Animal Health News & Notes for December 17, 2021

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Brakke Consulting’s
Animal Health News & Notes for December 17, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting News
2022 Industry Overview

Other News
3M
Alivira Animal Health
Arbor Investments
Carnivore Meat
Evance Saude Animal Health
Genetic Veterinary Sciences
Infinity Pet Services
Longview Asset Management
Maev
Merck
Midwest Veterinary Supply
MYOS CORP
Neo Bites
Neogen (3M)
Neogen (Genetic Veterinary Sciences)
Nourrie Saúde e Nutrição Animal Ltda
PetDx
Pet Evolution
PetsApp
Pet Supplies Plus
Regency Pet
Rockin’ Pets, Rollin’ Vets
ScanVet Animal Health
SeQuent Scientific Limited
Springdale Ventures
TheraVet
Vetio
Xintela

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Brakke Consulting
Announcing the 2022 Brakke Industry Overview

Presented at VMX: Monday, January 17th, 2-4 pm, Hyatt Regency, Orlando N Room
Presented at WVC: Monday, March 7th, 2-4 pm, Four Seasons Hotel, Acacia Ballroom

We are back to being in person!  Come join us at Brakke Consulting’s annual Industry Overview presented at VMX and WVC in 2022. The Overview will feature industry and top global company performance, brand new market research from companion animal veterinarians, and a closer look at the current and future use of monoclonal antibodies in veterinary medicine.

Brand new this year – led by Brakke Senior Consultant Paul Casady, a panel of industry leaders will discuss their views on the outlook for the companion animal market, so you can hear firsthand from these experts.  The panel for VMX includes:

• Mr. Tim Bettington, EVP and President, US Operations, Zoetis
• Mr. Kevin Pohlman, President, Patterson Companies Animal Health
• Dr. Link Welborn, Chief Executive Officer at Veterinary Study Groups & Chief Veterinary Officer North America, Covetrus

Sign up today using this link, or email Amanda McDavid or call her at 336-396-3916.  Pre-registration cost is $399; there are discounts for multiple attendees from the same company.  We look forward to seeing you there!

www.BrakkeConsulting.com

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COMPANY NEWS RELEASES

• 3M announced it has agreed to combine its food safety business with Neogen Corp to create a combined company worth $9.3 billion including debt. The combined company would have projected sales of about $1 billion in the first full year post-closing. The deal is structured as a Reverse Morris Trust with Neogen’s management team running the combined company. Existing 3M shareholders will own 50.1% of the company; financial terms were not disclosed. (Wall Street Journal)
• Neogen Corporation announced that it has acquired companion animal genetic testing company Genetic Veterinary Sciences, Inc. Genetic Veterinary Sciences’ brands include Paw Print Genetics, Canine HealthCheck, My CatScan, and AvianDx. Terms of the agreement were not disclosed. (PRnewswire)
• BRAZIL SeQuent Scientific Limited, parent company of Alivira Animal Health , announced a definitive agreement to acquire 100% stake in Nourrie Saúde e Nutrição Animal Ltda (Nourrie) in Brazil. Nourrie specializes in development and commercialization of nutraceuticals and therapeutic products, with a portfolio of 23 commercialized products for pet and swine, and a near-term pipeline of 17 products. The acquisition will be made through Evance Saude Animal Health Ltda, subsidiary of Alivira Brazil, for a cash consideration of BRL 27 Million ($4.7 million). (company press release)
• MYOS CORP announced that it has entered a distribution partnership with Midwest Veterinary Supply to sell its animal muscle health supplements through veterinary clinics. (PRNewswire)
• Vetio announced it has completed the 35,000 square foot expansion of its Jupiter, Florida site with the addition of a new solid dosage manufacturing plant, a customized R&D lab, and additional warehousing and office space. The expansion supports the company’s growing liquid dermatology business and marks the introduction of Vetio into solid dosage supplement contract development and manufacturing for animal health. (company press release)
• PetDx announced it has completed its Series B financing with over $62 million in new capital raised. The financing was led by Longview Asset Management with participation by Declaration Partners, Torch Capital, Aperture Venture Partners, Valor Equity Partners, Friedman Bioventure, K4 Family Investments, and Labcorp. The funding will be used to expand the implementation of OncoK9 directly through PetDx’s own commercial platform and through strategic distribution partnerships and to increase testing throughout the company’s central laboratory in San Diego. (DVM360.com)
• Maev – a company developing human-grade raw dog food that is ready to eat from the freezer – announced that it has raised $9 million in a series of funding led by Springdale Ventures. (Californianewstimes.com)
• Neo Bites announced it has launched a line of functional dog food toppers made from insect protein. The Neo Bites lineup includes three formulations: Health Aid Topper; Digestive Aid Topper; and Skin & Coat Aid Topper. (galvnews.com)
• Rockin’ Pets, Rollin’ Vets, a full-service mobile veterinary clinic based in Houston, Texas, announced it has successfully closed a multi-million dollar equity raise to fund their growth strategy. (Businesswire.com)
• Pet Supplies Plus recently celebrated its 600th grand opening in Gresham, Oregon, and has currently signed 107 new store commitments for this year alone. (Pet Product News)
• Pet Evolution pet store franchise has signed a development deal to bring 20 new locations to the Tampa, Fla. area in the next 10 years. The company currently has  two locations in its home state of Minnesota. (Pet Business)
• Arbor Investments announced it has invested in, and partnered with, ultra-premium freeze-dried and frozen raw pet food manufacturer Carnivore Meat. Financial terms were not disclosed. (Pet Product news)
• Regency Pet LLC, announced a new partnership with Infinity Pet Services in upstate New York. (company press release)
• EU Merck announced that the Committee for Medicinal Products for Veterinary Use of the European Medicines Agency has adopted a positive opinion for the addition of a new therapeutic indication for Bravecto in dogs. The new indication is for reduction of the risk of infection with Babesia canis via transmission by Dermacentor reticulatus ticks for up to 12 weeks in dogs. (IHS Markit Connect)
• EU TheraVet announced it has launched its Biocera-Vet bone healing matrix for use in cementoplasty during treatment for bone cancer in dogs. The commercial launch spans Belgium, France and the Netherlands. (IHS Markit Connect)
• EU Sweden’s Xintela announced it will sell its equine stem cell product through Danish company ScanVet Animal Health. The partners will work together to develop, market and sell Eqstem for the treatment of joint diseases, including osteoarthritis, in horses. The two companies will agree on a development plan for Eqstem’s market approval and the rights to sell the product in certain European territories. (IHS Markit Connect)
• UK Client communications platform PetsApp has received $4.4 million to fund growth in its home market of the United Kingdom and its planned expansion to the United States and other markets. The funding round was led by Berlin-based Point Nine Capital. (Vet Advantage – Tech Funding News)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• UK – AVIAN INFLUENZA The United Kingdom has a “phenomenal level” of avian influenza, according to the country’s chief veterinary officer. Tens of thousands of farmed birds have already been culled as the largest number of premises ever in an avian influenza outbreak are infected. As of December 8, there were 38 confirmed infected premises in the country, compared to a total last year of 26 confirmed cases. (Vet Advantage)
• US – ANTIMICROBIAL USE The FDA’s Center for Veterinary Medicine has published the 2020 Summary Report on Antimicrobials Sold or Distributed for Use in Food-Producing Animals. This year’s report shows that domestic sales and distribution of medically important antimicrobial drugs approved for use in food-producing animals decreased by 3% between 2019 and 2020; and a 38% decrease since 2015. (FDA)
• EU The European Surveillance of Veterinary Antimicrobial Consumption (ESVAC) report has registered a decline in sales of antimicrobials for animal health purposes of 43.2% since 2011.  (Thepoultrysite.com)
• US – CATTLE Low Carbon Beef, a cattle certification program that enables beef farmers and ranchers to earn premiums by reducing carbon emissions of their cattle operation, has secured approval as a USDA Process Verified Program (PVP) Service Provider from the USDA Agricultural Marketing Service (AMS). The approval marks the first USDA PVP for calculating the life cycle greenhouse gas emissions for beef production. The PVP will enable beef providers to differentiate and market beef that is raised with reduced greenhouse gas emissions. (thecattlesite.com)
• US – BRD RESEARCH Researchers at Purdue University have successfully developed an on-site bovine respiratory disease test that provides results within an hour using a nasal swab. The technology uses a sous-vide water bath to maintain the temperature needed for it to work. The team also added an easy-to-read color change from red to yellow to indicate the test results, identifies three strains of bacteria among the top four that cause BRD: Pasteurella multocida, Mannheimia haemolytica, and Histophilus somni. A paper detailing the work was published in the journal Veterinary Research. (thecattlesite.com)
• SOUTH KOREA – AVIAN INFLUENZA DIAGNOSTICS South Korea’s Institute of Planning and Evaluation for Technology in Food, Agriculture and Forestry (IPET) announced that a research team from Sungkyunkwan University has developed a portable toolkit for avian influenza. The new equipment is able to identify the presence of the virus within 15 minutes. . The equipment technology has been reportedly transferred to PNG Biomed, a domestic biotechnology company, for commercialization. (IHS Markit Connect)

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BRAKKE CONSULTING VIEWPOINT

Last week we touched on some bumps on the road to 2022: the shortage of labor, falling labor productivity, and rising labor costs. We said would cover what this means, so let’s first start with the P&L.

To keep profits climbing, animal health companies will raise prices next year as high as they can stomach – this is harder for some, almost required for public companies. And every expense line will be scrubbed for savings, because of higher costs everywhere. We predict travel and entertainment will be limited, R&D spending will be scrutinized, and capital spending will be capped.

On to people. Hiring in a tight labor market will require new strategies – higher salaries will only go so far. You might need to change your definition of an ideal hire. That perfect fit might not be found, and you might need to develop them. Business leaders will need to decide how to manage remote workers and hybrid models of working, while keeping focus on costs and productivity. We think investing in automation and technology is probably the best way to increase productivity, along with skills training.

We are learning about hiring from our job board dedicated to the animal health industry, Animal Health Jobs. But we also know that getting the right people on the bus, and then in the right seat, is the best predictor of long-term business success, regardless of the bumpiness of the road.

Bob Jones

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YOUR VIEW

Last week we asked about productivity and working from home.  To no one’s surprise, most respondents (85%) said that they had worked from home a significant portion of last year.  63% of those felt they were more productive at home than at the office; and half of those said they were significantly more productive. Just under 20% of respondents felt their productivity was either about the same or less productive.  In contrast, the majority of those who didn’t work from home don’t believe that people are more productive working from home. Let’s hope those latter folks weren’t in management!