The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for January 7, 2022
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
2022 Industry Overview

 Earnings News
General Mill
Neogen

Other News
Ancom Bhd
Animal Dermatology Group
Axxon Group
BASF Animal Nutrition
Bessemer Investors
Bioiberica
Covetrus
Dane Creek Capital
Dechra
Dellait
IMEX
Invoxia
JA Saúde Animal
Jaguar Animal Health
Manna Pro Products
MEP Equine Solutions
Ouro Fino Saude Animal
Oxbow Animal Health
Parasight System
Pathway Intermediates
Percheron Capital
Pet Flavors
PetMedix
Petriage
Pets West Pets & Supplies
PetVivo
SAGE Healthcare
Shennong Animal Health
Smart Tracking Technologies
United Raw Pet Foods
Vemedim
VetCove
Vimian Group
VolitionRx
Zoetis (Simparica Trio)
Zoetis (PetMedix)

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Brakke Consulting
Announcing the 2022 Brakke Industry Overview

Presented at VMX: Monday, January 17th, 2-4 pm, Hyatt Regency, Orlando N Room
Presented at WVC: Monday, March 7th, 2-4 pm, Four Seasons Hotel, Acacia Ballroom

We are back to being in person!  Come join us at Brakke Consulting’s annual Industry Overview presented at VMX and WVC in 2022. The Overview will feature industry and top global company performance, brand new market research from companion animal veterinarians, and a closer look at the current and future use of monoclonal antibodies in veterinary medicine.

Brand new this year – led by Brakke Senior Consultant Paul Casady, a panel of industry leaders will discuss their views on the outlook for the companion animal market, so you can hear firsthand from these experts.  The panel for VMX includes:

  • Mr. Tim Bettington, EVP and President, US Operations, Zoetis
  • Mary Heather Parch, Vice President, B2B Marketing, Covetrus
  • Dr. Link Welborn, Chief Executive Officer at Veterinary Study Groups & Chief Veterinary Officer North America, Covetrus

Sign up today using this link, or email Amanda McDavid or call her at 336-396-3916.  Pre-registration cost is $399; there are discounts for multiple attendees from the same company.  We look forward to seeing you there!

www.BrakkeConsulting.com
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EARNINGS NEWS RELEASES

  • Neogen announced results for its fiscal second quarter of 2022 ended November 30, 2021. Animal safety revenues were $63.4 million, an increase of 10% over the prior-year quarter. (IHS Markit Connect)
  • General Mills reported results for the second quarter ended November 28, 2021. Net sales for the Pet segment increased 29% to $593 million; organic net sales were up 14%. (company press release)

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COMPANY NEWS RELEASES

  • PetMedix announced a collaboration with Zoetis to develop novel, fully species-specific companion animal monoclonal antibody therapeutics using PetMedix’s proprietary Ky9 and Felyne transgenic platforms. (company press release)
  • The FDA announced a supplemental approval for Zoetis‘ Simparica Trio for the addition of the indications for the prevention of Borrelia burgdorferi infections as a direct result of killing Ixodes scapularis vector ticks; and for the treatment and control of L4 and immature adult Ancylostoma caninum. (FDA)
  • Dechra announced a joint collaboration with Bioiberica for the license and distribution of its Atopivet range of dermatology products for cats and dogs in the US. The partnership includes the products Atopivet Collar, Atopivet Spot-On, and Atopivet Mousse. (company press release)
  • Manna Pro Products announced it has acquired Oxbow Animal Health. Financial terms were not disclosed. (bakersfield.com)
  • BASF Animal Nutrition announced the launch its new Natupulse TS animal feed enzyme to boost digestion. (IHS Markit Connect)
  • MEP Equine Solutions announced the immediate corporate name change to Parasight System, Inc. MEP is the maker of the Parasight System, an image-based, automated fecal egg counting technology. The name change comes on the heels of a $3.5 MM capital raise led by a major animal health investment group.  (Thehorse.com)
  • Jaguar Animal Health announced that the FDA has granted a conditional approval for CANALEVIA-CA1 for treatment of chemotherapy-induced diarrhea in dogs. (FDA)
  • PetVivo Holdings, Inc. announced that VetCove, Inc. has agreed to distribute PetVivo’s therapeutic product, SPRYNG with OsteoCushion Technology. Spryng is a veterinary medical device comprised of millions of micronized hydrogel matrices derived from collagen and elastin. (globenewswire)
  • Vimian Group announced it has acquired Texas-based IMEX, an orthopedic implants specialist with annual revenues of around $2.3 million. IMEX will become part of Vimian’s Movora business, which houses its medical technology assets. Financial terms were not disclosed. (IHS Markit Connect)
  • Bessemer Investors LLC, a New York-based investment firm, announced that it has made a significant investment in Pet Flavors LLC, which provides flavor bases used in pharmaceutical and nutraceutical products consumed by pets. Bessemer is partnering with the Company’s founder, who will remain with the Company as its President. Financial terms of the transaction were not disclosed. (company press release)
  • Petriage – a telehealth services provider – announced a partnership with the Link Smart Pet Wearable by Smart Tracking Technologies, LLC. Under the partnership, Link users will have access to Petriage’s symptom analysis tool and, for a nominal additional monthly fee, to unlimited access to Petriage Live, a premium 24/7 veterinary Nurse Helpline. (PRnewswire.com)
  • Pathway Intermediates USA, a subsidiary of U.K.-based Pathway Intermediates Limited, announced the launch of Pathway Nutrition, its new sales and technical service team dedicated to bringing Pathway products to North America markets. (ThePoultrySite.com)
  • Invoxia announced plans to launch of a Smart Dog Collar that includes GPS tracking and health monitoring. (zdnet.com)
  • Percheron Capital announced the acquisition of majority stake in Animal Dermatology Group, Inc. (“ADG”), the largest group of veterinary dermatology specialists in the US. In conjunction with the investment, ADG has completed the acquisition of Animal Dermatology and Allergy Specialists, a veterinary dermatology specialty practice serving the New York metropolitan area. With this addition, ADG’s now has more than 40 practices in 12 states across the country. Financial terms of the transactions were not disclosed.  (PRnewswire)
  • EU Covetrus announced a new organizational structure within Northern and Central Europe. Critical changes include the development of a new International leadership team and a collaborative focus within the UK and German businesses. (company press release)
  • BRAZIL Ouro Fino Saude Animal SA announced that state development bank BNDES has hired BTG Pactual to seek investors to buy its stake in the company. The bank’s 12.26% stake in the company is worth roughly R$167 million ($29.4 million). (reuters)
  • BRAZIL Axxon Group announced it has acquired a minority stake for approximately R$105 million ($18 million) in JA Saúde Animal, a São Paulo-based firm that specializes in antibiotics, antiparasitics, anesthetics and anti-inflammatories primarily for pigs and cattle. The firm claims to have more than 50 more products under development.  JA expects to record annual revenues of R$200m ($34 million) in 2021.  (IHS Markit Connect)
  • ASIA VolitionRx Limited announced that it has entered into its first contract for the Nu.Q Vet Cancer Screening Test. Under the agreement, SAGE Healthcare Private Limited will serve as a non-exclusive licensee and distributor for Volition’s Nu.Q Vet Cancer Screening Test in centralized labs in Singapore, followed by expansion in conjunction with SAGE Healthcare into centralized labs in other key Asian markets. (inforney.com)
  • CANADA United Raw Pet Foods, a majority-owned subsidiary of Dane Creek Capital , announced it acquired Pets West Pets & Supplies Ltd., with pet specialty retail stores on Vancouver Island, BC. Financial terms were not disclosed. (Pet Business)
  • SPAIN South Dakota-based Dellait announced the launch of its first subsidiary in the European Union. Dellait España, SL., will service the dairy cattle business in the area. (Feedstuffs)
  • MALAYSIA Ancom Bhd’s wholly owned subsidiary, Ancom Crop Care Sdn Bhd, has entered into several share sale agreements to acquire a 80% stake each in Shennong Animal Health (Malaysia) Sdn Bhd and Vemedim Sdn Bhd for RM23.92 million cash. Shennong Group is principally involved in the manufacturing and trading of chemical and animal health products which encompass livestock-related antibiotics, feed additives, supplements, and disinfectants mainly for the domestic market. (thesundaily.my)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

  • CANADA – BSE Canada reported a case of atypical bovine spongiform encephalopathy (BSE) in an eight-and-a-half-year-old beef cow in the province of Alberta. It is the first case of BSE in Canada in six years. (Agweb.com)
  • US – VETERINARY SCHOOLS Rowan University announced it is establishing the first school of veterinary medicine in New Jersey. Officials said they plan to welcome an inaugural class of 60 students in fall 2025, pending approval from the American Veterinary Medical Association Council on Education. The School of Veterinary Medicine’s primary academic and clinical facility will be located on the campus of Rowan College of South Jersey in Sewell, and will include academic classrooms, diagnostic and teaching laboratories, a teaching hospital and administrative and faculty offices. (ROI-NJ.com)
  • US – VETERINARY OUTREACH The Colorado State University System announced the grand opening of CSU Spur, a year-round and first-of-its-kind public destination. The first facility to open at CSU Spur is called the Vida building, which translates to “life” in Spanish, and focuses on animal and human health. Visitors will be able to watch veterinarians perform surgery on dogs and cats, therapists working with horses to offer equine assisted therapies, and veterinarians helping equine athletes through strength-building and therapeutic exercises. Seven horses currently live on-site at the new Vida building as part of the Temple Grandin Equine Center equine assisted services program. Visitors can also engage with interactive exhibits, demonstrations, evaluate X-Rays and animal health in a mock veterinary clinic, and explore animal anatomy through virtual reality. (Source.colostate.edu)
  • US – CATTLE RESEARCH The USDA’s Agricultural Research Service (ARS) has developed a method of using satellite imagery to predict cattle weight gain on rangelands. Satellite-derived estimates of both forage quantity and quality enabled predictions regarding weight gain to be made. The scientists found weight gain was affected by the timing of forage green-up and senescence (browning down). (IHS Markit Connect)

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BRAKKE CONSULTING VIEWPOINT

Happy New Year!  For most of you, this was your first week back at work after, hopefully, a chance to catch your breath at the end of a crazy 2021 COVID year.  But after reading about what is happening in the animal health industry in just the first week of 2022, I almost feel out of breath.  The deals, acquisitions, approvals and launches all seem to have started the year at a rather fast pace.

And at the start of every year, the Brakke Consulting team reflects on the prior year in its Industry Overview, held at VMX and WVC, which is described above.  This is our opportunity to slow the pace down and summarize what we think mattered in the animal health industry and what changes we think are ahead.  And it is a chance for attendees to hear how fast the top companies in the global animal health industry grew and to plan for 2022.

Our initial estimates of growth indicate that the crazy COVID year of 2021 will be one to remember.  Despite the challenges of the supply chain, lockdowns, sales call restrictions, our animal health industry will record uniquely strong performance over 2020.  We hope to see you at one of the two presentations of the Industry Overview.

Bob Jones

 

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YOUR VIEW

I am sure you all think 2021 was a year with strong growth over 2020, but what about 2022?  There are plenty of unknowns ahead, especially COVID-related, but despite the headwinds, last year quite successful.  Let’s see how optimistic you are at the beginning of 2022…

Compared to growth rates seen in the animal health industry 2021, I expect the growth rates in 2022 will be…

Thank you