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Brakke Consulting’s
Animal Health News & Notes for May 27, 2022
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Animal Health Jobs
Earnings News
Kane Biotech
Petco
Pets at Home
Vimian Group
Other News
Apiam Animal Health
Aramune Technologies
Ceva
The Dog Stop
Easyvet
Elanco
Fall Line Capita
Finley’s Barkery
Haniel Concepts dba Free State Oils
Hope Botanicals
Inveready
Ivee
Jaguar Health
KineticVet
Kingdom Harvest
KLN Family Brands
Labiana
Mazen Animal Health
Merck (Arovyn)
Merck (TARGAN)
Mountain Group Partners
Norbrook
NovaQuest Capital Management
Oaktree Capital Management
Oval Park Capital
Petriage
Plantacea LLC dba Kahm CBD
Regrow Ag
TARGAN
TogoRun
Tuffy’s Treat Company
UNAVETS
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2022 ANIMAL HEALTH SUMMIT
August 29-30, 2022
Location: Arvest Bank Theatre at the Midland | Kansas City, MO
Registration is now open for the 2022 Animal Health Summit.
Register today! The Animal Health Summit features two days of networking, 1:1 business partnering, industry thought leaders, panel discussions, speakers and emerging company presentations. Learn more
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EARNINGS NEWS RELEASES
- Petco Health and Wellness Company, Inc. announced financial results for its first quarter 2022 ended April 30, 2022. Net revenue was $1.48 billion, up 4% versus prior year. Net income improved by $17.1 million from prior year to $24.7 million. (company press release)
- Vimian Group reported results for the first quarter of 2022. Revenue increased by 55% to EUR 68 million ($73 million), of which 7% was organic growth. Adjusted EBITA amounted to EUR 20.5 million ($22 million). (yahoo finance)
- Kane Biotech announced its first quarter 2022 financial results. Total revenue was $565,433, an increase of 50%. Loss for the first quarter of 2021 was ($1,152,164) an increase of 14% compared to ($1,010,892) for the quarter ended March 31, 2021. (company press release)
- Pets at Home reported results for the fiscal year ended March 31, 2022. Revenue was GBP 1.3 billion ($1.63 billion), an increase of 15% over the prior year. (GlobalPets – subscription)
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Animal Health Jobs
With today’s tight competition for top animal health talent, you need every advantage to attract the best people. There’s a reason Animal Health Jobs is the premier job board for the animal health and animal nutrition industry. We are fanatics about matching the best candidates with the right jobs. A real person screens each candidate’s resumé for relevant experience, ensuring a high-quality talent pool.
With our tiered packages, you choose the level of service that’s right for your company. We accept roles across animal health, in marketing, business development, communications, technical services, sales, R&D and more. Whether you need a cat, dog, horse, pig, cow or poultry person, you’ll find the best ones here.
If you need top talent, there’s no time to wait. Register your company or call us at 1-252-203-0033.
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COMPANY NEWS RELEASES
- Merck Animal Health announces that Arovyn (generic tulathromycin injection) is now available to veterinarians prescribing tulathromycin, which is used to control and treat bovine respiratory disease (BRD), plus treat foot rot and pinkeye. (Bovinevetonline)
- The EPA announced it has opened an official review of the agency’s handling of the reported incidents of harm linked to Elanco’s Seresto flea-and-tick collar. The EPA Office of Inspector General said it plans to determine whether the agency’s response “provides assurance that the collars can still be used without posing unreasonable adverse effects to human health and the environment” and whether the EPA adhered to pesticide registration requirements in approving the Seresto collar. Elanco said that it unequivocally continues to stand behind the safety profile of Seresto, and supports all agency review processes. (org)
- Ceva Animal Health announced the launch of Feliway Help!, a pheromone solution to support cats during temporary stressful situations. (zenopa)
- Norbrook announced the availability of Enroflox Chewable Tablets (generic enrofloxacin) for dogs and cats. (Vet Advantage – subscription)
- KineticVet announces FDA approval of RE-COVR (tripelennamine hydrochloride injection), NADA # 006-417, supplied as a sterile solution in multiple dose vials. RE-COVR is an injectable antihistamine indicated for use in cattle (beef & dairy) and horses. (company press release)
- Jaguar Health announced the launch of Canine Cancer: Take C.H.A.R.G.E. (Canine Health And ReGistry Exchange), a national canine cancer registry, and the Canine Cancer Care Index. Cosponsored by Jaguar Animal Health; TogoRun, a global health communications agency; and Ivee, an animal health data-focused software company, the program will initially access information about canine cancer from 2 key sources: a nationally representative multi-year Gallup survey of dog owners in the US, and a retrospective review of more than 35,000 anonymous canine patient records uploaded into a secure customized database with more than 830 confirmed cancer diagnoses. (DVM360)
- The FDA has issued warning letters to four companies illegally selling unapproved animal drugs containing cannabidiol (CBD) that are intended for use in food-producing animals. The companies include Haniel Concepts dba Free State Oils, Hope Botanicals, Plantacea LLC dba Kahm CBD and Kingdom Harvest. The FDA has not approved any human or animal products containing CBD other than one prescription drug product to treat rare, severe forms of epilepsy in children. Therefore, all other CBD products intended for use as a drug are considered unapproved drugs and are illegal to sell. (FDA)
- TARGAN (formerly Applied LifeSciences & Systems (ALSS)) announced it has secured $35 million of Series C equity financing co-led by Mountain Group Partners and NovaQuest Capital Management. Existing investors Merck Animal Health and Oval Park Capital also participated in the round. TARGAN integrates its proprietary technologies consisting of high-speed imaging, feature recognition, artificial intelligence, robotics, and microfluidics in a system currently developed for the commercial poultry industry. This system can individually and accurately vaccinate up to 100,000 chicks per hour. (Yahoo finance)
- Tuffy’s Treat Company, a division of KLN Family Brands, announced that it has acquired Finley’s Barkery, a pet brand committed to bringing inclusion to the pet industry through offering employment and giving initiatives to individuals living with disabilities. Finley’s and Tuffy’s Treat Company have enjoyed a strong contract manufacturing partnership that will be further bolstered by this acquisition. Financial terms were not disclosed. (PetBusiness)
- Easyvet announced the close of a $5 million Series A-1 funding round led exclusively by UNAVETS, an animal healthcare investment portfolio backed by funds managed by Oaktree Capital Management, L.P. (globenewswire)
- Petriage announced that the US Patent and Trademark Office awarded them a new patent to be issued on June 7, 2022. This patent is the company’s second, and it encompasses teletriage for all animals, including humans. (DVM360)
- The Dog Stop has signed multiple franchise deals in the first quarter of 2022 that will bring a total of 12 new locations to more US cities, many of which are in new markets. (Pet Product News)
- Regrow Ag, a technology platform empowering food and agriculture companies to achieve net-zero carbon goals in their supply chains and measure and verify their progress, recently announced it has secured $38 million in a Series B funding round. (Feedstuffs – subscription)
- Mazen Animal Health announced it has raised $11m in Series A financing. Fall Line Capital, one of the leading agriculture investment firms globally, led the round. (com)
- IRELAND Aramune Technologies announced it has raised GBP 800,000 ($1.0 million) in seed equity funding to scale and trial its first plant-based health product. A Queen’s University Belfast spin-out, Aramune is developing natural, plant-derived feed materials that can be mixed with standard animal feeds to replace antimicrobial agents and promote growth. (Siliconrepublic)
- AUSTRALIA Apiam Animal Health Limited announced the launch of a 1 for 4.8 pro-rata non-renounceable entitlement offer to Eligible Shareholders to raise up A$20.25 million ($14.5 million) before costs. The new fully paid ordinary shares to be issued pursuant to the Entitlement Offer will be offered at A$0.70 per share. (Yahoo finance)
- SPAIN Labiana announced it is in the final stages of preparing an initial public offering (IPO) to list on BME Growth, which is a sub-market of Bolsas y Mercados Españoles. Inveready – a leading private equity management firm in Spain – has already committed to invest up to €4 million ($4.3 million) through a convertible bond, subject to completion of the IPO. (IHS Markit Connect – subscription)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – PET FOOD SHORTAGE Reports of empty pet food shelves are rising as supply chain constraints cause a nationwide pet food shortage, with some stores saying as much as 40% of their supply is out of stock, according to Yahoo Finance. Shortages of raw ingredients and packaging materials, as well as transportation challenges and labor shortages, are all causing disruptions. Chewy in March said it expects between $200 million and $300 million of sales to be lost this fiscal year due to items being out of stock. (Vet Advantage – Yahoo Finance)
- US – VETERINARY SPECIALTIES The AVMA’s American Board of Veterinary Specialties has provisionally recognized the American College of Veterinary Nephrology and Urology as the profession’s newest specialty discipline. The college plans to provide a two-year training residency. Unlike other residencies, ACVNU’s will require participants to be board-certified already in another specialty discipline or have four equivalent years of experience in nephrology and urology. (Vet Advantage – subscription)
- US – EQUINE RESESARCH Researchers at the University of Kentucky’s Gluck Equine Research Center recently began a large study to validate previous research suggesting it is possible to detect specific markers that indicate an injury before it becomes career- or life-ending. Based on prior work in both human and equine athletes, the researchers have developed an approach for identifying underlying damage using mRNA expression analysis of blood samples. The end goal is to be able to conduct an inexpensive and straightforward pre-race blood test identifying horses at risk of catastrophic injury, possibly allowing for intervention before those injuries happen. (AVMA SmartBrief – TheHorse)
- US – ANTIMICROBIAL TRACKING The FDA’s Center for Veterinary Medicine announced the availability of a report drafted by the Reagan-Udall Foundation (the Foundation) for the FDA entitled “Exploring the Potential for A Public-Private Partnership to Support the Tracking and Monitoring of Antimicrobial Use in Food-Producing Animals.” To share insights from the report and to allow for questions from the public, the Foundation will host a virtual public forum on June 14, 2022, from 1:00pm to 3:00pm (EDT). (FDA)
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BRAKKE CONSULTING VIEWPOINT
We are hearing (and seeing) about possible food shortages in many places due to a multitude of factors. It is incomprehensible that this could happen in today’s world. But faced with reality, we in animal health must take a more active role in bringing solutions to improve efficiency of food production while ensuring good animal welfare.
The innovation and technology our products bring have a major impact on the availability of food. For example, certain pharmaceuticals such as beta-agonists are currently banned in many countries despite their proven safety and tremendous impacts on feed efficiency. Will the barriers continue when the world is going hungry? Or will we let retail beef consumption drop significantly because it is simply unaffordable due to the high costs of inputs? It will take some brave people from our industry to reopen these discussions.
Now comes the story of baby formula. Again, it’s unfathomable that in our country we would ever run out of such a critical item. I wonder if the CVM could help their colleagues in the FDA because I have found them to be very practical in solving issues, while adhering to their standards and principles. Earlier in my career, I was involved with an issue of supply with a unique product in the US market. As we were not going to be able to supply, we were able to work with the CVM to have a pragmatic withdrawal that ensured a safe transition for the affected animals. Someone should have really thought through shutting down 40% of the nation’s supply of baby formula!
Paul Casady
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YOUR VIEW
Last week, we asked for your predictions about the economy for 2022. 80% of you think that the economy will head into a recession this year. Most of you think it will be both mild (67%) and short (58%), so let’s hope your prognosticating is correct!
This week
This week, we ask you again to gaze into your crystal ball and give us an answer. This week, Covetrus agreed to be acquired by Clayton, Dubilier & Rice and TPC Capital for $4 billion, which is the largest acquisition in the animal health distribution space. Obviously, they are looking for faster growth from the company and you can help them.
The biggest opportunity for growth for the Covetrus business is:
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