regulatory updates. (AVMA SmartBrief)
• MEXICO – VETERINARY SCHOOLS The AVMA Council on Education (COE) has approved a request for voluntary withdrawal of accreditation from the National Autonomous University of Mexico (UNAM) Faculty of Veterinary Medicine, effective as of the end of this year. UNAM, said to be the oldest veterinary school in the Western Hemisphere, was granted full accreditation by the COE in March 2011 after pursuing the designation for nearly 15 years. UNAM still remains accredited by Mexico’s National Council of Education for Veterinary Medicine and Zootechnics, or CONEVET. (association press release)

************************************
BRAKKE CONSULTING VIEWPOINT

This week, I draw your attention to the notice in the Newsletter regarding Glenmark Pharmaceuticals, Inc. and the issuance of a recent FDA Warning Letter stopping importation and recall of 39 different generic products manufactured at the Glenmark facility in India.

While this recall should have virtually no effect on the availability of drugs to veterinarians, it comes at the same time as the US administration’s establishment of substantial tariffs on pharmaceuticals made outside the US in an effort to shift overseas production of pharmaceutical products back to the United States, primarily for national security and balance of trade reasons.

There is no question that the US is vulnerable to shortages outside of its control due to the high volume of imported medicines, for both animals and humans.  Some estimates are that over 90% of antibiotic APIs sold in the US are imported from China.  It is not known how much of veterinary drugs are imported from China, but we feel 20-40% might be a good estimate.

Generic, non-patented, low-cost products often don’t support the high cost of establishing production in a US based site when lower cost sources can be found overseas.  The threat of tariffs can certainly cause companies to plan production moves, but the time and cost associated with moving from off-shore to a US production site means this is a very long-term solution to an immediate problem.  Look for trade deals soon between major exporters and the US.

 Jim Kroman

***********************************
YOUR VIEW
Last week, we asked if you planned to buy Easter gifts for your pets. 22% of you said yes; 41% said no; and 37% hadn’t given it any thought.

This week
We are starting to see 1Q results from AH companies and all year long we have been watching the Vetsource Veterinary Industry Tracker data.  Seems like perhaps we are seeing a slow start to the year in the companion animal business.  Which statement best reflects your view on the year?