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Brakke Consulting’s
Animal Health News & Notes for May 18, 2018
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
Veterinary Practice Home Delivery Report
Market research
Animal Health Industry Overview webinar – TODAY IS LAST DAY TO REGISTER
earnings news
Animalcare
Hester Biosciences
ImmuCell
Jaguar
JBS SA
Ouro Fino Saúde Animal
Pilgrim’s Pride
Zomedica
other news
Abaxis
Aliquis Telepresence
American Proteins
AMPRO Products
Anatara Lifesciences
Boehringer Ingelheim
Heska
JustFoodForDogs
Kemin Industries
Kemin Nutrisurance
MBio Diagnostics
Merck
MicroLearn
Norbrook
Petco
Southern Veterinary Partners
Tyson Foods
VetMeasure
Vetstream
VIP Petcare
Virbac
Zoetis (Abaxis)
Zoetis (Anatara)
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BRAKKE CONSULTING, INC.
VETERINARY PRACTICE HOME DELIVERY REPORT
COMING IN JUNE
Pharmacy sales represent an important component of a veterinary clinic’s revenues. In today’s competitive environment, veterinarians increasingly need to offer innovative, convenient solutions to successfully compete with online pet pharmacies and retail sources.
Developed from the data collected for Brakke’s biannual 2017 Distributor Effectiveness Study, the Veterinary Practice Home Delivery Report contains key information about companion animal veterinarians’ approach to providing the convenience in purchasing veterinary products demanded by their clients. The report, based on data from over 1,100 companion animal practice respondents, answers questions such as:
• How are veterinarians serving clients who prefer to order products online or by telephone?
• What are the trends in writing prescriptions for online pharmacies?
• How many clinics have online stores, and what is the sales volume through the stores?
• Which online services providers are clinics utilizing, and how do veterinarians rate their performance?
The Veterinary Practice Home Delivery Report’s projected publication date is early June. The price of the report is $8,900, with a $500 discount for orders placed by June 1, 2018.
For more information, contact Lynn Fondon at lfondon@brakkeconsulting.com.
www.BrakkeConsulting.com
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COMPANY EARNINGS RELEASES
• Ouro Fino Saúde Animal reported results for the first quarter of 2018. Revenues were R$92 million (US$25.5 million), an increase of 22%. Ouro Fino’s international operations grew by 58% to R$8 million (US$2.2 million). (Animal Pharm)
• Hester Biosciences reported results for the full fiscal 2018 year. Revenue was R1352.5 million ($200 million), an increase of 8%. Net profit of 23% to R305.5 million ($45 million) year-on-year. (Animal Pharm)
• Animalcare reported results for the full year 2017, following its merger with Ecuphar in July 2017. Revenues were GBP 83.7 million ($112.7 million), an increase of 22%; revenues increased by 9.6% to GBP 91.9 million on a pro-forma basis. Ecuphar contributed GBP 76.1 million to overall revenues; the original Animalcare business contributed GBP 7.6 million. (Animal Pharm)
• ImmuCell reported results for the first quarter of 2018. Total product sales were $2.9 million, a decrease of 19% due to limited supply. Because of manufacturing challenges, ImmuCell ended the first quarter with a backlog of orders worth approximately $1.2 million. Net loss was ($221,000) during the first quarter of 2018 in contrast to net income of $584,000 during the first quarter of 2017. (company press release)
• Jaguar Health reported results for the first quarter of 2018. In its Animal division, the Company recognized Neonorm revenues of $43,698 for the quarter, a decline of 2% compared to the prior-year quarter; and Botanical Extract revenues of $0 compared to revenues of $30,000 in the prior-year quarter. (company website)
• Zomedica Pharmaceuticals Corp. reported consolidated financial results for the first quarter ended March 31, 2018. Zomedica recorded net loss and comprehensive loss of $(2.1) million, compared to a loss of $(1.8) million for the three months ended March 31, 2017. Zomedica, which is in the development stage, recorded no revenues in the quarter. (company website)
• Pilgrim’s Pride Corp. reported results for the first quarter of 2018. Sales were $2.75 billion; operating income was $202 million. (Feedstuffs)
• JBS SA reported results for the first quarter of 2018. Net revenue was R$39.8 billion (US$11 billion), up 6% in relation to the corresponding period last year. Net income was R$506 million (US$140 million), up 44%. JBS also announced it has closed a deal to refinance the bulk of its bank debt. (Seekingalpha.com)
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ANIMAL HEALTH INDUSTRY: REVOLUTION OR EVOLUTION?
BRAKKE CONSULTING SPECIAL 2-HOUR WEBINAR
MAY 22, 2018
10:00 am – 12:00 pm CDT
TODAY IS THE LAST DAY TO REGISTER!
The largest distributor just sold off its animal health business. One of the largest pharmaceutical companies suffered a 24% drop in its US food animal business in 2017. Corporate consolidators now own nearly half of all specialty-referral veterinary practices. Are these trends . . . or radical changes in direction for the industry? How do they impact your company? Your job?
Learn about all the factors affecting the global animal health and nutrition industry in a special two-hour webinar on May 22. Brakke experts Dr. Bob Jones and John Volk will present an up-to-the-minute edition of Brakke’s Annual Industry Overview. In addition to the presentation, you’ll have an opportunity to interact with seminar participants and ask questions. Plus you’ll receive a copy of the complete presentation.
The Overview provides the most current perspective available on the industry in the US and around the world. Register today: go to www.brakkeconsulting.com and scroll to the “What’s New Box. Registration is $395.
www.BrakkeConsulting.com
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COMPANY NEWS RELEASES
• Zoetis Inc. announced a definitive merger agreement to acquire Abaxis for US $83 per share in cash, or approximately $2.0 billion in aggregate. Abaxis reported revenue of $244.7 million for its fiscal year ended March 31, 2018. (company press release)
• Zoetis announced an exclusive license with Anatara Lifesciences wherein Zoetis will develop, make, and market worldwide Anatara’s non-antibiotic diarrheal treatment for livestock and horses. The deal involved an unspecified upfront payment, milestone payments, and royalties based on sales. (Stockhead.com.au)
• Merck announced the availability of updated Prestige equine influenza vaccines, featuring the most current Clade 1 and Clade 2 influenza strains. (company press release)
• Virbac Corporation announced the launch of Iverhart Max bacon-flavored soft chews. (company press release)
• Norbrook announced the launch of Eprizero (eprinomectin) Pour-On parasite management product approved for both beef and dairy cattle. Eprizero is proven to be 99.9% effective against the major species and stages of parasites, has a zero days meat withdrawal claim and zero milk discard. (company press release)
• MBio Diagnostics, Inc., announced an exclusive product development partnership and licensing agreement with Heska Corporation for multiplex immunoassay tests utilizing MBio’s LightDeck platform. (Business Wire)
• Vetstream announced an agreement with elearning specialist MicroLearn to increase the range of business support resources it offers to veterinary practices through its Vetacademy elearning platform. (company press release)
• Petco announced a partnership with JustFoodForDogs to offer fresh, small-batch, human-grade food for dogs in strategic locations across the country. In select locations, Petco customers will experience JustFoodForDogs in full exhibition kitchens or smaller pantries that will be supplied with fresh product daily and staffed by JustFoodForDog personnel. (Pet Business)
• Kemin Nutrisurance announced it has expanded its product range to add health and nutrition to the existing freshness, food safety and palatability segments. The new segment serves consumers’ growing demand for nutrition with health benefits for their pets. (Feedstuffs)
• VetMeasure LLC announced that its MeasureOn harness will be soft-launched next week. The MeasureOn harness allows veterinarians to monitor an animal’s heart and pulse rates, respiration and body temperature, activity, and ambient temperature and humidity to determine an animal’s condition following surgical procedures or illness. While the product has applications across multiple species, the company is currently focusing on dogs. (Ames Tribune)
• Hodei Technology, LLC announced the formation of Aliquis Telepresence, a wholly owned division, focused exclusively on bringing Hodei’s advanced, telepresence communication platform and wearable technologies to the global veterinary market. The company’s POV (Point of View) platform provides live, two-way, on-demand connectivity that can connect remote specialists and experts with the front end of veterinary care. (company press release)
• VIP Petcare announced it has expanded its preventive vet clinics in the states of Washington, Maine, Kansas and Louisiana. The clinics are located at local pet retail stores, feed stores and other retail locations. With the opening of these new locations, VIP Petcare has now increased its national clinic footprint to include 38 states. (Pet Business)
• Southern Veterinary Partners (SVP) announced it has acquired its 49th and 50th hospitals with its acquisitions of Tender Paws Animal Hospital in Conroe, Texas, and Crossroads Animal Hospital in Newnan, Ga. (Veterinary Practice News)
• Tyson Foods Inc. announced an agreement to buy the poultry rendering and blending assets of American Proteins Inc. and AMPRO Products Inc. for approximately $850 million. The acquisition is expected to enable Tyson to recycle more animal products for feed, pet food and aquaculture, among other things, and expand its presence in the growing animal feed ingredient business. Over the next 12 months, the business is expected to generate adjusted net sales of more than $550 million. (Feedstuffs)
• CHINA Boehringer Ingelheim announced a EUR 19 million ($22.5 million) expansion of its veterinary research and development center in Shanghai. (Animal Pharm)
• EU Kemin Industries announced the European launch of Pralisur, is a natural product containing 1,3-beta-glucans (ß-glucans) that supports a healthy immune system and promotes canine gut health. (Animal Pharm)
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ANIMAL HEALTH NEWS
• US – ORGANIC CHECKOFF The USDA has decided to abandon efforts to establish a new organic checkoff standard, citing a lack of consensus within the organic industry. However, the leading organic trade organization said the action “reflects a pattern of holding back forward progress on organic by USDA.” (Feedstuffs)
• NEW ZEALAND – DRUG DEVELOPMENT Researchers led by Victoria University of Wellington’s Ferrier Research Institute have developed cutting-edge gene engineering technology to help scientists more efficiently manipulate DNA in order to produce new products. The technology – called MIDAS (Modular Idempotent DNA Assembly System) – has been used to develop a new flea treatment for domestic pets by manipulating a compound called nodulisporic acid A. (Phys.org)
• US – RABIES TEST The US Centers for Disease Control and Prevention (CDC) announced that they are developing a more accurate rapid diagnostic test for rabies that can deliver results in 2 hours. Dubbed LN34, the new test being developed by the CDC is reportedly simpler and easier to use than current tests, provides fewer false-positive results than the current gold-standard test, as well as fewer inconclusive results, and no false-negative results. Furthermore, LN34 is able to be run on currently used polymerase chain reaction (PCR) testing platforms and can yield results from fresh, frozen, or decomposed animal tissue, as well as tissue fixed in blocks of paraffin. The research was published in PLOS One. (contagionlive.com)
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BRAKKE CONSULTING, INC.
LEARN WHAT YOUR CUSTOMERS WANT
Depend on Brakke Consulting to meet your company’s market research needs, whether it is:
• Assessing the feasibility of a new product or technology
• Identifying the opinions and trends of veterinarians, pet owners or producers
• Determining the current market for products
With our in-house database of veterinarians and the ability to custom-tailor surveys of a wide variety of target audiences, we provide reliable insights into this unique industry. We also produce multiclient reports in a number of high-interest animal health market areas. For more information, see our website or call our Dallas office at 972-243-4033.
www.BrakkeConsulting.com
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BRAKKE CONSULTING VIEWPOINT
The animal health and pet industry has been anything but normal the first months of 2018. The announcement earlier this week of Zoetis purchasing Abaxis to further expand into diagnostics is the leading story. The move into diagnostics by some of the leading animal health companies is not unexpected or surprising based on the growth in the diagnostics area and the regulatory pressures on other leading animal health product categories.
We have been indicating in our industry overviews for several years that leading companies in animal health will need to expand outside of their normal product areas if they expect their revenue growth to exceed the industry average. Those firms that can combine pharmaceuticals and vaccines with new state of the art diagnostics are likely to be big winners in the long term in both the food and companion animal markets.
Have a great weekend!
Ron Brakke
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Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting, Inc.
For more information about Brakke Consulting’s services and syndicated studies, visit our website at www.brakkeconsulting.com.
Brakke Consulting, Inc.
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