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Brakke Consulting’s
Animal Health News & Notes for February 5, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
2021 Industry Overview – register now
Earnings News
Alivira Animal Health
Central Garden & Pet
ECO Animal Health Group
Hester Biosciences
Hill’s
IDEXX
Krka
Merck
Nuzoa
Phibro
Other News
Ceva
EW Nutrition
GoLexi
JBS USA
MyTelemedicine
Nationwide
Novus International
Pilgrim’s Pride
Thyreos
Walmart
Zoetis
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BRAKKE CONSULTING
ANNOUNCING THE 2021 BRAKKE INDUSTRY OVERVIEW
PRESENTED VIRTUALLY ON FEBRUARY 23, 2021
REGISTER TODAY!
New research on how veterinarians have been affected by the COVID-19 pandemic and their plans for the post-pandemic world will be an important feature of the annual Brakke Consulting Industry Overview, to be presented in a 90-minute webinar on Tuesday, Feb. 23 beginning at 11 am EST.
The new research examines the role of such things as curbside appointments and telemedicine, and how veterinarians plan to deploy them post-pandemic. We also look at the impact of COVID-19 on the veterinary staff during this trying year, as well as make our predictions on what’s ahead for the industry in 2021. There will also be an opportunity for questions from the audience.
In addition to the new research findings, the Overview will cover:
- Top animal health company revenues, growth, and new product performance
- A special analysis of changes in ecommerce and pet medication sales
- Status of veterinary practice consolidation
- Data on pet adoptions and pet population during the pandemic
- New perspectives on the evolution of veterinary distribution
- African Swine Fever, pandemic-driven packing plant closures and the future of technology on the farm animal market
The Brakke Industry Overview is an information-packed presentation geared to the interests of executive leadership, sales and marketing managers, financial executives and others involved in the industry. The cost of attending the online Overview this year is reduced to $199. To register, click here. Or, you can call Amanda McDavid, (336) 396-3916. We look forward to having you join us.
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COMPANY EARNINGS RELEASES
- Merck announced financial results for the full year of 2020. Animal Health sales totaled $4.70 billion for the year, an increase of 7% compared to 2019; excluding the unfavorable effect from foreign exchange, sales grew 10%. Full-year sales growth was primarily driven by livestock sales which included an additional five months of sales in the year related to the 2019 acquisition of Antelliq, along with higher sales of companion animal products. (company press release)
- IDEXX Laboratories announced results for the full year 2020. Revenue for the full year was $2.707 billion, an increase of 12% on a reported and organic basis. Net income was $582 million, an increase of 36%. CAG revenue for the year was $2.386 billion, an increase of 13%; income from operations was up 24% to $575 million. (company press release)
- Colgate-Palmolive Company reported results for the full year 2020. Sales for Hill’s Pet Nutrition were $2.88 billion, an increase of 14% compared to the prior year. Operating profit for Hill’s division was $793 million, an increase of 13%. (company press release)
- Phibro Animal Health Corporation announced financial results for its second quarter ended December 31, 2020. Animal Health segment net sales were $136 million, a decline of 5%. (company press release)
- Alivira Animal Health, a division of SeQuent Scientific, announced results for the third quarter of its FY 2021 ended December 31, 2020. Revenues were $48.6 million, an increase of 13% compared to the prior-year quarter. EBITDA was $8.8 million, compared to EBITDA of $6.6 million in the prior-year quarter. Revenues for the calendar year 2020 were $180 million. (company announcement)
- Krka reported results for the full year 2020. Sales of the firm’s veterinary products were EUR 75.9 million ($92.1 million), an increase of 10% over 2019. (IHS Markit Connect)
- ECO Animal Health Group reported results for the half-year ended September 30, 2020. Revenue was GBP 42.5 million ($57.7 million) compared to GBP 28.3 million in the prior-year period, driven in the main by a resurgence in China. Adjusted EBITDA was GBP 6.7 million 9$9.1 million) compared to GBP 1.7 million in the comparable prior-year period. (company press release)
- Hester Biosciences reported results for the quarter ended December 31, 2020. Consolidated net sales were Rs 56.89 crore ($7.5 million), a 12% increase compared to the prior year quarter. Consolidated net profit was Rs 12.86 crore, an increase of 8%. (Telanganatoday.com)
- Nuzoa, a leading animal health distributor in Spain, announced financial results for 2020. Sales were EUR 75.1 million ($91 million), an increase of 17%. Growth in the pet sector was 28%, while growth in the livestock segment was 6%. (company press release)
- Central Garden & Pet Company announced financial results for its fiscal 2021 first quarter ended December 26, 2020. Net sales for the Pet segment increased 19% to $436.4 million; pet segment operating income increased to $43.5 million, up 51.5% compared to the first quarter a year ago. (company press release)
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COMPANY NEWS RELEASES
- Zoetis announced it has provided a supply of an experimental SARS-CoV-2 vaccine for emergency use in great apes at San Diego Zoo, after the USDA confirmed two gorillas had become infected. The company began development of a new SARS-CoV-2 last year, and said preliminary development work in dogs and cats showed the vaccine to be safe and have a reasonable expectation of efficacy, with development shifting to mink as that species showed high susceptibility to the virus. (IHS Markit Connect)
- Ceva Animal Health announced the launch of a new Interactive Swine Flu Map which will help veterinary surgeons and farmers track the disease across much of Europe. The map, hosted on the Ceva website, shows the development of the strains of influenza detected on pig units by country and even by region. It is updated on a quarterly basis. (ThePigSite.com)
- Walmart and Nationwide announced a partnership to launch a prescription program for pets that offers lower prices and faster in-store service at 4,700 Walmart pharmacies. Nationwide says the new service for its Pet Rx Express members is a first for the pet insurance industry. (Pet Products SmartBrief – Supermarket News)
- EW Nutrition announced that it has acquired the Feed Quality and Pigments business from Novus International, Inc. Under the terms of the agreement, EW Nutrition becomes the owner of the brands Santoquin feed preservative, SURFACE feed mill processing aid, and Agrado feed ingredient. The acquisition also gives EW Nutrition ownership of a state-of-the-art production facility in Constantí, Spain. Financial terms were not disclosed. (PRNewswire)
- Thyreos, a vaccine company developing a novel vaccine platform that protects against herpesviruses, announced a $750,000 investment from Invest Nebraska and unnamed angel investors. Thyreos’ vaccine platform will be able to target both animal and human herpesviruses, but its initial commercialization opportunities will be focused on infectious bovine rhinotracheitis. (Journalstar.com)
- MyTelemedicine announced the launch of GoLexi, a veterinary telehealth platform that pairs licensed veterinarians with Pet Parents for expert-level advice on pet wellness and behavioral issues. Pet owners can schedule a virtual consultation by phone, on their computer, or through the GoLexi mobile app. GoLexi membership includes a Pet Drug Savings Card and covers all enrolled pets in the home. (Tylerpaper.com)
- JBS USA and Pilgrim’s Pride said they’ll pay $100 to US employees who voluntarily receive a COVID-19 vaccine. The bonus is intended to encourage employees to get inoculations after thousands of US meatpacking workers became infected with the coronavirus last year. The companies have launched educational campaigns to promote the vaccine to their workforce, which includes many immigrants. (Vet Advantage)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – PET INSURANCE The Pet Insurance Working Group of the National Association of Insurance Commissioners is working on a model law on pet health insurance. The draft model is expected to be released to the public late this year. The goal of the model, which states would have the option to adopt, is to establish clear rules for the sale of pet insurance and provide important disclosures to pet owners purchasing the product. The AVMA has been working closely with the working group. (JAVMA)
- US – CATTLE RESEARCH Scientists from Cornell University’s Animal Health Diagnostic Center and the Texas A&M Veterinary Medical Diagnostic Laboratory (TVMDL) are developing technology for the cattle industry to detect diseases before outbreaks occur or become widespread. The experts will use next-generation sequencing (NGS) to develop new ways to detect transboundary and emerging diseases in the cattle industry early. The $1 million project is a collaboration with the National Animal Health Laboratory Network (NAHLN) and the Plum Island Animal Disease Center. (IHS Markit Connect)
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BRAKKE CONSULTING VIEWPOINT
In a recent viewpoint, John Volk said “the animal health industry is the place to be in 2021”. I could not agree with him more. On the paws, err, heels of Petco’s recent IPO (WOOF), the next to go public might be BarkBox whose ticker will be “BARK”. BARK is expected to go public with a market value of approximately $1.6B.
BarkBox is a subscription service for dogs providing toys, treats, home products and health services to its 6.5M customers. BARK has five product lines and 23,000 retail outlets carrying its products including Target, Petco and Costco. BARK’s 2019 revenues of $191M grew 29%, +17% in 2020 and is expected to grow ~65% in 2021.
BARK’s strategy is clearly focused on direct-to-the-pet owner targeting given CEO Manish Joneha’s prior experience at Amazon and eBay. His background converges on building businesses with consumer-centric products, technological innovation and omnichannel commerce. Will the specialists Chewy and BARK slow down the generalists Amazon and eBay? We think it comes down to customer experience.
The voracious appetite for new investment opportunities in the pet care space continues as the companion animal market continues to deliver mid/high single-digit revenue growth even in tough times. BARK, BARK, WOOF, WOOF!!!
Randy Freides
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YOUR VIEW
In last week’s question, we asked “Has the inability to attend industry conferences and meet with others in person affected your professional networking?” 39% of the respondents said yes, it has had a significant impact, 51% said it has had somewhat of an impact but you have used video chats and phone calls to say in touch and 10% said it has had no impact at all.
This week
In this week’s question, Chewy has been the darling of the direct-to-the-pet-owner business segment posting >40% quarterly revenue growth.
Please rank some of the hottest direct-to-the-pet-owner companies on how fast their revenues will grow this year.
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