The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for February 7, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA

Brakke Consulting News
2020 Industry Overview at WVC
Pet Health Products: Changing Channels report

Earnings News
Archer Daniels Midland
Central Garden & Pet
Orion Animal Health
Spectrum Brands

Other News
Abtek Biologicals Limited
Alivira Animal Health
Elanco (financing)
Elanco (Purdue)
Elanco (Tylan)
Healthy Paws Pet Insurance

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We want to hear from you – share your opinions with us in this one-question poll by clicking below!

Which home delivery service provider would you predict gets the highest marks from veterinarians?

Animal Health Regulatory 101: An Introductory Course on the Regulatory Aspects of Animal Drug and Vaccine Development


April 1 & 2, 2020

Kansas State University Olathe is hosting a two-day workshop on April 1 & 2, 2020 that  will provide attendees with the regulatory acumen necessary to make smarter business decisions in management and leadership in the animal health industry. This program provides an overview of essential regulatory guidelines, terminology, concepts and applications in the day to day animal health business.

Registration for this information-packed two-day workshop is $1,500 per person. For more information or to register, click here.


  • Merck announced financial results for the full year 2019. Animal Health sales were $4,393 million, an increase of 4% over the prior year (+9% currency adjusted). Full-year sales growth was mainly driven by livestock products due to the Antelliq acquisition, along with higher sales of companion animal products, primarily the Bravecto line of products. Animal Health segment profits were $1.6 billion for the year, a decrease of 3% compared to 2018, primarily driven by the unfavorable effects of foreign exchange. (company press release)
  • Phibro Animal Health Corporation announced financial results for its second fiscal quarter ended December 31, 2019. Net sales were $214 million, a decrease of 2%. Net income was $12 million, a decrease of 19%. Animal Health net sales were $144 million, an increase of 3%. (company press release)
  • IDEXX Laboratories reported results for the full year 2019. Revenues were $2,407 million, an increase of 9% compared to the prior year. Net income was $428 million, an increase of 14% compared to the prior year. Companion Animal Group revenue was $2,119 million, up 10% year-over-year. (company press release)
  • Colgate-Palmolive Company reported results for the full year 2019. Hill’s Pet Nutrition sales were $2,525 million, an increase of 6% year-over-year. Segment operating income was $703 million, an increase of 3%. (company press release)
  • Orion Animal Health reported results for the full year 2019. Sales were EUR 85.8 million ($94.5 million), an increase of 7% over the prior year. (Animal Pharm)
  • Krka reported unaudited results for the full year 2019. Animal health sales were EUR 69.1 million ($76 million) for the full year, a 9% improvement in revenues for fiscal 2019. (Animal Pharm)
  • Central Garden & Pet Company announced financial results for its fiscal 2020 first quarter ended December 28, 2019. First quarter net sales for the Pet segment increased 4% to $354 million compared to the same period a year ago, aided by the Company’s C&S acquisition. The Pet segment’s operating income increased 1.6% to $30.2 million. (company press release)
  • Spectrum Brands Holdings, Inc. reported results for the first quarter of fiscal 2020 ended December 29, 2019. Global Pet Care net sales were $206 million, an increase of 0.5% over the prior-year quarter. The segment’s adjusted EBITDA was $31.5 million compared to $29.1 million in the prior-year quarter. (company website)
  • Archer Daniels Midland (ADM) reported the company’s fourth-quarter 2019 financial results. Net earnings during the last quarter of 2019 were $504 million, up from $315 million in the fourth quarter of 2018. Animal Nutrition results were up substantially versus the prior-year period, and Neovia continued to contribute positively to results. (Feedstuffs)
  • Zooplus, Europe’s largest online pet store, announced results for the full year 2019. Turnover was EUR 1,524 million ($1,678 million). Growth was largely due to private labels. (Globalpets)

Announcing the 2020 Brakke Industry Overview
Information to keep you ahead of the pack
Presented at WVC: February 18, 2020, 2-4 pm, Four Seasons Hotel, Acacia Ballroom

What do industry consolidation, CBD and African Swine Fever have in common?  They are all important topics covered in Brakke Consulting’s annual Industry Overview presented at VMX and WVC in early 2020.

2019 was an especially newsy year, and many events have long-range implications for the animal health industry.  Key topics and presenters include:

  • Industry performance and a special analysis of the public companies in animal health (Dr. Bob Jones)
  • Vet practice consolidation, CBD, monoclonal antibodies and other new companion animal technologies (John Volk)
  • Disruptive technologies and the changing landscape of the diagnostics industry (Dr. Mike McGinley)
  • African Swine fever, plant-based meat and milk products and their impact on protein and animal health product demand (Dr. Cary Christensen)

This information-packed 2-hour session will be especially valuable for executive leadership, sales and marketing, strategy and finance managers.

To register, sign up today on our website by clicking here.  Or email Amanda McDavid or call her at 336-396-3916.  Pre-registration cost for WVC is $400; there are discounts for multiple attendees from the same company.  We look forward to seeing you there!


  • Merck Animal Health introduced Nasalgen 3, a three-way intranasal vaccine that protects beef and dairy cattle from the most common pneumonia-causing viral pathogens. Nasalgen 3 has a six-and-a-half-month duration of immunity (DOI) against infectious bovine rhinotracheitis (IBR), an 11-week DOI against bovine respiratory syncytial virus (BRSV) and a three-month DOI against parainfluenza 3 (PI3). The single 2-mL dose includes a unique blue shadow dye that clearly indicates which animals have been vaccinated. (company press release)
  • Elanco announced it has obtained all the funding needed to close the acquisition of Bayer Animal Health. The company has successfully priced its first lien senior secured credit facilities, consisting of a term loan B facility of $4.275 billion with a maturity of seven years and a revolving loan facility that provides up to $750 million with a maturity of five years. Elanco will combine the proceeds from the term loans with the funds from its recently completed common stock and tangible equity unit offerings. Elanco previously said the transaction will be financed with 70% cash and 30% equity.  (Animal Pharm)
  • Elanco announced a four-year agreement with Purdue University and Purdue Research Foundation with the goal to collaborate and train talent. The alliance includes seven types of collaborations and five intellectual property scenarios. (company press release)
  • The FDA announced supplemental approvals for Elanco‘s Tylan Soluble, and Zoetis’ Terramycin and Lincomix Soluble, for the establishment of drug tolerance levels for residues of tylosin in honey for the treatment of honey bees. (FDA)
  • Ceva Santé Animale announced that it has renewed its shareholding structure, welcoming leading international investors to join long-term partners, who will invest alongside management. The long-term investors include Téthys Invest of France; PSP Investments (Canada); Mitsui & Co. of Japan; and Klocke Gruppe of Germany, from whom Ceva acquired the IDT animal health business in 2019. Additionally, all historic minority investors have agreed to roll over a significant portion of their investment. (company press release)
  • The FDA announced approval for Bimeda‘s BimaGard 12.5% (tiamulin hydrogen fumarate) for the treatment of swine dysentery and  swine pneumonia. (FDA)
  • Nutramax Laboratories Veterinary Sciences announced the launch of Dermaquin Skin Support Supplement, a veterinary-exclusive soft chew formulated to minimize the recurrence of skin issues in dogs. The product contains hardy kiwi, beta-glucans, gamma-linolenic acid, ceramides and omega-3 fatty acids, which in combination help to fortify and support the skin’s natural barrier. (Todays Veterinary Business)
  • Ecolab introduced Eco-Flex Teat Dip, a complete 3-in-1 solution that provides effective disinfection and protection, and can be used as a pre- and post-milking disinfectant and conditioner. Eco-Flex can be applied as a dip, spray or foam.(
  • Zomedica Pharmaceuticals announced that it has received approval of its application to delist its common shares from the TSX Venture Exchange effective at the close of business on February 10, 2020. Zomedica’s common shares will no longer be traded on the TSXV but will continue to trade on the NYSE American under the symbol “ZOM”. (
  • Washington State’s Insurance Commissioner issued a $950,000 fine against ACE American Insurance Co. and Indemnity Insurance Co. of North America for overcharging 18,000 Washington consumers by $4.7 million for nearly five years. Additionally, the companies will have to pay back the $4.7 million, including interest, to policyholders by April 15, 2020. The insurers sold pet insurance policies through the Healthy Paws Pet Insurance agency beginning in 2013. (Vet Advantage – Property Casualty 360)
  • UK Neogen Corporation announced that it has acquired the UK-based Abtek Biologicals Limited, a developer and supplier of culture media supplements and microbiology technologies. Abtek’s Liverpool operations will become Neogen’s third global microbiology manufacturing facility, joining locations in Lansing, Michigan, and Heywood, England. Terms of the agreement were not disclosed. (company press release)
  • INDIA SeQuent Scientific Limited, parent company of Alivira Animal Health, announced the inauguration of a new state-of-the-art multifaceted and dedicated Animal Health R&D center with a strong injectable focus at Ambernath in Mumbai. (company press release)



  • SWITZERLAND – BSE Switzerland has reported a case of atypical bovine spongiform encephalopathy (BSE) in a 13-year-old farm cow, according to the World Organization for Animal Health (OIE). This is Switzerland’s first case of BSE since 2012. (
  • CANADA – VETERINARY SCHOOLS The University of Saskatchewan’s Western College of Veterinary Medicine announced it will offer 10 to 25 failed applicants the opportunity to enroll this autumn if they pay about C$60,000 (US$45,000), rather than the usual C$12,000 their classmates will be charged. The college regards the idea as a compromise forced on it by limits on public funding and the recognition that the students it turns away would likely pay as much or more to attend veterinary school overseas. Western College has historically been subsidized in its endeavor by the provincial governments of British Columbia, Alberta, Saskatchewan and Manitoba, each of which gets a share of the 80 freshman slots designated each year for their residents. But Alberta is pulling out this coming academic year, redirecting its funding to the veterinary school at the University of Calgary. (
  • US – VETERINARY EDUCATION Arkansas State University is considering opening a veterinary school in partnership with Adtalem Global Education, which operates the for-profit Ross University School of Veterinary Medicine. The pair is planning a 180-day exploration period for the proposed program, which would enroll about 120 students annually. (
  • US – DRUG FRAUD A Pennsylvania man has been charged by indictment with wire fraud and the interstate shipment of misbranded animal drugs for allegedly selling fake cancer-curing medications for dogs online. The indictment accuses Johnathan Nyce of fabricating several companies beginning in 2012, including Canine Care, ACGT, and CAGT, through which he claimed the development of drugs – marketed as “Tumexal” and “Naturasone” – for treating and curing canine cancer. If convicted, Nyce faces a maximum sentence of 32 years imprisonment and a fine of up to $1.25 million. (Veterinary Practice News)
  • US – SWINE RESEARCH New research from the Kansas State University College of Veterinary Medicine investigated how feed and feed ingredients may play a role in the possible spread of  classical swine fever (CSF) virus and pseudorabies. Researchers found that both viruses survived for the length of the 37-day model in feed, with pseudorabies virus having increased stability across a broader range of feed ingredients compared to CSF virus. The research was published online in the journal Transboundary & Emerging Diseases. (Feedstuffs)
  • US – E COLI TESTING Faculty at Kansas State University’s veterinary medicine college have developed a faster method of detecting in such food as ground beef a toxin-producing E. coli frequently linked to recalls. The approach – patented by Kansas State – requires one day to obtain confirmatory test results rather than the week under the existing standard for detection of Shiga toxin-producing E. coli, or STEC. Results were published in The Journal of Clinical Microbiology. (

Are pet product sales at an inflection point?

A new report from Brakke Consulting measures and characterizes the most dynamic changes taking place in the marketing of pet products – the emergence of new channels and the changing purchasing behaviors of pet owners, especially as it relates to products traditionally purchased at the veterinary clinic.

Pet Health Products: Changing Channels is based on two national, representative studies: one of over 1,000 pet owners, the other of over 550 companion animal veterinarians.  The data from these surveys are compared to data from previous Brakke studies in these areas to highlight trends.

This timely new report provides marketers and investors key insights to help:

  • Focus resources in the most productive areas
  • Build more effective defense strategies in key channels
  • Recalibrate channel strategies for principal products
  • Build innovative channel strategies for new products and categories
  • Design investment strategies based on “fishing where the fish are”

Pet Health Products, Changing Channels is now available for purchase.  Cost per report is $10,000.  For more information about this important study please contact at John Volk at or Bob Jones at

Wow!  Impressive results for several reporting companies in this newsletter.  Congratulations!

Brakke Consulting’s newest multi-user study, Pet Health Products:  Changing Channels, dramatizes just how much money veterinarians and their home delivery service providers are leaving on the table.  And by inference, many veterinary product marketers as well.  While nearly two-thirds of veterinarians say they offer home delivery, more than half of their clients aren’t even aware of it.  And pet owners told us that if their veterinarians did offer home delivery, a substantial segment would order from them.  A lot of opportunity for veterinarians, their home delivery service providers, and the companies that supply the products.  There’s a lot of actionable data in this new study, which is based on nationally representative surveys of both veterinarians and pet owners.  To learn more or to order, click here.

Our new poll was a big hit with many of you.  Thank you for participating.  In the reference market, there were 17 Super Bowl commercials with animals.  We had 24 people with the correct answer, so had a drawing for the winner of a free registration to our Industry Overview at WVC.  Scroll back to the top of the newsletter to take this week’s poll.

John Volk


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