Animal Health News & Notes for August 4, 2023

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Brakke Consulting’s
Animal Health News & Notes for August 4, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Animal Health Jobs

Earnings News
Boehringer Ingelheim
Central Garden & Pet
Hill’s
IDEXX
Merck
Nestle SA
PetMed Express
Swedencare

Other News
Animalcare Group
Argenta
Arm & Hammer
The Bridge Club
Cronus Pharma
HelloFresh
Inspire Veterinary Partners
Kane Biotech
KineticVet
MWI
OneCup AI
Prelude
Trupanion
Veterinary Service, Inc.
VetriScience
Zoetis
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ANIMAL HEALTH JOBS
We are pleased to announce the release of the results from the Third Annual Animal Health Jobs Candidate Attitudinal Survey. This comprehensive survey revisited questions that were posed in 2021 and 2022, aiming to gain deeper insights into job seekers’ attitudes towards the animal health industry, individual companies, and the future of the industry.

The survey responses were carefully evaluated across various demographics, including gender, job level, and years of experience, to provide a comprehensive understanding of the industry’s current state and trends.

We are happy to share that the overall view of the animal health industry remains incredibly positive, consistent with the results from previous years. Once again, respondents expressed a general sense of satisfaction with their jobs and their respective companies. This “stickiness” phenomenon observed in the animal health industry continues to be a significant characteristic, with professionals showing strong loyalty and dedication to their roles.

To view our full whitepaper, click here.

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EARNINGS NEWS RELEASES

• Merck announced financial results for the second quarter of 2023. Animal Health revenues were $1,456 million, a decline of 1% (+2% currency adjusted). (company press release)
• Boehringer Ingelheim reported results for the first six months of 2023. Animal Health sales increased 3.8% (currency-adjusted) to EUR 2.5 billion. (company press release)
• IDEXX Laboratories, Inc. announced second quarter results. Revenues were $944 million, an increase of 10% (10% organic). Net income was $224.2 million, compared to net income of $132.0 million in the prior-year quarter. Companion Animal Group (“CAG”) revenue was $867 million, an increase of 11%. (company press release)
• Colgate-Palmolive Company reported results for second quarter 2023. Net sales for Hill’s Pet Nutrition were $1,056 million, an increase of 16%. Operating profit was $191 million, a decline of 10%. (company press release)
• Nestle SA reported results for the first six months of 2023. PetCare sales were CHF 9,373 million ($10.8 billion), an increase of 9% (real internal growth of 2.9%). Underlying trading operating profit was CHF 1,959 million ($2.26 billion), an increase of 20%. (company website)
• Swedencare reported results for the second quarter of 2023. Net revenue was SEK 572.1 million ($54.5M), up 21% from the prior-year quarter. Net profit was SEK 43.9 million ($4.2M), a decline of 27%. (Globalpets)
• PetMed Express, Inc. announced its financial results for its first quarter ended June 30, 2023. Net sales were $78.2 million, an increase of 11.5% compared to the prior-year quarter. Net loss for the quarter was $(0.9) million, including $1.1 million of acquisition related costs (of PetCareRx) expensed in the quarter; compared to net income of $2.8 million for the prior year quarter. (Globenewswire)
• Central Garden & Pet Company announced its third quarter fiscal 2023 financial results for the period ended June 24, 2023. Net sales for the Pet segment of $503 million were essentially flat compared to $505 million in the prior year. (company press release)

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COMPANY NEWS RELEASES

• Zoetis announced it is introducing Valcor, the first approved dual-active endectocide available by prescription, to the beef and dairy industry. The product contains doramectin (Dectomax) and levamisole, and addressed 35 internal and external parasites – including various growth stages. (com)
• Veterinary Service, Inc. announced it has acquired MWI Animal Health‘s poultry business. VSI obtained three poultry locations, enabling VSI to now service all of the poultry operations east of the Rockies. Financial terms were not disclosed. (WattAgNet – subscription)
• The FDA announced approvals for Cronus Pharma‘s Cropamezole (generic atipamezole) for use in dogs and DexmedVet (generic dexmedetomidine) for use in dogs and cats. (FDA)
• VetriScience Laboratories announced the launch of Renal essentials Pro Liquid advanced kidney support for cats. (company announcement)
• KineticVet announced the immediate availability of EquiShield CK HC Spray for horses, dogs and cats. EquiShield CK HC is formulated with Chlorhexidine for antiseptic activity, Ketoconazole for antifungal activity, and Hydrocortisone for anti-inflammatory benefits. (company press release)
• Kane Biotech announced that it has engaged Research Capital Corporation as Kane’s exclusive financial advisor to conduct a strategic review process for its STEM Animal Health business division (“STEM”), formed in partnership with Animalcare Group plc. Kane is considering a variety of strategic alternatives to maximize shareholder value with regards to STEM. Kane Biotech Inc. also announced its intention to undertake a non-brokered private placement offering of up to 6,250,000 units of the Company at a price of $0.08 per Unit for gross proceeds of up to $500,000. (company press release, company press release)
• Trupanion, Inc. announced that following a series of newly signed agreements, it now has partnerships with more than 60 of the 100+ multilocation veterinary hospital groups in North America. (company press release)
• Argenta and Prelude announced a strategic new enterprise partnership. With this partnership, Argenta will have available the entire suite of Prelude’s data management products as well as increased technical support and training on new products and features. (company press release)
• Arm & Hammer Animal and Food Production announced an expansion into the companion animal nutrition business. Leading their expansion is the introduction of A-Max, a proven yeast strain of Saccharomyces cerevisiae, which offers a reliable, quality yeast culture easily incorporated into animals’ diets to meet specific needs. (Feedstuffs – subscription)
• HelloFresh, the prepared meal-kit company, announced the launch of The Pets Table a premium pet food brand with human-grade, fresh and air-dried recipes for dogs. Customers can pick from four plans, such as fresh, air-dried, mixed and half fresh, all tailored to meet the caloric needs of a customer’s dog. (Axios – subscription)
• Inspire Veterinary Partners (IVP) announced it has filed for 6,247,915 share IPO at $4-$6 per share. Up to 4,747,915 shares may be offered for resale or otherwise or otherwise disposed of by each stockholder named in the prospectus and 1,500,000 shares are being sold by the Company on a firm commitment underwritten basis. (investing.com)
• OneCup AI has designed an artificial intelligence (AI) technology for cattle producers using computer vision, named BETSY, which stands for Bovine Expert Tracking and Surveillance. Once the animal is detected, BETSY identifies different behaviors and what is going on with the animal and alerts the producer. The user interface is an easy-to-understand system that gives the producer information graphical and visually along with alerts. OneCup AI worked closely with the Canadian Angus Association to identify hooves, claws, udders and teats as the highest importance phenotypes. (Beef Magazine)
• The Bridge Club announced it is expanding its reach to the UK with the first ever Bright Minds UK awards to honor the greatest minds in the UK in partnership with the London Vet Show, VetCT, and IDEXX. (company press release)

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K-STATE OLATHE
Professional Development and Academic Programs & Webinars

CRO Selection, Evaluation and Relationship Management in Human and Animal Health, 8:30 a.m. on Aug. 30 — Selecting the right CRO for your organization is critical in the success of product development. Managing the relationship and ensuring regulatory compliance can be a challenge. Our experts and participants will discuss best practices to avoid GLP pitfalls, submission requirements and the CRO relationship. | Register now 

Advanced Pharmaceuticals, Sept. 20-21 — The U.S. Food and Drug Administration’s Center for Veterinary Medicine, or FDA CVM, is responsible for the approval of veterinary drug products intended for both family pets and food-producing animals. This workshop on veterinary medicine regulations will provide attendees with a detailed, practical and experienced based review of veterinary drug approval processes. | Register now 

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• US – FEDERAL FEES The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) is announcing a final rule to amend its user fee regulations for veterinary diagnostic services and certain import- and export-related services. The rule revision introduces a notice-based process for setting fee rates that shortens the time required to update user fees and increases transparency around how fees are set. APHIS will now publish a notice annually in the Federal Register listing the proposed fees and inviting public comment. APHIS will review and address any comments received on the notice and publish a subsequent notice with the final rates on APHIS’ user fees web page. (USDA)
• US – ANTIMICROBIAL USE The FDA has opened a docket to seek public comment on a report outlining a potential framework for establishing a public-private partnership (PPP) to collect and analyze antimicrobial use (AMU) data from food-producing animals. The report was prepared for the FDA by the Reagan-Udall Foundation (the Foundation) and summarizes the work completed over a multi-year cooperative agreement funded by the FDA. The FDA is accepting public comments on the latest report through October 31, 2023. (FDA)
• US – PET FOOD GUIDELINES At its 2023 Annual Meeting, membership of the Association of American Feed Control Officials (AAFCO) approved new dog and cat food label guidelines. The vote marks the culmination of a yearslong initiative, dubbed pet food label modernization or PFLM, to provide consistency and transparency for consumers. The revised Model Regulations for Pet Food and Specialty Pet Food will include new standards for nutrition information, ingredient statements, and storage and handling instructions. Major changes include the introduction of a new Pet Nutrition Facts Box, which has been restructured to more closely resemble human food labels, as well as a new standard for the intended use statement. (Petfoodprocessing – subscription)
• SWEDEN – EQUINE RESEARCH Horses with a high level of BGN262, a peptide associated with bone deterioration, in their saliva might be at high risk for osteoarthritis and catastrophic bone fractures, according to veterinary researchers at the Swedish University of Agricultural Science. The researchers are developing a point-of-care assay that could enable early treatment for osteoarthritis and prevent training and racing injuries. (AVMA SmartBrief – TheHorse)

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BRAKKE CONSULTING VIEWPOINT
Pet owners like to shop around…and that’s ok.

One of the leading big box retailers recently studied shopping habits of customers who regularly purchase pet products and discovered there seems to be no “one stop shop.”

For example, Ms. Jones buys toys, treats and grooming products at the big box retail store.

After seeing the daily commercial that runs during her favorite tv show, Ms. Jones enrolled in an online Auto-Ship program offered by popular website so she can have large bags of dog food and cat litter shipped right to her door.  She likes the discounted price, convenient next day delivery and not having to carry these heavy items home.

She buys cat food, treats and collars from the neighborhood pet specialty store because she likes the cat-friendly owners and wants to support local business.

Sometimes, she buys pet stuff at the grocery store if there’s a big sale.

Heartworm medicine, vaccines and any prescriptions are purchased from ABC Animal Hospital because Ms. Jones has taken her pets to Dr. Smith for decades and trusts his staff will help with any questions or issues.

Today’s pet parents tend to buy products from a variety of places based on many factors including individual preferences, generational group, income level, type of pet and product category, among others.

In short, there may be an omni-channel mega-store offering “all pet services and products under one roof” and people will continue buy the pet products they want from all the places they like based on a plethora of personal preferences.

Richard Hayworth

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YOUR VIEW
Last week’s question asked, “How will the financial results for the rest of the year look for the animal health industry?”  Results spanned the gamut: 38% responded the second half will be stronger than the first half; 26% replied the second half will be weaker; and 36% believe the second half will be the same.

This week
Does your veterinarian actively promote home delivery for medications, food and other products?