***********************************
Brakke Consulting’s
Animal Health News & Notes for March 27, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
************************************
IN THE NEWS:
Brakke Consulting news
Report: Pet Health Products – Changing Channels
Earnings News
Anpario
General Mills
Krka
Neogen
Other News
Avivagen
Clipper Distributing
Covetrus
Dechra
Hester Biosciences
Inaba Foods USA
Industrias Melder
Kemin Industries
Miller Veterinary Supply
Neogen
PetIQ
Petriage
Stress Free Pets
vet-webinar
************************************
Animal Agriculture Alliance
2020 Stakeholders Summit
May 7 – 8 | Virtual Summit
The 2020 Stakeholders Summit will take place virtually on May 7 – 8 and in a series of pre-conference webinars. Sessions will cover sustainability, animal welfare, influencer engagement, preparing for animal rights activist campaigns and other hot topics.
Attend the Virtual Summit and you’ll be primed and prepared to build bridges from farm to fork. The annual Summit, now in its 19th year, brings together thought leaders in the agriculture and food industries to discuss hot-button issues and out-of-the-box ideas to connect everyone along the food chain, engage influencers and protect the future of animal agriculture. Attendees will leave the 2020 Virtual Summit with the tools they need to take action and be part of any and all conversations that could impact the future of animal agriculture and their business.
For more details and to register, click here.
************************************
COMPANY EARNINGS RELEASES
- Neogen Corporation announced results for the third quarter of its 2020 fiscal year, which ended Feb. 29. Revenues were $99.9 million, up 2% from the previous year’s third quarter. Third quarter net income was $12.2 million, compared to the prior year’s $13.1 million. Neogen’s Animal Safety segment reported a 6% revenue increase to $49.4 million. (company press release)
- Krka reported results for the full year 2019. Turnover came to EUR 69 million ($76 million), a 9% increase compared to 2018. (Animal Pharm)
- General Mills reported results for the fiscal third quarter ended February 23. Net sales for the company’s pet segment (Blue Buffalo) were $384 million, an increase of 11% from the prior-year quarter. (Pet Product News)
- Anpario reported results for fiscal 2019 year. Total revenues for the full year were GBP 29 million ($33.4 million), an increase of 3% for fiscal 2019. (Animal Pharm)
***********************************
BRAKKE CONSULTING
PET HEALTH PRODUCTS: CHANGING CHANNELS
Are pet product sales at an inflection point?
A new report from Brakke Consulting measures and characterizes the most dynamic changes taking place in the marketing of pet products – the emergence of new channels and the changing purchasing behaviors of pet owners, especially as it relates to products traditionally purchased at the veterinary clinic.
Pet Health Products: Changing Channels is based on two national, representative studies: one of over 1,000 pet owners, the other of over 550 companion animal veterinarians. The data from these surveys are compared to data from previous Brakke studies in these areas to highlight trends.
This timely new report provides marketers and investors key insights to help:
- Focus resources in the most productive areas
- Build more effective defense strategies in key channels
- Recalibrate channel strategies for principal products
- Build innovative channel strategies for new products and categories
- Design investment strategies based on “fishing where the fish are”
Pet Health Products, Changing Channels is now available for purchase. Cost per report is $10,000. For more information about this important study please contact at John Volk at john@volkonline.com or Bob Jones at rwjones@brakkeconsulting.com .
************************************
COMPANY NEWS RELEASES
- The FDA announced the approval of Dechra Veterinary Products‘ Marboquin tablets, the first generic approval for marbofloxacin, for the treatment of susceptible infections in dogs and cats. (FDA)
- Covetrus reported that it is seeing strong demand in its prescription management and online pharmacy services, linked to increased practice engagement and pet owner demand as the novel coronavirus (COVID-19) spreads across the United States. Over the last three weeks, the Covetrus network of pharmacies has seen a significant increase in the number of prescriptions for medications and therapeutic diet food to be filled and shipped to pet owners, with the number of products shipped month-to-date growing approximately 45% compared to 2019. (Seekingalpha.com)
- Neogen announced the launch of the GGP Shrimp 50k test, a genomic tool that incorporates the latest advancements in genetic marker information for whiteleg shrimp (also referred to as Pacific white shrimp or king prawn). The test is available through the Center for Aquaculture Technologies Canada (CATC). (Animal Pharm)
- Kemin Industries announced it has received FDA approval for the use of KemTRACE Chromium as a source of chromium propionate in horse diets. KemTRACE is the first FDA-approved source of chromium propionate and is also available for use in swine, broilers and cattle. (Animal Pharm)
- Inaba Foods USA and Clipper Distributing announced the launch of Churu Veterinarian Formula, an all-natural, appetite motivating puree that is highly palatable and aid’s in patient recovery. Churu Veterinarian Formula is available in chicken and tuna flavors. (company press release)
- PetIQ, Inc. announced that out of an abundance of caution for its employees and customers in response to COVID-19, all veterinary community clinics and wellness centers will temporarily close effective Friday, March 20, 2020. The company’s VIP Petcare division operates in over 3,400 retail partner locations in 41 states. The Company is continuously monitoring this situation and will reopen its veterinary service locations as soon as practical. (company press release)
- Petriage, a B2B telehealth provider for veterinary practices, announced a partnership with Miller Veterinary Supply. Miller will market Petriage to its thousands of veterinary practice clients. (PRnewswire)
- vet-webinar announced they have partnered with Stress Free Pets, a professional online animal handling and behavior course, clinic accreditation and community. The Stress Free Pets for Veterinary Professionals course is RACE approved and consists of 10 modules for Veterinary Nurses and 11 modules for Veterinarians. (company press release)
- INDIA Hester Biosciences announced it has set up a Manufacturing Science & Technology (MSAT) division to stimulate its vaccine business. (Animal Pharm)
- MEXICO Avivagen announced its first purchase orders of OxC-beta Livestock in North America, and is finalizing sales agreements in Mexico with Industrias Melder, S.A. De C.V. (company press release)
***********************************
ANIMAL HEALTH STOCK PRICE TRACKER
***********************************
ANIMAL HEALTH NEWS
- FDA – TELEMEDICINE As part of the FDA’s ongoing commitment to combatting the coronavirus (COVID-19) pandemic and providing flexibility across FDA-regulated industries, the agency announced today that it intends to temporarily not enforce certain requirements in order to allow veterinarians to better utilize telemedicine to address animal health needs during the pandemic. The agency intends to temporarily suspend enforcement of portions of the federal veterinarian-client-patient relationship (VCPR) requirements relevant to certain FDA regulations. (Individual state veterinary boards may have other telemedicine regulations that must still be followed.) For more information, click here. (FDA)
- US – ASF TESTING The U.S. Department of Homeland Security (DHS) announced that scientists at its Plum Island Animal Disease Center have completed a successful evaluation of MatMaCorp’s portable nucleic acid analysis system to detect African swine fever (ASF) virus in infected pigs and pork products. (Feedstuffs)
************************************
BRAKKE CONSULTING VIEWPOINT
As the coronavirus pandemic spreads to all corners of the globe, already we are seeing its impact on animal health. Covetrus reported a 45% increase in the products shipped to pet owners in the first three weeks of March. The FDA announced it is relaxing oversight on veterinary telemedicine, enabling veterinarians to deliver care in some cases without in-person appointments. Last week, telehealth providers Babelbark and whiskerDocs announced they are offering their services at no cost for the next 60 days, and I’m sure other telehealth providers are also stepping up. Neogen, which manufactures disinfectants, gloves and hand sanitizers, announced it was ramping up production. Conferences and meetings have been postponed or converted to virtual meetings.
The industry, and indeed the world, are navigating uncharted waters right now, with not much hard data to guide us. However, already we are seeing some of the resilience and adaptability that will see us through the storm. Stay home if you can, and stay safe.
Lynn Fondon
***********************************
YOUR VIEW
Last week, we asked you to predict the impact of COVID-19 on the second quarter growth for your company. Most of you said you expect a decline in growth compared to 2Q 2019: 44% predicted a 1-5% decline and 36% expect a decrease of more than 5%. We’ll be keeping a close eye on industry trends to see how it all plays out.
This week’s poll question:
One of the emerging trends in the wake of city-wide lockdowns and social distancing is the use of video chats to hold social gatherings.
Have you participated in a virtual happy hour or group video chat in the past month?
**********************************
Trouble viewing this newsletter? You can view it online at www.BrakkeConsulting.com
This electronic newsletter is the sole property of Brakke Consulting.
Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting.
For more information about Brakke Consulting’s services and syndicated studies, visit our website at www.brakkeconsulting.com.
Brakke Consulting
806 Green Valley Rd
Suite 200
Greensboro, NC 27408
English (United States) 
Portuguese