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Brakke Consulting’s
Animal Health News & Notes for January 6, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
2023 Industry Overview – register now
Earnings News
Cal-Maine Foods
General Mills
Neogen
Other News
Abveris
Aker BioMarine
American Securities
Anzac Animal Health
Arlington Capital Partners
AVS Bio
BioZyme
Butterfly
Charles River Laboratories
Dalan Animal Health
Diamond Animal Health
Digatherm Thermal Imaging
Dog Food Advisor
EKF Diagnostics
Enzolytics
Fullpet Co
Heska
Intervacc
Milk Specialties Global
Mitsui
Multi Radiance Veterinary
MWI
Odie Pet Insurance
Pet Network International
Petspiration
Smart Tracking Technologies
Sumitomo Pharma
Wag! Group
Woolworths Group
Zoo Group Stefanov
Zvjerinjakin
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BRAKKE CONSULTING
Announcing the 2023 Brakke Industry Overview
Presented at VMX: Monday, January 16th, 2-4 pm, Hyatt Regency, Orlando N
Presented at WVC: Monday, February 20th, 2-4 pm, Four Seasons Hotel, Acacia 1
Come join us at Brakke Consulting’s annual Industry Overview presented at VMX and WVC next year. Key topics and presenters include:
- Industry and top global company performance, presented by Bob Jones
- Continuing consolidation of and labor shortages in vet practices, including their response to inflation, presented by John Volk
- A closer look at pet pharmacy consumerization and how we can all thrive in this new era, presented by Candise Goodwin
- Trends, challenges, and opportunities facing animal health companies in finding talent in today’s business environment, presented by Jeff Santosuosso
Also, moderated by Paul Casady, a panel of industry leaders will discuss their views on the subject of “Managing Animal Health Companies in Times of Uncertainty”. Confirmed speakers are VMX are:
- Scott Bormann, Sr. Vice President, North America, Merck Animal Health
- Kurt Green, President and CEO, Vetsource
- Kevin Pohlman, President, Animal Health, Patterson Companies
To learn more about and sign up for the Industry Overview, click here. You can also email Amanda McDavid or call us at 336-396-3916.
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EARNINGS NEWS RELEASES
- Neogen Corporation announced results of its second quarter ended November 30, 2022. Revenue of $230.0 million, up 76.2% over the prior-year quarter. Net loss was $(41.8) million compared to net income of $10.8 million in the prior-year period; The decrease in net income was primarily driven by transaction costs related to the recently completed merger with the former 3M Food Safety Division. Revenues for the Animal Safety segment were $68.7 million, a year-over-year increase of 8%. (seekingalpha)
- General Mills, Inc. reported results for its fiscal 2023 second quarter ended November 27, 2022. Net sales for the Pet segment essentially matched year-ago levels at $593 million. Segment operating profit totaled $87 million compared to $132 million a year ago. (company press release)
- Cal-Maine Foods reported results for the second quarter of fiscal 2023 ended November 28, 2022. Net sales were $801.7 million, a 110% increase compared with the same quarter in 2022. Net income was a record-high $198.6 million. (Feedstuffs – subscription)
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COMPANY NEWS RELEASES
- The FDA announced it has approved Anzac Animal Health‘s Zycosan (pentosan polysulfate sodium injection) for the control of clinical signs associated with osteoarthritis in horses. (FDA)
- Dalan Animal Health, Inc. announced that the USDA has granted a conditional license for vaccination of honeybees against American Foulbrood disease caused by Paenibacillus The bacterin was developed by Dalan Animal Health, and is manufactured by Diamond Animal Health, a wholly-owned subsidiary of Heska. Dalan will distribute the vaccine on a limited basis to commercial beekeepers and anticipates having the vaccine available for purchase in the US this year. (Businesswire)
- American Securities LLC, announced that it has entered into a definitive agreement to sell Milk Specialties Global to Butterfly, a private equity firm specializing in the food sector. Terms of the transaction were not disclosed. (Feedstuffs – subscription)
- Wag! Group , announced a definitive asset purchase agreement with Clicks and Traffic LLC (Dog Food Advisor) to purchase its Dog Food Advisor assets for cash consideration of $9 million. Since 2008, Dog Food Advisor has researched, reviewed and rated more than 5,300 dog food products on its proprietary website. (Pet Product news)
- EKF Diagnostics announced the global launch of the Lactate Scout Vet handheld veterinary lactate analyzer. The new point-of-care veterinary analyzer features species selection for dogs, horses, pigs and cattle. (company press release)
- Therapeutic laser company Multi Radiance Veterinary (MRV) announced its role as the exclusive worldwide distributor of Digatherm Thermal Imaging infrared cameras. Thermal imaging uses a highly sensitive infrared camera to measure, compile, and analyze the electromagnetic energy emitted from a patient. (Businesswire)
- BioZyme announced the launch of AO-Biotics, a line of fermentation products derived from BioZyme’s innovative fermentation of Aspergillus oryzae (AO) that promote resilience. The first product addition to the AO-Biotics is Amaferm, a prebiotic research-proven to enhance digestibility. (Feedstuffs – subscription)
- Link, by Smart Tracking Technologies, LLC announced an exclusive partnership with MWI for the distribution of the new LinkVet smart pet wearable and companion smartphone app. (yahoo news)
- QRILL Pet, a functional marine ingredient by Aker BioMarine, announced its new partnership with Chinese pet food manufacturer Fullpet Co. Through the partnership, QRILL Pet will provide Fullpet with raw materials for production of healthy pet nutrition products. (Petfood Processing)
- Enzolytics announced a partnership with Abveris to develop species-specific monoclonal antibodies for diagnostics and therapeutics in feline health. (biospace)
- Odie Pet Insurance announced a $3 million funding round. (Globalpets)
- Arlington Capital Partners announced it has acquired Charles River Laboratories’ Avian Vaccine Services business to form a new company, AVS Bio. AVS Bio, which will operate independently as a standalone platform for Arlington, provides specific pathogen free (“SPF”) eggs and adjacent laboratory products and services that support the development and manufacture of vaccines, therapeutics, and other biologics used for human and animal health. Financial terms were not disclosed. (Businesswire)
- JAPAN Mitsui & Co., Ltd. announced it has agreed with Sumitomo Pharma, Ltd. to acquire all shares in Sumitomo Pharma Animal Health Co., Ltd. Financial terms were not disclosed. (Marketscreener)
- SWEDEN Intervacc AB and the Swedish University of Agricultural Sciences, SLU, announce that they have extended the contract for the development of animal health vaccines using recombinant proteins. The successful collaboration has led to a vaccine against equine strangles approved by the European Medicines Agency, as well as promising vaccine candidates against other streptococcal and staphylococcal infections. (Marketscreener)
- AUSTRALIA Woolworths Group announced it has acquired 55% of Petspiration, the owner of the Australian retail chain PETstock, for AU$ 586 million ($395M). Petspiration’s CEO and Managing Director will keep a 45% equity investment in the business and continue in their functions. PETstock has a network of 276 stores across Australia and New Zealand, and owns e-commerce platforms such as Pet.co.nz. (GlobalPets)
- EU Pet Network International announced it has acquired pet retailers Zoo Group Stefanov (Bulgaria) and Zvjerinjakin (Croatia). Financial terms were not disclosed. (Global Pets)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – SENIOR PET GUIDELINES The American Animal Hospital Association (AAHA) announced the release of the 2023 AAHA Senior Care Guidelines for Dogs and Cats. The 2023 AAHA Senior Care Guidelines for Dogs and Cats are supported by Boehringer Ingelheim Animal Health, CareCredit, IDEXX, and Zoetis. (association press release)
- US – ASF VACCINE USDA announced development of a ‘promising’ ASF vaccine with the help of the University of Connecticut. After testing the vaccine on wild boars by using edible bait containing the vaccine and on domestic pigs through an injection into the muscle, researchers have found immunization efficacy against ASF. The vaccine candidate was recently licensed for commercial development by Zoetis. (com)
- US – DCM The FDA announced that it has insufficient data to establish causality among DCM case reports and pet food products eaten by the afflicted dogs, and does not intend to release further public updates until there is meaningful new scientific information to share. Beginning in 2018 the agency investigated correlations among certain dog foods and DCM. (Petfood Industry)
- US – ONE HEALTH A provision directing the development of a One Health Framework across the federal government was included in the final spending bill of the year. The legislation passed derives from the AVMA-championed Advancing Emergency Preparedness Through One Health Act that was introduced at the beginning of the 117th Congress. With passage, Congress will now direct federal agencies to develop and submit a national One Health Framework to collaboratively address zoonotic diseases and advance public health preparedness. (Yahoo)
- US – ONE HEALTH The Texas Tech University School of Veterinary Medicine will start a doctoral degree in One Health Sciences after winning the approval of the Southern Association of Colleges and Schools Commission. The program will offer broad foundational understanding of how animal, human and ecosystem health are interconnected, and also deep knowledge within a discipline. (Todays veterinary business)
- US – TELEMEDICINE The FDA announced its withdrawal of Guidance for Industry #269, “Enforcement Policy Regarding Federal VCPR Requirements to Facilitate Veterinary Telemedicine During the COVID-19 Outbreak.” The effective date of the decision is Feb. 21, which means that the FDA will again hold veterinarians to the federal requirements for the veterinarian-client-patient relationship beginning on that date. As stated by the FDA, the federal VCPR definition “requires animal examination and/or medically appropriate and timely visits to the premises where the animal(s) are kept” and “cannot be met solely through telemedicine.” GFI 269 was issued in March 2020 during the early days of the pandemic. To help address these challenges and support the use of telemedicine to deliver patient care, GFI #269 indicated that the FDA would temporarily not enforce federal requirements for an in-person animal examination or premise visit to establish a VCPR for activities covered by the federal VCPR definition, including extralabel drug use and issuing veterinary feed directives. (AVMA)
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BRAKKE CONSULTING VIEWPOINT
Last week’s Viewpoint ended with a comment about looking away from the rearview mirror of 2022 and driving as fast as you can into 2023. What can we expect in 2023? Judging by all the things I read these last two weeks about the general economy, I have learned two things: one, no one really knows what will happen to the economy, and two, I am happy I studied animal science and not the dismal science, also known as the study of economics.
So, times are uncertain in 2023. And this is the topic for our panel of senior executives at our annual Industry Overview presented at the VMX conference in two weeks, and at WVC next month. We have an opportunity to learn from senior animal health company executives on “Managing Animal Health Companies in Times of Uncertainty.” Moderated by Brakke Consultant Paul Casady, we will hear from Scott Bormann, Sr. Vice President, North America, Merck Animal Health; Kurt Green, President and CEO, Vetsource; and Kevin Pohlman, COO, Patterson Companies.
Their insights into how they will manage moving from pandemic-complicated years to a year of inflation, possible recession, staffing shortages and client demands will be valuable to many in our animal health industry. Maybe with their help, we’ll all have a clean driving record in 2023.
Bob Jones
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YOUR VIEW
Before Christmas, we asked
This week
This week, let’s see what you expect regarding people, specifically recruiting for 2023. Recruiting and hiring will be another topic discussed at the Industry Overview at VMX and WVC, based on brand new research conducted in December.
Compared to 2022, recruiting and hiring the talented people your company needs in 2023 will be…
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