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Brakke Consulting’s
Animal Health News & Notes for April 29, 2022
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Pain Management Products for Dogs and Cats – NOW AVAILABLE
Equine MegaStudy V – last week for early-order discount
Earnings News
Merck
Novozymes
Orion
Other News
ADM
BluePearl
Cargill
ClientEd
Elanco
Jaguar Animal Health
Licious
LifeLearn Animal Health
Mars
Mella Pet Care
Nordhealth
Pawfectly Made
PetHub
Provet Cloud
Royal DSM
TechMix
Torigen Pharmaceuticals
Vet Buyers Direct
Vidium Animal Health
Weave
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Brakke Consulting
EQUINE MEGA STUDY V
LAST WEEK FOR EARLY-ORDER PRICE
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 450 brands of equine products in 20 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.
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EARNINGS NEWS RELEASES
- Merck announced financial results for the first quarter of 2022. Animal Health sales were 1,482 million, an increase of 4% from the prior-year quarter (+9% currency adjusted). Companion animal revenues increased 9%, primarily driven by the Bravecto parasiticide line, as well as vaccines. (company press release)
- Orion reported results for the first quarter of 2022. Animal health sales were EUR 13.2 million ($13.9 million), a decline of 31% due to the end of a distribution agreement in Finland and the timing of deliveries to partners. (IHS Markit Connect)
- ADM reported results for the first quarter of 2022. Animal nutrition sales rose nearly 20% to $966 million, making up around half of the turnover in ADM’s nutrition division. (IHS Markit Connect)
- Novozymes reported results for the first quarter of 2022. Revenues from the company’s agriculture, animal health and nutrition unit rose 12% on an organic basis and 17% on a reported basis to DKK577 million ($82.3 million), accounting for around 13% of total group turnover. Animal health made up 65% of the division’s sales (around $53 million). (IHS Markit Connect)
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Brakke Consulting
2022 PAIN MANAGEMENT PRODUCTS FOR DOGS AND CATS
NOW AVAILABLE
Pain management is one of the leading topics in veterinary medicine today. Brakke Consulting’s annual report on Pain Management Products for Dogs and Cats includes such valuable information as:
– estimates of US sales and prices of leading products
– new and upcoming pain management products, including ZORBIUM and monoclonal antibody products LIBRELA and SOLENSIA
– discussion of the use of cannabinoids in veterinary pain management
– 2022 survey of 359 small animal veterinarians regarding use of pain management products
NEW THIS YEAR! The report features trended, aggregated dispensing data provided by VetSuccess, including chronic vs. acute use of analgesics, comparisons of analgesic revenue per patient by brand, and data on brand-switching at the patient level.
Pain Management Products for Dogs and Cats 2022 can be purchased for $9,495. Questions about the study can be answered by project manager Lynn Fondon, DVM, MBA at Lfondon@brakkeconsulting.com. .
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COMPANY NEWS RELEASES
- Elanco and Royal DSM announced that Elanco has secured the exclusive US licensing rights to develop, manufacture and commercialize Royal DSM’s Bovaer for beef and dairy cattle. DSM and Elanco intend to seek US authorization for the product, which is a first-in-class methane-reducing product for beef and dairy cattle, already approved in Europe, Brazil, Chile and Australia. (Feedstuffs)
- Jaguar Animal Health announced that Canalevia-CA1 (crofelemer delayed-release tablets), the company’s prescription drug product for the treatment of chemotherapy-induced diarrhea (CID) in dogs, is now available from multiple leading veterinary distributors in the US. Canalevia-CA1 received conditional approval from the FDA on December 21, 2021. (Finance.yahoo.com)
- TechMix LLC announced that the U.S. Patent and Trademark Office (USPTO) has granted the firm a patent for Calf Perk, a fast-acting stimulant for calves that have experienced a challenging or cold birth. Calf Perk contains naturally-occurring caffeine from green tea extract as its active ingredient. (Feedstuffs)
- Torigen Pharmaceuticals, Inc. announced it has entered into a strategic partnership with Vidium Animal Health to offer veterinarians a full spectrum of services from diagnosis to treatment. Torigen offers an experimental autologous cancer immunotherapy that is created from a surgically resected portion of tumor tissue; the combination of Vidium’s oncopathologists with Torigen’s veterinary oncologists provides veterinarians with a precise diagnosis and an innovative cancer treatment plan. (Finance.yahoo.com)
- BluePearl Specialty and Emergency Pet Hospital announced that its more than 100 veterinary hospitals across the US are now sourcing 100% renewable electricity. This effort is part of Mars ‘s (the parent company of BluePearl) $1 billion Sustainable in a Generation Plan. In 2021, Mars Inc. commissioned construction of a wind farm in Ford Ridge, IL, which provides clean electricity for Mars’ more than 2,000 veterinary hospitals across the nation. (Yahoo)
- Cargill announced a nearly $50 million investment to expand and renovate its Global Animal Nutrition Innovation Center in Elk River, Minnesota. (Feedstuffs)
- Vet Buyers Direct announced the launch of its subscription-based model which enables veterinarians to purchase manufacturer-direct products at up to 85% off veterinary wholesale pricing. (finance.yahoo.com)
- Weave announced it has signed an integration partnership agreement with Provet Cloud, by Nordhealth, a practice management solution designed to empower veterinary professionals. Weave will act as Provet Cloud’s key communications partner in the US. (Bakersfield.com)
- PetHub and Mella Pet Care announced a collaboration that will allow users to send pet data from PetHub into the Mella app and send health data back. Mella Pet Care is a Bluetooth-based ecosystem of health monitoring devices for veterinarians and pet parents; PetHub is centralized pet data platform that combines software with physical ID tags on pets. (DVM360)
- LifeLearn Animal Health announced that ClientEd, a pet health education library that supports efficient client education for veterinary practices, has been integrated with DaySmart Vet cloud-based veterinary practice management software. The integration enables DaySmart Vet users to search ClientEd’s library of 2,100+ pet health handouts, 250+ pet medication handouts, and 170+ Spanish handouts. (PRweb)
- INDIA Licious announced that it has invested $1 million in Pawfectly Made, a Bengaluru, India-based fresh pet food startup. Pawfectly Made will continue to function as a separate entity, with Licious as a strategic partner leveraging their understanding of the fresh animal protein sector. (Freepressjournal.in)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – BEEF CONSOLIDATION In formal comments submitted last week to the Federal Trade Commission and the Department of Justice, R-CALF asked the FT and DOJ to investigate vertical integration of cattle feedlots. The group claims that the oligopolistic structure of the beef packing industry is now being pushed upstream into the live cattle supply chain. In its comments, the group urged the agencies to investigate to determine the degree of buyer power the concentrated beef packers exercise over those feedlots – in particular, the 77 largest feedlots. (Beef Magazine)
- US – VETERINARY WELLBEING The Veterinary Wellbeing Alliance announced the launch of a new pilot program that aims to help reduce veterinary stress and burnout. The pilot will give approximately 10,000 veterinary professionals in 3 states complimentary access to four hours per month with the Listeners on Call’s trained listeners at no charge. Additionally, the Alliance will launch a monthly newsletter featuring original wellness content from Listeners on Call, as well as professionally curated content to help veterinary teams. (alliance press release)
- US – FELINE RESEARCH Morris Animal Foundation is now accepting proposals for research focused on finding nonsurgical sterilization methods to humanely control populations of free-roaming community cats. Proposals may consist of medication, vaccines, and additional interventions for feline population control only. (DVM360)
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BRAKKE CONSULTING VIEWPOINT
A recent report from the IQVIA Institute entitled “The Use of Medicines in the US 2022” is interesting reading if you believe that trends in human medicine eventually show up in veterinary medicine. Some notable results…
First, the overall use of telehealth has returned to pre-pandemic levels at the end of 2021, or 1-2% of patient visits. Mental health saw dramatic increases in telehealth during the pandemic, peaking at about 30% of all visits, and is now about 20%. Telehealth visits for chronic diseases, like hypertension, diabetes, and HIV/AIDS, peaked between 5 to 11% of visits, but are now down to 1-2%, because these diseases frequently require testing and bloodwork.
Second, spending on specialty medicines in the US is 55% of total net manufacturer revenue. These medicines treat autoimmune diseases, oncology, and multiple sclerosis and is now about double the 2011 level, which was 28%.
Finally, all the growth in medicine spending in the past 5 years, ($82.0B) has been due to new products ($87.7B). The volume impact of patented products already launched (+$94B) was completely offset by products going off patent (-$93.0B).
Veterinary medicine often follows in the footsteps of human health, so what can we learn from this report? Innovation focused on specialty products is likely to drive future growth in veterinary medicine, while innovation in services, like telehealth, will be a harder sell.
Bob Jones
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YOUR VIEW
Last week, we asked about your views on the percentage of corporatization of veterinary clinics and about 30% of the respondents each thought that between 21-30% and 31-40% were owned by a corporate consolidator. About 25% thought it was between 11-20%. We also asked what percentage of the veterinary practice revenue was generated by corporate-owned clinics and 36% of the respondents thought it was between 31-40%. About 20% of respondents said they thought it was 21-30%, 41-50% and over 50%.
Brakke Consulting estimates that 25% of general practices and 75% of specialty practices are corporately owned; and a little less than half of the total revenue volume flows through those clinics.
This week
This week let’s explore where you think innovation is most needed in veterinary medicine and that will drive growth.
If you had to pick one area for animal health companies to invest their research and development budgets in, which would it be?
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