Animal Health News & Notes for January 18, 2019

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Brakke Consulting’s
Animal Health News & Notes for January 18, 2019
Copyright © Brakke Consulting, Inc.

Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting news
Market research reports
Industry Overviews at VMX & WVC

earnings news
Bioveta
Virbac

other news
Alopexx Vaccine
Basepaws
Charlee Bear Pet Products
Covetrus
Drs. Foster and Smith
Gott Pet Products
Henry Schein
Inubox
Kindred Biosciences
LifeLearn
Merck
Mookie
NAVC
Owl Manor Veterinary
Oxyfresh
Petco
PurrSong
Saturn Petcare
Sure Petcare
Vetsource
Virbac
Zomedica

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BRAKKE CONSULTING, INC.
INDUSTRY OVERVIEWS AT VMX AND WVC
LAST DAY TO REGISTER ONLINE!

“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 www.brakkeconsulting.com and scroll down to the “What’s New” box. The price is $400 per person for online registration, which ends on Friday, January 18; late registration is $450. Discounts are available for multiple attendees from the same company; call 972-243-4033 for more information.

www.BrakkeConsulting.com

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COMPANY EARNINGS RELEASES

• Virbac reported results for the full year 2018. Revenue reached EUR 869 million ($994 million), recording total growth of 0.8%. Excluding the negative effect of exchange rates, revenue is growing at 4.5%. (company website)

• Bioveta announced financial results for its fiscal 2018 year. Revenues were EUR 65.9 million ($76 million), an 11% year-on-year improvement. (Animal Pharm)

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COMPANY NEWS RELEASES

• Alopexx Vaccine, LLC announced that it has entered into an exclusive global license agreement with Merck Animal Health to develop and commercialize its poly-N-acetyl glucosamine (PNAG) vaccine for Rhodococcus equi (R. equi) pneumonia in foals, as well as other infections in the equine field. (PRNewswire)

• Virbac announced François Fournier’s appointment as president and CEO of Virbac North America, effective January 7, 2019. Fournier is a French and U.S. resident with long-standing experience in the pharmaceutical industry, and will be based in Fort Worth, Texas. (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 now changed from February 4, 2019 to February 7, 2019 the anticipated distribution date for the distribution of shares of HS Spinco, Inc., the new company formed to effectuate the spin-off to form Covetrus. (company press release)

• Kindred Biosciences, Inc. announced a proposed public offering of its common stock. KindredBio intends to use the net proceeds from the offering, if completed, for the development of its therapeutic candidates, the expansion of its commercial infrastructure, and for other general corporate and working capital purposes. (company press release)

• Zomedica Pharmaceuticals Corp. announced the completion of its previously announced private placement offering for aggregate gross proceeds of US$4.28 million (approximately C$5.65 million). Zomedica intends to use the net proceeds of the offering to fund its cash expenditure obligations under the Company’s exclusive development and supply agreement with Qorvo Biotechnologies, LLC. (company press release)

• Owl Manor Veterinary announced the launch of Pro-Stride APS, a new option for canine lameness. Pro-Stride APS is an innovative device that produces a concentrated solution of cells, platelets, growth factors, and anti-inflammatory proteins from a patient’s own blood in under 20 minutes. (Veterinary Practice News)

• Petco announced it will close all operations of its Drs. Foster and Smith (DFS) business on Feb. 12, 2019, with the exception of Live Aquaria. Operations will be closed to the public and all online services will be transferred to Petco. (Pet Business)

• Oxyfresh announced a partnership with Vetsource to expand distribution for Oxyfresh’s line of gentle, alcohol-free pet dental and grooming products to more than 8,500 veterinary practices in the US. (Pet Age)

• The North American Veterinary Community (NAVC) announced it has partnered with LifeLearn Animal Health to bring a smarter, more personalized and engaging VetFolio to the veterinary community. VetFolio offers one-stop access to hundreds of online veterinary medical courses and programs for veterinarians, veterinary students, veterinary nurses/technicians, practice managers and practice staff. (company press release)

• Saturn Petcare, the largest private-label, pet food manufacturer in Europe, announced it will establish its first US facility in Terre Haute, Indiana. The company, which is headquartered in Germany and is a subsidiary of the Heristo Group, will invest more than $38 million to purchase, renovate and equip a more than 350,000-square-foot facility. (GlobalPets)

• Charlee Bear Pet Products announced that effective immediately it will be known as Gott Pet Products, LLC to reflect the fact that the company is fast becoming a marketer of multiple brands. (Pet Product News)

• A number of pet products were showcased at the recent Consumer Electronics Show (CES), among them: Basepaws DNA testing kits for cats; Sure Petcare’s Microchip Pet Feeder Connect and Microchip Pet Door Connect; PurrSong’s LavvieBot smart self-scooping litter box; Mookie Smart Pet Feeder; and Inubox automated indoor toilet for dogs. (VMDToday)

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ANIMAL HEALTH NEWS

• CANADA – BOVINE TB The Canadian Food Inspection Agency confirmed the strain of bovine tuberculosis on a farm in British Columbia is different from any previously found in Canada. The investigation began with a slaughter cow diagnosed with TB in October 2018. Since then, officials have identified three more cases of TB in the same herd. (Vet Advantage – Bovine Veterinarian)

• FRANCE – ASF France announced it will cull all wild boar in a zone along the Belgian border to try and avoid an outbreak of African swine fever after new cases were discovered nearby in Belgium. France will create a boar-free zone spanning several km on its side of the border by culling all wild boar in the coming weeks and erecting a perimeter fence in the next few day. (Reuters)

• US – IMPORT CENTER SHUTDOWN Out of an abundance of caution, the USDA’s Animal & Plant Health Inspection Service (APHIS) said that it is temporarily closing the Miami, Florida Animal Import Center to new arrivals effective January 19 after a handful of horses quarantined at the facility became sick. APHIS said it is investigating to determine the specific cause of illness in these horses; however, officials suspect salmonella, and the facility is taking precautions to stop further disease spread. (Feedstuffs)

• US – CARDIAC SURGERY In collaboration with Japanese veterinary cardiologist Dr. Masami Uechi, the UF College of Veterinary Medicine will launch an open heart surgery program for dogs later this year, becoming the only fully functional program of its kind in the US, and the only one to offer the complex procedure known as mitral valve repair. Uechi has previously performed mitral valve repair procedures on dogs in Japan and France with a 90% success rate. As part of a three-year, open-ended agreement with UF, Uechi and his team would provide training in mitral valve repair surgery to UF doctors and staff with the goal of eventually operating the program independently. (Gainesville.com)

• US – TELEHEALTH RESOURCE The American Veterinary Medical Association (AVMA) and American Animal Hospital Association (AAHA) have teamed up to develop a booklet to help veterinarians navigate the issue of telehealth in veterinary medicine. “The Real-Life Rewards of Virtual Care: How to Turn Your Hospital into a Digitally Connected Practice with Telehealth” was designed to serve as a primer to help veterinarians get started on the path to becoming fully equipped, digitally connected, telehealth-ready veterinary practices. (Vet Advantage)

• US – VET SCHOOL ACCREDITATION Lincoln Memorial University-College of Veterinary Medicine (LMU-CVM) announced that the American Veterinary Medical Association Council of Education (AVMA COE) has granted the university full accreditation. LMU-CVM was initially granted provisional accreditation status four years ago when it was established as the 30th veterinary college in the US. (Feedstuffs)

• UK – MASTOCYTOSIS RESEARCH Researchers at the Animal Health Trust, working in collaboration with the University of Liverpool, have successfully identified genetic changes in canine cutaneous mast cell tumors that are linked to tumor spread. The new research may eventually be used by vets to better determine how best to treat dogs with mast cell tumors, and may also promote the development of new treatments. The research was published in the journal PLOS ONE. (eadt.co.uk)

• US – SUSTAINABILITY REPORT The Animal Agriculture Alliance has released a new report that highlights how the animal agriculture industry shares the same values as today’s consumer with its commitment to animal care, environmental stewardship, responsible antibiotic use, food safety and nutrition. The 33-page “Sustainability Impact Report” specifically focuses on animal agriculture in the U.S. and covers nine industries: dairy, beef, veal, pork, chicken, turkey, eggs, sheep and aquaculture. To read the report, go to https://indd.adobe.com/view/2faa0cef-f28d-4930-8653-32450c9abb2a. (Feedstuffs)

• US – AVMA BENEFITS The American Veterinary Medical Association announced that association-provided health insurance, a core benefit of AVMA membership for nearly 60 years before regulatory changes forced an end to those plans in 2013, will once again be available to AVMA members in several states beginning in July. On July 1, 2019, the AVMA association health plan will be available to AVMA member practices with between 2 to 50 employees in at least 10 states. The program will build over time. (association press release)

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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:

• US Flea Control and Heartworm Markets (December 2018)
• Manufacturer Sales Force Effectiveness Study (December 2018)
• The Companion Animal Veterinary Telehealth Landscape (October 2018)
• Veterinary Practice Home Delivery (May 2018)
• Pain Management Products for Dogs and Cats (April 2018)
• Veterinary Technical Services Study (March 2018)
• Equine Mega Study IV (January 2018)
• Distributor Effectiveness Study (December 2017)
• Cancer in Dogs and Cats (October 2017)
• New Strategies for Health & Performance in US Livestock & Poultry Production (Jan 2017)

Prices for reports vary. For more information about these or other reports, visit our website at https://brakkeconsulting.com/our-services/information/multi-client-studies or contact us at info@BrakkeConsulting.com

www.BrakkeConsulting.com

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BRAKKE CONSULTING VIEWPOINT

Last week in this newsletter, Ron Brakke announced that I would be taking over the day-to-day management of Brakke Consulting with a goal of helping to build on the success he and the Brakke Consultants have experienced over the past 32 years. I am very excited to take on this role and would like to take advantage of my first official opportunity to comment on this transition in our Newsletter.

First, I’d like to say thanks to Ron for the opportunity to lead the team. I’ve known Ron for many years and have enjoyed working closely with him since joining his firm as a consultant nearly two years ago, gaining valuable new insights from Ron along the way.

For those of you that don’t know me, I’ll offer a quick overview of my career. I started in the animal health business in 1986, the same year Ron started his consulting business. My first job after graduating with a Ph.D. in Animal Science from the University of Illinois was in product development at American Cyanamid’s R&D division in Princeton, NJ. I was going to help change the way pork was produced with a sustained release formulation of porcine somatotropin (PST) – one of the first biotechnology products in our industry.

The product never made it out of R&D and I moved on to the commercial side of the business. From there, I had a front row seat to a number of the mergers and acquisitions that have shaped our industry over the years. Cyanamid was bought by Fort Dodge and soon was sold to Roche Vitamins. A few years later I joined Alpharma, and then, we acquired the feed additive business from Roche – the business I had previously left. I joined the Pharmacia Animal Health business in 2001, only to be acquired by Pfizer two years later. I then took my fortunes to Novartis Animal Health in Greensboro, NC, where I led the North American business (twice over two stretches of time) and the International business in between. Twelve great years later, we were sold to Eli Lilly and merged with the Elanco Animal Health business.

Many of you have probably experienced the consolidation in our animal health industry the same way I have. And over the years, we’ve learned about products, customers, competition, communication, how to manage and how to lead. Most important of all, we’ve learned about people. I’ve been fortunate to work with, and for, some great people in our animal health industry and I genuinely look forward to continuing to do so.

I am excited to work with great people here at Brakke Consulting, as well, all of whom have deep expertise in our industry. Last week, Ron he mentioned that we shouldn’t expect him to ride off into the sunset just yet – I know he’ll keep on riding.

If you happen to be at VMX next week, Ron and I would both welcome a chance to catch up with you to say hello and talk about what’s next in animal health business.

Thanks,

Bob Jones

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