Animal Health News & Notes for August 11, 2023

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Brakke Consulting’s
Animal Health News & Notes for August 11, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting News
Brakke Search

Earnings News
Cryoport
Elanco
Freshpet
Pet Valu
PetIQ
Pets at Home
Trupanion
Wag! Group
Zoetis

Other News
Airvet
ALR Technologies
Greenies
Hill’s
MAI Animal Health
Merck
Mountain Group Partners
MySimplePetLab
National Veterinary Associates
Pawprint Oxygen
Petfolk
PetsApp
Prelude
Select Sires
Vetama
VetPartners
VetWelding
Zoetis (mAb expansion)
Zoetis (AlphaTrak)

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BRAKKE SEARCH
Manager/Director of Product Development

Hiring! Great opportunity for an RPh and/or PharmD to join a successful team dedicated to improving pet pharmaceuticals and nutraceuticals for an impressive list of clients worldwide. Full benefits, relocation available. Please click here. For questions, please contact Jeff Santosuosso at jeff@brakkeconsulting.com.  

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EARNINGS NEWS RELEASES

• Zoetis reported financial results for the second quarter of 2023. Revenue was $2.2 billion, an increase of 6% compared with the second quarter of 2022 (+9% on an operational basis excluding the impact of foreign currency). Net income was $671 million, an increase of 27% on a reported basis. Revenue in the U.S. segment was $1.165 billion, an increase of 7%. (company press release)
• Elanco Animal Health Incorporated reported financial results for the second quarter of 2023. Revenue was $1.06 billion, a decrease of 10% (-9% currency adjusted) compared to the second quarter of 2022. Net loss was $(97) million compared with net loss of $(10 )million for the same period in 2022. (company press release)
• PetIQ, Inc. reported financial results for the second quarter of 2023. Net sales were $314.5 million, an increase of 25%. Products segment net sales were $278 million, an increase of 27%; services segment net revenues were $36 million, an increase of 10%. Net income was $9.6 million, compared to net income of $4.7 million in the prior-year quarter. (company press release)
• Trupanion, Inc. announced financial results for the second quarter of 2023. Total revenue was $270.6 million, an increase of 23% compared to the second quarter of 2022. Total enrolled pets (including pets from our other business segment) increased 25%. Net loss was $(13.7) million compared to net loss of $(13.6) million in the second quarter of 2022. (company press release)
• Cryoport, Inc. announced financial results for the second quarter of 2023. Animal health revenues were $7.9 million, a decline of 15% compared to the prior-year quarter. (PRNewswire)
• Freshpet, reported financial results for the second quarter of 2023. Net sales were $183.3 million, an increase of 26%. Net loss was $(17.0) million, compared with prior year net loss of $(20.6) million. (Seekingalpha)
• Pet Valu reported results for the second quarter of 2023. Sales totaled C$343.9 million (US$254.7M), a 10% increase compared to the same quarter of 2022. Net income was C$24.1 million (US$17.8M‎), a 5% decline. (GlobalPets)
• Pets at Home announced results for the first quarter of its fiscal year 2024 ended July 20, 2023. Consumer revenue was GBP 568.2 million ($721 million), a 10.2% increase. (GlobalPets)
• Wag! Group Co. announced financial results for the second quarter ended June 30, 2023. Revenue increased 55% to $19.8 million, comprised of $6.2 million of Services revenue, $12.0 million of Wellness revenue, and $1.6 million of Pet Food & Treats revenue. Net loss was $(3.9) million, compared to $(1.1) million in the second quarter of 2022. (Benzinga)

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COMPANY NEWS RELEASES

• Zoetis announced the launch of the AlphaTrak 3 Blood Glucose Monitoring System for cats and dogs with diabetes. This device communicates glucose data and other information to the veterinary practice in real time. (DVM360)
• Zoetis announced the official opening of its new monoclonal antibodies (mAbs) expansion at its site in Lincoln, Nebraska. This new facility will enable the Lincoln manufacturing site to increase production of mAbs; and will also be a home for future innovation and serve as a Veterinary Medicine R&D registration facility for the company. (Businesswire)
• Merck Animal Health announced that its dairy monitoring technology products – previously available under SCR Dairy and Allflex brands – are now aligned under the SenseHub Dairy brand. (Feedstuffs – subscription)
• Greenies announced the launch of Greenies Digestive Probiotic Supplement Powder for Dogs, a meal topper that includes a probiotic to help maintain the natural balance of the canine digestive system. (Pet business)
• Hill’s Pet Nutrition and Harvard T.H. Chan School of Public Health are joining forces to create the One Health Microbiome Resource (OHMR). Not only will the OHMR be the first of its kind, it will also be the largest and most comprehensive reference database of human and companion animal microbiomes. (com)
• MAI Animal Health has partnered with VetWelding AG to create the first ultrasonic resorbable implants for animals. Using a new integrative approach for bone fractures and degenerative diseases, BoneWelding provides an alternative to traditional orthopedic and dental fixation devices. (DVM360)
• Pawprint Oxygen announced the launch of their PureVet Pet Oxygen mask. (company press release)
• MySimplePetLab has launched a new line of mini care and first aid kits for dogs, including kits for diarrhea, skin/ itch, ear care, and general care (to treat wounds, cuts, and minor injuries). Full-size versions of the products featured in the mini kits as well as at-home diagnostic tests are also available for purchase. (DVM360)
• Prelude introduced Offline, an app that enables researchers to enter data electronically in a compliant manner in areas with limited to no internet connection. (company announcement)
• All West/Select Sires, COBA/Select Sires, Select Sires MidAmerica, and Minnesota/Select Sires announced that they have voted unanimously to merge as one cooperative representing the Select Sires federation in 25 U.S. states and the country of Mexico. The new cooperative, Select Sires Member Cooperative (SSMC), will begin as of October 1, 2023. (Feedstuffs – subscription)
• Telehealth provider Airvet announced the closing of its Series B funding round worth $18.2 million and led by Mountain Group Partners. (GlobalPets)
• Petfolk, a veterinary clinic chain based in North Carolina, announced it has raised $35 million from 15 investors and would like to raise an additional $5 million, according to an SEC filing. (Vet Advantage – com)
• Vetama, a new mobile veterinary franchise start-up, has proven their concept through their first franchisee. Founded in June 2022, Vetama set out to offer veterinarians all-in-one mobile practice ownership. Vetama provides veterinarians a fully electric veterinary van, practice manager, veterinary mentors, AI scheduling software, marketing strategy and execution, supplier discounts, and weekly meetings. (com)
• CANADA ALR Technologies SG Ltd. announced plans to launch the GluCurve Pet CGM in Canada during the third quarter of 2023 with a direct to veterinarian clinic sales model through GluCurve.ca. (Yahoo finance)
• AUSTRALIA National Veterinary Associates announced it is selling Australian veterinary consolidator VetPartners. Jefferies is taking the lead in marketing the company. VetPartners currently operates 267 clinics across Australia, New Zealand, and Singapore, and reported  revenues of $661 million in the most recent fiscal year. (eu)
• UK PetsApp announced the launch of CoPilot, a new AI platform for veterinary practices. The platform, which has been made available to all PetsApp users, allows vets to send reminders, schedule vaccinations, discuss treatments and develop wellness plans for clients. The system suggests replies to messages received from clients that the practice team can edit themselves before sending; and enables pet owners to book appointments, seek advice through multiple communication platforms, including text and video chat, as well as make instant payments. (VetTimes)

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2023 Animal Health Summit
August 28-29, 20203
Location: Midland Theatre | Kansas City, MO
Registration is now open for the 2023 Animal Health Summit 

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• FRANCE – VETERINARY CLINIC OWNERSHIP Corporate consolidators, including Mars and IVC Evidensia, have been forced to reassess the status of their operations in France after a court asserted that veterinary practices there must be controlled by veterinarians. The court rejected an assertion from the Order of Veterinarians that Mars and Nestle (a minority shareholder in IVC Evidensia) should be banned from owning shares in the respective practices. (Vet Advantage – VIN)
• US – VETERINARY CARE The AVMA House of Delegates (HOD) approved a new policy at its annual meeting that directs the Association to “vigorously defend” against broadening nonveterinarians’ scope of practice, saying it would compromise the quality of veterinary care, thus threatening animal and public health. The policy includes opposing the creation of a veterinary midlevel practitioner. Earlier this year, Arkansas adopted a law that will expand veterinary technician specialists’ (VTS) scope of practice. (AVMA)
• US – DOG BREED PRESERVATION The American Kennel Club has formed the AKC Purebred Preservation Bank, a 501 C3 not-for-profit canine genetic material repository with a primary focus on frozen semen to ensure the viability of purebred dogs, particularly in low-population breeds. There is no cost to owners, donors or Parent Clubs to donate genetic material. (Pet Business)
• US – VACCINE RESEARCH A group of Yale researchers is working on a new kind of vaccine they believe could be a game-changer. Instead of acting against a pathogen, the vaccine would reduce the risk of transmission for mosquito- and tick-borne illnesses by targeting the bugs themselves. (Vet Advantage)

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Brakke Consulting
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New seminar coming August 30-31, 2023 in Kansas City

Are you seeking to navigate the complex landscape of buying and selling businesses in the animal health and nutrition industry?  We are excited to announce the relaunch of our educational due diligence seminar, tailored specifically for animal health professionals.

It’s more than just due diligence – we will help you unlock the secrets to successful deals in animal health. Our comprehensive seminar is designed to equip you with the knowledge, tools, and strategies to make informed decisions and to successfully manage a transaction. Presenters include Bob Jones, Jim Kroman, Randy Freides, and Ron Brakke as well as Damian Burke, Main Street Capital and Mark Stoneman, Armstrong, Teasdale, LLP.  The preliminary agenda can be found here.

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For more information, contact Amanda McDavid at amcdavid@brakkeconsulting.com or 336.396.3916.

www.BrakkeConsulting.com

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BRAKKE CONSULTING VIEWPOINT
Lately, it seems to me that the delivery of veterinary healthcare is evolving at an ever-increasing pace.  In this newsletter alone, we have news items about a telehealth provider, a mobile vet franchise, and a brick-and-mortar clinic chain that also offers telehealth and mobile services.  In contrast to these examples of expansions of traditional practice models, there are the items about the AVMA’s position on preventing efforts to broaden the scope of practice for non-DVMs, and France’s ruling against non-DVM control of veterinary practices.

When I graduated from vet school three decades ago, veterinary practice for a companion animal practitioner pretty much meant going to work at an independently owned brick-and-mortar veterinary practice, and maybe one day becoming a practice owner. While that is still the primary model, today’s graduates have many more options to choose from in crafting a career path, and that’s a good thing. However, it’s still important to make thoughtful decisions about how veterinary care can best be provided without compromising the quality of that care. While there are many parallels between human and veterinary medicine, what works for one doesn’t always make sense for the other.

Lynn Fondon
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YOUR VIEW
Last week, we asked whether your veterinarian actively promotes home delivery for the products they sell.  59% of you said no.

This week
What are your thoughts on creation of a “mid-level” practitioner in veterinary medicine?