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Brakke Consulting’s
Animal Health News & Notes for April 28, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Earnings News
Kane Biotech
Merck
Nestlé
Other News
Amazon
Bimini Pet Health
BioAdaptives
Bioiberica
Bion Environmental Technologies
Boehringer Ingelheim
Butternut Box
Covetrus
The Dairy Solutions Group
Dakota Valley Growers
eniferBio
Google
Gryphon Investors
Instacart
Ogena Solutions
Patterson
PetSmart (Uber)
PetSmart (Instacart)
Plug and Play Topeka
PsiBufet
Standard Nutrition Company
Total Dairy Solutions
Uber Technologies
Vetnique Labs
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EARNINGS NEWS RELEASES
- Merck announced financial results for the first quarter of 2023. Animal Health sales were $1,491 million, a year-over-year increase of 1% (+5% currency adjusted). (company press release)
- Nestlé reported sales for the first quarter of 2023. Petcare sales were CHF 4,669 million ($5,427 million), an increase of 14%. (company website)
- Kane Biotech announced its full year 2022 financial results. Total revenue for the year ended December 31, 2022 was C$2.7 million (US$2.0 million), an increase of 66%. Loss for the year was C$(3.8) million, compared to a loss of C$(4.8) million for the year ended December 31, 2021. (company press release)
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COMPANY NEWS RELEASES
- Boehringer Ingelheim announced that the FDA has approved NexGard COMBO for cats (esafoxolaner, eprinomectin, and praziquantel topical solution), a once a month topical that protects against fleas, ticks, roundworms, hookworms, heartworm disease and tapeworms. (company press release)
- Covetrus announced the opening of a new distribution center in Ocala, Florida. The new location will serve veterinarians and their practices in Florida, Georgia, Alabama, North Carolina, South Carolina, Tennessee, and Mississippi, as well as those across the Caribbean. It will also serve veterinarians at US military bases throughout Europe. (DVM360)
- Patterson Veterinary Supply announced the launch of a new pet owner mobile app called Tail HQ. A subscription to NaVetor, Patterson’s veterinary cloud practice management software, now includes this new app with “self-serve” capabilities designed to help pet owners manage their pet’s health. (company press release)
- Bioiberica announced the launch of Atopivet Collar, a collar that contains the company’s lipids-based Biosfeen ingredient for atopic dermatitis. Biosfeen is a sphingolipids ingredient that is said to increase filaggrin expression, which plays a role in the skin’s barrier function. (Nutritional Outlook)
- Gryphon Investors announced it has acquired Vetnique Labs. Vetnique develops a range of specialty pet products including supplements and topical solutions for digestive health, allergy and dermatological support, ear care, active lifestyle and calming support. Financial terms were not disclosed. (Pet Product News)
- PetSmart and Uber Technologies have entered a nationwide partnership, bringing the Petsmart selection to the Uber Eats app. (Pet Product News)
- Amazon announced it is bringing back Amazon Pet Day for the second year to celebrate National Pet Month. The two-day sales event will take place from May 2-3, and will offer deals on pet products in Amazon’s store. (Pet Business)
- Ogena Solutions announced the launch of the ANIVAC 3.5 animal bathing system for animal care professionals. (Globenewswire)
- Plug and Play Topeka, a global innovation platform that creates industry-specific accelerator programs, has selected Bimini Pet Health as its fourth corporate partner. (PRweb)
- BioAdaptives, Inc. announced the intention to spin off its Livestock Impact Division as a wholly-owned subsidiary. The new company will continue to develop and market natural supplements for performance animals and pets, but will expand its activities globally to include botanical drugs for both veterinary and human use. (Globenewswire)
- TDSG LLC, doing business as The Dairy Solutions Group, announced it has finalized an agreement to acquire the Arizona, California and Idaho locations of Total Dairy Solutions (TDS). TDSG is a newly formed subsidiary of Standard Nutrition Company, its majority owner. The TDS assets acquired by TDSG currently serve dairy producers in significant markets throughout the western US. Financial terms were not disclosed. (Feedstuffs – subscription)
- Bion Environmental Technologies, a leader in advanced livestock waste treatment technology and premium sustainable beef, and Dakota Valley Growers announced a letter of intent to develop a 15,000-head sustainable beef cattle feeding operation. Annual production from the facility is expected to be approximately 42,500 head of premium sustainable beef cattle. (Feedstuffs – subscription)
- Google recently added pet care businesses to its Local Services Ads. With Local Services Ads, businesses can advertise their services at the top of Google Search results pages in the areas a business chooses. Businesses can also manage their listings, like updating theirs hours and service areas. (Pet Product News)
- POLAND UK fresh dog food company Butternut Box announced it has acquired PsiBufet, a Polish fresh dog food company, expanding its European presence. Financial terms were not disclosed. (Pet Food Processing)
- CANADA PetSmart and Instacart announced a partnership that allows pet owners in Canada to enjoy same-day delivery of pet supplies, food, accessories, and other products from PetSmart’s 150 stores. Instacart delivers across all 10 Canadian provinces. (Globalpets)
- FINLAND eniferBio announced it has raised EUR 11 million ($12.1M) to make fungal protein to be used in pet food and aquafeed. The Series A funding will allow the company to begin to scale up the production of its PEKILO mycoprotein powder to thousands of tons per year and seek Novel Food approval from the EU and other markets. (GlobalPets)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- AMERICAS – AGRICULTURE COLLABORATION The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) announced the signing of a set of principles and a new partnership with the National Agricultural Organizations (FARM) from Argentina, Brazil, Paraguay, Uruguay, Chile, Bolivia and Colombia to constructively engage governments and international organizations around the world on the issues of livestock, agriculture, climate and trade. In collaboration with the National Agriculture Organizations (FARM), and the Pan-American Dairy Federation (FEPALE), USDEC and NMPF will coordinate and support engagements with government officials and international organizations in promoting policies that encourage sustainable productivity growth while taking into consideration the unique needs of the livestock industry as well as profitability for farmers. (Feedstuffs – subscription)
- US – DRUG REGULATION Pennsylvania announced that the state’s acting health secretary submitted a notice of intent to temporarily add xylazine to the list of schedule III drugs. (Vet Advantage)
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BRAKKE CONSULTING VIEWPOINT
Several companies reporting results in the last few weeks have commented on the “softness” of the companion animal market. It’s true that visits to veterinary practices are down a bit compared to the prior year. However, I’m not hearing about any “softness” from veterinarians. Revenues are up for most, and many practices are still finding it extremely difficult to fill openings both for veterinarians and staff members.
Veterinarians are working more hours than they prefer. According to AVMA, the median hours worked has climbed from 40 to 45 hours per week over the last couple of years. Keep in mind that visits increased pretty dramatically during the pandemic, and we’re still dealing with the tail end of above-normal comps.
What’s more, veterinarians continue to be quite bullish about revenue growth in 2023 and beyond, according to recent surveys and conversations with veterinarians. It’s probably also safe to assume that pets are still getting the preventives, medications, food and supplements they need, even if visits to veterinarians have backed off slightly. I think we can expect another solid year in animal health and nutrition.
John Volk
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YOUR VIEW
Last week, we asked if you had used ChatGPT. 30% of you said yes, you’ve tried it; 10% had used a ChatGPT-based platform. 60% had not used either. Given that ChatGPT has 100 million active users, and one blog claims that there are one billion visitors to the website per month (there is both a website and a dedicated app), our industry might have some catching up to do.
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