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» Animal Health News & Notes for February 15, 2019

February 15, 2019
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Brakke Consulting’s
Animal Health News & Notes for February 15, 2019
Copyright © Brakke Consulting

Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting news
Recruiting services
Industry Overview at WVC Pre-registration discount ends today!

earnings news
ImmuCell
National Veterinary Services
Nestle
Norbrook
Spectrum Brands Holdings
Zoetis

other news
AB Vista
Alivira Animal Health
BabelBark
BioChek
Boehringer Ingelheim
Champion Petfoods
ECO Animal Health
Hill’s
Hyper Pet LLC
Merck (Rapid Genomics)
Merck (Nobivac)
Modern Veterinary Therapeutics
OurPet’s Company
Phibro
Rapid Genomics
SmartTag
Zoetis

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BRAKKE CONSULTING
INDUSTRY OVERVIEW AT WVC
PRE-REGISTRATION DISCOUNT ENDS TODAY!

“Growth, Disruption and Innovation”:
Brakke Consulting Industry Overview 2019

Industry executives will have an opportunity to gain new insights into the events and trends that are most shaping the animal health industry by attending Brakke Consulting’s annual Industry Overview at the WVC veterinary conference in early 2019. “Growth, Disruption and Innovation” is the theme of this year’s presentation.

This year’s overview is our most data-packed ever. Topics include key drivers of change in the animal health market, 2018 industry and leading company performance, impact of factors disrupting the distribution industry, new technologies in protein development and food animal care, new data on the future of telemedicine, fresh perspectives on the veterinarian shortage, and many more.

The date for the WVC Overview is Tuesday, February 19, 2019, 2:00 – 4:00 pm, Four Seasons, followed by a cocktail reception for attendees.

Registration for the WVC Industry Overviews is now open. Seating is limited this year, so register early! This is one you won’t want to miss.

To register, go to www.brakkeconsulting.com and scroll down to the “What’s New” box. The price is $400 per person for online registration through Friday, February 15 at 5:00 pm; late registration is $450. Discounts are available for multiple attendees from the same company; call 972-243-4033 for more information.

www.BrakkeConsulting.com

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COMPANY EARNINGS RELEASES

• Zoetis Inc. reported its financial results for the full year 2018. The company reported revenue of $5.83 billion, an increase of 10% compared with full year 2017. Net income for full year 2018 was $1.4 billion, an increase of 65% compared with 2017. Total US revenue was $2.9 billion, an increase of 10%. (company press release)

• Norbrook Laboratories reported financial results for the fiscal year 2018 ended July 31. Revenues for the year were GBP 275 million ($357 million), an increase of 1% compared to the prior year (+2% at constant exchange rates). The firm’s North American business increased by 15% in 2018. (Animal Pharm)

• Nestle reported results for the full year 2018. Petcare sales were CHF 12.8 billion ($13.8 billion), an increase of 3% compared to 2017. Trading operating profit for the petcare segment was CHF 2.57 billion ($2.6 billion), a decline of 2%. (company website)

• ImmuCell Corporation announced unaudited financial results for the full year ended December 31, 2018. Total product sales were $11 million, an increase of 5% compared to 2017. Net loss was $(2.3) million during the year ended December 31, 2018 in comparison to net loss of $(168,000) during the year ended December 31, 2017. (company press release)

• Spectrum Brands Holdings, Inc. reported results from continuing operations for the first quarter of fiscal 2019 ended December 30, 2018. Pet segment sales were $205 million, an increase of 1% compared to the prior-year quarter. (company website)

• National Veterinary Services reported results for the fiscal year ended April 30, 2018. Turnover was GBP 440 million ($606 million) for the year, an increase of 7% from the prior 12 months. Pre-tax profits were GBP 10.5 million ($14.5 million) compared to GBP 10.8 million over the same period. (insidermedia.com)

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ANIMAL AGRICULTURE ALLIANCE
STAKEHOLDERS SUMMIT
MAY 8-9, 2019
KANSAS CITY

The Animal Agriculture Alliance’s 2019 Stakeholders Summit, themed “A Seat At The Table,” is set for May 8-9 in Kansas City, Missouri. The speaker lineup will tackle diverse topics from understanding consumer perceptions to engaging influencers to protecting farms and other agricultural operations from activist threats.

No matter which part of the supply chain you represent, the 2019 Summit will offer out-of-the-box ideas your team can immediately implement to help bridge the communication gap between farm and fork and help your business grow into the future.

To view the agenda and register, visit http://summit.animalagalliance.org/.

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COMPANY NEWS RELEASES

• Zoetis announced the launch of Revolution Plus (selamectin and sarolaner topical solution), a new topical product providing 6-in-1 pest protection against parasites common to cats and kittens. Revolution Plus combines protection against fleas, three types of ticks, ear mites, roundworms, hookworms and heartworms. (Vet Advantage)

• Merck announced a collaboration agreement with Rapid Genomics that grants Merck exclusive rights to Rapid Genomics’ Viral Flex-Seq vaccination verification tool. This tool will be utilized in combination with Merck Animal Health’s Innovax range of poultry vaccines to specifically detect replication of Innovax vaccines and differentiate them from field viruses. (Feedstuffs)

• Merck announced the launch of Nobivac EDGE Lepto4, a 0.5 mL Leptospirosis vaccine to help prevent mortality and urinary shedding for dogs, and Nobivac EDGE DAPPv 0.5 mL vaccine. (company announcement)

• The FDA’s Center for Veterinary Medicine announced the approval of Boehringer Ingelheim’s ProZinc (protamine zinc recombinant human insulin) for managing diabetes mellitus in dogs. ProZinc is already approved for use in cats, and veterinarians have used the product in dogs prior to the approval under extralabel use. (FDA)

• A class action lawsuit is being filed against Hill’s Pet Nutrition, Inc. for selling dog food containing excessive and dangerous amounts of vitamin D. The company recalled certain of its canned dog food, which contained excessive amounts of vitamin D, in January. (Pet Product News)

• Modern Veterinary Therapeutics, LLC announced the launch of the Revertidine, the first FDA-approved generic atipamezole hydrochloride injection for the reversal of dexmedetomidine and medetomidine in dogs. (company press release)

• Phibro Animal Health announced the upcoming launch of its new Provia Prime direct fed microbial product that helps optimize the gut microbiome for improved health, immunity and productivity in poultry. It includes a patent-pending proprietary combination of Bacillus subtillis, Bacillus licheniformis, Bacillus coagulans and Bacillus amyloliquefaciens. (company press release)

• ECO Animal Health Ltd announced that it has entered a worldwide exclusive development and licensing deal with Ghent University-PROVAXS. This deal allows ECO to further develop, register and commercialize a Clostridium perfringens vaccine for poultry based on antigens co-developed at Ghent University and University of Exeter. (company press release)

• A federal district court has granted Champion Petfoods’ motion for summary judgment in a class action lawsuit that alleged that trace amounts of naturally occurring heavy metals (arsenic, cadmium, lead and mercury) were present in plaintiff’s dog foods at excessive and unsafe levels, such that they rendered Champion’s advertising statements false or misleading. (Pet Business)

• AB Vista announced the launch of Signis, a feed additive designed to accelerate the development of a fiber-degrading microbiome – enabling the fermentation of fiber in the gut that would otherwise remain undigested. Signis has been proven to speed up the development of fiber-degrading bacteria in the gut of both swine and poultry. (Animal Pharm)

• BabelBark, Inc. announced a partnership with SmartTag, a leading provider of pet protection and identification products in North America. The partnership allows BabelBark pet owners access to a dedicated 24/7 call center and emergency response team. If a pet is lost, all local shelters, rescue groups, and veterinarian offices are immediately informed. Additionally, a pet’s microchip ID is automatically added to a permanent, national pet registration database. (company press release)

• Hyper Pet LLC announced it has acquired all of the shares of OurPet’s Company’s common stock outstanding for $1.00 per share. The purchase price represents a premium of approximately 54% over the closing per share price as of December 18, 2018. (Pet Business)

• NETHERLANDS BioChek introduced a new porcine respiratory reproductive syndrome (PRRS) test kit to its portfolio. The PRRS XR ELISA is designed to detect antibodies to US, high pathogenic Asian, and European PRRS virus strains. (Animal Pharm)

• SPAIN Alivira Animal Health has launched Flortek (florfenicol) 40mg/g, a medicated feed premix for swine in Spain for treatment of swine respiratory disease. (company announcement)

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ANIMAL HEALTH NEWS

• RUSSIA – FMD Russian animal health authorities have reported a foot-and-mouth disease (FMD) outbreak at a commercial swine farm in the Maritime Territories of Russia. So far, 30 cases of FMD have been detected. Animal movement controls have been placed on the region, while tens of thousands of cattle and pigs have been vaccinated. (Animal Pharm)

• US – VETERINARY EDUCATION A group of veterinary colleges, spearheaded by the University of Florida College of Veterinary Medicine (CVM), has launched the Southeast Veterinary Educational Consortium to collaborate, develop, and share best practices for veterinary education. Participating schools in addition to Florida include North Carolina State University CVM; Virginia-Maryland CVM; Lincoln Memorial University CVM; University of Georgia CVM; and University of Tennessee CVM. Each school contributed $10,000 in seed funding to the project and will continue to do so on a yearly basis. The group is currently looking for additional funding for larger projects. (AVMA)

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BRAKKE CONSULTING
RECRUITING THROUGH MANAGED SERENDIPITY

Option 1: Post a job. Pray for a response. Plow through resumes.

Option 2: Partner with Brakke Consulting, someone who is looking out for you, working for you 24/7/52 to assess talent, find potential. We will work with you to plan your needs, continuously scout who is available, who is ready for a move up (not just someone who has done the job before), and recruit the most promising candidates to your company.

To learn more about how we can help you find the right person for your position, contact John Mannhaupt at jackintx@aol.com or 972-243-4033.

www.BrakkeConsulting.com

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BRAKKE CONSULTING VIEWPOINT

Last week we mentioned the full year performance by Elanco, the launch of the new company Covetrus, and the performance of PetMed Express. And since it’s still earnings reporting season, we’ll comment on one more, Zoetis. Judging by the stock performance yesterday, where it rose almost 6%, investors seem to like the news from Zoetis. Zoetis opened the door for publicly listed, newly independent animal health companies and we know there will be more on the way.

It doesn’t seem that long ago that Pfizer spun out its animal health business, but it was back in February 2013 and you could buy a share for about $31. Since then, the stock has had a 52-week high of $96.27, which is close to the $93.27 level it closed at yesterday. That’s a price return of about 200% versus a 50% price return for the S&P 500 over the same period of time.

During the earnings call, the Zoetis executive team talked about the growth opportunities for them, both in terms of geographical markets, segments and products. We here at Brakke Consulting think there are growth opportunities for all animal health companies in the livestock and companion animal segments. We don’t see overall industry growth in 2019 being significantly different from 2018, but that’s not bad, either. Our estimates are that the global animal health market grew 5% last year.

We cover the performance of the top animal health companies in our upcoming 2019 Industry Overview at the WVC in Las Vegas next Tuesday. We’ll also cover what we see as growth opportunities, the disruptions that are evident and possibilities for innovation in animal health. We’ll have ideas, comments and data to share with you and all of us hope to see you some of you there.

Thanks,

Bob Jones

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