Animal Health News & Notes for December 4, 2020

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Brakke Consulting’s
Animal Health News & Notes for December 4, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Earnings News
Benchmark
J.M. Smucker
Kane Biotech
Patterson

Other News
Alivira
American Regent
Animal Pharmaceuticals
AusCann Group
Bayer
BioTraceIT
Bond Vet
CannPal Therapeutics
Eat Just
eggXYt
Elanco
Kindred Biosciences
Laboratorios Karizoo
Patterson Veterinary
Pets at Home
Proveta Nutrition
Rebel Nutrition
Roya.com
Swedencare
Talisman Capital Partners
Tropic Biosciences
The Vet Connection
VetriScience Laboratories
VolitionRx
Yummi Combs

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COMPANY EARNINGS RELEASES

• Patterson Companies, Inc. reported results for its fiscal second quarter ended October 24, 2020. Reported net sales in the Animal Health segment were $914 million, an increase of 8% compared to the second quarter of last year. Internal sales for the segment increased 7% from the fiscal 2020 second quarter. (company press release)
• The M. Smucker Co. announced results for the second quarter ended October 31, 2020, of its 2021 fiscal year. US Retail Pet Food sales were $709 million, unchanged from the same period last year. Segment profit was $125 million, a decline of 9% year-over-year. (company website)
• Aquaculture firm Benchmark reported results for its full fiscal year ended September 30, 2020. The company reported sales of GBP 105.6 million ($141.8 million), a 15% drop from the prior year.  Loss for the fiscal year totaled GBP 10.9 million – down from GBP 46.4 million in 2019. (IHS Markit Connect)
• Kane Biotech announced their third quarter 2020 financial results. Revenue from product sales was $286,934, an increase of 48% compared to the prior-year quarter. Loss from operations and finance costs was $(1,030,948) an increase of 25% compared to the quarter ended September 30, 2019. (company press release)

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COMPANY NEWS RELEASES

• Elanco Animal Health announced the launch of a public offering of 54,500,000 shares of its common stock held by Bayer World Investments B.V, an affiliate of Bayer Bayer World Investments B.V. will be the sole selling shareholder and will also grant to the underwriters an option to purchase up to an additional 8,175,000 shares of common stock. Bayer World Investments B.V. received approximately 72.9 million shares of Elanco common stock in connection with the completion of Elanco’s acquisition of the Bayer animal health business on August 1, 2020. (company press release)
• American Regent announced it will begin selling its Adequan i.m. equine product through veterinary distribution this month. The company already sells its Adequan Canine product through distributors. (IHS Markit Connect)
• Patterson Veterinary announced an exclusive partnership withcom to offer corporate consolidators and multi-location customers Roya.com’s CANVAS platform and Marketing Packages at special partnership pricing. (PRWeb)
• Swedencare announced it has paid an additional purchase price of approximately SEK87 million ($10.3 million) for the acquisition of US firm Animal Pharmaceuticals. The additional payment is based on Animal Pharmaceuticals’ EBITDA of $2.7 million during July 2019 to June 2020. This takes the total acquisition price of the business to SEK218 million ($25.8 million). (IHS Markit Connect)
• Kindred Biosciences announced the suspension of its feline recombinant erythropoietin program following an adverse event. Citing the impact of safety profile on the program’s potential commercial value as well as the rapid growth of the canine dermatitis market, Kindred says it will redirect resources toward accelerating programs for canine atopic dermatitis. (SeekingAlpha.com)
• VetriScience Laboratories introduced the Golden Years line of senior-specific supplements for dogs. The bite-sized chew supplements contain extensively researched ingredients to help combat the effects of aging in dogs of all breeds and sizes. The line of four unique supplements help pet owners address and maintain the overall physical and mental health of their dog, including VetriScience’s first-ever eye health supplement. (company press release)
• Tropic Biosciences and eggXYt announced a license agreement to apply Tropic’s Gene Editing induced Gene Silencing (GEiGS) technology to develop genetic resistance in chickens against Avian Influenza virus. (company press release)
• BioTraceIT has launched its PainTrace wearable device in the US and Canada. The firm claims PainTrace is a first-of-its kind objective monitoring system that detects, quantifies and tracks pain in mammals. PainTrace monitors a direct biosignal that correlates to an individual’s experience of pain. (Chemweek.com)
• Joe Roethli, inventor of Greenies pet treats, has introduced patented Yummi Combs. The product assists dogs with dental flossing with a patented honeycomb design combined with 44% and a wealth of essential vitamins and minerals to boost energy, joint health, mobility and total wellness. (GlobalPets)
• VolitionRx announced the launch of its Nu.Q Vet Cancer Screening Test in the US. The test is designed to detect cancer in dogs by measuring nucleosome levels in the blood. The test is now available for veterinarians to order from the gastrointestinal lab at Texas A&M University’s College of Veterinary Medicine. (IHS Markit Connect)
• Bond Vet, which opened the first of its four veterinary clinics in the summer of 2019, has raised $17 million to launch at least 10 more by the end of 2021. The New York chain reported that the private investment firm Talisman Capital Partners will pay for the expansion after a Series A funding round. (Todays Veterinary Business)
• EU Alivira Animal Health announced the launch of Halofusol 0.5 mg/ml Oral Solution for Calves, a generic oral antiprotozoal solution for the prevention and reduction of Cryptosporidium parvum diarrhea in new-born calves, in 19 European countries. The product had recently received approval from the European Medicines Agency (EMA) through its Spanish subsidiary Laboratorios Karizoo, S.A. (company press release)
• AUSTRALIA CannPal Therapeutics, a company developing products for pets using compounds from hemp and cannabis, announced it will be acquired by human cannabis business AusCann Group. AusCann will acquire 100% of CannPal’s shares for approximately Aus$17.5 million ($12.9 million). (IHS Markit Connect)
• UK Pets at Home announced it is acquiring The Vet Connection (TVC), one of the UK’s largest independent veterinary telehealth providers, in a GBP 15 million ($20 million) deal. (insidermedia.com)
• CANADA Rebel Nutrition and Proveta Nutrition have joined forces under a new strategic partnership, designed to utilize the complementary expertise and resources of both companies to support new synergies and enhanced animal feed solutions. (Feedstrategy.com)
• SINGAPORE US firm Eat Just announced that the company’s cultured chicken meat has been approved for sale in Singapore as an ingredient in chicken bites. The regulatory approval – according to the company the world’s first for a cultured meat product – paves the way for a small-scale commercial launch in Singapore. (IHS Markit Connect)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• BELGIUM – AVIAN INFLUENZA Belgium has confirmed an outbreak of highly pathogenic H5N5 avian influenza on a poultry farm in the western town of Menen near the border with France.  The outbreak killed 600 birds and led to the destruction of the other 151,000 birds in the flock. (Reuters)
• US – RESEARCH FUNDING The USDA’s Animal and Plant Health Inspection Service (APHIS) is awarding $14.4 million to 76 projects with states, universities, and other partners to strengthen programs to protect animal health.  This critical funding supports projects focused on increasing practical livestock biosecurity measures or advancing rapid depopulation and disposal abilities to be used during high-consequence animal disease outbreaks.  It will also support projects to enhance early detection of high-consequence animal diseases and improve emergency response capabilities at NAHLN veterinary diagnostic laboratories. (Feedstuffs)
• UK – FELINE DENTAL RESEARCH Research by The University of Edinburgh Royal (Dick) School of Veterinary Studies into tooth resorption in cats has shown that blocking the action of a particular gene prevents the cell processes that lead to disease. Findings suggest the MMP9 gene, and the protein it generates, are involved in causing tooth resorption and it is thought existing therapies targeting this protein may be effective in treating the condition. Currently no treatments exist other than extracting affected teeth. (Vettimes.co.uk)
• UK – JOHNE’S TESTING Queen’s University Belfast has developed a new test for Johne’s disease (JD) in dairy cattle. The new test is faster and more  sensitive in detecting Mycobacterium avium ssp paratuberculosis (MAP) – the causative agent of JD. The test detects live infectious agent, not just antibodies against MAP, and can be used with milk, feces or blood samples from livestock. (IHS Markit Connect)
• US – COVID New research shows that livestock processing plants “may act as transmission vectors” of the coronavirus into surrounding communities. The researchers estimated plants were associated with 6-8% of COVID-19 cases nationwide during the early months of the pandemic. The researchers estimated the total excess COVID-19 cases and deaths associated with proximity to livestock plants to be 236,000 to 310,000 (6% to 8% of all U.S. cases) and 4,300 to 5,200 (3% to 4% of all U.S. deaths), respectively, as of July 21, 2020, with the vast majority likely related to community spread outside these plants. The research was published in the Proceedings of the National Academy of Sciences. (Vet Advantage)

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BRAKKE CONSULTING VIEWPOINT
This week I traveled by commercial air to visit my mom who is in a retirement home in Florida. This experience really brings into context the impact of the pandemic. I’m amazed that so many people are expected to show up to work every day without question and yet every night on the television were told to stay home and keep the doors locked. I thought about the airline crews and what they go through every day to ensure a safe journey for themselves and their passengers. And lastly I couldn’t help noticing that there may be now more TSA employees than there are passengers.

Today’s headline in Feedstuffs states that farmers “are a lot less optimistic” post-election than the previous one. It’s interesting in that by definition a farmer is a very optimistic person. Notice that throughout the year there is been more than enough food every time you went to the store. Thank God for farmers and let’s hope their optimism returns!

Paul Casady

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YOUR VIEW
The week before Thanksgiving, our survey said that 17% of you preferred leftover turkey – finished with it yet?  (We are almost done in our house.)  But now I know why deep fried turkey only was the favorite of 20% of the respondents – our survey last week told us that only 20% of our respondents owned a deep fryer – and I suppose that you are all very happy.  For 80% of you, I have a great idea for a Christmas present.

This week let’s move past leftover turkey and think about our animal health business, optimism and the November 3^rd election.  Like farmers, I think most people in the animal health business are optimistic, but let’s see what you think.

This week
What is your view post-election of the impact on the outlook for the animal health business?