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Brakke Consulting’s
Animal Health News & Notes for December 11, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS
Brakke News
2020 US Flea Control & Heartworm Markets report – now available
Earnings News
Chewy
DS Pharma
Zenoaq
Other News
Alivira Animal Health
AVet Health
Central Garden & Pet
Ceva
Cornerstone Animal Health
Covetrus
Dechra
Elanco
Hallmarq
J.M. Smucker
Laboratorios Karizoo
LifeLearn Animal Health
MedinCell
Neogen
New Harbor Capital
Nexus Capital Management
Novidia Veterinary
Partners Group
Petco
Pharmgate Animal Health
PRiME Vector Technologies
Wedgewood Pharmacy
whiskerDocs
Zoetis (Novidia Veterinary)
Zoetis (CytoPoint)
Zydus Animal Health
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COMPANY EARNINGS RELEASES
- Nippon Zenyaku Kogyo (Zenoaq) reported results for the first half of its fiscal 2020 ended September 30, 2020. Revenues were around JPY 17 billion ($163 million), a 2% decline in sales. Although the firm’s turnover from companion animal products rose by approximately 1%, overall half-year revenues dropped due to a decline in sales from Zenoaq’s food animal business and poultry businesses. (IHS Markit Connect)
- DS Pharma Animal Health reported results for the six months ended September 30, 2020. Turnover was JPY 7.68 billion ($74 million), a 6% upturn in first-half sales. Revenues from companion animal product sales, which represent the majority of DS Pharma’s business, increased by 8%, while food animal and aquaculture businesses declined. (IHS Markit Connect)
- Chewy, Inc. reported its financial results for the third quarter of fiscal year 2020 ended November 1, 2020. Net sales were $1.78 billion, an increase of 45% year-over-year. Net loss of $(32.8) million (including share-based compensation expense of $25.1 million) compared to a net loss of $(79) million in the comparable prior-year period. (company press release)
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BRAKKE CONSULTING
2020 US FLEA CONTROL AND HEARTWORM MARKETS REPORT
NOW AVAILABLE
Are you on top of the trends in the largest market segment in companion animal health? Brakke Consulting will soon be publishing our 2020 report on the US Flea Control and Heartworm Markets.
The report includes valuable information on the US market for small animal parasiticides including:
– Product descriptions, prices (veterinarian cost and online pricing), and sales for the leading veterinary flea, tick and heartworm products
– an overview of the veterinary and OTC flea control markets
– discussion of new product launches, including SIMPARICA TRIO, BRAVECTO PLUS, BRAVECTO 1-MONTH, and GENERIC SELAMECTIN PRODUCTS
– 2020 survey of 300+ veterinarians
– 2020 survey of 500 pet owners
The report on the US Flea Control & Heartworm Markets is now available for a purchase price of $7,995.
Please contact Dr. Lynn Fondon at 336-396-3916 or lfondon@brakkeconsulting.com to order the report, or for more information visit our website.
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COMPANY NEWS RELEASES
- Zoetis announced it is partnering with Novidia Veterinary for the master global distribution of Zoetis laboratory test kits, outside US-Canada. The range includes in-vitro ProFLOK, SERELISA, the equine range and also the in-vivo tuberculin range. (company press release)
- Elanco Animal Health, Inc. announced Indiana as its base for future global consolidated operations, anchored by a new streamlined fit-for-purpose global headquarters in downtown Indianapolis. (company press release)
- Dechra Pharmaceuticals announced that its generic tiletamine and zolazepam product has earned a supplemental approval from the FDA. The supplemental approval provides for the addition of a new indication in dogs for intravenous administration to induce anesthesia in dogs, followed by maintenance with an inhalant anesthetic. It also approves a name change from Tilzolan to Tzed. (IHS Markit Connect)
- Covetrus announced that all 72 transitional services agreements with Henry Schein, Inc., its former parent company, have now been exited. Covetrus also announced a consolidation within its North American commercial organizations under unified leadership to maximize account management and support for its customers’ businesses. This change also unlocks resources for Covetrus’ Global Technology Solutions team to focus on executing on the Company’s technology roadmap. (company press release)
- Neogen Corporation announced that it has launched Igenity Canine Wellness, a preventative care DNA screening tool for veterinarians. Igenity Canine Wellness predicts a percentage of the heritable component for relatively common, actionable diseases. (Norfolkdailynews.com)
- Pharmgate Animal Health’s porcine reproductive and respiratory syndrome (PRRS) vaccine has received an approval that prolongs its expiry date to 24 months. PRRSGard was originally approved by the USDA in September, with an expiration date of 18 months. (IHS Markit Connect)
- M. Smucker announced it will sell its Natural Balance premium pet food unit to Nexus Capital Management for $50 million. Natural Balance generated net sales of approximately $220 million in the fiscal year ended April 30. (Pet Products SmartBrief)
- Petco Health and Wellness announced plans to go public in a regulatory filing. The 55-year-old pet products retailer, which has been publicly traded twice before, is looking to raise up to $100 million in an IPO and plans to trade under the “WOOF” ticker symbol on Nasdaq. Petco has yet to disclose a price range for the offering or the number of shares it plans to make available. (Pet Products SmartBrief)
- Central Garden & Pet announced that it has launched Central Ventures, a venture fund dedicated to discovering emerging businesses that are focused on innovating and shaping the future of the garden and pet industries. (company press release)
- Hallmarq Veterinary Imaging announced the launch of its standing equine leg CT, which includes 3D imaging with 60-second scan times; exclusive motion correction technology; and no anesthesia required. (Vet Advantage)
- LifeLearn Animal Health announced the appointment of Graham McBride as new CEO to strengthen the company’s forward momentum and growth through 2021 and beyond. Graham McBride has been involved with entrepreneurs for over 30 years, with experience in a broad range of investment, strategic, general management, and corporate finance roles, crossing a diverse group of industries. (company press release)
- Wedgewood Pharmacy announced it has signed a definitive purchase agreement with Partners Group, which will replace New Harbor Capital as its majority shareholder after the transaction closes in 2021. Terms of the transaction were not disclosed. (company press release)
- whiskerDocs announced plans for the January 2021 launch of its proprietary telemedicine service for pet owners in four U.S. states. Starting with teletriage, pet parents in eligible states will be able to receive the same on-demand services they’ve come to rely on from whiskerDocs, as well as access to veterinary telemedicine consults. (company press release)
- MedinCell announced it has ended its partnership with Cornerstone Animal Health to develop a range of long-acting injectable veterinary products. The company said the cancellation has no impact on its internal animal health R&D programs. MedinCell is working on mdc-KPT as an acute pain treatment for companion animals. (IHS Markit Connect)
- EU Zoetis announced it has secured European centralized authorization that extends Cytopoint’s use to cover treatment of pruritus associated with allergic dermatitis in dogs. (IHS Markit Connect)
- UK Ceva Animal Health announced the EU launch of Tulaven (generic tulathromycin) for treatment of infectious bovine keratoconjunctivitis and porcine respiratory disease; treatment and metaphylaxis of BRD; and treatment of early stages of infectious pododermatitis in sheep. (Zenopa)
- EU Alivira Animal Health announced the launch of Citramox LA (generic long-acting amoxicillin) Suspension Injection for Cattle and Pigs in 10 European countries, including the key markets of Western Europe. The product received approval through its Spanish subsidiary Laboratorios Karizoo, S.A. (company press release)
- INDIA Cadila Group’s Cadila Healthcare announced plans to sell its animal healthcare business Zydus Animal Health. Zydus is largely India-focused, comprising activities from product development and manufacturing to marketing and selling.(cnbctv18.com)
- AUSTRALIA AVet Health has established itself as a new player in the Australian companion animal pharmaceutical industry. The firm has launched its veterinary-exclusive Wagg & Purr flagship umbrella brand, which features products for parasite management, digestion, skin care, vitality and aging, as well as joint, ear and eye health. (IHS Markit Connect)
- GERMANY PRiME Vector Technologies announced it is working alongside an unnamed major animal heath company to develop a series of vaccines. The start-up’s PRiME viral vector platform enables the rapid generation of mono- or polyvalent vaccines against infectious diseases and cancer. (IHS Markit Connect)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- FRANCE – AVIAN INFLUENZA Authorities in France have confirmed a case of H5N8 avian influenza on a duck farm in the southwestern Landes region, the first time a commercial French poultry farm has been hit since a new wave of H5N8 avian flu started spreading across Europe in October. The French Agriculture Ministry said tests carried out at the national reference laboratory showed the presence of the virus on a farm with 6,000 ducks. (IHS Markit Connect)
- US – VETERINARY SCHOOL Kansas State University and Hill’s Pet Nutrition are partnering on a major renovation of the university’s Veterinary Health Center. One of the top priorities of the new facility will be ending pet obesity; to that end, the renovation will include the establishment of the Veterinary Health Obesity Clinic, which will open in January. (Vet Advantage)
- US – NARMS Producers and vets have requested the US FDA’s 2021-2025 strategic plan for tracking antimicrobial resistance be paused due to its alleged lack of stakeholder involvement and dramatic change in direction. The FDA, CDC and USDA plan, proposed in August, maps out the next steps for the National Antimicrobial Resistance Monitoring System (NARMS), which examines bacteria isolated from humans, raw retail meat and animals at slaughter. Among the changes, the 2021-2025 roadmap expands testing to water samples with the help of the EPA. NARMS also plans to step up testing and sampling of seafood, as well as animal feed and animal pathogens, through collaborations with the FDA’s Veterinary Laboratory Investigation and Response Network and the USDA’s Animal and Plant Health Inspection Service (APHIS). (IHS Markit Connect)
- US – FDA GUIDANCE The FDA has finalized Guidance #262, Pre-Submission Consultation Process for Animal Food Additive Petitions or Generally Recognized as Safe (GRAS) Notices, to facilitate consultations between FDA and stakeholders before the submission of an animal food additive petition (FAP) or a notice concluding that a substance is generally recognized as safe (GRAS) for its intended use in animal food to the agency. Click here for more information. (FDA)
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BRAKKE CONSULTING VIEWPOINT
Last week, a US company, Eat Just, received the world’s first regulatory approval for cultured meat. The company’s cultured chicken meat has been approved for sale in Singapore as an ingredient in chicken bites. Unlike other alternative proteins from Beyond Meat and Impossible Foods that are plant based, Eat Just’s meat is cultured directly from animal cells.
This represents the latest in a string of challenges to the traditional protein agriculture market which included the antibiotic free movement and then the plant-based protein market entrants. We have learned over time that food has a story and today’s consumer wants to know where their protein comes from.
Traditional protein agriculture along with animal health manufacturers can continue to prosper by ensuring greater levels of health and sustainability for food animals – bolstering consumer confidence in food safety and animal welfare, while enabling farm profitability.
Is this the beginning of a new segment of the food producing market or just a one-off approval? Time will tell. Resilience is one word to describe America’s agriculture.
Wishing you a Happy, Healthy and Safe Holiday Season,
Randy Freides
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YOUR VIEW
Last week we asked about your view of the outlook for the animal health business now that the election is over. Almost 29% of respondents thought the outlook was strongly positive post-election, and almost another 27% thought it was somewhat positive. A majority, 56%, of respondents had positive views on the business outlook post-election. Still, one third thought the outlook was somewhat negative, 5% said very negative and another 5% felt there would be no impact of the election on the business outlook.
This week, let’s find out what you think about the protein markets Randy mentioned above.
Question:
Given this week’s viewpoint we would like your opinion on the following question:
How do you think cultured protein will impact the traditional protein market?
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