Animal Health News & Notes for January 15, 2021

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Brakke Consulting’s
Animal Health News & Notes for January 15, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Earnings News
Cal-Maine Foods

Other News
Agric-Bioformatics
Anivive Lifesciences
Antech Diagnostics
Applied DNA Sciences
Ben & Jerry’s
Boehringer Ingelheim (management change)
Boehringer Ingelheim (PetMedix)
Boehringer Ingelheim (Nexgard Combo)
Ceres Tag
Dane Creek Capital
Dechra
Dermoscent
DW Healthcare Partners
ECO Animal Health
Elanco
EvviVax
Farmina Pet Foods
Globalstar
Growlies Pet Foods
Hello Ralphie
Heska
Kindred Biosciences
Laboratoire De Dermo-Cosmetique Animale
Lacuna Diagnostics
Parnell Pharmaceuticals
Patterson
Pegasus Laboratories
Petco
PetMedix
Primal Health
Resero Genomics
Sterilize with Light
SymbioCellTech
Talkatoo
United Raw Pet Foods
Veterinary Hospitals Association
Vetoquinol
Virbac

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REMINDER:  If you haven’t already taken our newsletter subscriber survey, please be sure to do so – we value your input!  Check your email for the survey invitation sent on Wednesday, January 13.

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COMPANY EARNINGS RELEASES

• Cal-Maine Foods reported results for its second quarter of fiscal 2021 ended November 28, 2020. Net sales were $347 million, an 11.5% increase compared to the second quarter of fiscal 2020. Net income was $12.2 million, compared to a net loss of $(10.1) million for the second quarter of fiscal 2020. (Feedstuffs)

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KC ANIMAL HEALTH CORRIDOR
ANIMAL HEALTH SUMMIT
NOW ACCEPTING PRESENTER APPLICATIONS

The KC Animal Health Corridor is now accepting applications from early-stage companies to present at the 13^th annual Animal Health Summit, held virtually August 24-26, 2021.

The 13^th annual Summit 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, or strategic partnerships to advance a company’s technology
– Revenue projections of $20 million within 5-7 years

Applications are due by April 5. To apply to present as an emerging company, visit the Animal Health Summit application page .

For more information, contact Kimberly Young at young@thinkkc.com.

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COMPANY NEWS RELEASES

• Boehringer Ingelheim Animal Health announced the appointment of Randolph Legg as its US president. He succeeds Everett Hoekstra, who retired in December. Legg will remain head of the company’s US commercial business while serving as president. (Feedstuffs)
• Boehringer Ingelheim and PetMedix announced a multi-year partnership to develop novel and transformative companion animal antibody therapeutics using PetMedix’s proprietary Ky9 platform. Financial terms were not disclosed. (company press release)
• Virbac and SymbioCellTech, LLC (SCT) announced an option agreement to co-develop and commercialize SCT’s proprietary “Neo-Islet” cellular therapy to treat animals suffering from insulin-dependent diabetes. “Neo-Islets” are small cellular clusters of adult mesenchymal stem cells that are easily administered into the abdominal cavity in an outpatient procedure, which provide durable blood sugar control without the need for subcutaneous insulin, toxic anti-rejection drugs or encapsulation devices. Financial terms were not disclosed. (Yahoo finance)
• Dechra Veterinary Products announced it has acquired the distribution rights to Kindred Biosciences‘ Zimeta (dipyrone injection), the first FDA-approved drug for the control of pyrexia in horses. Financial terms were not disclosed. (Todays Veterinary Business)
• The FDA announced it has granted conditional approval under its expanded authority to Pegasus Laboratories‘ KBroVet-CA1 (potassium bromide chewable tablets) to control seizures in dogs with idiopathic epilepsy. (FDA)
• The FDA announced it has conditionally approved Anivive Lifesciences‘s oral Laverdia-CA1 (verdinexor tablets) to treat dogs with lymphoma. Laverdia-CA1, which is given orally twice per week, works to prevent certain proteins from leaving the nucleus of cancer cells, thereby allowing these proteins to control the growth and prevent the spread of cancerous cells in dogs. (FDA)
• Antech Diagnostics announced the launch of FIRSTract Urine Culture test, the first automated test for rapid, reliable urine culture results for cats and dogs. Based on patented light-scattering technology, the FIRSTract Urine Culture test offers highly sensitive, specific detection of bacteriuria with results in 24 hours. Antech is offering FIRSTract Urine Culture test free of charge to all urine culture tests immediately. (PRNewswire)
• Heska announced an agreement to acquire Lacuna Diagnostics. Lacuna has a digital telemedicine cytology platform that provides nearly real-time interpretation of cases by an expert network of board-certified clinical pathologists. Financial terms were not disclosed. (IHS Markit Connect)
• Petco Health and Wellness Co. announced terms for its initial public offering (IPO). The company plans to raise about $744 million by offering 48 million shares at the price of between $14 and $17 per share. Petco plans to list on the Nasdaq under the ticker symbol WOOF. (Pet Product News)
• DW Healthcare Partners (DWHP) announced a $28 million offer to purchase all outstanding ordinary shares of Parnell Pharmaceuticals. The offer represents a premium of approximately 208% over Parnell’s closing price per share on November 13, the day the offer was announced to shareholders. (IHS Markit Connect)
• ECO Animal Health announced that it has received marketing authorizations from the FDA and from the Veterinary Drugs Directorate of Health Canada for Aivlosin Water Soluble Granules adding Mycoplasma hyopneumoniae to the list of pathogens indicated for the control of swine respiratory disease (“SRD”). (company press release)
• Laboratoire De Dermo-Cosmetique Animale (LDCA) announced the launch of their newly formed US subsidiary Dermoscent While Dermoscent veterinary skincare products have been available in the US for years, establishing US operations will enable the company to better serve its customers. (company press release)
• Patterson Veterinary Supply announced a new partnership with Talkatoo speech to text software, which allows veterinarians to capture their medical record notes much more quickly by speaking them rather than typing them. Talkatoo can capture up to 200 words per minute. Under the agreement, Patterson Veterinary customers will be able to use Talkatoo on any practice management system, including Patterson’s NaVetor cloud software. (company press release)
• Ceres Tag announced a commercial agreement with Internet-of-Things (IoT) specialist Globalstar to enable it to supply an automated daily recording of animals, including capabilities on pasture feed intake – key in determining feed efficiency, genetic selection and managing greenhouse gases. (IHS Markit Connect)
• Takis Biotech’s veterinary arm, EvviVax, in partnership with Applied DNA Sciences, is developing a COVID-19 vaccine for cats that could prevent reinfection from animals back to humans. The feline vaccine is based on the same technology used for Takis’ human COVID-19 vaccine, currently in development, using fragments of DNA to induce an immune response against the virus. (Vet Advantage – Forbes)
• Italy-based Farmina Pet Foods Holding announced that its US subsidiary, Farmina Pet Food USA, will set up its North American headquarters in Reidsville, N.C. The company’s North Carolina location will include manufacturing, research and development, and warehousing operations; there is currently a sales office in New York City. (Pet Product News)
• Primal Health announced a new partnership with the Veterinary Hospitals Association to distribute TEEF for Life dental products for pets. (Veterinary Advantage)
• Sterilize with Light announced a new disinfection system combining germicidal UV light and hypochlorous acid, aims to help veterinary practices prevent COVID-19 infections and operate safely during the pandemic. According to the company, Sterilize with Light is also effective against veterinary-specific pathogens like Bordetella, parvovirus, ringworm, distemper and calicivirus. (Veterinary Advantage)
• Ben & Jerry’s ice cream company announced the launch of two new flavors designed exclusively for canines. Doggie Desserts by Ben & Jerry’s are tasty frozen treats formulated with a sunflower butter base. (Pet Age)
• Hello Ralphie, a marketplace that connects pet owners with vetted professionals that provide veterinary telehealth services, announced it has raised $1.135M in funding. Hello Ralphie offers immediate appointments with veterinary technicians to diagnose appropriate treatment options and address any emergencies, targeting customers in states where regulations are favorable for establishing a veterinary client-patient relationship via remote means. (Alleywatch.com)
• Resero Genomics and Agric-Bioformatics, industry leaders in genomics and technology, have formed a unique alliance that will allow beef cattle producers to easily access and deploy the technologies and services of both companies. Through links on both companies’ websites, customers who store DNA material with Resero will be able to access and deploy Agric-Bioformatics’ patent-pending platform, AgBoost. (Feedstuffs)
• EU Boehringer Ingelheim announced that it has received marketing authorization from the EMA (European Medicine Agency) and European Commission for its NexGard COMBO topical solution for cats, expanding the brand to feline parasite control products. Active ingredients are esafoxolaner (the new generation of afoxolaner), eprinomectin, and praziquantel. NexGard COMBO eliminates fleas, ticks, and ear mites, prevents heartworm disease and treats hookworm, roundworm, vesical worm, lungworm, as well as tapeworm infections. (company press release)
• AUSTRALIA Vetoquinol announced it has acquired the Drontal and Profender product families, the intellectual property, registrations and other rights from Elanco Animal Health for the Australian market. Vetoquinol previously acquired the Profender and Drontal product families in the EU and the UK in August 2020, in relation to Elanco’s 2020 acquisition of Bayer AG’s animal health business. (Business wire)
• CANADA United Raw Pet Foods , a majority-owned subsidiary of Dane Creek Capital Corp, announced that it has acquired Growlies Pet Foods Inc., a leading pet specialty retailer based in Victoria, British Columbia.  Financial terms were not disclosed. (GlobalPets)

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ANIMAL HEALTH STOCK PRICE TRACKER

Correction:  Last week the stock price tracker incorrectly reported PetIQ’s stock price as $20.08 instead of $35.41, and Phibro’s stock price as $35.41 instead of $20.08.  The correct prices for last week are shown in the table below.

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ANIMAL HEALTH NEWS

• WORLD – AVIAN INFLUENZA Hundreds of thousands of birds have been culled in Europe and Asia in recent days, as authorities try to contain highly pathogenic avian flu (HPAI).  Having already caused serious problems in European countries such as the Netherlands and UK, the disease is now spreading in France, where authorities have confirmed more than 60 outbreaks of the H5N8 virus.  Germany, Poland, and Sweden have also confirmed cases of HPAI on poultry farms.  In Asia, South Korea, Japan and India have all reported multiple outbreaks. (IHS Markit Connect)
• US – ANTIMICROBIAL GUIDELINES The FDA has published a concept paper to obtain early input from the public on a potential framework for how animal drug sponsors could voluntarily make changes to the approved conditions of use for certain medically important antimicrobial drugs to establish a defined duration of use for those indications that currently lack a defined duration of use. The FDA is accepting public comments on the concept paper until April 12, 2021; click here for more information. (FDA)
• US – AIR TRAVEL REGULATIONS Alaska Airlines, American Airlines, Delta Air Lines and United Airlines will no longer allow companion, emotional support or therapy animals to travel for free in the passenger cabin, though trained service dogs will still be allowed in the passenger cabin at no charge. The federal government changed rules regarding air transport of emotional support animals after numerous incidents and reports that policies were being abused. (AVMA SmartBrief)

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BRAKKE CONSULTING VIEWPOINT
Whew!  Judging by the sheer number of announcements in this week’s newsletter, it appears that the animal health industry is the place to be in 2021 – new products, new partnerships, new management, new IPO, acquisitions.  Seems like a lot of companies want a piece of the action, including ice cream magnates Ben & Jerry’s.  Innovation is good for everyone. Remember the old adage, “a rising tide lifts all boats”?  It’s also interesting that WOOF will become a ticker symbol again.  You’ll recall VCA used that symbol for many years before Mars took VCA private.  Perhaps it’s true that imitation is the sincerest form of flattery.  Anyone claimed MEOW yet? How about OINK?

We hope that all this activity portends a good year for your organization.

John Volk

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YOUR VIEW

Last week we asked if you would likely consume GalSafe pork, the first product available from genetically modified pigs.  52% said you were somewhat or very likely to eat it.  40% said “not yet.” The rest are still thinking about it.

This week
Back to the “rising tide” theme, how do you think your company will do in 2021?  Please take a minute to click on the question to answer anonymously.  We’ll publish the results in next week’s newsletter.  It should make for an interesting forecast for the year.