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Brakke Consulting’s
Animal Health News & Notes for August 23, 2024
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Transaction Insights Seminar – now virtual!
Earnings News
Petz Group
Other News
Adisseo
Advent International
Affordable Pet Labs
Akston Biosciences
Allozymes
Apollo Insurance
Companion Protect
Dogtopia
dsm-firmenich
Elanco – Credelio Quattro
Elanco – plant expansion
Energesis Pharmaceuticals
Hound
Inspire Veterinary Partners
Jorgensen Laboratories
Kinship
Merck
Midwest Veterinary Supply
The Nutriment Company
Optiscan
Parasight System
Pet Treats Wholesale
PetHub
Petline Insurance Company
QSM Diagnostics
Seek Pet Food
The Veterinary Cooperative
Vetlabs
Vetlexicon
Vetsource
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Brakke Consulting
Transaction Insights: Unlocking the Secrets to Successful Business Deals in Animal Health
Now a three-session virtual event beginning September 25, 2024
Are you seeking to navigate the complex landscape of buying and selling businesses or technology in the animal health and nutrition industry? Given the success of last year’s relaunch, we are excited to announce our educational transaction seminar for 2024, 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. This comprehensive seminar is designed to equip you with the knowledge, tools, and strategies to make informed decisions and to successfully manage a transaction in the animal health industry. Presenters include Senior Brakke Consultants Jim Kroman, Paul Casady, and Randy Freides.
The format now is virtual (Zoom) and will be held over three days, September 25th, October 2nd and October 16th. Each session will start at 1 pm ET and last 2 hours, followed by 30 minutes of questions, answers and discussions. Each session will be recorded in case you are unable to attend.
To view the event agenda, click here. To register, click here. Sign up by September 13th to receive our discount price of $1,000. Registration after July 26 will be $1,200. For more information, contact Amanda McDavid at amcdavid@brakkeconsulting.com or 336.396.3916.
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EARNINGS NEWS RELEASES
- Brazilian retailer Petz Group announced results for the second quarter of 2024. Gross revenue was R$981 million ($180M), a 4% increase compared to the same period in 2023. (Globalpets)
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COMPANY NEWS RELEASES
- Elanco Animal Health Incorporated announced the FDA has completed its review of all major and minor technical sections for Credelio Quattro, and the final 60-day administrative review is underway. Elanco anticipates launching the product in the first quarter of 2025. (company press release)
- Elanco Animal Health announced plans for a $130 million investment through the end of 2026 to expand and renovate its existing manufacturing facility in Elwood, Kansas. Elanco’s Elwood site currently manufactures and ships its Canine Parvovirus Monoclonal Antibody (CPMA) and will be the flagship location for Elanco’s future monoclonal antibody manufacturing. (kcanimalhealth.thinkkc.com)
- Jorgensen Laboratories, LLC, announced the acquisition of all assets of Vetlabs, also known as Southeast Vetlabs. This acquisition enhances Jorgensen Labs’ product portfolio with several unique products, including the chromogenic specialty media plates for uterine culture in mares. Financial terms were not disclosed. (company press release)
- Akston Biosciences Corporation and Energesis Pharmaceuticals, Inc., a human biopharmaceutical company, announced a strategic partnership to treat obesity in companion animals. In the partnership, Akston has received an exclusive option to license Energesis’ biologic brown adipose tissue (BAT) recruitment therapy for companion animals and will serve as a Contract Development and Manufacturing Organization (CDMO) to further develop and produce the therapeutic. (company press release)
- QSM Diagnostics announced a distribution agreement with Vetsource, a leading online pharmacy, technology and data services platform. (company press release)
- Parasight System , offering diagnostics based on its patented sample preparation process and staining of ova and parasites, announced it has partnered with Midwest Veterinary Supply to expand its products and services nationwide. (company press release)
- Optiscan announced it has signed a Memorandum of Understanding (MOU) with University of Minnesota College of Veterinary Medicine to trial clinical applications and develop clinical data around using the company’s digital confocal laser endomicroscopic imaging system in animal care to support FDA clearance of platform for use in veterinary medicine. The partnership will have an initial focus on cancer research in companion animals. (com.au)
- Affordable Pet Labs is excited to announce the launch of its innovative Partnering with Practitioners (PWP) program, offering a comprehensive, end-to-end diagnostic service that integrates seamlessly with existing practice operations. (com)
- Allozymes announced it has entered into a strategic partnership with Adisseo to develop bioprocesses for animal feed ingredient production. Allozymes will design and optimize enzymes specifically tailored to Adisseo’s production needs; the partnership will start by developing a novel environmentally friendly process for methionine. (Feedstrategy)
- Companion Protect, a pet insurance and animal wellness company, announced it has secured $20.25 million in a Series A extension round led by venture capital firms Avanta Ventures, Liberty Mutual Insurance, Old Republic International Corporation and Stray Dog Enterprises. (Globalpets)
- Inspire Veterinary Partners, Inc. announced plans to accelerate its growth through acquisitions of single and multi-unit providers, broadening its service offerings, and enhancing business operations and consumer engagement by implementing Artificial Intelligence (AI) tools. (com)
- Vetlexicon announced the launch of its newest feature, ‘My Notes’ which comes included in a Vetlexicon subscription. This feature empowers subscribers to record personal notes, fosters reflective learning and seamlessly enables them to provide proof of reflective learning to regulators such as the Royal College of Veterinary Surgeons in the UK. (company press release)
- PetHub, Inc. and Kinship announced the launch of a post-adoption support pilot program at multiple animal shelters across the US, offering 24/7 access to vet support, digital pet loss prevention services and tools, and expert resources. (Vet Advantage)
- The Veterinary Cooperative (TVC) announced a new partnership with Hound, a nationwide leader in veterinary staffing, retention, and employee engagement technology. Hound has a network of over 20,000 registered job seekers and relief professionals and a technology-driven approach to staffing and team retention. (com)
- Dogtopia announced the launch of its new virtual world with Obsess, an AI-powered interactive tool creating the next-generation online shopping interface. The virtual world provides a convenient way for pet parents to learn more about Dogtopia’s daycare, boarding and spa offerings and how they help dogs live long, healthy and happy lives. (Pet Business)
- UK Merck Animal Health announced it has received Veterinary Medicines Directorate (VMD) approval for Bovilis Cryptium, the first vaccine in Great Britain indicated for active immunisation of pregnant heifers and cows to raise antibodies in colostrum against Gp40 of Cryptosporidium parvum. (com)
- UK The Nutriment Company (TNC) has made its third UK acquisition of the year after purchasing Pet Treats Wholesale, a UK-based manufacturer of natural dog treats and chews. The British manufacturer offers 150 products and has previously supplied TNC. Financial terms were not disclosed. (Globalpets)
- CANADA dsm-firmenich Animal Nutrition and Health announced the Canadian Food Inspection Agency (CFIA) has approved a novel enzyme, fumonisin esterase, to help swine and poultry producers manage mycotoxins in feed. dsm-firmenich will offer a new product which includes the fumonisin esterase called Mycofix FUMzyme for use in swine and poultry diets in Canada. According to the company it will be the first product ever to be approved for degrading fumonisins in feed in the Canadian market. (Feedstuffs)
- CHINA Advent International, a private equity investor, announced its investment in Seek Pet Food, a third-party manufacturer of pet food in China. Advent will work alongside Seek’s founder and current shareholder Boyu Capital to accelerate Seek’s growth in China’s fast growing pet food market. (Petfood Processing)
- CANADA Apollo Insurance, a Canadian digital insurance solutions provider, has partnered with Petsecure (offered by Petline Insurance Company). This collaboration will help deliver comprehensive pet insurance coverage through Apollo’s digital platform. (com)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – NONCOMPETES A federal court in Texas has issued a nationwide injunction blocking the Federal Trade Commission’s (FTC) rule that would have banned most non-compete clauses in employment contracts. The rule, which was set to take effect on September 4, 2024, was invalidated after the court found that the FTC had overstepped its authority and that the rule was arbitrary and capricious. As a result, the rule will not go into effect. (Veterinary Business Advisors)
- US – AVIAN INFLUENZA S. dairy, turkey, and egg industries have sent an urgent request to Agriculture Secretary Tom Vilsack for the USDA and its federal partners to support development of safe and effective H5Nx vaccinations for dairy cows, turkeys, and egg-laying hens to help mitigate the circulation of H5Nx in dairy herds and reduce the risk of spill-over of Highly Pathogenic Avian Influenza (HPAI) into commercial turkey flocks and egg layer operations. The groups stressed that vaccines must be economically feasible for farmers and operators and cannot be deployed without a comprehensive science-based approach that includes a distribution strategy; concurrent comprehensive risk assessments; and a validated, risk-based surveillance strategy that has been agreed upon by our international trading partners. (Feedstuffs)
- US – AVIAN INFLUENZA IN CATTLE The USDA announced that beginning in mid-September, it will expand bird-flu testing of beef entering the food supply as part of its response to the ongoing outbreak among dairy cattle, Nearly 200 herds in 13 U.S. states have contracted bird flu since March after the virus jumped from wild birds to cows, according to USDA data. (Vet Advantage)
- US – EQUINE GUIDELINES The American Association of Equine Practitioners (AAEP) issued revised Internal Parasite Control Guidelines to help minimize the risk of parasitic disease and maintain the effectiveness of current drugs for as long as possible by delaying further development of anthelmintic resistance. (AVMA)
- US – RABIES PREVENTION The USDA recently approved the release of nearly $19 million in emergency funding to address current wildlife rabies outbreaks in multiple states. This new infusion of funding will also allow USDA’s Animal and Plant Health Inspection Service (APHIS) to establish a sufficient stockpile of oral rabies vaccination (ORV) baits for future use and address emerging rabies cases in several high-risk areas where the virus may be more likely to spread. (AVMA SmartBrief- com)
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BRAKKE CONSULTING VIEWPOINT
I hope everyone had a nice summer and got to spend time with friends and family!
Last week I was in Vail for a few days and got back home at the end of the week in time to attend a rodeo in Eureka, Kansas. So you go from a place where people like to dress up like cowboys- to a place there are only real cowboys(and Cowgirls)!
What I admired most about the rodeo and its participants was their tenacity and unyielding ethic to perform and have fun.
It seems each year there is a big thunderstorm which they work around to pull off the evening. And this year was no difference.
As the first storm hit, the US flag was presented and we sang the Star Spangled Banner(nobody kneeled of course). Then it was fun time as all the events were held with rain and lightning all around. Now mind you at a college football game we have to leave the field for 30 minutes every time there is lightning nearby. Not with these folks!
Cowboys and Cowgirls carried on as impervious to the weather because there is no margin for the conducting the event, and of course anyone who willingly gets on a bull or horse who’s one objective is to throw you off- well, they certainly have an inherent high risk tolerance.
The rodeo competitors and the support staff are usually on the road full time, arrived earlier in the day, and as soon as they are finished- hit the road to the next location, sometimes driving all night. With muddy, wet clothes and sore joints, I am sure.
What I believe is the real story in all of this- is about how this group of people demonstrate every week a very positive way of how to deal with risk and combine it with a tremendous work ethic(and adrenaline). This high tolerance of risk, plus a duty to perform no matter what- is really what made America great. And we as a country need to find a way back to this in a big way.
Some examples of high risk and work ethic from our past include buildings structures like the Hoover Dam, or the San Francisco bridge, which in at that time only took 4-5 years to build(along with a cost of worker’s lives). Compare that to today – and we can use the example of the great California High Speed rail project – which began with a successful ballot in 2008. Construction began in 2015 and it is now estimated to be finished (if ever) in 2033. Wow.
In our nation’s workforce, while starting during COVID, the ‘Great Resignation’ and ‘quiet quitting’ are still plaguing today’s workplace environment. Is it any wonder that things just don’t seem to work, but costs continue to go up. Just go fly on any commercial airline to experience firsthand.
In my view, we must help reset our culture in work back to a penchant for high risk tolerance, along with a strong work ethic, to build a strong, growing economy and country. Each of us individually can reset the scale and help encourage and mentor the younger generations. This will bring innovation, high customer satisfaction, and a good feeling about what you do and what you have accomplished. Maybe then we would stop talking about DEI, man-made climate change, and other such vicissitudes.
How is it in your company? Do you have a strong culture of risk tolerance and willingness to accept the occasional failure? And are you really customer focused and committed to your job? Did you make one more sales call- or call it day at 4pm?
Paul Casady
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YOUR VIEW
Last week, we asked you how you think innovation in animal health has changed over the past 10 years. 58% of you think the industry is more innovative now; 24% say it’s less innovative; and 18% think it’s about the same.
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