The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for January 17, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA


Brakke Consulting News
2020 Industry Overview at VMX

Earnings News
Cal-Maine Foods
ECO Animal Health

Other News
American Regent Animal Health
Ancestry Pet Food
Avivagen (funding)
Avivagen (stock trading)
Boehringer Ingelheim
CannPal Animal Therapeutics
CID Lines
Covetrus (scil)
Covetrus (Script Assist)
Covetrus (Distrivet)
CVM Diagnostico Veterinario
CVM Ecografía
Darling Ingredients
Dechra Pharmaceuticals
Digicare Animal Health
Effeffe Petfood
Elanco (Capstar)
Elanco (Osurnia)
Essentials PetCare
Health Extension Pet Care
Heska (scil)
Heska (CVM)
Jorgensen Laboratories
Kindred Biosciences
MBF Therapeutics
Mosa Meat
Neogen (Diessechem)
Neogen (Gencove)
Neogen (Igenity + Envigor)
Neogen (Productos Quimicos Magiar)
Origination O2D
Pestell Nutrition
Productos Quimicos Magiar
scil animal care
Smithfield Foods
United Petfood
VetriScience Laboratories




The KC Animal Health Corridor is now accepting applications to present at the 2020 KC Animal Health Investment Forum on September 1 in Kansas City, Missouri.

The 12th annual Forum is one of the only opportunities in the world for early-stage companies in the animal health and nutrition sectors to present their vision, business plan and technology to potential investors.

The selection committee will consider companies that meet the following criteria:

– Seeking $500,000 – $20 million in funding

– Revenue projections of $20 million within 5-7 years

Applications are due by April 14. To apply, go to .

For more information, contact Kimberly Young at .



  • ECO Animal Health reported results for the six months ended September 30, 2019. Revenues were GBP 28.7 million ($37.7 million), a 4% year-on-year decrease compared to the prior-year period. (Animal Pharm)
  • Cal-Maine Foods reported results for the second quarter of fiscal year 2020 ended on November 30, 2019. Net sales for the second quarter of fiscal 2020 were $311.5 million, a 12.5% decrease compared to the second quarter of fiscal 2019. The company reported a net loss of $(10.1) million compared to net income of $21.8 million for the second quarter of fiscal 2019. (

Announcing the 2020 Brakke Industry Overview


Presented at VMX: Tuesday January 21, 2020, 2-4 pm, Hyatt Regency Plaza Int’l I

Presented at WVC: February 18, 2020, 2-4 pm, Four Seasons Hotel, Acacia Ballroom

What do industry consolidation, CBD and African Swine Fever have in common?  They are all important topics covered in Brakke Consulting’s annual Industry Overview presented at VMX and WVC in early 2020.

2019 was an especially newsy year, and many events have long-range implications for the animal health industry.  Key topics and presenters include:

  • Industry performance and a special analysis of the public companies in animal health (Dr. Bob Jones and Randy Freides)
  • Vet practice consolidation, CBD, monoclonal antibodies and other new companion animal technologies (John Volk)
  • Disruptive technologies and the changing landscape of the diagnostics industry (Dr. Mike McGinley)
  • African Swine fever, plant-based meat and milk products and their impact on protein and animal health product demand (Dr. Cary Christensen)

This information-packed 2-hour session will be especially valuable for executive leadership, sales and marketing, strategy and finance managers.

Sign up today on our website at  Or email Amanda McDavid or call her at 336-396-3916.  Pre-registration cost for VMX is $400 through Monday, January 20; there are discounts for multiple attendees from the same company.  We look forward to seeing you there!



  • Zoetis announced the launch of Poulvac Procerta HVT-ND, a vectored recombinant vaccine indicated to protect broiler chickens against both Newcastle disease (ND) and Marek’s disease (MD). The vaccine can be administered in ovo or subcutaneously. (Animal Pharm)
  • Merck announced the launch of Bravecto Plus (fluralaner and moxidectin) topical solution for cats. Bravecto Plus is indicated for flea and tick protection, heartworm prevention, and treatment of roundworms and hookworms for two months.  (company announcement)
  • Boehringer Ingelheim announced the launch of Vaxxitek HVT+IBD+ND, a vaccine to protect poultry against Marek’s Disease, Infectious Bursal Disease (classic and variant types) and Newcastle Disease. (PRNewswire)
  • Elanco and PetIQ, Inc. announced they have executed a definitive agreement under which PetIQ will acquire Capstar (nitenpyram), an oral over-the-counter flea control product, from Elanco Animal Health in a $95 million cash transaction. The Capstar portfolio is comprised of seven SKUs, including three private label SKUs which are sold under the Capaction brand. (company press release)
  • Elanco Animal Health announced an agreement to divest the global rights of its Osurnia canine otitis externa medication to Dechra Pharmaceuticals in a $135 million all-cash deal. Osurnia had revenues of $31 million in 2018. (company press release)
  • Covetrus announced that it has entered into a definitive agreement to sell its scil animal care business to Heska Corporation for a purchase price of $125 million in cash. (Business Wire)
  • Covetrus announced the availability of Covetrus Script Assist, a new and more convenient way for veterinarians to leverage practice management system information to more proactively prescribe preventative medications for patients with past or upcoming appointments. (Yahoo finance)
  • Neogen Corporation announced that it has entered into a partnership with genetic testing company Gencove to develop Neogen’s next generation of animal genomic tests. Gencove offers both low pass sequencing and analytics software as a service, with sequencing as its flagship product. (company press release)
  • Neogen Corporation announced the launch of the Igenity + Envigor genetic test that measures heterosis in crossbred beef cattle. In cattle, heterosis is the tendency of a crossbred calf to show traits superior to those of its parents. (company press release)
  • Jorgensen Laboratories and Iceland-based Kerecis have agreed on the distribution by Jorgensen of Kerecis’ Omega3 cod fish skin graft product in the veterinary market. The Kerecis products are FDA-approved for treatment of chronic wounds and burns and can be used in all species. (Veterinary Advantage)
  • Kindred Biosciences, Inc. announced that it has developed a technology to extend canine antibody half-life by up to three-fold. A patent application for this technology has been filed. (PRNewswire)
  • VetriScience Laboratories announced the launch of Amilextin nutritional supplement for canine inflammation and discomfort. (company announcement)
  • MBF Therapeutics, Inc. announced it has signed an agreement with Smithfield Foods, Inc. to collaborate on the design and development of swine vaccines based on the vaccine platform and delivery system technology proprietary to MBF Therapeutics. (company press release)
  • Avivagen announced the successful completion of a non-brokered private placement, issuing 2,500,000 units at an issue price of $0.50 per Unit for aggregate gross proceeds to the Company of $1,250,000. (company press release)
  • Avivagen announced that it has begun trading in the United States on the OTCQB Venture Market under the symbol “VIVXF”. (company press release)
  • Digicare Animal Health announced the introduction of the CentralVUE CV10x Central Monitoring and Telemetry System, a brand new platform that connects to both the LifeWindow multiparameter monitors series and TeleVUE telemetry systems series. (company press release)
  • VitalPet, a network of 24 veterinary hospitals in seven states, announced it has secured $5.5 million in financing as the company tries to emerge from Chapter 11 bankruptcy. The company was pushed into involuntary bankruptcy in October 2019 on claims by three veterinarian partners that they held unpaid promissory notes totaling $1.37 million. VitalPet is exploring securing additional final DIP (debtor-in-possession) financing in the amount of up to $16 million. (Todays Veterinary Business)
  • Essentials PetCare announced the opening of three new walk-in veterinary clinics within Walmart stores in the Dallas-Fort Worth area, bringing the group’s total to nine locations in Florida, Texas, and Georgia. (company press release)
  • Televet, an online platform that connects veterinary clinics to existing clients, announced that is has raised $2 million in seed-stage funding. Dundee Venture Capital and Mercury Fund, co-led, the round with participation from GAN Ventures. (
  • VitusVet announced it has processed more than one million claims through its mobile app on behalf of insurance provider, Nationwide. According to the company, the benchmark suggests a growing reliance on insurance to offset the cost of veterinary care, as well as an overall preference for digital and mobile tools to manage pet care. (Veterinary Practice News)
  • Health Extension Pet Care announced it has acquired Ancestry Pet Food. As part of the acquisition, Health Extension also acquired Sammy Snacks, Ancestry’s line of human-grade treats. Financial terms were not disclosed. (Pet Business)
  • Darling Ingredients announced it has acquired the remaining 50% of EnviroFlight, LLC from Intrexon Corporation, meaning it now wholly owns the company. EnviroFlight rears and processes black soldier fly (BSF) larvae to develop cutting-edge, sustainable specialty proteins for pet food and feed. Financial terms were not disclosed. (GlobalPets)
  • Pestell Nutrition announced it has acquired Origination O2D, a value‐added distributor of animal feed ingredients and branded proprietary feed products across the Midwest and broader US. Financial terms were not disclosed. (Feed Strategy)
  • Boragen, Inc. announced that the company has entered into an exclusive research and development agreement with an undisclosed global leading Animal Health Company to advance compounds targeting Canine Atopic Dermatitis. (
  • VIETNAM Ceva Santé Animale signed several agreements with the Vietnam Department of Animal Health (DAH) to accelerate the implementation of preventive health strategies, including the research and development of new vaccines for Vietnamese livestock sector. (company press release)
  • EU American Regent Animal Health announced an exclusive agreement with Animalcare to relaunch Adequan i.m. for horses in Europe. (Animal Pharm)
  • SOUTH AMERICA Neogen Corporation announced that it has acquired Productos Quimicos Magiar (Magiar), a distributor of Neogen’s food safety diagnostics for the past 20 years with businesses in Argentina and Uruguay. Financial terms were not disclosed. (company press release)
  • ITALY Neogen Corporation announced that it has acquired Italy-based Diessechem S.R.L., a distributor of food and feed safety diagnostics for the past 27 years. Financial terms were not disclosed. (company press release)
  • SPAIN Covetrus announced an agreement to combine the company’s Spain and Portugal businesses in a joint venture with Distrivet, the leading provider of veterinary products and services in Spain.  Covetrus will own 50.01% of Distrivet, a Covetrus company. (Business Wire)
  • SPAIN Heska announced it has acquired Spanish businesses CVM Diagnostico Veterinario and CVM Ecografía. Since 1992, the CVM companies have been providers of imaging and blood testing products to Spain’s companion animal market. Financial terms were not disclosed. (Animal Pharm)
  • BELGIUM Ecolab announced an agreement to acquire Belgium-based CID Lines, a leading global provider of  biosecurity and hygiene solutions for pig, poultry and dairy farms in over 100 countries.  2019 sales for the privately held company were approximately $113 million; financial terms were not disclosed. (Feedstuffs)
  • AUSTRALIA CannPal Animal Therapeutics Limited announced that it has been granted exclusive global rights to commercialize patented MicroMAX microencapsulation technology by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) for use in the field of Animal Therapeutics. CannPal has been evaluating the Technology with CSIRO to develop new and innovative product formats using less regulated compounds from the hemp plant. (PRNewswire)
  • NETHERLANDS Nutreco announced it has invested in Mosa Meat, creator of a cell-based hamburger.  Mosa expects its first pilot production plant to be fully functional by the end of 2020. The investment amount was not disclosed. (Animal Pharm)
  • ITALY Belgium-based United Petfood announced it has acquired Italian company Effeffe Petfood, which produces private label pet food. Financial terms were not disclosed. (Petfood Industry)
  • CANADA IntelGenx Corp. announced that it has entered into a Feasibility Study Agreement with an undisclosed partner to conduct a feasibility study on an undisclosed molecule for buccal absorption using IntelGenx’s proprietary VetaFilm platform. Based on successful feasibility, IntelGenx will have exclusive rights to further develop, manufacture and supply the developed product to the Partner. (Yahoo finance)




*Thursday market closing prices



  • POLAND – AVIAN INFLUENZA Poland has reported an outbreak of highly pathogenic avian influenza in a flock of commercial turkeys. 12,089 turkeys died at a farm in the eastern part of the country; samples from five dead turkeys tested positive for a highly pathogenic form of H5N8 avian influenza. This is the first case of the H5N8 strain since 2017. (Veterinary Advantage – Watt Agnet)
  • US – BEEF GENETICS A team of researchers from the USDA’s Meat Animal Research Center in Clay Center, Nebraska (USMARC) and University of Nebraska-Lincoln (UNL), collaborating with scientists from MatMaCorp, have identified two major genes associated with bovine congestive heart failure (BCHF) in beef feedlot cattle. MatMaCorp translated the newly identified genetic risk factors, ARRDC3 and NFIA, into a rapid and cost-effective test for BCHF. (
  • US – FELINE VIRUS TESTING The American Association of Feline Practitioners (AAFP) introduced a comprehensive update to its Feline Retrovirus Testing and Management Guidelines, the first official update to the document in 12 years. The guidelines, which can be viewed at, were published in the Journal of Feline Medicine and Surgery. (association press release)
  • US- TICK RESEARCH The USDA’s Agricultural Research Service (ARS), Texas A&M AgriLife Research and technology firm 4Ry have signed a collaborative research agreement to develop a new spraying technology to tackle cattle fever ticks. The project will adapt 4Ry’s charge injected precision spraying (ChIPS) system for conductive fluids such as water-based cattle pesticides. (Animal Pharm)
  • US – TELEMEDICINE Oregon’s state regulators have drafted a proposed amendment to Oregon’s Veterinary Practice Act that would allow veterinarians to treat pets via online consultation without the need to have first examined the patient physically, so long as the pet has been examined by a veterinarian within the past year. The suggested change, which follows suit with the manner telemedicine is often used for humans, would, effectively, alter the state’s regulatory requirements for establishing a veterinarian-client-patient relationship (VCPR). (Veterinary Practice News)
  • US – REGULATORY UPDATES The USDA, the FDA, and the EPA announced they have launched a Unified Website for Biotechnology Regulation at The website streamlines information about the three regulatory agencies charged with overseeing agriculture biotechnology products. (FDA)


This week, Lynn is back and so is the News.

It seems like we should be just getting ready for the year, but there is a lot going on already.  Elanco is getting ready for its acquisition of Bayer’s Animal Health business and has found a home for Capstar (an oral flea product) at PetIQ and Osurnia (a canine otitis externa medication) at Dechra.  Covetrus is getting ready to focus on it’s core business by divesting scil animal care company to Heska.  American Regent (the renamed Luitpold) is getting ready to relaunch Adequan for horses in Europe through Animalcare, a UK-based company.  Those aren’t the only companies getting ready for the year.

Many of you are getting ready to go the NAVC’s VMX Veterinary Meeting and Expo in the next few days.  Several of us at Brakke Consulting are getting ready to go too and the VMX conference is a great place to start the year.  Whether you’re learning, launching new products, finding out what the competition is doing, or just meeting old friends and colleagues, the VMX is a great place to get ready for the year.

Another way to get ready at VMX is to attend the Brakke Consulting Industry Overview, mentioned above.  In addition to what ‘s mentioned above, we’ll highlight the important findings from our research on how pet health products are being purchased by pet owners and delivered by veterinarians.  Everyone involved in needs to get ready for the changes in the channels that are about to happen.  See you in Orlando.

Bob Jones


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