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Brakke Consulting’s
Animal Health News & Notes for February 2, 2024
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Industry Overview at WVC
Complimentary WVC seminars: Recruiting and Expanding into the Japanese Market
Earnings News
Hill’s
Merck
Pets at Home
Other News
Alberta Veterinary Laboratories Ltd./Solvet
Blocktrust Network
Boehringer Ingelheim
Chanelle Pharma
Chr. Hansen
Exponent
Felix Pharmaceuticals
Huvepharma
Instinct Science
Kemin Industries
Merck (Allflex)
Merck (Bravecto EU)
Novonesis
Novozymes
Pet Brands
Pet Resort Hospitality Group
PhageLab
Targeted PetCare
VetMedux
Vytelle
Wind Point Partners
ZyVet Animal Health
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Brakke Consulting
2024 Industry Overview
Presented at WVC: Monday, February 19th, 2-4 pm, Four Seasons Hotel
How did the top animal health companies perform in 2023? And what critical issues will impact industry performance in 2024? Answers to these questions and more will be covered at Brakke Consulting’s annual Industry Overview at the 2024 WVC conference. Key topics and presenters include:
- Industry and top global company performance, presented by Bob Jones
- What 2023 looked like in vet practices and with pets, presented by John Volk
- An overview of the post-COVID home delivery channel for pet medications including results from the new Pet Medicines Home Delivery Study, presented by Rich Hayworth
- With recent advancements in technology-related products in livestock production and pet care, where is the value and what are the risks? presented by Lourens Havenga
Also, you will be able to hear directly from a panel of top leaders in the animal health industry. Moderated by Paul Casady, the topic for the panel will be “Opportunities and Challenges in 2024.” The panel for WVC will be:
- Dr. Dan Markwalder, Chief Veterinary Officer, Mission Veterinary Partners.
- Dr. Christine Royal, Vice President, US Companion Animal and Equine Business, Merck Animal Health.
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.
Click here to register for WVC
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!
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EARNINGS NEWS RELEASES
- Merck announced financial results for the full year 2023. Animal Health sales were $5,625 million, a year-over-year increase of 1% (+3% currency adjusted). (company press release)
- Colgate-Palmolive Company reported results for full year 2023. Sales for Hill’s Pet Nutrition were $4,290 million, a year-over-year increase of 16%. Segment operating profit was $806 million, a decline of 5%. (company press release)
- Pets at Home reported results for the third quarter of FY 2024. Revenues were GBP 362.4 million ($459.5M), a 4% increase compared to the prior-year quarter. The retailer’s veterinary group increased its Q3 revenue by 13%. (Globalpets)
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Brakke Consulting
Complimentary 1-hour seminars
Monday, February 19, 2024 at WVC
Four Seasons Hotel, Acacia Room
Stepping into the Japanese Animal Health Market
9:30 – 10:30 am
Would you like to grow your companion animal business outside the US but are not sure where and now? How about in one of the most valuable markets in the world, Japan? Brakke Consulting can help.
For the first time, Brakke Consulting will be presenting a seminar on taking the first step in Japan at the Western Veterinary Conference on Monday, February 19th from 9:30-10:30 am in the Acacia 1 room at the Four Seasons Hotel. This seminar will be presented by Yuki Ujimasa, DVM, MS, a Brakke senior consultant based in Tokyo, who has broad experience in the Japanese market. Yuki will focus on the steps needed to get your product approved by the regulatory authorities in Japan. This will be a great seminar for companies looking to expand their global business but need some help to get started. There is no cost, but please RSVP here to secure your seat.
Recruiting Seminar
11:00 – 12:00 Noon
Hiring managers and talent professionals, join us for an informative and practical seminar at VMX hosted by Executive Recruiter Jeff Santosuosso. We’ll review and discuss the latest ways of breaking through the clutter to attract and hire top talent in today’s increasingly challenging global marketplace. Specific topics will include: attracting Millennials and Gen Z, using video, how to avoid pitfalls in recruiting, and more. If you’re in the market for talent, we know you’ll leave our seminar better equipped and more confident about hiring those stars for your team. There is no cost, but please RSVP here to secure your seat.
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COMPANY NEWS RELEASES
- Merck Animal Health announced the introduction of the redesigned ALLFLEX A-Tag Feedlot V2 and applicator as part of its comprehensive feedlot portfolio. (company press release)
- Boehringer Ingelheim announced the launch of Vaxxilive Cocci 3, a poultry coccidiosis vaccine previously known as Hatchpak Cocci III. (Feedstuffs)
- The FDA has approved ZyVet Animal Health‘s generic Selamectin topical solution for use in dogs and cats. (FDA)
- The FDA has approved Felix Pharmaceuticals‘ generic Carprofen flavored tablets for use in dogs. (FDA)
- The FDA has approved Huvepharma‘s Ravantage 9 and Ravantage 45 (generic ractopamine hydrochloride Type A medicated article) for use in finishing swine. (FDA)
- In response to a shortage of FDA-approved Folltropin (follicle stimulating hormone), the FDA announced it does not intend to object to the temporary importation of Alberta Veterinary Laboratories Ltd./Solvet’s Pluset (porcine pituitary-derived follicle stimulating hormone and luteinizing hormone). Pluset is authorized for marketing in Spain and importation will improve availability of FSH product for use in cattle in the US. (FDA)
- Novozymes and Hansen announced the completion of an agreement to create Novonesis, a new entity, through a statutory merger of the two companies. The combined group will have annual revenue of approximately EUR 3.7 billion. (biospace.com)
- Kemin Industries announced that the FDA Center for Veterinary Medicine has approved the use of chromium propionate as a source of chromium in growing turkey diets. According to Kemin, the company’s KemTRACE Chromium is the only FDA-reviewed source of chromium propionate on the market. (prnewswire)
- PhageLab, a biotechnology company developing bacteriophage-based applications for the livestock industry, announced a $11 million funding round. The funding will enable PhageLab to advance its pipeline of phage-based solutions and establish a commercial position in Brazil, its main target market and expand its technology into the US. (Feedstuffs)
- Targeted PetCare, owned by private-equity firm Wind Point Partners, announced it has purchased pet treats supplier Pet Brands. Financial terms were not disclosed. (Pet Products SmartBrief)
- Pet Resort Hospitality Group, Trivest Partners, and Queens Court Capital announced the addition of five leading pet resort brands to the company’s portfolio, bringing the total number of pet resorts to 17. Acquisitions included Meadowlake Pet Resort and Training Center (Houston, Texas); Olde Towne Pet Resorts (DC); Playtime Pet Resort (Philadelphia, Pennsylvania); Paws ‘n’ Rec (Tampa, Florida); and Williamsburg Pet Hotel and Suites (St. Louis, Missouri). Financial terms were not disclosed. (Pet Age)
- Instinct Science, a software provider for veterinary hospitals, announced that it has acquired VetMedux, an education and point-of-care information company that owns Clinician’s Brief and Plumb’s Veterinary Drugs. Financial terms were not disclosed. (company press release)
- Vytelle announced a strategic collaboration with Blocktrust Network to enhance transparency and efficiency in the beef supply chain. Vytelle will develop tools to characterize differences in feed efficiency among groups of feeder cattle via the Blocktrust Network’s permissioned blockchain. (company press release)
- IRELAND Chanelle Pharma is reportedly being sold to UK private equity firm Exponent in a deal said to be worth about EUR 300 million. (com)
- EU Merck announced the European Commission (EC) has approved Bravecto (fluralaner) 150 mg/ml powder and solvent for suspension for injection for dogs. The product is approved for the immediate and persistent killing of fleas and the persistent killing of ticks from 3-4 days to 12 months. (company press release)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – CATTLE HERD The USDA National Agricultural Statistics Service’s (NASS) most recent Cattle report revealed all cattle and calves in the US as of January 1, 2024, totaled 87.2 million head, 2% below the year-ago herd. This is the smallest inventory since 1951. The calf crop, at 33.593 million, is the smallest calf crop on record. (Feedstuffs)
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BRAKKE CONSULTING VIEWPOINT
Two of the major industry trade shows take place in January: VMX and IPPE, both of which I was fortunate to attend.
At the VMX, there was much enthusiasm and interest as the industry continues its evolution back to the ‘normal’ days post-COVID. Companies seem cautiously optimistic, although I heard several reports of cost controls implemented in Q4. I always find this tactical move interesting — by the time Q4 rolls up, and if you are not on target for either revenue or expenses, good luck! It’s like trying to stop an ocean liner.
The IPPE was also full on and well attended, especially a large contingent from LATAM. Concerns over HPAI are at the forefront of many producers, but non-vaccination still seems to be the position of many countries. In the face of widespread events and more cases of HPAI jumping species, it could be that the industry takes a pro-vaccination action — not due to poultry sanitation, but more to the environmental effect on other animals.
On a last note, the VMX was apparently well attended by executive leadership from many companies. Conspicuously, the same leadership was not readily visible at the IPPE. In my view, AH leadership needs to recognize the importance of livestock by showing visible support and interest for our customers in attending these key food animal events – not just the big companion animal conventions. Revenue and profits from the animal production segment have been a solid foundation of our industry in the past, and will continue to be so in the future. People have to eat!
Paul Casady
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YOUR VIEW
Last week, we asked which two elements McKinsey feels are critical for superior innovation. 37% of you said it was mobilize and scale; another 29% said it was discover and evolve. 24% said it was aspire and choose; and 10% said accelerate and aspire. The answer: Aspire (Do you regard innovation-led growth as critical, and have you put in place cascaded targets that reflect this?) and Choose (Do you invest in a coherent, time- and risk-balanced portfolio of initiatives, and do you devote sufficient resources to it?)
This week
This week’s news brought the announcement that Merck’s Bravecto 12-month injectable has been approved in Europe. It is already on the market in Australia, and we would assume it will be available here in the US before long. What are your thoughts on ultra-long acting parasiticides – would you use them for your own dog?
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