The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for August 10, 2018
Copyright © Brakke Consulting, Inc.

Editor: Lynn Fondon DVM MBA

Brakke Consulting news
market research

earnings news
Alivira Animal Health
Henry Schein
Kindred Biosciences
Pets at Home
Pilgrim’s Pride
Zomedica Pharmaceuticals

other news
Aptimmune Biologics
Aratana Therapeutics
Dogs Love Us
Healthy Treats
IDEXX Laboratories
KM Biologicals
Shaanxi Jintai
Vets First Choice

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• Assessing the feasibility of a new product or technology
• Identifying the opinions and trends of veterinarians, pet owners or producers
• Determining the current market for products

With our in-house database of veterinarians and the ability to custom-tailor surveys of a wide variety of target audiences, we provide reliable insights into this unique industry. We also produce multiclient reports in a number of high-interest animal health market areas. For more information, see our website or call our Dallas office at 972-243-4033.


• Henry Schein, Inc. reported results for the second quarter of 2018. Animal Health sales were $986 million, an increase of 11%. North American Animal Health sales were $506 million, an increase of 7%. (company press release)

• Heska Corporation reported financial results for its second quarter ended June 30, 2018. Net revenue was $29.7 million, a decline of 11% compared to the comparable prior-year quarter. Net income attributable to Heska declined 43% to $1.9 million. Core Companion Animal segment revenues increased 2% to $26.6 million, Other Vaccines & Pharmaceuticals revenue declined 59% to $3.0 million. (company website)

• Animalcare reported unaudited financial results for the first half of the year. Total revenues increased 6.4% to GBP 47.8 million ($62.2 million). (Animal Pharm)

• SeQuent Scientific Limited announced its financial results for the quarter ended June 30, 2018 (Q1FY19). Revenues for Alivira Animal Health were $33 million, an increase of 21% compared to the prior-year quarter. (company press release)

• Kindred Biosciences, Inc. announced financial results for the second quarter ended June 30, 2018. KindredBio reported a net loss of $(11.2) million as compared to a net loss of $(6.8) million for the same period in 2017. The Company announced the commercial availability of Mirataz, its first commercialized product, to veterinarians in the United States on July 9. (company website)

• Zomedica Pharmaceuticals Corp. reported consolidated financial results for the second quarter ended June 30, 2018. Zomedica recorded net loss of $(4.1) million compared to a loss of $(1.6) million for the quarter ended June 30, 2017. Zomedica, which is in the development stage, recorded no revenues in the quarter. (company website)

• Trupanion, Inc. announced financial results for the second quarter ended June 30, 2018. Total revenue was $73.4 million, an increase of 26% compared to the second quarter of 2017. Total enrolled pets (including pets from our other business segment) was 472,480 at June 30, 2018, an increase of 23%. Net loss was $(0.4) million, compared to net income of $0.4 million in the second quarter of 2017. Excluding the one-time gain on the sale of an equity method investment, second quarter 2017 net loss was $(0.6) million. (company website)

• Pets at Home reported results for the period between March 30 and July 19. Group revenue was GBP 277 million ($360 million) for the period, with retail revenue rising 7% to GBP 245 million and vet revenue increasing 18% to GBP 32.4 million. (GlobalPETS)

• Pilgrim’s Pride reported results for the second quarter of 2018. Sales rose 3% to $2.84 billion. Net income was $106.5 million, down from $233.6 million posted during the same quarter last year. (Feedstuffs)


• IDEXX Laboratories announced it has filed suit against two former employees and Vets First Choice, claiming the pair took confidential materials from company computers when they resigned from IDEXX to work for Vets First Choice. IDEXX seeks unspecified monetary damages, punitive damages, and legal fees, as well as an injunction to block the defendants’ “actual or threatened disclosure or utilization of IDEXX’s trade secrets.” (Veterinary Practice News)

• Aratana Therapeutics announced that the FDA’s Center for Veterinary Medicine (CVM) approved the supplemental New Animal Drug Application (NADA) to expand the Nocita label to include its use in cats as a peripheral nerve block to provide regional post-operative analgesia following onychectomy. (company website)

• Kemin Industries announced it has acquired an equity position in Aptimmune Biologics, giving Kemin exclusive rights to Aptimmune’s vaccines and vaccine technologies outside the U.S. As part of the partnership, the companies have created Kemin Biologics to market Aptimmune’s Barricade technology in swine. Aptimmune will retain development, sales and marketing responsibilities for its intellectual property and existing vaccine products made with Barricade technology in the US. Financial terms were not disclosed. (Feedstuffs)

• VisioCap, LLC announced an investment in Healthy Treats Inc., a premium, all-natural pet treat company. Going forward, the company will operate under the name Dogs Love Us. The amount of the investment was undisclosed. (Pet Business)

• IRELAND Zoetis announced it has acquired a manufacturing facility in Ireland from Bimeda. The fully operational site, which produces teat sealants, becomes the Zoetis’ first active manufacturing location in the country. Financial terms were not disclosed. (Animal Pharm)

• JAPAN KM Biologicals announced it is open for business after it completed a transfer of assets from the Chemo-Sero-Therapeutic Research Institute (Kaketsuken). KM Biologicals will manufacture human and veterinary vaccines, as well as blood fraction products. (Animal Pharm)

• CHINA Avivagen Inc. announced that it has entered into an agreement that will wind up its previously announced joint venture in China with Shaanxi Jintai Mining Co., Ltd. The Shaanxi Jintai China-Canada Beta-Carotene Oxidation Biological Company was established in 2016 with the purpose of registering and commercializing OxC-beta Livestock in China. Avivagen held 49% of the JV. (company press release)


• CHINA – ASF China, home to half the world’s pigs, has reported its first ever case of African swine fever (ASF) in the northeastern city of Shenyang. 47 pigs were found to be infected; a further 8,000 pigs have been culled in a bid to prevent the disease spreading. (Animal Pharm)

• US – VETERINARY CAREER ASSISTANCE The American Veterinary Medical Association unveiled, a new website focused on developing early careers, maintaining wellness, and managing finances. (Veterinary Advantage)


With one exception this week, earnings news from animal health companies were upbeat. If this continues for a couple more quarters, it will be a banner year.

We were honored to participate this week in a Critical Issues Summit hosted by Veterinary Hospital Managers Association (VHMA). The topic of this first-of-a-kind meeting was Value-Based Pricing. The goal was to take a deep dive into pricing theory and to develop more effective ways for veterinarians to price their services in order to serve a broader audience yet increase revenues. More than 40 industry professionals volunteered a day and a half of their time, plus travel expenses, to participate in this very worthwhile activity. Care Credit and Nationwide Pet Insurance underwrote the costs of the Summit. Hats off to Christine Shupe and her team at VHMA for their leadership in tackling thorny issues facing the profession.

John Volk, Chicago

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