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Brakke Consulting’s
Animal Health News & Notes for August 14, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
– Mid-year Overview Webinar
Earnings News
Covetrus
ImmuCell
Ouro Fino Saúde Animale
Zomedic
Other News
Abacus Health Products
Charlotte’s Web Holdings
Dechra
GrowSafe
Hippo Manager
IDEXX
Maxwell Foods
Merck
Neogen
Pets Best
Progressive
Smalls
VCP
Veramaris
Vetsource
Vytelle
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BRAKKE CONSULTING
The 2020 Midyear Industry Overview Webinar
Date: August 28, 2020
Time: 11:00 am – 12:30 pm EDT
The Midyear Overview will check in on top animal health company performance and key operational highlights for the first half of the year, especially in light of the lockdowns due to COVID-19. We will highlight public animal health company investment performance and explore how resilient animal health companies have been given the economic pressures of the pandemic and will describe what the winners have done to be successful. The presentation will include new, unpublished data tracking the impact of COVID-19 on pet care as owners have weathered upheaval in their daily lives, plus some fascinating data on the performance of veterinary practices, including their use of telemedicine and home delivery. Finally, we look at how the livestock business has been directly and indirectly impacted by the lockdowns and what this means for future growth.
This timely webinar review will be useful as animal health and nutrition leaders prepare for the second half of the year and start on their budgets for next year. Brakke Consulting believes that events like the COVID-19 pandemic tend to accelerate trends that were already happening. But the response to the pandemic has also resulted in actions not commonly seen in our animal health and nutrition industry. Will these changes last into next year or beyond? In 90 minutes, the Brakke Consulting team will present the first half highlights and its outlook.
Date: August 28, 2020.
Time: 11:00 am EDT
Cost: $99
Signup for the webinar by clicking here.
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COMPANY EARNINGS RELEASES
- Covetrus announced financial results for the second quarter of 2020. Net sales were $1.03 billion, an increase of 2% compared to the second quarter of 2019. Net income attributable to Covetrus in the second quarter of 2020 was $54 million compared to net loss of $(10) million in the second quarter of 2019. The primary driver of the year-over-year increase was a $70 million after-tax gain on the sale of scil animal care. (company press release)
- Ouro Fino Saúde Animale reported results for the second quarter of 2020. Net revenues totaled R$172.5 million ($32.3 million), a decline of 3% compared to the same quarter last year. (IHS Markit Connect)
- ImmuCell Corporation announced unaudited financial results for the quarter ended June 30, 2020. Total product sales were $3 million, an increase of 9% versus the comparable period during 2019. Net loss was $(766,000) in comparison to net loss of $(627,000) during the quarter ended June 30, 2019. (company press release)
- Zomedica Pharmaceuticals Corp. reported consolidated financial results for the second quarter ended June 30, 2020. Zomedica recorded net loss of $(5.5) million, compared to a loss of $(2.4) million for the quarter ended June 30, 2019. As of June 30, 2020, Zomedica had cash of $29,103,049, compared to $510,586 as of December 31, 2019. (company press release)
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2020 DIGITAL ANIMAL HEALTH SUMMIT
AUGUST 31 – SEPTEMBER 2, 2020
Location: Online
The Corridor’s August event goes on(line)! Registration is now open.
Register today ! The digital Animal Health Summit features 36 hours of 1:1 business partnering, keynote speaker David Hughes, 7+ on demand webinars, emerging company presentations, LIVE stream programming with industry leaders, LIVE networking and additional programming that supports the Spirit of Service – programming with impact. Click here to learn more.
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COMPANY NEWS RELEASES
- Merck Animal Health announced Porcilis Ileitis vaccine is now approved for multi-dose administration to vaccinate against ileitis caused by Lawsonia intracellularis. Previously approved to be given as one 2 mL dose at three weeks of age, the new license includes an option to administer two, 1 mL doses and to vaccinate as early as three days of age with a booster three weeks later. (company press release)
- IDEXX Laboratories, Inc. announced the launch of the ImageVue DR30 Digital Imaging System. The new ImageVue DR30 system makes high-quality images and improved radiation safety accessible to a broader range of veterinarians who may have previously thought advanced low-dose digital radiography was financially out of reach. IDEXX also announced the launch of the ProCyte One Hematology Analyze, available for pre-sale in North America and select European markets. (company press release)
- Dechra Veterinary Products announced the launch of Redonyl Ultra Feline, a palatable, veterinary nutraceutical to support healthy skin function in cats with seasonal allergies. (company press release)
- Neogen Corporation announced that its BioSentry 904 Disinfectant for surfaces has been proven effective by the EPA to kill SARS-CoV-2, the virus that causes COVID-19, when used according to revised label instructions. (company press release)
- Vetsource Home Delivery announced that veterinary-recommended specialty diets, treats, collars, leashes and other pet products will join the current catalog of prescription diets and medications, an expansion of an additional 8,000 products in its online catalog. (company press release)
- Hippo Manager and VCP announced a new partnership to deliver a single-access-point solution for wellness plans and practice management. According to the company, it is the first time that a complete wellness solution, payment management and analytic tools have been integrated into cloud-based software with a simple interface for veterinary practice users. (company press release)
- Veramaris announced the launch of Veramaris Pets, a new source of Omega-3 for pet food which provides twice as much EPA & DHA Omega-3 fatty acids compared to fish oil. Veramaris’ natural marine algal oil is made from microalgae, which is particularly rich in essential EPA & DHA Omega-3. (company press release)
- Vytelle (the recent combination of Vytelle IVF and GrowSafe) announced through its GrowSafe business the launch of the Beef Marketing Program to monitor individual animal performance, predict carcass weight and optimally market cattle in the feedlot. The program comprises hardware, software, a comprehensive warranty program and a suite of analytics services. (company press release)
- Charlotte’s Web Holdings announced it has acquired Abacus Health Products, Inc. Abacus markets over-the-counter topical products combining active pharmaceutical ingredients with hemp extract, including CBD MEDIC and Harmony Hemp. Financial terms were not disclosed. (Pet Age)
- Smalls, a direct-to-consumer pet food company purpose-built for cats, announced the close of a $9 million Series A financing round led by Left Lane Capital. This latest round, which includes participation from previous investors, brings the company’s total amount raised to $12 million. (Petfood Industry)
- Progressive is entering the voluntary benefits market through a relationship with Pets Best, Progressive Pet Insurance by Pets Best, available to all US companies looking to add pet insurance as a voluntary employee benefit. Progressive and Pets Best have worked together since 2009, offering Pets Best pet health insurance plans to dog and cat owners across the US. (PRNewswire)
- Maxwell Foods announced it will be permanently closing its hog operations in 2021. A subsidiary of Goldsboro Milling Co., the company cited low prices together with the effects of the COVID-19 pandemic. In 2019, Maxwell Foods had an inventory of 100,000 sows. (Feedstuffs)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – PRRS RESEARCH Researchers at the University of Connecticut have identified compounds that can effectively block the porcine reproductive and respiratory syndrome (PRRS) virus from infecting pig cells, creating a promising pathway to an alternative treatment. The molecules block a cell surface receptor called CD163 — which is expressed in pig monocytes and macrophages that the virus needs to get into the pig target cells. The research was published their findings in Virology Journal. (Feedstuffs)
- US – ANTHRAX RESEARCH Texas A&M University College of Veterinary Medicine & Biomedical Sciences announced it is developing an oral vaccine for anthrax. The formulation that uses the same live strain of bacteria from the current commercial vaccine put into a gel-like substance that keeps the bacteria alive in the gastrointestinal tract long enough and in the right amount to produce the desired immune activity in the animal. The results of a pilot study were published in Nature. (Feedstuffs)
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BRAKKE CONSULTING VIEWPOINT
Quarterly earnings season is now upon us and many of the public companies have released earnings. Despite the shutdowns, Zoetis (+4%), Merck (+3%), IDEXX (+4%) and Covetrus (+5%) have all reported 2Q sales growth vs. prior year, reinforcing the industry’s ability to respond. However, Elanco (-23%) bucked the positive trend due to economic pressures combined with a reduction in inventory in distribution.
What struck me in reading the various earnings releases and reviewing the investor presentations were the diversification strategies the companies are employing. These are strategies to offer adjacent services to the traditional discovery and manufacture of medicines and vaccines. This approach helps with diversification and with building a moat around a full range of product and service offerings from beginning to end.
In the case of Zoetis, they have proven to be a diverse powerhouse, adding genetics and diagnostics to their traditional product line, becoming a one-stop shop for all animal health needs across all species areas. Merck has embarked on a similar path with acquisitions in DNA tracing and data analytics. Is diversification the right strategy? Is it better to be excellent in a narrow range of products and services? Or, is there room for both strategies to be successful?
Randy Freides
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YOUR VIEW
Last week we asked you about the FDA’s fees for animal drug applications. Specifically, we asked “Do you think that the FDA’s fee structure has an impact on innovation in animal health?“ 51% of respondents thought that yes, these high fees absolutely reduce innovation, 29% thought that the high fees probably had some impact but not too much, 11% thought the high fees had no impact and 9% didn’t know. There are ways for smaller companies to have application fees reduced, but 80% of the respondents thought FDA fees impacted innovation. Reminds me of the saying, “If you tax something, you get less of it.“
This week:
In this week’s question, let’s see what you think about the expansion of products and services offered by the large animal health companies.
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