***********************************
Brakke Consulting’s
Animal Health News & Notes for February 28, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
************************************
IN THE NEWS:
Brakke Consulting News
Market Research Reports
Earnings News
Bayer
Dechra
Freshpet
Heska
J. M. Smucker
Patterson
Other News
Angels’ Eyes
Animal Supply Company
AniV8
Freshpet
H&C Animal Health
Imbed Biosciences
Invetx
Jurox
Kane Biotech
King Wholesale
MWI Animal Health
Pet Releaf
Phillips Pet Food & Supplies
Scopio Labs
Silver Lake Research
Sports Performance Tracking
Stonehaven Incubate
Zoetis
***********************************
YOUR VIEW
Last week, we asked what you thought the growth in the animal health industry would be in 2020. Among the respondents, a few of you thought we’d see growth of 20% or more. That’s quite a lot! About a 25% of the respondents thought the growth would be 5% but about 38% thought the growth would be less than 5%. An optimistic 14% thought the growth would be above 10%, a growth rate not seen in quite a while. Excluding the optimistic estimates, the mean growth rate is 4.9% and the median is 5%.
This week’s question,
***********************************
BRAKKE CONSULTING, INC.
MARKET RESEARCH REPORTS
Brakke Consulting is an industry leader in timely market research on topics of high interest to stakeholders in the animal health, pet and veterinary markets. Reports published in the past two years include:
- Pet Health Products: Changing Channels (January 2020)
- US Flea Control and Heartworm Markets (December 2019)
- Pain Management Products for Dogs and Cats (May 2019)
- Field Sales and Veterinary Teams (January 2019)
- Manufacturer Sales Force Effectiveness Study (December 2018)
- The Companion Animal Veterinary Telehealth Landscape (October 2018)
- Veterinary Practice Home Delivery (May 2018)
- Veterinary Technical Services Study (March 2018)
- Equine Mega Study IV (January 2018)
Prices for reports vary. For more information about these or other reports, click here or contact us at info@BrakkeConsulting.com.
************************************
COMPANY EARNINGS RELEASES
- Bayer AG reported results for the full year 2019. Animal Health sales were EUR 1,571 million ($1,760 million), an increase of 4.7% compared to 2018 (+2% currency & portfolio adjusted). EBITDA before special items was EUR 378 million ($423 million), an increase of 6%. (company website)
- Dechra Pharmaceuticals reported results for the first half of its fiscal 2020 ended December 31, 2019. Revenues for the first half reached GBP 248.5 million ($321 million), an increase of 7% year-over-year. Profit for the period came to GBP 13.2 million ($17 million), slightly down from GBP 15.5 million at the same point last year. The North American pharmaceuticals business posted flat sales year-on-year at GBP 88.9 million ($115 million) due to supply issues in its companion animal business. (Animal Pharm)
- Patterson Companies, reported results for its fiscal third quarter ended January 25, 2020. Reported net sales in the Animal Health segment were $817 million, an increase of 1% compared to the third quarter of last year. Consumables increased 1% to $791 million; equipment and software increased 5% to $17.5 million; and value-added services & other increased 44% to $8.7 million. (company press release)
- Heska Corporation reported financial results for its full year ended December 31, 2019. Consolidated revenue was $123 million, a decline of 4% year-over-year. Net loss attributable to Heska was $(1.5) million compared to net income of $5.9 million in 2018. (company website)
- The M. Smucker Company announced results for the third quarter ended January 31, 2020, of its 2020 fiscal year. US Retail Pet Foods segment net sales were $722 million, a decline of 5% from the prior-year period. Segment profit was $146 million, a decline of 1%. (company website)
- Freshpet, Inc. reported financial results for its full year ended December 31, 2019. Net sales were $246 million, an increase of 27% year-over-year. Net loss was $(1.4) million compared to a net loss of $(5.4) million in 2018. (Yahoo finance)
************************************
KC ANIMAL HEALTH CORRIDOR
ANIMAL HEALTH INVESTMENT FORUM
NOW ACCEPTING PRESENTER APPLICATIONS
The KC Animal Health Corridor is now accepting applications to present at the 2020 KC Animal Health Investment Forum on September 1 in Kansas City, Missouri.
The 12th annual Forum is one of the only opportunities in the world for early-stage companies in the animal health and nutrition sectors to present their vision, business plan and technology to potential investors.
The selection committee will consider companies that meet the following criteria:
– Seeking $500,000 – $20 million in funding
– Revenue projections of $20 million within 5-7 years
Applications are due by April 14. To apply, click here.
For more information, contact Kimberly Young at young@thinkkc.com
************************************
COMPANY NEWS RELEASES
- Zoetis announced that the FDA has approved Simparica Trio (sarolaner, moxidectin, and pyrantel chewable tablets), the first once-monthly, chewable tablet for dogs in the US that delivers all-in-one protection from heartworm disease, ticks and fleas, roundworms and hookworms. (company press release)
- The FDA announced the addition of Jurox‘s Alfaxan Multidose IDX (alfaxalone), a sedative and anesthetic, to the Index of Legally Marketed Unapproved New Animal Drugs for Minor Species. (FDA)
- Freshpet, Inc. announced plans to build its third Freshpet Kitchen in Ennis, approximately 40 miles south of Dallas, TX. The facility will be constructed in two phases. Phase one will span approximately 400,000 sq. ft. and set to be up and running in 2022; phase two will add approximately 200,000 sq. ft. (Petfoodprocessing.com)
- Kane Biotech announced the launch of its silkstem shampoo, a scientifically formulated anti-itch shampoo for dogs and cats that contains coactiv+, Kane’s patented anti-biofilm formulation. The company also announced that it has signed its first US distribution agreement with King Wholesale Inc., to distribute Kane Biotech’s bluestem oral care and silkstem anti-itch shampoo products to its customers across the US. (company press release)
- Imbed Biosciences announced a relationship with MWI Animal Health for distribution of MicroLyte Ag VET wound dressing product into veterinarian practices and clinics, animal hospitals and academic research facilities across the US. (company press release)
- Scopio Labs announced that its ScopioVet digital cytology system is now available commercially throughout the US and Canada. The proprietary digital microscopy system uses an intuitive pathology consultation service and artificial intelligence to automate routine diagnostic tests. (Todays Veterinary Business)
- Phillips Pet Food & Supplies and Animal Supply Company (ASC) announced a definitive agreement to combine the two companies. As part of the transaction, the new ownership of the combined company is investing new capital and expects to secure expanded credit facilities. Financial terms were not disclosed. (Pet Business)
- H&C Animal Health announced it has acquired Angels’ Eyes, an innovator of tear stain remedies for pets. Financial terms were not disclosed. (Pet Age)
- Pet Releaf announced the launch of the Pet Releaf Professional line of CBD hemp health products for veterinarians. The new professional line of products include: Essential Oil Capsules; Liposomes; and Rescue Sticks. (Yahoo Finance)
- Silver Lake Research announced the development of PenCheck, a new diagnostic for African swine fever (ASF). The pen-side test is designed to deliver results within 20 minutes, 95.5% sensitivity and 99.3% specificity. (Animal Pharm)
- Invetx, a startup developing protein-based animal therapeutics, announced it raised $15 million funding in its series A round. The funding was led by Anterra Capital and will support development of Invetx’s veterinary biologic drugs. (Animal Pharm)
- Stonehaven Incubate has partnered with Sports Performance Tracking (SPT) and veterinary pain specialist Duncan Lascelles to found AniV8, a start-up that will use quantity of activity analytics in the diagnosis and monitoring of osteoarthritis pain in companion animals. (Animal Pharm)
***********************************
ANIMAL HEALTH STOCK PRICE TRACKER
***********************************
ANIMAL HEALTH NEWS
- WORLD – ANTIBIOTIC USE The World Organization for Animal Health (OIE) announced the publication of the fourth annual report on antimicrobial agents intended for use in animals. 153 countries participated in the fourth round of data collection, demonstrating sustained national monitoring across all regions. To read the report, click here. (Feedstuffs, association website)
************************************
BRAKKE CONSULTING VIEWPOINT
Attending both VMX and WVC this year, I was certainly impressed by the attendance of veterinarians, veterinary technicians, and practice managers at these events. And I was equally impressed by industry’s participation. Certainly, this must be a direct result of last year’s healthy economic environment and I hope all of us take proper advantage of this to address issues affecting the long-term growth, such as pet owner and pet compliance.
One of the notable discussions in the exhibit halls was the pending launch of Simparica Trio by Zoetis, and its impact on the flea and tick segment and the internal parasite segment. The flea and tick segment is the biggest in the industry and will certainly drive the performance of the ‘Big 4’ in the marketplace.
As we report today in this week’s newsletter, Zoetis has received FDA approval of Simparica Trio and from the company press release, they expect veterinarians will be able to take delivery of this innovative product in mid to late April. We believe the expected benefit of this launch will be to improve compliance, which if successful, should drive the growth of the category. And given the growth challenges the industry faces now, thanks to COVID-19, we’ll need the help.
Paul Casady
**********************************
Trouble viewing this newsletter? You can view it online at www.BrakkeConsulting.com
This electronic newsletter is the sole property of Brakke Consulting.
Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting.
For more information about Brakke Consulting’s services and syndicated studies, visit our website at www.brakkeconsulting.com.
Brakke Consulting
806 Green Valley Rd
Suite 200
Greensboro, NC 27408
English (United States) 
Portuguese