Animal Health News & Notes for April 3, 2020

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Brakke Consulting’s
Animal Health News & Notes for April 3, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Earnings News
Chewy
JBS SA
Kane Biotech

Other News
Alltech
American Regent
Chanelle Pharmaceutical Manufacturing
Corey Nutrition
Covetrus
Daiichi Sankyo
Heska
Kinetic Vet
Lily’s Kitchen
Magiar Chilena
MBF Therapeutics
Neogen
Nestlé Purina PetCare
scil animal care
VetSuccess
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KC ANIMAL HEALTH CORRIDOR

ANIMAL HEALTH INVESTMENT FORUM

PRESENTER APPLICATIONS DUE BY APRIL 14

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 http://kcanimalhealth.thinkkc.com/account/login .

For more information, contact Kimberly Young at young@thinkkc.com

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COMPANY EARNINGS RELEASES

• Chewy, Inc. announced financial results for the full year 2019 ended February 2, 2020. Net sales were $4.85 billion, an increase of 40% year-over-year. Net loss was $(252.4) million, including share-based compensation expense of $136.2 million. Adjusted EBITDA was a loss of $(81.0) million, an improvement of 65% year-over-year. (company press release)
• Kane Biotech announced its full year 2019 financial results. Total revenues were C$1.7 million (US$1.2 million), an increase of 235% from the prior year primarily due to the fulfillment of the Company’s first major order of bluestem products. Loss for the full year was ($960,178) compared to ($3,260,999) for the full year ended December 31, 2018. (company press release)
• JBS SA reported results for the full year 2019. Net revenue was 204.5 billion reals ($51.7 billion). Net income was 6.1 billion reals ($1.5 billion), up from 25.2 million reals in 2018. (Feedstuffs)

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COMPANY NEWS RELEASES

• Covetrus announced that it has completed the sale of its scil animal care business to Heska Corporation. The transaction closed under an amended purchase agreement which reduced the total consideration paid to Covetrus from $125 million to $110 million. (company press release)
• The FDA announced the approval of Senergy generic topical selamectin for use in dogs and cats to prevent heartworm disease, kill adult fleas and prevent flea eggs from hatching, and treat and control other internal and external parasites. Senergy is manufactured by Chanelle Pharmaceutical Manufacturing (FDA)
• Alltech announced a partnership Corey Nutrition to introduce a new line of aquafeed products to the North American market. (Animal Pharm)
• Kinetic Vet announced the launch of ArmourGuard RTU, an EPA-approved spray-on antimicrobial solution. With its silane quaternary ammonium salt (Si-Quat) formulation, which adheres to all surfaces and forms an invisible barrier, ArmourGuard RTU provides continual antimicrobial activity against microorganisms for up to 90 days. (company press release)
• MBF Therapeutics announced it has assembled a team of African Swine Fever Virus (ASFV) researchers to develop an effective, broad-spectrum ASFV vaccine, leveraging MBF Therapeutics’ proprietary immunotherapy platform and delivery system. (company press release)
• VetSuccess’ new Veterinary Industry Impact Tracker, which aggregates revenue and invoice reports from more than 2,500 veterinary hospitals nationwide, revealed that year to date through March 24, revenue nationwide was up 5.05% and invoices down 3.75% when compared with the same period in 2019. For the week covering March 26 to April 1, average daily revenue was off 17% and invoices were down 20% compared to a year ago. (Vet Advantage –  Todays Veterinary Business, company press release)
• FRANCE American Regent, Inc., announced that it will acquire Daiichi Sankyo Altkirch SARL, a Daiichi Sankyo company that has an Active Pharmaceutical Ingredient (API) pharmaceutical manufacturing plant in Altkirch, France. The facility produces the API for American Regent’s Adequan i.m. and Adequan Canine. (Oleantimesherald.com)
• CHILE Neogen Corporation announced that it has acquired the assets of Chile-based Magiar Chilena (Magiar), a distributor of food, animal, and plant diagnostics, including Neogen products. Neogen will incorporate the Magiar assets into its wholly-owned subsidiary, Neogen Chile SpA, for continued operations in Chile. Terms of the agreement were not disclosed. (company press release)
• UK Nestlé Purina PetCare announced it has acquired UK natural pet food brand Lily’s Kitchen. Lily’s Kitchen has sales of around $105 million (GBP 85 million) in 30 countries. Financial terms were not disclosed. (Petfood Industry)

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ANIMAL HEALTH STOCK PRICE TRACKER

 

 

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ANIMAL HEALTH NEWS

• US – COVID-19 IN LIVESTOCK Veterinary experts are asserting that while multiple species-specific coronaviruses affect livestock and poultry, there is no indication that livestock and poultry can be carriers of COVID-19 and be a source of infection to people. (Feedstuffs)
• CHINA – COVID-19 RESEARCH Researchers at Harbin Veterinary Research Institute in China have found that SARS-CoV-2 replicates poorly in dogs, pigs, chickens, and ducks, but efficiently in ferrets and cats. Additionally, cats appear to be able to transmit the virus through respiratory droplets to other cats. The lab experiments involved a very small number of animals that were inoculated with a high dose of the virus and provided no evidence that cats might also be able to infect people, although there have been reports of a pet cat in Belgium being infected with Covid-19 by its owner. The work, which is not yet peer-reviewed, was uploaded to the preprint website bioRxiv; to read the report click here.  (Theguardian.com)
• FDA – PRODUCT RECALL The FDA announced it is requesting manufacturers withdraw all prescription and over-the-counter (OTC) ranitidine drugs from the market immediately. This is the latest step in an ongoing investigation of a contaminant known as N-Nitrosodimethylamine (NDMA) in ranitidine medications (commonly known by the brand name Zantac). As a result of this immediate market withdrawal request, ranitidine products will not be available for new or existing prescriptions or OTC use in the US. (FDA)
• US – ANIMAL DISEASE REPORTING The USDA’s Animal & Plant Health Inspection Service (APHIS) announced it is proposing a new “National List of Reportable Animal Diseases” to further strengthen the country’s ability to detect, respond to and control animal diseases. APHIS is seeking public comment on this proposed rule for 60 days following publication in the Federal Register. To see the list, click here. (USDA)
• US – TELEMEDICINE  The University of Pennsylvania’s School of Veterinary Medicine (Penn Vet) at New Bolton Center announced the launch of a telehealth service for large animals.  The service offers both teleconsultations, allowing on-site veterinarians in the field to collaborate with New Bolton Center specialists to address patient needs, as well as telemedicine appointments with Field Service veterinarians for owners to conduct ‘virtual visits’ with patients. (EquiManagement.com)

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BRAKKE CONSULTING VIEWPOINT

There’s a lot of speculation about the impact of COVID-19 on the veterinary profession.  Hats off to Vet Success for providing a glimpse into current trends, as mentioned earlier in this newsletter.  The shelter-in-place rules adopted now by more than 30 states are certainly having an impact.  For the week covering March 26 to April 1, revenue in 2,500+ US companion animal practices was off 17% and invoices were down 20% compared to a year ago.  Typically this is one of the business periods of the year as flea season gets into full swing and heartworm tests are due.  Hopefully those missing visits will simply be postponed, not eliminated.  We’ll have more to say on this in the days ahead.

Meanwhile, enjoy all this quality time with your family.  I can’t remember the last time that my wife and I had dinner together at home every night of the week!  Stay in and stay safe!

John Volk

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YOUR VIEW

People in the animal health industry are a social bunch.  Last week we asked: Have you participated in a virtual happy hour or group video chat in the past month?  84% said yes!

Given the growth of the pandemic, we would like to take stock of how it is affecting individuals in our industry.  This week’s question:

Have you or someone you know on a first-name basis – family, friend, business associate – been diagnosed with COVID-19?

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