The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for January 11, 2019
Copyright © Brakke Consulting, Inc.

Editor: Lynn Fondon DVM MBA

Brakke Consulting news
Brakke announces leadership transition
Industry Overviews at VMX & WVC register now
Transaction assistance

earnings news
Blue Buffalo
Cal-Maine Foods

other news
Animal Supply Co.
BBH Capital Partners
Ethos Veterinary Health
Grey Wolf Animal Health
Henry Schein
Hyper Pet LLC
Invisible Fence South
Kemin AquaScience
R2P Pet
Radio Systems Corp
Southern Veterinary Partners
Veterinary Healthcare Solutions
WellHaven Pet Health


Brakke Consulting is kicking off 2019 by announcing that Dr. Robert (Bob) Jones will take over the leadership of day-to-day operations for the company, effective immediately, with Ron Brakke and Bob working together to manage a seamless leadership transition over the coming year and beyond. The leadership transition promises to build on the company’s 32-year legacy in animal health industry consulting while positioning the firm for growth well into the future. Ron Brakke’s role in the company, aside from the management of day-to-day operations, will remain unchanged, and the company will operate in a business-as-usual fashion.

The Brakke team will be available for further commentary at the upcoming major veterinary conferences, including VMX in Orlando on January 22, and WVC in Las Vegas on February 19. The entire press release can be read on our website at


• General Mills reported financial results for the second quarter of fiscal year 2019. Pet food and treat sales, including Blue Buffalo, totaled $335 million, a net sales decrease of 7%. However, this decline reflected a comparison to the prior-year period when Blue Buffalo first launched into the U.S. Food, Drug and Mass (FDM) channels and generated 25% pro forma net sales growth. In-market results continued to show solid growth, according to the company, with retail sales up high-single digits. (Petfood Industry)

• Cal-Maine Foods Inc. reported results for its second quarter ended Dec. 1, 2018. Net sales were $356 million, a 1.4% decrease from the second quarter of fiscal 2018. Net income was $21.8 million compared to a loss of $(26.1) million for the second quarter of 2018. (Feedstuffs)


“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 VMX and WVC veterinary conferences in early 2019. “Growth, Disruption and Innovation” is the theme of this year’s presentation.

The 2019 Animal Health Industry Overview will be presented twice this winter – once at the VMX in Orlando, Florida and once at the Western Veterinary Conference in Las Vegas, Nevada. These dates are:

• VMX: Tuesday, January 22, 2019, 2:00 – 4:00 pm, Rosen Plaza Hotel
• WVC: Tuesday, February 19, 2019, 2:00 – 4:00 pm, Four Seasons.

Registration for the VMX & WVC Industry Overviews is now open. Seating is limited this year, so register early!

To register, go to and scroll down to the “What’s New” box. The price is $400 per person for online registration; late registration is $450. Discounts are available for multiple attendees from the same company; call 972-243-4033 for more information.


• Ceva Animal Health announced the launch of MilbeGuard (milbemycin oxime) Flavored Tablets, the first FDA-approved generic milbemycin oxime in the US. MilbeGuard is a monthly, beef-flavored tablet that prevents heartworm disease, and treats and controls whipworms (in dogs only), hookworms and roundworms. (company press release)

• Henry Schein, Inc. announced that in connection with the previously announced spin-off of its Henry Schein Animal Health Business, its Board of Directors has established January 17, 2019, as the record date and February 4, 2019, as the anticipated distribution date for the distribution of shares of HS Spinco, Inc., the new company formed to effectuate the spin-off. It is anticipated that, promptly after effectiveness of the Registration Statement, which is expected to occur no later than January 28, 2019 (assuming a continuation of the U.S. federal government shutdown), trading of Covetrus common stock will begin on a “when-issued” basis and such trading will continue through the Distribution Date. (company press release)

• Pharmgate Animal Health introduced Deracin (chlortetracycline), a generic (ANADA) alternative to Aureomycin for effective and economical control of shipping fever and anaplasmosis in cattle. Deracin has combination clearances to be fed with Bovatec or Deccox. (Bovine Veterinarian)

• Kemin Industries announced its newest business unit, Kemin AquaScience, formerly known as AquaKulture. Kemin AquaScience serves the growing aquaculture industry as it shifts from wild-caught to farmed fish and shrimp. (Feedstuffs)

• Amazon has entered the cat food market with the launch of multiple varieties of wet, canned cat food under the internet retailer’s private label pet food brand, Wag. The products contain no added corn, wheat or soy, as well as no artificial colors, flavors or chemical preservatives. (Pet enews)

• Animal Supply Co. announced it has made an agreement in principle with a group of unnamed institutional investors to acquire a majority share of the common equity of the company. The institutional investors (along with certain ASC existing lenders) have already injected new capital into the business. Upon the closing of the transaction, the institutional investors will provide further capital investment, resulting in the infusion of more than $50 million of cash into the company. (Pet Product News)

• CompanionCBD, a newly formed company, announced the launch of hemp-based Companion Soft Chews, chewable cannabidiol supplements formulated to manage anxiety, pain and arthritis in cats and dogs. (Todays Veterinary Business)

• Radio Systems Corp. announced it has acquired Invisible Fence South, Inc. and its subsidiaries. Financial terms were not disclosed. (GlobalPets)

• Hyper Pet LLC announced it has acquired R2P Pet, a manufacturer of a broad assortment of toys, beds, apparel, leashes, collars and accessories that are distributed in over 30 countries. Financial terms were not disclosed. (Pet Business)

• Southern Veterinary Partners (SVP) announced it has acquired its 70th animal hospital in San Antonio, Texas, expanding its reach across 10 southern states. Dodd Animal Hospital is the group’s 10th location in the state. (Veterinary Practice News)

• WellHaven Pet Health announced a new veterinary telemedicine partnership with Petriage. WellHaven will implement Petriage’s veterinary telemedicine platform in all 40 of its current hospitals and has plans to expand to 150 hospitals within three years. (PRNewswire)

• BBH Capital Partners announced that it has completed a recapitalization of Ethos Veterinary Health LLC. Ethos operates 21 specialty and emergency hospitals and provides a complementary suite of reference laboratory and compounding pharmacy services. (

• Heel!, which was recently launched, is a telehealth app designed to foster cooperation and information sharing between veterinarians and pet owners and sends reminders for medication or other recurring needs to pet owners via a smartphone app. An internet portal allows veterinary professionals to communicate with each other and the pet owner on prescription refills, therapy details, and other pet health issues. (

• CANADA Grey Wolf Animal Health Inc. announced that it has acquired Veterinary Healthcare Solutions Inc. (“VHS”). VHS currently distributes a significant number of commercial products – from prescription drugs to consumables – and provides international partners with turnkey access to the Canadian market. Financial terms were not disclosed. (Business Wire)


• US – NEWCASTLE DISEASE The USDA’s Animal & Plant Health Inspection Service (APHIS) has confirmed virulent Newcastle disease in a second and third commercial poultry flock in California. The latest cases are in commercial layer flocks in Riverside County, Caifornia, where the first outbreak also occurred in December. (Feedstuffs)


Let Brakke Consulting provide assistance for all your transactions.

Brakke Consulting has been the finder of record, agent of record or consultant for a number of successfully completed projects. We assist with valuations and provide due diligence on confidential transactions as well as offering executive counsel on a number of potential transactions.

Brakke Consulting has the experience, insight, ability and contacts to provide clients with the highest quality services in the animal health, pet, veterinary and specialty chemicals markets. Please contact any of our offices for a confidential consultation.


Hopefully earlier in this newsletter you noted that Brakke Consulting’s leadership has transitioned from me to Dr. Robert (Bob) Jones this week. I’m confident that this leadership transition will build on Brakke Consulting’s three decades of experience in the animal health industry while bringing fresh new ideas and innovation to position the company for future success.

I’m proud of the seasoned team of consultants that have helped me serve the industry over the past 32 years; we have supported nearly every leading animal health company in their efforts to manage healthy, growing and profitable businesses. Under the new daily leadership of Bob Jones, we will work to continue building on the foundations that have made Brakke Consulting successful while ensuring that our business remains an indispensable resource to all animal health companies in the future.

Aside from the management of day-to-day operations, my own role in the company will remain unchanged. We expect to operate in a business-as-usual fashion in all aspects of our operations, and I will continue to work with Brakke clients as I always have, striving to help them build stronger organizations and to commercialize promising new technologies. At the same time, the firm will benefit greatly from the decades of experience in the animal health and nutrition industries that Bob Jones brings to the firm, as well as the leadership and management skills that he can offer to our internal team and to our clients.

Brakke Consulting, with the assistance of many of you, has provided me with a most interesting career the past 32 years and I thank each of you for your support. However, don’t expect me to ride off into the sunset just yet! I expect to be at the major upcoming meetings greeting and visiting with many of you as I have in the past.

Have a great weekend!!

Ron Brakke

This electronic newsletter is the sole property of Brakke Consulting, Inc.
Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting, Inc.

For more information about Brakke Consulting’s services and syndicated studies, visit our website at

Brakke Consulting, Inc.
12005 Ford Rd., Suite 530
Dallas, TX 75234 USA

en_USEnglish (United States)