Animal Health News & Notes for May 10, 2024

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Brakke Consulting’s
Animal Health News & Notes for May 10, 2024
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Animal Health Jobs

Earnings News
Central Garden & Pet
Elanco
Freshpet
PetIQ
Pet Valu
Phibro
Spectrum Brands
Trupanion

Other News
ANTAGENE
Bluejais
Cerba Vet
Cobasi
Elanc
epiq Animal Health
GlobalVetLink
Harrison’s Bird Foods
Hill’s
Jaguar Health
KeraVet Bio
Mars
Modern Veterinary Therapeutics
The Nutriment Company
Pets Choice
Pets’ Kitchen
Petz
Pharmacy2U
The PharmPet Co
Purina
Totally Natural Pet Products
VetStem
Zomedica

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Animal Health Jobs
Announcing the 3^rd Annual Attitude Survey
We want to hear from you! –  LAST WEEK

Animal Health Jobs is excited to announce the 3rd Annual Attitude Survey for the Animal Health and Nutrition Industry.  At Animal Health Jobs, we value your insights into the animal health and nutrition industry. Your opinion is valuable in helping us understand the attitudes and trends within our great industry.

The survey is short and will only take you a few minutes to complete; and all responses will be kept confidential.  To say thank you for taking the time to contribute to our research, respondents will be entered into a sweepstakes for Amazon gift cards.

The survey is open now through May 17th.  A white paper with the results of the survey will be published by the end of June.

To take part in the survey, please click here.

www.animalhealthjobs.com

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EARNINGS NEWS RELEASES

• Elanco Animal Health Incorporated reported financial results for the first quarter of 2024. Revenue was $1,205 million, a decline of 4%. Reported net income was $32 million, down from net income of $103 million in the prior-year quarter. (company press release)
• Phibro Animal Health Corporation announced financial results for its third quarter ended March 31, 2024. Net sales were $263 million, an increase of 7%. Net income was $8.4 million, a decrease of $1.6 million. Animal Health net sales were $181 million, an increase of 10%. (company press release)
• PetIQ, Inc. reported financial results for the first quarter of 2024. Net sales were $308 million, an increase of 6%. Product segment net sales were $277 million, an increase of 7%; services segment net sales were $32 million, an increase of 0.2%, including the closure of 149 wellness centers in the second half of 2023. Net income was $15 million, an increase of 48%. (company press release)
• Central Garden & Pet Company announced financial results for its fiscal 2024 second quarter ended March 30, 2024. Net sales for the Pet segment were $480 million, an increase of 1%; organic net sales decreased 3% excluding the impact of the recent TDBBS acquisition. Pet segment operating income was $63 million, an increase of 13%. (company press release)
• Spectrum Brands Holdings reported results for its fiscal second quarter ended March 31, 2024. Global Pet Care sales were $290 million, a 2% decline from the prior-year quarter. Adjusted EBITDA for Global Pet Care was $62 million, an increase of 35%. (company website)
• Pet Valu Holdings announced its financial results for the first quarter of 2024. Revenue was C$261 million (US$189 million), up 4% versus the prior year; same-store sales growth was 0.8%. Net income was C$17.5 million US$12.7M), down from C$18.7 million in the prior year. (company website)
• Trupanion, Inc. announced financial results for the first quarter ended March 31, 2024. Total revenue was $306 million, an increase of 19% compared to the first quarter of 2023. Total enrolled pets increased 6%. Net loss was $(6.9) million, compared to net loss of $(24.8) million in the first quarter of 2023. (company press release)
• Freshpet, Inc. reported financial results for the first quarter of 2024. Net sales were $224 million, an increase of 34%. Net income was $18.6 million, compared to the prior year period net loss of $(24.8) million. (Seekingalpha)

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COMPANY NEWS RELEASES

• Elanco Animal Health has notified veterinarians that the syringe used by cat owners to orally administer Varenzin (molidustat) – a treatment for CKD-associated anemia – could become unreadable if the exterior comes in contact with the medicine, raising a danger of misdosing. Elanco is exploring options for a long-term solution; in the meantime, veterinarians should direct cat owners to carefully follow the dosing directions on the product label. (VINnews)
• Purina announced that Purina Pro Plan Veterinary Diets for both dogs and cats – available by prescription only – are now available directly through Amazon’s store. The therapeutic offerings join the brand’s line of treats and supplements, making the entire Pro Plan Veterinary portfolio available in the Amazon store. (prnewswire)
• Hill’s Pet Nutrition announced the launch of its new shopping platform, shop.hillspet.com, and a new donations program that will benefit shelters and leading animal welfare organizations. For every purchase of Hill’s Science Diet through the new site, Hill’s will donate $1 to a participating animal shelter of the shopper’s choosing. (prnewswire)
• The FDA announced it has made a risk-based decision based on its review of safety and quality data and information and does not expect the developer of VetStem ‘s PrecisePRP Equine (equine leucoreduced allogeneic pooled freeze-dried platelet-rich plasma for intra-articular injection) to submit an application for approval prior to marketing. VetStem received a similar decision for its PrecisePRP Canine product last week. (FDA)
• KeraVet Bio and epiq Animal Health, a master distributor, announced a strategic partnership to bring KeraVet Gel wound care to market. KeraVet Gel is a reformulation of the FDA-cleared human wound care product, KeraStat Gel, with the addition of a bitterant that reduces licking. (businesswire)
• Zomedica announced the issuance of three new patents, bolstering the intellectual property protection for its TRUFORMA diagnostic platform. The newly patents issued include innovations in the TRUFORMA cartridge design and functionality. (finance.yahoo.com)
• Jaguar Health, Inc. announced that it has established a new Investigational New Animal Drug (INAD) file with the Center for Veterinary Medicine (CVM) of the FDA for the company’s novel plant-based prescription drug crofelemer to treat general, non-infectious diarrhea in dogs. Crofelemer delayed-release tablets, under the name Canalevia-CA1, received conditional approval in December 2021 from the FDA for the treatment of chemotherapy-induced diarrhea (CID) in dogs. (com)
• The PharmPet Co, an online veterinary pharmacy, has been acquired by Pharmacy2U. The acquisition will help expand Pharmacy2U’s portfolio to include pet health services. The undisclosed transaction follows on from a partnership initiated in November 2023. (com)
• Harrison’s Bird Foods announced a new initiative to support the next generation of avian veterinarians by launching educational programs at accredited veterinary schools across the US. This program will provide students access to free resources to help them learn how to perform avian physical exams and connect them with avian specialists. Harrison’s will be sponsoring both medical lectures and hands-on opportunities for veterinary students. (company press release)
• GlobalVetLink announced the launch of its Commercial International Health Certificates (IHCs) feature. This innovative addition to the GVL Compliance Assistant Platform redefines the preparation process of International Health Certificates for commercial pet transportation. (prnewswire)
• FRANCE Mars, Incorporated announced that it has entered into exclusive discussions with Cerba HealthCare with a view to acquiring Cerba HealthCare’s ownership stake in French companies Cerba Vet, a network of six veterinary diagnostics laboratories in France and Switzerland, and ANTAGENE, a leading player in animal genetics in Europe, with expertise in DNA testing for dogs, cats, horses and wildlife. Financial terms were not disclosed. (company press release)
• BRAZIL Pet retailer Petz has entered a non-binding memorandum of understanding for a possible merger with rival Cobasi. The combined entity would have a network of 483 stores and gross revenue of approximately BRL 6.9 billion ($1.3B). (Globalpets)
• SCOTLAND The Nutriment Company (previously Voff) announced it has completed the acquisition of raw dog food maker Totally Natural Pet Products. Financial terms were not disclosed. (Globalpets)
• CANADA Modern Veterinary Therapeutics, LLC announced that Canada’s Veterinary Drugs Directorate (VDD) has authorized Hemophyt (phytomenadione 50mg tablets) for sale in Canada. Hemophyt are vitamin K1 tablets for the maintenance treatment of anticoagulant rodenticide poisoning in dogs. (company press release)
• UK Pets Choice announced it has agreed to acquire Vet’s Kitchen from parent company Pets’ Kitchen. The acquisition will allow Pets’ Kitchen to divest its operations in the pet food manufacturing sector in favor of focusing on its Vet’s Klinic network of clinical veterinary practices. Financial terms were not disclosed. (Petfood processing)
• INDIA Bluejais V., a manufacturer and seller of specialty feed additives, announced that it will enter the aquaculture feed industry, beginning with two in-feed concepts and one water treatment solution. (Feedstuffs)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• US – BIOTECH GUIDELINES The EPA, FDA, and USDA have developed a plan to update, streamline, and clarify their regulations and oversight mechanisms for products of biotechnology. Visit the Unified Website for Biotechnology Regulation for additional information on modernizing the regulatory system for biotechnology products and Executive Order 14081. (FDA)
• US – DRUG GUIDANCE The FDA announced the availability of draft guidance for industry (GFI) #290 (VICH GL61) entitled “Pharmaceutical Development.” This draft guidance has been developed for veterinary use by the International Cooperation on Harmonization of Technical Requirements for Registration of Veterinary Medicinal Products (VICH), a program aims to harmonize technical requirements for the approval of veterinary medicinal products in the European Union, Japan, and the United States. The draft guidance describes the suggested contents for the Pharmaceutical Development section if it is included in the Chemistry, Manufacturing, and Controls technical section of an animal drug application. The agency is encouraging the public to submit comment(s) on the draft guidance within 60 days to ensure that the FDA considers your comment(s) before it begins work on the final version of the guidance document. To submit comments electronically, visit https://www.regulations.gov and type the following docket number into the search box: FDA-2024-D-1133.  (FDA)

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BRAKKE CONSULTING VIEWPOINT
Exciting news has emerged from the Brazilian market with the announcement of the merger  between two retail pet industry giants, Cobasi and Petz. This new amalgamation could potentially generate revenue exceeding 7.5 billion reais (about $1.4 billion USD) in 2024. The merger prompts a discussion about the changing demographics of  pet ownership, notably with Gen Z taking the lead according to the APPA National Pet Owners Survey 2023-2024.

Gen Z’s shopping habits differ significantly from previous generations, potentially posing challenges for the merged Cobasi-Petz entity on both physical and online fronts. Considering Gen Z’s preferences, the impact can be examined in two key areas:

Physical Stores:
– Emphasis on Experience: Gen Z prioritizes experiences over mere products. Should Cobasi-Petz expand beyond selling pet supplies to offer unique experiences?
– Sustainability Focus: Gen Z is environmentally conscious. Should the merged company emphasize its commitment to sustainable practices in its operations?

Online Shopping:
– Seamless Omnichannel Experience: Gen Z expects a seamless shopping experience across online and physical stores. Should Cobasi-Petz ensure their online platform is user-friendly, with features like real-time stock checks, click-and-collect options, and easy returns?
– Social Media Engagement: Gen Z is highly active on social media. Could Cobasi-Petz leverage this by maintaining a robust social media presence with engaging content, influencer collaborations, and responsive customer service?

This merger presents an opportunity to create a retail powerhouse in the Brazilian pet market. By aligning with Gen Z’s preferences for experiential shopping, sustainability, and strong online engagement, Cobasi-Petz can navigate these challenges effectively and excel in the evolving landscape of pet ownership.

While this news focuses heavily on the Brazilian market, the strategies outlined for Cobasi-Petz in adapting to Gen Z’s preferences hold valuable insights applicable to businesses globally, especially in sectors where demographic shifts and changing consumer behaviors are shaping industry dynamics.

Mauri Ronan Moreira

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YOUR VIEW
Last week we asked your plans for your pets as you travel this summer. Most of you (51%) say you ask family, friends or neighbors to pet sit; 22% board your pet at a professional facility; 14% use professional petsitting services; and 12% book pet-friendly accommodations so you can bring your pet with you.

This week
This week we want to know how you shop for your pets. Click here to take our 2-question poll.