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Brakke Consulting’s
Animal Health News & Notes for August 28, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Mid-year Overview Webinar – today at 11:00am EDT- still time to register!
COVID-19: Impact on Pet Care – final report now available
Earnings News
M. Smucker
Phibro
zooplus
Other News
AdvaVet
Animal Supply Company (Phillips)
Animal Supply Company (investment)
Bionote USA
Boehringer Ingelheim
CryoPDP
Cryoport
The Dodo
MVE Biological Solutions
Nulo
Oasmia Pharmaceutical
Petco
Phillips Pet Food & Supplies
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BRAKKE CONSULTING
The 2020 Midyear Industry Overview Webinar
Date: August 28, 2020
Time: 11:00 am – 12:30 pm EDT
THERE’S STILL TIME TO SIGN UP!
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 The presentation will include new, unpublished data tracking the impact of COVID-19 on pet care as owners have weathered upheaval in their daily lives, plus some fascinating data on the performance of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 here
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COMPANY EARNINGS RELEASES
- Phibro Animal Health Corporation announced financial results for its fiscal year ended June 30, 2020. Net sales for the year were $800 million, a decrease of 3% from the prior year. Net income was $34 million, a decrease of 39% year-over-year. Animal Health division net sales were $527 million for the year, a decrease of 1% year-over-year. (company press release)
- The M. Smucker Company announced results for the first quarter ended July 31, 2020, of its 2021 fiscal year. Net sales for the US Retail Pet Foods segment were $693 million, a 3% increase compared to the prior-year period. Segment profit was $125 million, an increase of 4%. (company website)
- zooplus AG, Europe’s leading online retailer of pet supplies, reported results for the first half of 2020. Sales increased 19% to EUR 862 million ($1,017 million). EBITDA was EUR 29.4 million ($35 million) in H1 2020 compared to EUR 4.5 million in the first half of 2019. (Pets International)
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BRAKKE CONSULTING
COVID-19: IMPACT ON PET CARE – final report now available
HOW HAVE PET OWNERS CHANGED THEIR PURCHASING?
The pandemic that struck the US and the rest of the world in early 2020 is an event that has altered personal lives and business operations unlike any other event. What lasting impacts will the pandemic have on pet owners regarding the way they purchase pet medications and veterinary services?
“COVID-19: Impact on Pet Care” is a new study by Brakke Consulting that helps answer this question. The study is based on online surveys of a nationally representative sample of 1,000 pet owners, conducted roughly every six weeks beginning in early May. The study not only documents the financial impact of the COVID-19 pandemic on pet owners, it also shows the change in how pet owners were able to receive care for their pets at veterinary clinics. Furthermore, it shows how pet owner purchasing behaviors for pet medications and pet food changed during the stay-at-home orders.
The study delivers 3 reports, roughly 6 weeks apart, beginning in May; the final report in the series is now available. The cost of the study is $17,500. For more information, contact John Volk at john@volkonline.com .
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COMPANY NEWS RELEASES
- Boehringer Ingelheim introduced a new presentation of Prozinc (protamine zinc recombinant human insulin) with once-daily dosing in most canine diabetic patients. A single injection can provide consistent and reliable control of clinical signs for 18 to >24 hours in most canine patients. (company press release)
- Bionote USA announced the launch of cNT-proBNP, the first and only in-clinic, in vitro diagnostic test kit for the quantitative measurement of NT-proBNP concentration in canine serum, to its Vcheck product line. (company press release)
- Oasmia Pharmaceutical is assessing strategic options for its animal health business, including partnering, licensing and divestment of its animal health pipeline, which features two under-development companion animal oncology drugs. The firm previously created US-based subsidiary AdvaVet to focus on the development of Doxophos Vet (doxorubicin) and Paccal Vet (paclitaxel), which are based on Oasmia’s XR-17 nanotechnology-based formulation system and are both in clinical trials. (IHS Markit Connect)
- Phillips Pet Food & Supplies and Animal Supply Co., have terminated a plan to merge. The distributors had reached an Agreement and Plan of Merger earlier this year and announced a plan to combine the two companies in February. According to the companies, the economic uncertainties caused by the COVID-19 pandemic have made it difficult to close on many business transactions in the US, including this merger of Phillips and ASC. (Pet Product News)
- Animal Supply Company (ASC) announced that a group of its existing institutional investors have provided over $40 million of capital for the Company and acquired equity to position ASC for continued growth. (Pets International)
- Nulo announced the launch of Nulo Hydrate, a flavored water enhancer for dogs to maintain hydration. (Pet Product News)
- Cryoport announced two acquisitions: MVE Biological Solutions, acquired from Chart Industries for $320 million in cash; and French firm CryoPDP in an all-cash transaction valued at approximately EUR 49 million ($58 million). Cryoport specializes in temperature-controlled supply chain solutions for the biopharmaceutical, reproductive medicine and animal health markets, and said both deals will help expand its business in the animal health space. (IHS Markit Connect)
- The Dodo, an online media brand focused on animal content, announced it is launching a new pet health and wellness destination, DodoWell, which will debut with Petco as its exclusive launch sponsor. DodoWell spotlights pet wellness resources, community-first features, curated pet product picks and expert advice from friends of The Dodo. The Dodo’s video content amasses more than 4.6 billion views every month, according to officials. (Pet Product News)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – ANTIMICROBIAL RESISTANCE The American Veterinary Medical Association (AVMA) announced the release of the inaugural report “Antimicrobial Resistant Pathogens Affecting Animal Health in the United States.” AVMA said the report is the first to describe the current status of antimicrobial-resistant bacteria affecting various animal species in the U.S. For more information, click here. (Association press release)
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BRAKKE CONSULTING VIEWPOINT
Dear Friends,
I’m pleased to be writing my first newsletter summary for Brakke Consulting.
This is a week of limited news, as August draws to a close. Recent articles such as the New York Times overview of the robust vet clinic traffic during the pandemic make clear that our industry continues to prosper in most areas, although results are certainly more volatile than “normal” (do you remember normal?). Inside the offices of most industry suppliers, the next weeks will be consumed with two key topics; how to make the best of the remainder of 2020, and how do we plan for 2021 and the next several years? Planning will be much more difficult than years past, although those companies who have stayed steady in 2020 have learned a lot about agility and uncertainty. Those traits will serve them well in the days until the pandemic has passed!
As an industry we all need to adapt and change. As much as we are accustomed to in person gatherings, this coming week will bring us the Digital Animal Health Summit, the 2020 successor to the annual events of the Kansas City Animal Health Corridor. Even virtually, there is real value in gathering as an industry to help each other process the changes and exchange our ideas on the future. I look forward to “seeing” you at the Summit, and at the 2020 Brakke Mid-Year Virtual Overview as well. Have a great week!
Jim Kroman
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YOUR VIEW
Last week we asked “Once an FDA-approved vaccine for SARS-CoV-2 is available, should schools require it for attendance?” 52% of you agreed that the vaccine should be required, and another 20% thought it should be required, but with exemptions for religious or other reasons. 11% of you were unsure, and 17% said no vaccine should be required to attend school.
This week
This week let’s think about how well our companies have adapted to doing business and being successful during the pandemic.
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