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Brakke Consulting’s
Animal Health News & Notes for August 9, 2024
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Animal Health Jobs
Earnings News
Central Garden & Pet
Elanco
Freshpet
IDEXX
PetIQ
PetMed Express
Swedencare
Zoetis
Other News
Anivive Lifesciences
Bansk Group
Center Point Bio-Tech
CityVet
Elanco
GlobalVetLink
The Nutriment Company
Patterson
Paw Prosper
PetIQ
PETMAN
Petnow
Virbac
Walkin’ Pets
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Animal Health Jobs
Join Merck Animal Health: Be a Voice for Companion Animals
Are you passionate about making a difference in the lives of companion animals? Merck Animal Health is expanding our US sales team, and we’re looking for dedicated individuals to join us in our mission to enhance animal health and improve the lives of pets and their owners.
Why Join US?
- Impactful Work: You’ll play a crucial role in delivering cutting-edge products and services to veterinarians and pet owners, helping pets live longer, healthier lives.
- Collaborative Partnerships: Be the go-to partner for veterinary clinics, boarding facilities, and corporate accounts, providing comprehensive solutions with our diverse companion animal portfolio.
- Innovative Strategy: Lead customer strategy-related initiatives, contributing to visionary technical innovations that align with our commitment to advancing animal science.
If you are driven by a desire to contribute to the well-being of companion animals and want to be part of a sales team that is paving the way for progress, we invite you to join us. Together, let’s help make a lasting impact on the lives of companion animals!
Apply Now and become a part of something bigger. Together, we can make a real impact.
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EARNINGS NEWS RELEASES
- Zoetis reported its financial results for the second quarter of 2024. Revenue was $2.4 billion, an increase of 8% compared with the second quarter of 2023; on an operational basis, revenue increased 11%. Net income was $624 million, a decrease of 7% on a reported basis. Revenue in the U.S. segment was $1.3 billion, an increase of 12%. (company press release)
- Elanco Animal Health Incorporated reported financial results for the second quarter of 2024. Revenue was $1,184 million, an increase of 12% on a reported basis (+13% currency adjusted). Reported net loss was $(50) million, compared with net loss of $(97) million for the same period in 2023. (company press release)
- IDEXX Laboratories, Inc. reported results for the second quarter of 2024. Revenues were $1,004 million, an increase of 6% as reported and 7% organic growth. Net income was $203 million, a decline of 9%. (company press release)
- PetIQ, reported financial results for the second quarter ended June 30, 2024. Net sales were $329 million, an increase of 4.6%. Product segment net sales were $291 million, an increase of 4.7%. Services segment net sales were $37.7 million, an increase of 3.7%. Net income was $15.3 million, an increase of 51%. (company press release)
- Central Garden & Pet announced financial results for its fiscal 2024 third quarter ended June 29, 2024. Net sales for the Pet segment were $508 million, an increase of 1%; organic net sales decreased 2% excluding the impact of the TDBBS acquisition. Pet segment operating income was $83 million, an increase of 39%. (company website)
- Swedencare AB announced results for the second quarter of 2024. Net revenue was 630.5 MSEK ($60 million), an increase of 10%. Profit after tax was 20.9 MSEK ($2.0 million), an increase of 28%. (company website)
- PetMed Express, announced its financial results for its first quarter ended June 30, 2024. Net sales were $68 million, 13% lower than the prior year comparable quarter. Net income was $3.8 million compared to net loss of $(1.1) million for the prior year comparable quarter. Increase in net income is primarily attributed to a $8.7 million reversal of accumulated stock compensation expense associated with departure of the former CEO. (seekingalpha)
- Freshpet, Inc. reported financial results for the second quarter of 2024. Net sales were $235 million, an increase of 28%. Net loss was $(1.7) million, compared to the prior year period net loss of $(17.0) million. (seekingalpha)
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COMPANY NEWS RELEASES
- Elanco is facing a lawsuit accusing it of monopolizing the market for some flea and tick treatments, causing pet owners to pay higher prices for the company’s Advantix products. The proposed class action said Elanco was controlling the market by unfairly pressuring pet specialty retailers not to sell rival, generic versions of topical flea and tick treatments containing the insecticide Imidacloprid. (Reuters)
- PetIQ announced it has entered into a definitive agreement pursuant to which Bansk Group will acquire all of the outstanding shares of PetIQ’s common stock for $31.00 per share, in an all-cash transaction valued at approximately $1.5 billion. The Agreement represents a premium of approximately 41% to the 30-day volume-weighted average stock price as of August 6, 2024. (company press release)
- Anivive Lifesciences announced that the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health, has awarded Anivive a new contract worth up to $33 million to support the development of a vaccine against the fungus Coccidioides, which causes Valley Fever. Contract funding aims to utilize the underlying science in Anivive’s animal health Valley Fever vaccine for dogs, currently under review by USDA Center for Veterinary Biologics, to develop a similar vaccine for humans. (prnewswire)
- Center Point Bio-Tech, maker of the AlphaION point of care lab diagnostic platform, announced it has entered into a non-exclusive distribution agreement with Patterson Veterinary Supply. (EINnews)
- Paw Prosper announced it has acquired Walkin’ Pets, a provider of pet wheelchairs and mobility support products. Financial terms were not disclosed. (Pet Product News)
- GlobalVetLink announced a strategic partnership with CityVet. CityVet will integrate GVL’s compliance solutions, including the GVL Compliance Assistant and SmartCert Technology, into the workflow of their veterinary centers. (prnewswire)
- UK Virbac announced the UK launch of Cortotic, a corticosteroid-only treatment for the clinical signs associated with canine otitis externa, without an antimicrobial. Cortotic contains hydrocortisone aceponate (HCA). In a published clinical field study Cortotic was shown to be as effective in treating acute otitis as a fixed-combination product containing a corticosteroid, an antibiotic and an antifungal, with an equivalent improvement of clinical and cytological scores. (org)
- GERMANY The Nutriment Company (TNC) has acquired PETMAN, a raw pet food company based in Germany. Financial terms were not disclosed. (Globalpets)
- AUSTRALIA Petnow, a South Korea-based developer of pet identification solutions, announced the Australian launch of the Petnow app that uses advanced pet biometrics to help reunite lost dogs and cats with their owners by using mobile phones to scan and recognize the unique nose prints of dogs and the facial features of cats. The app allows users to send alerts to neighbors when a registered pet goes missing. The company is also in talks with pet insurance providers, pet registry management authorities, and pet adoption agencies in Europe and North America. (DVM360)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – FEED REGULATION The FDA released a set of documents regarding the transition phase after the FDA’s longstanding Memorandum of Understanding (MOU) with the Association of American Feed Control Officials (AAFCO) expires on October 1, 2024. Although the MOU is expiring, AAFCO remains an important partner to the FDA, and the FDA will continue to work closely with AAFCO and state regulatory partners to help ensure the safety of the animal food supply. To solicit public input, the FDA has issued a Request for Comments (RFC) on the following guidance documents: Draft Guidance for Industry (GFI) #293, “FDA Enforcement Policy for AAFCO-Defined Animal Feed Ingredients” and Draft GFI #294, “Animal Food Ingredient Consultation (AFIC)”. Click here for more information. (FDA)
- US – VETERINARY GUIDELINES The American Animal Hospital Association has released the 2024 AAHA Fluid Therapy Guidelines for Dogs and Cats, an overview of the body’s fluid dynamics that provides practical recommendations for selecting fluids, calculating administration rates and choosing administration routes in dogs and cats for the purposes of resuscitation, rehydration, and maintenance. (Vet Advantage)
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BRAKKE CONSULTING VIEWPOINT
I’ve recently been involved in a project related to feral pets and shelter adoptions. That experience has heightened and renewed my focus on the subject. Hill’s just reported a “State of Pet Shelter Adoption Report.” The news is mixed.
On the positive side, our intentions look favorable. Two-thirds polled expressed interest in adopting a shelter pet. Small dogs are the most attractive, followed by medium dogs, cats, and large dogs. Gen Zs and Millennials expressed above-average intentions.
On the negative side, nearly half say the cost of ownership is a challenge to ownership. 84% say the cost of veterinary care is the most expensive part. When coupled with a recent Brakke report, the picture is concerning. We’ve reported that the number of pet visits in clinics is flat to slightly declining. Other major reports confirm our findings. Veterinarians are using price to drive up revenues. (So are suppliers.)
While we do not expect these trends to clash to calamity, here’s another red flag. However, it’s clear that pet owners, veterinarians, suppliers, and entrepreneurs are addressing these issues. A hallmark of our industry is the ability to adjust and innovate.
Jeff Santosuosso
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YOUR VIEW
Last week, we asked you about how many original NADAs and reactivations were subject to user fees since the current user fee program started in FY2022 running through FY2024 (March). This was sort of a tricky question – the context of the question was around innovation and user fees. The answer is 7 and only 4% of respondents got it right. Almost half of respondents said over 30 and the remainder of respondents were equally split between 10, 15 and 22 original NADAs and reactivations.
If you are curious, you can find the data from the FDA here. You might be surprised that the number is 7 and think that innovation is slow, difficult and rare. But over this same time, there were 290 INAD study submissions, which means companies are still trying to bring new animal drugs to market. To add to the thought that innovation is still alive and well, the FDA doesn’t publicly disclose how many original NADAs are exempted from fees – I’ll guess it is more than 7.
This week
Have you ever adopted a cat or dog from a shelter or similar animal welfare service?
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