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Brakke Consulting’s
Animal Health News & Notes for August 25, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Animal Health Jobs
Earnings News
Petco
Other News
AF Ventures
Align Ventures
Arrow Reliance
Aspiritech
BetterVet
BiomEdit
Bitwerx
CAVU Consumer Partners
Cresilon
CVS Group
GlobalVetLink
Hippo Manager Software
Jinx
Merchant Club
Nationwide
Native Pet
Penn Veterinary Supply
Select Sires
STgen
TARGAN
Vetster
VetVerifi
Wayne-Sanderson Farms
Zoetis
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Southwest Veterinary Symposium – SWVS 2023
San Antonio, Texas – Henry B. Gonzalez Convention Center
September 21-24, 2023
Join us to celebrate our 20th Anniversary!
Registration is OPEN! Southwest Veterinary Symposium — a partnership of the Arkansas, Louisiana, New Mexico, Oklahoma, and Texas Veterinary Medicine Associations which provides continuing education for veterinary professionals. Join us this September in Fort Worth, Texas, where you can learn about the latest innovations and products while exploring our exhibit hall, network with other veterinary professionals, and choose from more than 400+ hours of quality CE/RACE-approved sessions.
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EARNINGS NEWS RELEASES
- Petco Health and Wellness Company, Inc. announced its second quarter 2023 financial results. Net revenue was $1.53 billion, up 3% versus prior year. The company’s consumables business was up 7%, and services and other business was up 31%. Net loss was $(14.6) million, compared to net income of $13.5 million in the prior year. (company press release)
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COMPANY NEWS RELEASES
- Zoetis announced the opening of a 78,000 sq. ft. building in North Carolina dedicated to diagnostics and biodevices research and development. The expanded site will serve as the hub for Zoetis’ engineering and diagnostics work including device reliability testing. (Businesswire)
- Cresilon announced it has entered into a distribution agreement for its hemostatic gel, Vetigel, to be sold directly to veterinarians through Penn Veterinary Supply. (PRnewswire)
- The FDA has issued a cautionary advisory to consumers, urging them not to feed their pets specific lots of raw cat food and dog food produced by Arrow Reliance’s brand, Darwin’s Natural Pet Products. The agency’s move comes after samples from the affected lots tested positive for Salmonella contamination. The FDA issued a similar advisory a year ago after product samples from certain lots of Darwin’s Natural Pet Products raw cat food were found to be tainted with Salmonella. (Food Safety News)
- Dog-food startup Jinx has raised $17 million in its latest funding round led by the Merchant Club and joined by Align Ventures and AF Ventures. (BNN Bloomberg)
- Supplement company Native Pet announced it has closed $11 million in Series B funding led by CAVU Consumer Partners. (Pet Business)
- BiomEdit announced a partnership with the Indiana Biosciences Research Institute (IBRI) to develop new approaches for keeping cats safe and healthy through study of the animal’s microbiome, or microorganisms found in the gut. (com – subscription)
- TARGAN and Wayne-Sanderson Farms announced a multi-year agreement for the integration of TARGAN artificial intelligence (AI) poultry systems in various Wayne-Sanderson Farms’ broiler hatcheries across the United States. (Feedstuffs – subscription)
- Select Sires and Inguran LLC (dba STgen) have signed a letter of intent to combine Select Sires Inc.’s and STgen’s production, research and development functions into a new company. The two brands will remain independent. Financial terms were not disclosed. (Feedstuffs – subscription)
- Nationwide introduced a new insurance offering designed to allow pet owners to customize each coverage category to meet the needs of their pet. The modular design of the product, which is now available online, enables members to dial up or dial down the coverage type most important to them. (Vet Advantage)
- GlobalVetLink and BetterVet announced a partnership to help pet owners to receive the required International Health Certificates for traveling abroad with their pets. BetterVet mobile veterinarians are using the GlobalVetLink Compliance Assistant Pet TravelPass feature to automate the creation of USDA-required documentation for pet travel. (com)
- Vetster announced the launch of its latest feature: seamless medical record sharing from pet owners to their brick-and-mortar clinic. (PRweb)
- Hippo Manager Software announced a strategic partnership with Aspiritech, an organization specializing in software testing and quality assurance. (company press release)
- VetVerifi I, a data solutions provider for the pet care economy, and Bitwerx, Inc., a veterinary software company, announced their strategic investment and partnership. (Newswire)
- AUSTRALIA CVS Group announced its expansion into Australia with 4 separate agreements for 6 veterinary practice site locations in Brisbane, Queensland and Sydney. (Globalpets)
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ANIMAL HEATH JOBS
With today’s tight competition for top animal health talent, you need every advantage to attract the best people. There’s a reason Animal Health Jobs is the premier job board for the animal health and animal nutrition industry. With our tiered packages, you choose the level of service that’s right for your company.
We accept roles across animal health, in marketing, business development, communications, technical services, sales, R&D and more. Whether you need a cat, dog, horse, pig, cow or poultry person, you’ll find the best ones here. If you need top talent, there’s no time to wait, visit Animal Health jobs and Register your company or contact Amanda McDavid at amanda@animalhealthjobs.com
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- WORLD – ONE HEALTH The G20 Pandemic Fund’s Governing Board approved grants under its first round of funding allocations aimed to boost the resilience to future pandemics in 37 countries across six regions. The selected projects will receive funding to strengthen disease surveillance and early warning, laboratory systems, and health workforce. Established in September 2022, the Pandemic Fund is the first multilateral financing mechanism dedicated to providing multiyear grants to help low- and middle-income countries become better prepared for future pandemics. The Fund, which is hosted by the World Bank, has already raised $2 billion in seed capital from 25 sovereign and philanthropic contributors. (org)
- KOREA – VET ACCREDITING The American Animal Hospital Association (AAHA) and the Korean Veterinary Medical Association (KVMA) jointly announced a licensing agreement to accredit veterinary clinics throughout South Korea. (com)
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BRAKKE CONSULTING VIEWPOINT
During the PetVet Expo 2023, held in August in the city of São Paulo, Brazil, the SINDAN (National Syndicate of the Animal Health Products Industry) held the event Pet Talks – the future of the pet market, which I had the pleasure of attending.
During the event, Professor Robson Gonçalves from FGV (Fundação Getulio Vargas) presented data on the evolution of the economic index Participation in the Family Budget (POF) that measures spending on food, veterinary services and hygiene services by Brazilian families that own dogs and cats. The data shown were obtained through the analysis of public data from IBGE (Brazilian Institute of Geography and Statistics).
The data showed that the food industry managed to recoup its prices, above the inflation of the post-covid period, but the same did not happen with the sector of veterinary and hygiene services, these have been suffering with a significant reduction in the family budget, losing to inflation. Professor Robson pointed out that if the participation of the 3 segments in 2017-2018 had been maintained in 2023, Brazilian families would spend an additional R$7.5 billion annually for the year 2023. We hope that this market growth opportunity for veterinary and hygiene services will be resumed in the near future.
One last number to share with you is about the dog population in Brazil, today estimated at 61 million, and cats 30 million. Growth between 2021 and 2023 of 5.2% in the dog population, and 9.5% in the cat population.
Mauri Ronan Moreira
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YOUR VIEW
Last week, we asked what time horizon you use for developing business or strategic plans. 39% said 3-5 years, 32% said 1-2 years, 13% said next fiscal or calendar year, 6% said next quarter, and 10% said even next week can be a challenge.
This week
For this week’s question, let’s focus (again) on the intersection of retail and companion animal veterinary care. In the 2nd Quarter Earnings call, Petco announced that across their business, they saw a 2% growth in brick-and-mortar growth and 9% digital growth, which added up to their 3% growth overall. In the Q&A session, we learned that they plan to have 300 veterinary clinics operating by the end of the year and that in stores with vet clinics, they see a 4-5% sales lift on the rest of the store. Finally, in the 2nd quarter alone, they brought in 364 vets into their ecosystem, up 59% YOY. They seem happy with their business model right now.
Petco also announced in the earnings call how many vet customers that are new to Petco. Was it..
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