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Brakke Consulting’s
Animal Health News & Notes for July 10, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Other News
Avon Rubber
BASF
Bayer
Beaphar
Biogénesis Bagó
Boehringer Ingelheim
Cloudfarms
De Heus Animal Nutrition
DeLaval
Doggy
Elanco (Bayer)
Elanco (Galliprant)
Golpasz
J.M. Smucker
Merck (Bravecto)
Merck (Zymeworks)
Mary’s Tails
Merck
Metamorphosis Partners
milkrite | InterPuls
MWI Animal Health
Partner in Pet Food
Pawprint Pet Health App
PetSmart
Premier Pet Care
Primeval
Purina
Scratchpay
SnoutID
Tractive
Trianni
Zoetis (Trianni)
Zoetis (Stablelab)
Zomedica
Zymeworks
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2020 DIGITAL ANIMAL HEALTH SUMMIT
AUGUST 31 – SEPTEMBER 2, 2020
Location: Online
The Corridor’s August event goes on(line)! Registration is now open.
Register today! The digital Animal Health Summit features 36 hours of 1:1 business partnering, keynote speaker David Hughes, 7+ on demand webinars, emerging company presentations, LIVE stream programming with industry leaders, LIVE networking and additional programming that supports the Spirit of Service – programming with impact. Learn more
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COMPANY NEWS RELEASES
- Zoetis and Trianni, announced a collaboration for the development of transgenic monoclonal antibody platforms for the discovery of new veterinary treatments. (PRNewswire)
- Merck Animal Health announced the FDA’s approval of Bravecto 1-Month (fluralaner) Chews for dogs and puppies 8 weeks of age and older. The product is administered as a single, monthly flavored chew formulation for treatment and prevention of fleas and treatment and control of ticks. Pet owners now can begin their dog’s early life experience on this monthly product and transition to the extended duration Bravecto products as the dog reaches 6 months of age. (company press release)
- Merck Animal Health announced an agreement with Canadian company Zymeworks to develop multi-specific antibody therapeutic candidates for animal health using Zymeworks’ Azymetric and EFECT discovery platforms. The global license grants Merck the rights to research, develop and commercialize up to three new multi-specific antibodies in exchange for milestone payments and tiered royalties. (IHS Markit Connect)
- Australian authorities have given the green light to Elanco‘s acquisition of Bayer Animal Health, after the former agreed to sell four parasite products: Bayer’s sheep lice treatment Avenge+ Fly, as well as its Drontal, Profender and Droncit brands for companion animals. (IHS Markit Connect)
- Boehringer Ingelheim announced that the USDA has awarded the company a contract to help supply a vaccine bank that will protect US livestock from foot-and-mouth disease (FMD). The contract calls for Boehringer Ingelheim to create and maintain a strategic reserve of frozen vaccine antigen concentrate that the company could quickly formulate into a vaccine for FMD in the event of an outbreak in the US. Argentina’s Biogénesis Bagó was also awarded a USDA contract. (PRNewswire, IHS Markit Connect)
- MWI Animal Health announced two new offerings designed to increase access to affordable veterinary care by enabling practices to provide flexible financing solutions for clients. The Premier Pet Care Plans offers monthly payments to help spread out the cost of routine products and services. Scratchpay allows clients to apply for financial support in 90 seconds via any internet-connected device. Practices receive the funds from Scratchpay in as little as two to three business days while the client pays over time with no deferred interest or prepayment fees. (Businesswire)
- PetSmart announced the availability of Mary’s Tails CBD pet line in select PetSmart stores in Colorado, Oregon, Indiana, Kentucky and Tennessee, with plans to expand to additional stores across the country. According to the release, this is the first hemp extract brand to be sold at PetSmart. (Pet Product News)
- Purina announced that its Pro Plan Veterinary Supplements FortiFlora SA Synbiotic Action now contains prebiotics in addition to probiotics to manage diarrhea and support a healthy intestinal microbiome. (company press release)
- M. Smucker recalled one lot of Natural Balance chicken and liver cat food that might contain too much choline chloride. The company reported receiving notice of adverse reactions in some cats that ate the food, and the FDA says signs of toxicity include nausea, excessive salivation, constricted pupils, diarrhea, vomiting, trembling, irregular heartbeat and respiratory distress. (Pet Product Smartbrief – WCBS-TV/WLNY-TV)
- Zomedica Pharmaceuticals announced it secured $30 million in funding through a public offering of 187.5 million common shares and short-term warrants to purchase up to 187.5 million common shares at $0.16 per share and accompanying warrant. The firm will use the proceeds to continue development of its Truforma diagnostic platform. (IHS Markit Connect)
- DeLaval announced that it has acquired milkrite | InterPuls, a global leader that provides complete milking point solutions to dairy farmers around the world, from Avon Rubber. Financial terms were not disclosed. (Feedstuffs)
- The creators of the Pawprint Pet Health App announced they will exclusively serve veterinary practices and hospitals under a new name – SnoutID – following the sale of the Pawprint consumer brand to Metamorphosis Partners, an investment group led by the founder of pet brands including PetCoach and Pet360. SnoutID offers a touchless curbside check-in and patient intake system supported by a team of veterinary technicians who retrieve, verify and summarize medical records before a patient’s first visit. Financial terms of the sale were not disclosed. (company press release)
- Austrian company Tractive has introduced its pet activity monitoring technology to the US and Canadian markets. The Tractive GPS Tracker tracks pets’ activity is tracked in minutes and measures calories burned during daily activity. The information is relayed via the wearable tech’s mobile application to the pet owner. (IHS Markit Connect)
- UK Zoetis announced the UK launch of Stablelab, a hand-held, point-of-care blood test that gives veterinary surgeons diagnostic information about equine inflammation in 10 minutes. The Stablelab hand-held reader detects and quantifies the biomarker Serum Amyloid A (SAA), an acute phase protein produced by the liver that increases rapidly and dramatically in response to inflammation. (Vetsurgeon)
- JAPAN Elanco announced it has gained Japanese approval for Galliprant (grapiprant tablets) to treat pain and inflammation in dogs caused by chronic osteoarthritis. (IHS Markit Connect)
- POLAND De Heus Animal Nutrition announced an agreement for the acquisition of Golpasz, a compound feed company in Poland with an annual production capacity of 500,000 metric tons of compound feed. Financial terms were not disclosed. (Feedstuffs)
- SLOVAKIA BASF announced it has acquired Cloudfarms, a software development company that helps pig producers manage, track and analyze real-time production data from daily operations. Financial terms were not disclosed. (IHS Markit Connect)
- SWEDEN Partner in Pet Food, based in Hungary, announced the acquisition of Swedish pet food manufacturer Doggy from investment company NDX Group. Doggy markets both its own products and private-label products throughout Eastern and Western Europe and had revenues of $63 million in 2019. Financial terms were not disclosed. (Petfood Industry)
- NETHERLANDS Beaphar announced it has acquired the sales and distribution activities of the Primeval brand of supplements for horses and dogs outside the Netherlands. Financial terms were not disclosed. (GlobalPets)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – PET STORE GUIDELINES The Centers for Disease Control and Prevention (CDC) recently updated its COVID-19 recommendations for pet stores, pet distribution facilities and pet breeding facilities that are considering reopening or continuing operations. The CDC is recommending that these businesses seek veterinary medical consultation for the establishment of an animal health and disease management plan specific to the facility; and take enhanced precautions when introducing new animals or groups of animals to a facility. Click here (https://www.cdc.gov/coronavirus/2019-ncov/animals/pet-store.html ) to see the full list of recommendations. (Pet Product News)
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BRAKKE CONSULTING VIEWPOINT
Some companies have closed the books for the second quarter, some are close. A few months ago, we wrote that an economic recovery could be described by a letter in the alphabet, like “V”, “U” or “L”. Are we close to picking a letter?
The data from VetSuccess might help determine which letter our recovery will look like in the veterinary segment. For the 2Q overall, the year over year (yoy) revenue increase at the veterinary clinics they track nationally was a modest 2.9%. For the first two months of the quarter, the yoy revenue growth was -2.2%. For the month of June, the yoy revenue growth was 12%. Maybe a “V”.
If company stock prices are an indication of a recovery, of the S&P 500 companies, IDEXX ranked 30th in terms of 2Q total return, at 36.3%, with a 1H total return of 26.4%. Of the S&P Small Cap 600 companies, Covetrus ranked 23rd in 2Q total return at 119%, with a 1H total return of 35.5%. The 1H total return for PetMed Express was 54.5%, which ranked them 18th, but the 2Q total return was (only) 25%. V-shaped
Each company, each state, each region has its own story about recovery. Let’s hope they are all some type of a “V”.
Bob Jones
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YOUR VIEW
Last week we weren’t able to ask a question – so no answers to report to you.
This week, we’d like to ask about your view of the economic recovery in the US. The Conference Board’s Consumer Confidence Index® increased in June from Mays’ 85.9 to 98.1. The broad S&P 500 index finished the second quarter up 20% for it’s best quarter since 1998. But there are signs of slowing the reopening of many states due to the pandemic. So, how are you feeling about the third quarter?
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