Animal Health News & Notes for April 15, 2022

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Brakke Consulting’s
Animal Health News & Notes for April 15, 2022
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Equine Mega Study V – pre-order now

Earnings News
TheraVet
Vetoquinol

Other News
A&M Capital Partners
AB Vista
Agras Pet Foods
American Regent
Anterra Capital
Balderton Capital
Better Origin
BiomEdit
Cooks Venture
Dechra
Delacon
Dômes Pharma
Elanco
Embark Veterinary
Everost
Farm Journal Foundation
FERA Diagnostics and Biologicals
Food In-Depth
Ginkgo Bioworks
The Honest Kitchen
Movora
Neogen
NewDay Veterinary Care
NXMH
Ourofino Saúde Animal
PBD Biotech
Pet Factory
Pet Paradise
Pronozia
Respirair Global
Spectrum
Spot Pet Insurance
VetriMax Veterinary Products
Viking Global Investors
Vimian Group
Waikato Milking Systems USA
Whitebridge Pet Brands
Worldwise
Zoetis (foundation grants)
Zoetis (Vet Debt Solutions Program)
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Brakke Consulting
EQUINE MEGA STUDY V
PRE-ORDER NOW THROUGH MAY 6

How has horse ownership and spending changed in the past 5 years?  Find out in the fifth edition of the Equine Market MegaStudy.  The study will be fielded in May with reports available in July/August 2022.

This highly popular survey includes over 400 brands of equine products in 17 categories. The study also measures readership of equine publications, catalogs and websites, and provides a wealth of information on horse owner demographics and segments.

The cost of the report is $17,500; orders placed by May 6 will receive a $1,500 discount.   For more information, or to order a study, contact project manager Lynn Fondon at LFondon@brakkeconsulting.com or 336-396-3916.

www.BrakkeConsulting.com

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EARNINGS NEWS RELEASES

• Vetoquinol reported results for the first quarter of 2022. Sales were EUR 135 million ($146 million), up 5.5% on a reported basis (2% at constant exchange rates). Revenue for the Americas was EUR 45 million ($49 million), an increase of 17%. (company website)
• TheraVet reported its first revenues since launching its lead product line in 2021. The company recorded turnover of EUR 12,348 in 2021. Total operating income was EUR 2.19 million (-80% year-on-year). Net loss was EUR 1.34 million (+245%) due to an 80% increase in R&D expenses. (IHS Markit Connect)

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Foundations Industry Training Program
Presented by Antelligence
May 18, 2022

Registration is open for the next Foundations Training program, scheduled for May 18. Foundations is ideally suited for professionals who have worked in the animal health industry for two years or less, and for others who could use a more comprehensive understanding of the industry.

The upcoming May program will be offered via Zoom and will feature a newly developed workbook, as well as audio and visual components designed to drive interaction and enhance the learning experience. Company-specific training programs are available as well. For a link to the syllabus, click here. The cost for attendees is $695. To register, please email Chris Kelly at chris.kelly@antelligence.com or call (770) 335-5445.
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COMPANY NEWS RELEASES

• The Zoetis Foundation announced that it will distribute $4.9 million during its first round of 2022 grants, supporting 20 initiatives based in 19 countries to help enable thriving professions and livelihoods for livestock farmers and veterinary professionals as well as relief efforts in Ukraine. (company press release)
• Farm Journal Foundation is partnering with the Zoetis Foundation to launch a new program to find solutions for relieving student debt in the veterinary industry. The effort’s long-term goal seeks to address shortages of veterinarians to work with farmers in rural areas. The new Veterinary Debt Solutions Program will convene leaders from across the livestock, academic, nonprofit, and veterinary sectors to address barriers that veterinarians face in building long-term careers in rural areas. (kmjnow.com)
• Elanco and Ginkgo Bioworks announced the launch of BiomEdit, a microbiome innovation company that is expected to discover, develop and introduce novel probiotics, bioactive molecules, engineered microbial medicines and microbial monitoring services for animal health. In addition to assets and intellectual property contributed by Elanco and Ginkgo, BiomEdit is launching with a targeted Series A funding raise of $40 million, with participation by Viking Global Investors and Anterra Capital. Elanco and Ginkgo are expected to retain approximately 40% combined proportional ownership of BiomEdit. (PRnewswire)
• Dechra and Respirair Global announced a strategic alliance for isoflurane and sevoflurane veterinary vaporizers and anesthesia accessories in the US veterinary market. The alliance will pair Dechra’s isoflurane and sevoflurane with the Respirair equipment. (company press release)
• The FDA announced that American Regent Animal Health has received approval for an extended shelf life for its Adequan joint therapies. The expiration date for both the Canine and Equine products increased from 24 months up to 36 months from the date of manufacture. (IHS Markit Connect)
• Neogen announced the launch of Prozap Protectus for beef cattle, a pour-on insecticide that can kill chewing and sucking lice, horn flies, stable flies, horse and deer flies. The formulation uses 3% diflubenzuron, 2.5% piperonyl butoxide and 0.5% lambda-cyhalothrin. (IHS Markit Connect)
• VetriMax Veterinary Products introduced UTid+ In-Clinic Diagnostic System, delivering accurate microbiology culture results for urine, skin, ears and more in as little as 16 hours. Developed at Cornell University, the UTid+ employs proprietary chromogenic media for rapid growth of bacteria and fungus with accurate color-matching results interpretation, and is compatible with any incubator. (company announcement)
• FERA Diagnostics and Biologicals introduced FerAppease, a unique analogue of the naturally occurring Maternal Bovine Appeasing Substance (MBAS) used to improve cattle welfare, animal health and performance. All ingredients in topically-applied FerAppease are FDA approved under GRAS (Generally Recognized as Safe). (company press release)
• PBD Biotech announced the launch of a new testing service for Johne’s disease in cattle herds using its Actiphage test, which can detect the presence of live mycobacteria in a sample of blood or bulk milk. Actiphage detects the presence of the live bacteria rather than antibodies to Mycobacterium avium subspecies paratuberculosis (MAP). (IHS Markit Connect)
• Vimian Group announced that its MedTech segment, Movora, has acquired two product portfolios of veterinary surgical instruments and orthopedic implants sold to veterinary clinics across North America under the brands Spectrum and Everost. Financial terms were not disclosed. (MarketScreener)
• Embark Veterinary, Inc., announced the launch of Embark for Veterinarians, a new genetic screening test for dogs specifically designed for veterinary professionals. (PRnewswire)
• Worldwise, Inc., a portfolio company of A&M Capital Partners (AMCP), together with A&M Capital Opportunities Fund, an affiliated fund, announced it has acquired Pet Factory, a producer of pet chews, treats, toys, and accessories. Financial terms were not disclosed. (Pet Business)
• Whitebridge Pet Brands announced it has merged with Agras Pet Foods, a European-based pet nutrition company. Both companies are now fully owned by NXMH, a Belgium-based investment firm. The new company will do business as Whitebridge Pet Brands. (Pet Product News)
• The Honest Kitchen, a human-grade pet food producer, announced it has raised $150M in an investment round, led by Monarch Alternative Capital. (Globalpets, AVMA SmartBrief)
• Waikato Milking Systems USA launched the Waikato North American Hygiene Program aimed at matching on-farm hygiene and sanitation challenges with efficient and profitable custom solutions. The new program includes a full line of teat dips, detergents, sanitizers and other cleaning options. (company press release)
• Pet Paradise introduced NewDay Veterinary Care, providing complete pet healthcare inside Pet Paradise’s premium resorts across the US. The chain of 24 locations in Florida, Georgia, North and South Carolina, and Texas was previously known as Pet Paradise Veterinary Care. (Businesswire)
• Cooks Venture has partnered with Food In-Depth to become what it claims is “the first in the poultry industry to roll out a verified ‘No Antibiotics Ever’ label backed by testing”. This label is approved by the USDA and is designed to provide customers with the assurance that antibiotic-free claims on the chicken they buy are backed by scientific testing. (IHS Markit Connect)
• Spot Pet Insurance, a pet insurance provider in the US, announced the launch of its services across Canada. (PRnewswire)
• BRAZIL Ourofino Saúde Animal announced the launch of Neostem regenerative medicine therapy for canine osteoarthritis. Neostem was developed by stem cell specialist Regenera, which was acquired by Ourofino last year. (IHS Markit Connect)
• UK AB Vista announced it has added new ruminant and swine products to its portfolio. Optipartum C improves cattle performance from the postpartum period onwards, increasing the energy utilized from feed. Axcelera C and Axcelera P are designed to accelerate calf and piglet growth and performance, respectively. (IHS Markit Connect)
• EUROPE Delacon announced the launch of Biostrong Fertile phytogenic solution for poultry. Biostrong Fertile includes essential oils, saponins and flavonoids from natural sources, and offers natural fertility support for breeding flocks, improve reproductive performance and lower oxidative stress in breeding males. (IHS Markit Connect)
• FRANCE Dômes Pharma announced it has acquired fellow French business Pronozia Santé Animale, which has developed ZAG – a veterinary decision support technology. Financial terms were not disclosed. (IHS Markit Connect)
• UK Better Origin, a start-up using insect farms for sustainable animal feed, has raised $16 million in a series A funding round led by Balderton Capital. Better Origin has developed decentralized, artificial intelligence (AI)-powered insect mini-farms that use local food waste from supermarkets to feed black soldier fly larvae that can be used as animal feed ingredients. (IHS Markit Connect)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• US – COMPOUNDING The FDA issued a final guidance, entitled “Compounding Animal Drugs from Bulk Drug Substances,” that will help protect animal health by recognizing the need for access to certain compounded animal drugs. The guidance describes the agency’s approach to situations where veterinarians use unapproved compounded drugs to provide appropriate care for the medical needs of the diverse species they treat. (FDA)
• US – AVIAN INFLUENZA The USDA is considering vaccines as a way to protect poultry against avian influenza in the midst of the country’s worst outbreak since 2015, which has wiped out 22 million chickens and turkeys in commercial flocks since February. The USDA’s Agricultural Research Service is investigating the potential for a vaccine that could be distinguished from the wild type of virus spread to poultry. (Vet Advantage – Reuters)
• US – DISEASE SURVEILLANCE A group of Texas A&M AgriLife faculty have launched the Veterinary Syndromic Surveillance System, VSS, a website and app that will provide veterinarians with a tool to access and input disease information to a central database.  The new technology tools provide real-time information to veterinarians and state or federal regulatory veterinarians concerning the location and prevalence of disease syndromes in large animals, using artificial intelligence to identify any flags on disease trends or syndromes that might go with a disease. (Agrilifetoday.tamu.edu)
• US – POULTRY WELFARE The Governor’s Regulatory Review Council in Arizona has approved regulations from the Arizona Department of Agriculture requiring that all eggs sold in the state, as well as those produced in the state, must come from hens free from cage confinement. The phase-in date for the regulation is Jan. 1, 2025. 9 other states that have similar cage-free laws; as of March 2021, 29% of the US layer population was cage-free. (Feedstuffs)
• US – VETERINARY FUNDING Congress designated millions of dollars for several federal veterinary programs in the $1.5 trillion spending bill passed this March, including funding to address veterinary workforce shortages and promote food safety. Funded programs include Veterinary Medicine Loan Repayment Program ($9.5 million); Food Animal Residue Avoidance Database Program ($2.5 million); Veterinary Services Grant Program ($3.5 million); USDA Animal and Plant Health Inspective Service ($1 million); USDA Food Safety and Inspection Service ($2.8 million); and National Bio and Agro-Defense Facility ($4 million). (AVMA Smartbrief)

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BRAKKE CONSULTING VIEWPOINT

This week’s newsletter contains information regarding 4 different investments made in companies related to our industry by private equity or investment firms just in the past week.  I haven’t been keeping count, but each week as I read Animal Health News and Notes, I see more and more similar announcements.  Many are relatively small investments, but the trend is not small at all; capital is available to fund good ideas developed by smart people who are willing to take risks.  At Brakke Consulting, we were proud to recently represent Jorgensen Laboratories as they secured an investment from Main Street Capital to fund future growth.

Interestingly, many of the announcements made in recent months have a digital component as the visionaries of our industry see ways to use our exploding digital power to level the playing field.  The power of mass and scale enjoyed by Big Pharma will be challenged by smaller players who see ways to chip away at that power with disruptive technologies.  Of course, we also see examples of Big Pharma investing in that same sort of digital platform to maintain a market advantage.  Good ideas aren’t limited to small companies, and entrepreneurs exist in large organizations as well.

Years ago, I learned a lesson that was not at all obvious to me; that is, good competition makes everyone better.  Greater access to capital enables competition, which in turn makes us all better competitors.  Isn’t that everyone’s goal?
Jim Kroman
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YOUR VIEW

Last week’s question covered our involvement with telemedicine.  Our readers told us that 75% or respondents had had a telemedicine appointment for themselves or a family member, but only 20% had had a telemedicine appointment for a pet.  Are you surprised?

This week
This week’s question is more business related.  We hear anecdotally that the first quarter was difficult for many companies in the animal health industry.  Here’s the question:
Based on first quarter results, are you lowering your full year forecast, raising it, or keeping it the same as originally set?