Animal Health News & Notes for December 2, 2022

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Brakke Consulting’s
Animal Health News & Notes for December 2, 2022
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
2023 Industry Overview – register now

Earnings News
ECO Animal Health
Evonik
Kane Biotech
Krka
MWI Animal Health
Patterson
Petco

Other News
ALR Technologies SG
Animalcare
Ceva
CodaPet
Covetrus
Dutch
Fear Free
Hester Biosciences
Instinct Science
Ishihara Sangyo Kaisha
Mainsail Partners
Marriott
Parnell Technologies
Petco
Pets Best insurance
PetVet365
Synchrony
VetEvolve
Vytelle

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BRAKKE CONSULTING
Announcing the 2023 Brakke Industry Overview 

Presented at VMX: Monday, January 16^th, 2-4 pm, Hyatt Regency, Orlando N
Presented at WVC: Monday, February 20^th, 2-4 pm, Four Seasons Hotel, Acacia 1

Come join us at Brakke Consulting’s annual Industry Overview presented at VMX and WVC next year.  The animal health industry has moved past the pandemic and perhaps we are back to normal, or maybe a new normal.  Key topics and presenters include:

• Industry and top global company performance including a closer look at the performance of public companies in animal health, presented by Bob Jones
• What a new normal looks like in vet practices and pet ­­– continuing vet practice consolidation, labor shortages and vet response to inflation, presented by John Volk
• A closer look at pet pharmacy consumerization and how we can all thrive in this new era, manufacturers, veterinary practices & retailers alike. Brand new market research will be highlighted from the veterinarian perspective, presented by Candise Goodwin
• Trends, challenges, and opportunities facing animal health companies in finding talent in today’s business environment, presented by Jeff Santosuosso

Also, again at both events, you will be able to hear from top leaders in the animal health industry.  Moderated by Paul Casady, a panel of industry leaders will discuss their views on the subject of: Managing Animal Health Companies in Times of Uncertainty, so you can hear firsthand from these experts.  The panel for VMX (WVC to be announced in January) includes:

• Kurt Green, President and CEO, Vetsource
• Kevin Pohlman, President, Animal Health, Patterson Companies

This information-packed 2-hour session will be especially valuable for executive leadership, sales and marketing, strategy, and finance managers and for decision makers in the animal health industry. After the WVC presentation, and once all numbers are finalized, you will receive a copy of the presentation by email.

Sign up today using this link. You can also email Amanda McDavid or call at 336-396-3916. 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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EARNINGS NEWS RELEASES

• Patterson Companies, Inc. reported results for its fiscal second quarter ended October 29, 2022. Animal Health segment sales were $1.00 billion, a year-over-year decline of 2%; internal sales growth for the quarter was 1%. Operating income for the Animal Health segment was $28.3 million, an increase of 8%. (company press release)
• AmerisourceBergen reported results for its fiscal 2022 year. Turnover for MWI Animal Health was $4.82 billion, a year-over-year increase of 3%. (IHS Markit Connect – subscription)
• Petco Health and Wellness Company, Inc. announced results for the third quarter of 2022. Net revenue of $1.50 billion increased 4% year over year. Net income was $19.9 million compared to $52.8 million in the prior year, impacted by a $19.2 million non-cash change in the fair value of one of the company’s investments. (company press release)
• ECO Animal Health Group plc announced results for the six months ended September 30, 2022. Group Sales were GBP 34.9 million ($42.8 million), a year-over-year decline of 9%. Profit for the period was GBP 2.1 million ($2.6 million), compared to restated loss of GBP(356,000) in the prior-year period. (company press release)
• Krka reported results for the first nine months of 2022. Animal health revenues were EUR 69.4 million ($71.5 million), an increase of 7%. (company website)
• Kane Biotech announced its third quarter 2022 financial results. Total revenue was C$571,686 (US$426,000), an increase of 5% compared to the prior-year quarter. Net loss was C$(1,039,091), a decrease of 34% compared to the quarter ended September 30, 2021. (company press release)
• Evonik Industries reported results for the third quarter of 2022. Animal nutrition sales were EUR 562 million ($580 million), a 22% year-over-year increase. (IHS Markit Connect – subscription)

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K- STATE OLATHE
Animal Health Workshops and Seminars

Upcoming Events
Roadmap to Market: Supply Chain in Animal Health | Dec. 8

Join us for a discussion on how to best navigate the supply chain and still get products to market in a timely manner, amidst ever-changing barriers. Examine examples and applications of how to overcome the challenges through best practices and planning.

Click on the seminar name for cost and registration details.

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COMPANY NEWS RELEASES

• Ceva Animal Health announced it will handle the U.S. marketing and distribution of Ishihara Sangyo Kaisha‘s canine pancreatitis drug Panoquell-CA1 (fuzapladib sodium for injection), recently conditionally approved by the FDA for the management of clinical signs associated with the acute onset of pancreatitis in dogs. The U.S. distribution is expected to begin in the first half of 2023. (Todays Veterinary Business)
• The FDA announced that it has approved Parnell Technologies‘ RESPIRmycin (generic tulathromycin) for use in cattle and swine. (FDA)
• ALR Technologies SG Ltd announced it has entered into a co-branded distribution agreement with Covetrus, Inc. for ALRT’s GluCurve Pet CGM, a continuous glucose monitoring system for diabetic cats an dogs. Under the terms of the Agreement, Covetrus will have the exclusive rights to sell ALRT’s GluCurve Pet CGM as a co-branded product to veterinary clinics throughout the U.S., Brazil, United Kingdom, the European Union, and various other countries globally. (Yahoo finance)
• Petco and Marriott’s home rental platform announced a partnership, in which the Homes & Villas by Marriott Bonvoy booking website will highlight “Pet Friendly Picks by Petco” featuring vacation properties that meet Petco’s standards for pet safety, health, and wellness for both dogs and cats. In addition, Petco will curate a travel collection of essential items for pet travel and safety, including beds, bowls, toys and travel accessories, which can be shipped to their U.S. rental property. (Pet business)
• Vytelle announced it has doubled its laboratory capacity following Series A funding to meet the demand for hormone-free in vitro fertilization (IVF) to produce bovine embryos. (company press release)
• VetEvolve announced that its group has grown to 30 veterinary practices after the acquisition of its 10th partner location in 2022. VetEvolve operates in Virginia, Maryland, Tennessee, West Virginia and Connecticut and employs more than 600 people. (Todays Veterinary Business)
• Fear Free, LLC announced that PetVet365 has become the first – and currently only – veterinary hospital network to achieve 100% Fear Free certification for all of its 10 hospitals and all team members. (company press release)
• Instinct Science, a veterinary practice management software and workflow platform, announced a significant investment from Mainsail Partners. (company press release)
• Virtual veterinary care provider Dutch announced it is partnering with Synchrony, a consumer financial services company, to offer Pets Best insurance to its annual veterinary care members. (Businesswire)
• CodaPet, which provides in-home pet euthanasia and aftercare services, expanded to Oklahoma City after launching in Fresno, California, earlier this year. (Todays Veterinary Business)
• EU Animalcare announced the EU launch of OraStripdx, a periodontal diagnostic strip that estimates the levels of thiols dissolved in oral fluid, indicating the level of periodontal disease. The test can be used while the animal is awake and results are displayed visually on the strip visual result shown on the strip. (org)
• INDIA Hester Biosciences announced an agreement with Tamil Nadu Veterinary & Animal Sciences University to acquire technology that will allow Hester to manufacture a vaccine against (IHS Markit Connect – subscription)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• US – AVIAN INFLUENZA The Nebraska Department of Agriculture (NDA) in conjunction with the USDA’s Animal & Plant Health Inspection Service (APHIS) announced another confirmed case of highly pathogenic avian influenza (HPAI). This most recent case, which is on a commercial laying hen flock, pushes this year’s total HPAI cases to 52 million birds, significantly more than the record 50.5 million birds in 2014-2015. The affected flock will be depopulated and will be disposed of in an approved manner. (Feedstuffs – subscription)
• US – DRUG APPROVALS The FDA issued draft Guidance for Industry (dGFI) #276 entitled, “Effectiveness of Anthelmintics: Specific Recommendations for Products Proposed for the Prevention of Heartworm Disease in Dogs.” The draft guidance is intended for animal drug sponsors interested in pursuing approval of new heartworm prevention products for dogs. The FDA is seeking public comment on dGFI #276 for 60 days from the date of the publication in the Federal Register. The public should submit either electronic or written comments on the draft guidance by January 30, 2023. Comments can be submitted electronically via the Federal eRulemaking Portal. (FDA)
• US – ANTMICROBIAL STEWARDSHIP The USDA’s Animal and Plant Health Inspection Service is making up to $3 million in cooperative agreement funding available to create antimicrobial resistance dashboards. These dashboard tools, developed through public-private partnerships, will be used to improve access to information on antimicrobial resistance in domesticated animals. The funding announcement will be open Nov. 16, 2022, to Feb. 15, 2023, for a total of 90 days. (Feedstuffs – subscription)
• US – VETERINARY EDUCATION Lyon College in Arkansas announced that it will submit its application for professional accreditation for a Doctor of Veterinary Medicine (DVM) degree to the American Veterinary Medical Association’s (AVMA’s) Council on Education (COE) in early 2023. The program will be the first offering of a DVM degree in the State of Arkansas. (Veterinary Practice News)
• US – PET ADOPTIONS According to a report from Cascadia Capital, documented pet population patterns from January 2020 to September 2022. Reviewing shelter data, and ignoring the seasonality of the cat population, the underlying pet adoption trends appear largely unchanged. Pet adoptions were down 200,000 overall one year into the pandemic; and two years into the pandemic and pet adoptions have remained largely flat. (Petfood Industry – subscription)
• US – PET OWNER ADVOCACY The Petfood Consumer Rights Council, a first-of-its-kind consumer protection and animal welfare organization, has launched and announced its first key initiative, a 90-day founding member drive. The PCRC is the first 501(c)(3) not-for-profit organization in history devoted exclusively to advancing the rights and interests of American pet owners. PCRC will pursue its mission primarily by aggregating donations from individual pet-owners and using the funds to provide grants for scientific research initiatives related to the pet food industry. According to its bylaws, the PCRC cannot accept donations from corporations and other organizations, only individual pet owners. (Newswise)

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BRAKKE CONSULTING VIEWPOINT
You may have noticed that this year’s Thanksgiving turkeys were generally smaller, but more expensive, than last year.  Farm Bureau’s annual survey found that the cost of a turkey was up 21% over 2021, while the cost for other food was up around 12%; the USDA’s estimate of the increase in turkey prices was even higher. While some of that is undoubtedly general inflationary pressure, avian influenza has also impacted the turkey supply. According to one source, around 7.3 million turkeys died as of Thanksgiving as a result of the current avian influenza outbreak.

The current avian influenza outbreak in the US is the worst on record, and many other parts of the world are struggling with it too. In addition, African swine fever is an ongoing issue outside of the US. Controlling these pandemics can be challenging, as many diseases are spread to livestock production facilities by wild animals carrying the viruses.  Efforts are underway to develop effective vaccines that can be differentiated from wild-type infection on diagnostic tests, but it’s been a bumpy road.

Much of the focus on the animal health side of One Health initiatives has been on zoonotic diseases, but animal diseases that don’t cause pandemic-level illness in humans can have an impact our food supply. I hope that R&D dollars reflect this reality, and that our industry can keep pace with the challenges on the contagious disease front.

Lynn Fondon
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YOUR VIEW

Before Thanksgiving week, we asked how comfortable you are with your organization’s digital talent and strategy.  11% say your company is in good shape, and 43% say you’re moving in the right direction.  30% are behind the curve, and 9% say it is a problem for your company (the remainder don’t know).

This week
What kind of protein did you have at your Thanksgiving dinner?