Animal Health News & Notes for April 2, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
IN THE NEWS:
Brakke Consulting News
Akorn Animal Health
Align Capital Partners
Compassion-First Pet Hospitals
Custom Veterinary Services
Equine Amnio Solutions
Midwestern Pet Foods
MTMC Animal Health
NVA Specialty and ER
Patterson Veterinary Supply
Animal Health Jobs
Opportunity, meet talent.
Hello Talent. If you are a company in the animal health and nutrition industry, you need talent to make your company grow. At Animal Health Jobs, we can help you find experienced and motivated candidates – that’s all we do. Animalhealthjobs.com is the only job board that vets every candidate for animal health experience. And every candidate wants to work in your industry.
Hello Opportunity. If you are looking for a job in the animal health industry, you need to look where only animal health and nutrition companies post jobs. That’s all we do – post jobs for companies in the industry that you want to work in.
By the way, we’ve gotten better. You may remember the old AnimalHealthJobs.com job board. Now, with a major platform upgrade, candidates can more easily search for open jobs, create an account to apply and manage your application(s), as well as set job alerts so that you are among the first to know when a new job opens that matches your requirements. Companies can use filters to search and match ideal candidates to open positions and interact with potential candidates directly within the website.
Talent, nice to meet you. Likewise, Opportunity.
COMPANY EARNINGS RELEASES
- Chewy, Inc. announced financial results for the fiscal year 2020 ended January 31, 2021. Net sales were $7.15 billion, an increase of 47% year over year. Net loss was $(92.5) million including share-based compensation expense of $129.2 million. Adjusted EBITDA was $85.2 million, an increase of $166.2 million year over year. The company posted its first-ever quarter of positive net income in the latest three months at $21 million. (company press release)
- Biogénesis Bagó reported financial results for the full year 2020. Annual revenues reached $168.1 million, an increase of 21% year-on-year. (IHS Markit Connect)
- Animalcare reported financial results for the full year 2020. Revenues were GBP 70.5 million ($97 million), a decline of 1% from 2019(+2% at constant exchange rates). Underlying EBITDA declined 8% to GBP 12.1 million ($16.6 million). (IHS Markit Connect)
- Kane Biotech announced its full year 2020 financial results. Total revenue for the year was C$1.3 million (US$1.0 million), a decline of 21% compared to 2019. Loss and comprehensive loss for the year was C$(3.8) million (US$3.0 million) compared to a loss of C$(3.6) million in 2019. (company press release)
- zooplus AG reported financial results for the full year 2020. Revenue reached EUR 1.52 billion ($1.8 billion) in 2020, a 14% increase compared to the prior year. (GlobalPets)
- Better Choice Company reported financial results for the full year 2020. Net sales were $42.6 million, up from $15.6 million in 2019. Net and comprehensive loss was $(59.3) million compared to a loss of $(184.5) million in 2019. Adjusted EBITDA was $(1.9) million. (Globe Newswire)
- Cal-Maine Foods reported results for the third quarter of fiscal 2021 (thirteen weeks) ended February 27, 2021. Net sales were $359 million, a 3.9% increase compared to the prior-year quarter. Net income was $13.5 million compared to net income of $13.7 million in the prior-year period. (Feedstuffs)
COMPANY NEWS RELEASES
- Elanco announced the launch of Elura (capromorelin) oral solution for managing weight loss in cats with chronic kidney disease (CKD). It is the first ghrelin receptor agonist to be approved for use in cats in the US. (IHS Markit Connect)
- The FDA announced the approval of Akorn Animal Health‘s generic Dexmedetomidine Hydrochloride Injection for use as a sedative in dogs and cats. (FDA)
- Royal Canin announced it is investing $390 million to build a new 450,000 square foot factory in Lewisburg, Ohio to meet increasing demand. The factory will manufacture both Royal Canin and Eukanuba health and nutrition with both dog and cat food product lines. The location will join Royal Canin’s five other manufacturing sites across the U.S. and Canada. (Pet Business)
- Patterson Veterinary Supply announced that NaVetor veterinary cloud software will now integrate directly with the Patterson eShelf Inventory Management System. (company press release)
- Compassion-First Pet Hospitals and NVA Specialty and ER announced that they have combined strengths and are now branded as NVA-Compassion First. (Veterinary Practice News)
- Lintbells announced the launch of YuMove Advance 360 for Cats, formulated to support joint health and the body’s anti-inflammatory process. The new product is made from New Zealand-harvested green-lipped mussels. (Todays Veterinary Business)
- Three months after Midwestern Pet Foods recalled some of its products because of a risk of aflatoxin poisoning, the company has issued a voluntary recall of certain dog and cat food brands because they may be contaminated with salmonella. The affected brands, which are sold nationwide, include CanineX, Earthborn Holistic, Meridian, Pro Pac, Pro Pac Ultimates, Sportmix, Sportmix Wholesomes, Sportstrial, Unrefined and Venture. The company discovered the potential for contamination after routine sampling. (AVMA SmartBrief – CNN)
- Equine Amnio Solutions, a developer of equine regenerative products, announced that Covetrus will be the exclusive distributor of the RenoVo equine allograft in the US. RenoVo is an acellular, cryopreserved liquid allograft derived from equine amniotic tissues. (Vet Advantage)
- SquarePet announced SquarePet VFS – which stands for “Veterinarian Formulated Solutions” – a new line of solutions-based premium dog food products formulated to deliver all-natural support for five areas of canine health and wellness. (Petfoodprocessing.com)
- DVMPro announced their partnership with MTMC Animal Health to create a nationwide sales presence in the veterinary healthcare equipment market. DVMPro also introduced the Guardian Pro and Guardian Lite lines of veterinary monitors. (PRweb)
- Instinct Science, a veterinary software company by the group behind the Plumb’s Veterinary Drugs app, has released their new full veterinary practice management platform, Instinct EMR. (company press release)
- Sure Petcare announced a Veterinary Recommendation Program among US veterinary hospitals. The program offers veterinary hospitals a commission for each online transaction that results from a recommendation of select Sure Petcare connected products, including the ANIMO Activity & Behavior Monitor, SUREFEED Microchip Pet Feeder Connect and SUREFLAP Microchip Cat Door Connect. (Pet Age)
- Align Capital Partners announced the majority recapitalization of Custom Veterinary Services, a custom formulator and contract manufacturer of nutritional supplements, dermatological, and grooming products for companion animals. Financial terms were not disclosed. (Business Wire)
- Evonik announced it has made a follow-up investment in the biotechnology start-up In Ovo through its venture capital unit. The investment will help the company commercialize its gender-testing machine for eggs. (Feedstuffs)
- Walkin’ Pets announced the launch of the Warrior Rear Harness. Designed to aid mobility-impaired pets, the Warrior Rear Harness gently supports a pet’s hind end, and is fully compatible with the Walkin’ Wheels dog wheelchair. (company press release)
- UK Dechra announced the launch in the UK of Apovomin, an injectable apomorphine to induce vomiting in dogs that have ingested poisons or toxins. (vetsurgeon.org)
- JAPAN DS Pharma Animal Health has secured the first approval for a regenerative medicine that features canine allogeneic adipose tissue-derived mesenchymal stem cells. The conditional approval for Stemcure is for the improvement of clinical signs related to thoracolumbar intervertebral disk herniation in dogs. (IHS Markit Connect)
- MIDDLE EAST Kemin Industries announced it has become a majority shareholder in MEVAC, an animal vaccine manufacturer based in Cairo, Egypt, and a shareholder in MEVAC’s sister company, UVAC, to further expand Kemin’s portfolio in the global animal vaccine market. Kemin first invested in MEVAC in 2010. Financial terms were not disclosed. (PRNewswire)
- EU TheraVet S.A. announced the commercial launch of Biocera-Vet, its new generation bone substitute for the treatment of bone surgeries in small companions. Biocera-Vet will initially be commercialized on the Belgian orthopedic market and will quickly be extended to France and the Netherlands. (company press release)
- UK Aquaculture firm Benchmark announced the first customer agreements for its CleanTreat water purification system. CleanTreat is a closed water purification system for fish farms that is designed to remove medicines from treatment water before it is put back into the ocean. The system also filters and removes organic material from treatment water, including sea lice, egg strings, fish scales and fecal matter. (IHS Markit Connect)
- UK PBD Biotech announced it has secured a GBP 2.3 million investment to take Actiphage through to validation by the World Organization for Animal Health (OIE). Actiphage is a rapid test that detects mycobacteria in a blood or milk sample, giving a simple yes/no answer. It offers the potential to identify animals at an early stage of infection and remove them from the herd. Full validation will enable international adoption of this diagnostic test for mycobacterial diseases, which include human tuberculosis, bovine TB and Johne’s Disease. (Farmers Weekly)
ANIMAL HEALTH STOCK PRICE TRACKER
ANIMAL HEALTH NEWS
- RUSSIA – COVID Russia claims to have registered the world’s first coronavirus vaccine for animals, according to state media outlet TASS. Carnivak-Cov, a sorbate inactivated vaccine against the coronavirus infection for carnivorous animals, was developed by Rosselkhoznadzor’s Federal Center for Animal Health. Clinical trials of the vaccine included dogs, cats, foxes, Arctic foxes, minks and other animals. The vaccine is estimated to last at least 6 months and to “prevent further mutations of the virus.” The vaccine will likely go into mass production as soon as April. (US News & World Report)
- EUROPE – EQUINE HERPESVIRUS A working group convened by the International Federation for Equestrian Sports is investigating an outbreak of equine herpesvirus type 1 in Europe that has killed at least 17 animals and sickened many others since an international competition last month in Spain involving some 750 horses. More than a third of the sick animals had neurological damage along with unusual conditions, such as intestinal blood clots and swelling. (AVMA SmartBrief – Science)
- US – RFID The USDA’s Animal and Plant Health Inspection Service announced it would not implement its July 5, 2020 Federal Register Notice that would have required the use of radio frequency identification eartags on all adult cattle and bison moved in interstate commerce beginning January 1, 2023. While it begins official rulemaking, cattle producers can utilize traditional ear tags and brands as well as higher-cost technology such as RFID tags. (Feedstuffs)
BRAKKE CONSULTING VIEWPOINT
This week the APPA’s new State of the Industry report found that nearly half of pet owners increased the number of times they made a purchase for their pet online in the past year. The finding should not be surprising; it’s common knowledge at this point that online spending in all areas increased during the pandemic. Chewy’s FY2020 earnings certainly reflect this, with revenues up nearly 50% over the prior year. And the growth is ongoing – Chewy added 1.4 million active customers during the fourth quarter. While still a minority of Chewy’s overall business, their pharmacy recorded revenues of $500 million in 2020. Think about that – Chewy launched its pet pharmacy 2½ years ago, and its sales this year are nearly double those of online pet pharmacy pioneer PetMed Express.
Our COVID-19: Impact on Pet Care 2020 report supported the online purchasing trend: in August, as many pet owners said they were buying parasiticides from online retailers as were buying them from their veterinarian. Some of this may revert to clinic purchases once COVID restrictions are over, but it’s hard for veterinarians to compete with the convenience provided by online retailers, even for those practices that offer an online store and home delivery option for their clients. Practice management consultants have long urged clinics to reduce their reliance on pharmacy revenue; given the trends in online purchasing, this is likely to be even better advice moving forward.
Last week we asked if you would be willing to have a microchip implanted into your pet that monitors their vital signs and behavior and sends this data to your mobile phone. 72% of you said yes; if that’s indicative of the larger pet-owning population, there’s quite a market for this type of technology.
This week, let’s find out how you buy things for your pets. In the past year, have you purchased pet products from any of the following online retailers?