The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for August 20, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA


Earnings News
Better Choice

Other News
Aurobindo Pharma
Cronus Pharma (Amoxicillin/Clavulanate)
Cronus Pharma (Aurobindo Pharma)
Elanco (SEC)
Elanco (Vaxxinova)
Ethos Veterinary Health
Hellman & Friedman
Kinderhook Industries
Midwestern Pet Foods
National Veterinary Associates
Pilgrim’s Pride
Primal Pet Foods
Vaxxinova US
Virbac (Stelfonta)
Virbac (pet food)


  • Petco Health and Wellness Company, Inc. released financial results for its second quarter ended July 31, 2021. Net revenue was $1.4 billion, up 19% versus prior year. Net income improved by $67.7 million from prior year to $75.1 million. (company press release)
  • ImmuCell Corporation announced its unaudited financial results for the quarter ended June 30, 2021. Total product sales were $4.5 million, an increase of 53% versus the prior-year quarter. Net income was $141,000 in contrast to a net loss of ($766,000) during the second quarter of 2020. (company press release)
  • Novozymes reported results for the first half of 2021. Turnover for the agricultural, animal health and nutrition business was DKK890 million ($141 million), a decline of 14% from the first half of 2020, when stockpiling amid the COVID-19 pandemic inflated revenues. (IHS Markit Connect)
  • Better Choice Company reported its financial results for the second quarter of 2021. Net sales were $11.0 million, an increase of 11% compared to the prior-year quarter. Net income was $24.8 million (due to a change in fair value of warrant liabilities of $29.4 million) compared to a net loss of $(18.4) million in the prior-year quarter. (company website)


  • Elanco disclosed that the U.S. Securities and Exchange Commission has subpoenaed records from relating to its channel inventory and sales practices prior to midyear 2020, when Elanco reduced its channel inventory and changed its distribution strategy. (Indianapolis Star)
  • Vaxxinova US (previously known as Epitopix) announced it is suing Elanco for alleged infringements on its patented animal vaccine technology. The complaint claims Vaxxinova previously discussed its SRP technology with Elanco and Novartis Animal Health (later acquired by Elanco) at various times between 2005 and 2011, during discussions concerning potential business opportunities relating to the SRP technology. Vaxxinova asserts that Elanco developed and acquired (through Novartis Animal Health) technology that infringes upon Vaxxinova’s SRP technology and patents in the absence of any license or other business arrangement with Vaxxinova. (IHS Markit Connect)
  • Virbac announced that Stelfonta (tigilanol tiglate injection) has been approved by the FDA as a non-surgical alternative for treating canine mast cell tumors in dogs, and is now available in veterinary clinics throughout the United States. Stelfonta was discovered and developed by Australian company QBiotics. (PRnewswire)
  • The FDA announced it has approved Cronus Pharma Specialties India Private ‘s generic Amoxicillin and Clavulanate Potassium for Oral Suspension, the first generic form of amoxicillin and clavulanate for oral suspension for use in cats and dogs. Cronus received approval for the tablet formulation earlier this summer. (FDA)
  • Aurobindo Pharma announced it has entered into definitive agreements under which the Company will subscribe to fresh equity shares in Cronus Pharma Specialities India Private Limited amounting to Rs 420 crore ($63 million). Subsequent to this investment, the , which will give the Company 51% of the equity share capital of Cronus. (
  • Kinderhook Industries announced it has acquired Primal Pet Foods, which specializes in minimally processed pet foods, supplements and treats. Financial terms were not disclosed. (Pet Products SmartBrief – Petfood Processing)
  • The FDA has issued a corporate-wide warning letter to Midwestern Pet Foods, Inc. after inspections of its manufacturing sites revealed apparent violations of the Federal Food, Drug, and Cosmetic Act that were shared across the sites, which likely contributed to the illness or death of hundreds of dogs. The initial inspection of Midwestern’s Chickasha, Oklahoma plant was triggered by reports of illness or death in dogs that had eaten Midwestern’s SPORTMiX brand dry dog food. Samples of SPORTMiX were later found to contain levels of aflatoxin as high as 558 parts per billion (ppb); the FDA considers pet food to be adulterated if it contains more than 20 ppb of aflatoxin. (FDA)
  • National Veterinary Associates announced that is has acquired Ethos Veterinary Health. Ethos’ 23 hospitals offer services including 24/7 emergency care, surgical procedures, radiology services and internal medicine, among other specialty offerings. As part of the transaction, Ethos shareholders will commit a significant portion of their investment into stock in NVA. In addition, NVA announced a $10 million contribution to Ethos Discovery, a non-profit science and medical incubator designed to improve diagnostic and therapeutic treatment for complex medical conditions, including cancer research.. (, Businesswire)
  • whiskerDocs announced that the U.S. Patent and Trademark Office (USPTO) granted a trademark for whiskerBot, its pet virtual care technology. whiskerBot is a web-based “smart” chat with additional messaging support for SMS/MMS that provides seamless switching between live veterinary team interaction and whiskerBot. (company press release)
  • Target announced it has launched kindfull, a proprietary brand of cat and dog food. The line includes wet and dry food, treats and toppers at an affordable price point. (Globalpets)
  • JBS S.A. announced an offer letter to Pilgrim’s Pride Corporation for the acquisition of all outstanding common shares issued by PPC for the price of $26.50 per share. The purpose of the estimated $1 billion transaction is to delist the company from being publicly traded. JBS currently holds 80.21% of PPC’s shares through its subsidiaries after becoming the majority owner in 2009. (Feedstuffs)
  • UK Virbac has launched a new pet food business model in the UK.  When pet owners buy Virbac’s Veterinary HPM dog and cat food from the company’s new web store for home delivery, a commission is paid to the practice. (
  • EU Private equity firm Hellman & Friedman announced it has acquired Zooplus for EUR 3 billion ($3.5 billion). The purchase price represents a value of EUR 390 per share in cash, a 40% premium to its share price before the announcement. (Globalpets)



  • WORLD – ASF Although incidences of African Swine Fever were lower in China during the first half of this year, there has been a global increase. While China reported a 7% decline with 1,000 cases detected, worldwide ASF cases grew by 10.4% to 213,401. Region-wise, Europe recorded 205,146 cases in first half of 2021 – the highest across world – followed by Africa (4,388), Asia (2,934) and the Americas (933). (IHS Markit Connect)
  • US – LEGISLATION The U.S. Senate unanimously passed the Puppies Assisting Wounded Service members (PAWS) for Veterans Therapy Act, bipartisan legislation that authorizes the Secretary of Veterans Affairs to create a pilot program on dog training therapy based on the promising “train the trainer model,” that will provide dog-training skills and service dogs to veterans with mental illnesses, regardless of whether or not they have mobility issues. Click here to read the bill. (
  • INDIA – BOVINE RESEARCH A group of scientists have identified a marker gene, christened ATP1A1, for heat tolerance in cattle. The research was part of a collaborative study by a multidisciplinary team of researchers from Kerala Veterinary and Animal Sciences University (KVASU), the United Kingdom, Saudi Arabia, and Australia. The findings were published in the Swiss journal (
  • US – DCM RESEARCH Researchers at Tufts University have identified 30 suspect compounds in commercial dog foods potentially linked to the development of dilated cardiomyopathy. The ingredient most strongly associated with those compounds was peas. The researchers caution that the new findings may be a “piece of the puzzle,” but other factors – like genetics – could also be part of the cause. (Vet Advantage – NBC News)


Many companies are deep into planning for 2022, and dealing with a marketplace significantly disrupted by the pandemic for more than a year.  The data doesn’t look like it has in past years.  Some news reports create blind alleys.  For example, there have been many reports of “pandemic puppies” and increased pet adoptions.  Yet adoptions from shelters were actually down significantly in the past year.

When writing business plans, we think it’s always wise to take the long view.  To that end, we have decades of data on sales of flea, tick and heartworm medications, pain management, equine products, sales force performance, and many other topics.  The annual Brakke Industry Overview, which can be tailored to your markets, can provide baseline business insights into long term trends.  Some companies have a us present it to their strategy teams when  planning gets underway.  And if you’re introducing a new product or wrestling with a sticky decision, our market research capabilities and large-scale proprietary panel of practicing veterinarians can provide actionable data on a quick turn-around basis.

This year it will be even more important to separate the signal from the noise.  Let us help.

John Volk


Last week we asked what impact you felt the Delta variant of SARSCoV-2  (COVID-19) would have on the veterinary industry.  Although 28% believe it will have little or no impact, the vast majority (72%)  believe the impact will be significant – from difficulty staffing clinics to potentially more lockdowns and economic loss.

This week

This week, we turn the focus to you.  Many organizations are wrestling with the remote v. in-person decision.  What is your employer’s current position?

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