» Animal Health News & Notes for July 19, 2019
Animal Health News & Notes for July 19, 2019
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
IN THE NEWS:
Brakke Consulting news
Product development and regulatory affairs assistance
Answers Pet Food
Eetoys Pet Products
Glacier Pig Management
Piedmont Animal Health
Thermo Fisher Scientific
Product Development and Regulatory Affairs Assistance
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COMPANY EARNINGS RELEASES
• Virbac SA reported results for the second quarter of 2019. Revenue reached EUR 246 million ($280 million) in the second quarter, an increase of 4% (+3% currency adjusted). US activity increased +9% (+4.6% at constant exchange rates). (company website)
• Orion Animal Health reported results for the second quarter of 2019. Revenues were EUR 25 million ($28 million), a 34% increase compared to the second quarter of 2018. (Animal Pharm)
• Cargill reported results for its fiscal full year ended May 31, 2019. Full-year revenues were $113.5 billion, down 1%. Earnings for the full fiscal year to $2.82 billion, 12% below last year’s performance. (Feedstuffs)
COMPANY NEWS RELEASES
• Bayer Animal Health announced the launch of the SRD Smart Compare online tool. SRD Smart Compare is based on a network meta-analysis of 34 publicly-available swine respiratory disease (SRD) treatment studies covering 10 relevant antibiotic molecules. It provides veterinarians with scientific evidence to aid them in selecting an appropriate antibiotic treatment for swine respiratory disease (SRD) when needed. (Animal Pharm)
• Aratana Therapeutics, Inc. announced that shareholders voted in favor of proposed $245 million acquisition by Elanco. The transaction was finalized on July 18. (Inside Indiana Business, Business Wire)
• The FDA reported in an enforcement report that DSM produced the vitamin premix involved in the recall earlier this year of 25 varieties of canned dog food from Hill’s Pet Nutrition. The recalled products had up to 70 times the intended amount of vitamin D. (Petfood Industry)
• Piedmont Animal Health announced it has sold its Flynexx fly control brand to MGK, an affiliate of Sumitomo Chemical. The deal includes the Flynexx Granules product and a 2016 registration from the US EPA for the insect growth regulator cyromazine. Flynexx was the only product line Piedmont was marketing itself. Financial terms were not disclosed. (Animal Pharm)
• Zomedica Pharmaceuticals Corp. announced it has initiated the development of a digital customer data platform to enhance customer experience and its diagnostic pipeline. Development efforts are focused on providing veterinarians access to diagnostic test result data and insights into patterns of disease across animal populations. The platform is also intended to support veterinary teams with clinically relevant business services, including inventory management and key performance metrics reporting. (Globe Newswire)
• Thermo Fisher Scientific announced the launch of three new Applied Biosystems AgriSeq targeted genotyping by sequencing solutions for companion animals, with results in three days: the AgriSeq Canine Traits & Disorders Panel; the AgriSeq Canine SNP Parentage & ID Panel; and the AgriSeq Feline Parentage & ID + Traits & Disorders Panel. (Zenopa)
• PetCure Oncology announced that it has engaged Boustead Securities for a Regulation D 506(c) offering and other capital markets services, including serving as underwriter for the company’s planned IPO. Proceeds from the company’s planned $10 million private placement are intended to be used to advance the efforts and network of PetCure Oncology to provide evidence-based veterinary cancer treatment on a national scale. (Yahoo Finance)
• Petriage announced an agreement with the PSIvet group purchasing organization to be the exclusive provider of telemedicine services to its over 5,000 independent veterinary practice members. PSIvet is a unit of Covetrus Inc. (PRNewswire)
• Evonik and Perstorp announced a research agreement for the development of new animal nutrition products and are further investigating future options for commercial partnerships. The joint approach combines Evonik’s gut health simulation system and probiotics portfolio with Perstorp’s ester technology platform for efficient and safe acid application, with the goal of improving the gut health of the animals while maintaining performance comparable to that achieved through the use of antimicrobial growth promoters. (Feedstuffs)
• HerdDogg announced a partnership with the National Bison Association (NBA) to deliver an in-field livestock management application in the US. A custom-designed app uses HerdDogg’s DoggTag product – an electronic tag designed to be attached to the ears of livestock technology – to help bison producers better understand herd health. (Animal Pharm)
• MedVet announced an investment from SkyKnight Capital and the Goldman Sachs Merchant Banking Division to expand its chain of specialty and emergency clinics. The size of the investment was not disclosed, but MedVet’s advisor said that the company will remain majority veterinary-owned and led. Previous financing provided by Stonehenge Partners and SkyKnight Capital helped the chain grow from five hospitals to the current 24. (Today’s Veterinary Business)
• Lystn LLC, a raw pet food manufacturer doing business as Answers Pet Food, filed a declaratory judgment complaint in the US Colorado District Court, and seeking injunctive relief against the FDA, claiming that the “FDA is unlawfully targeting the raw pet food industry, seeking to eradicate true, raw food from the marketplace through discriminatory and selective behavior.” (Pet Product News)
• The Federal District Court for the District of Minnesota ordered the consolidation of various class action claims against Tyson Foods, JBS, Cargill and National Beef (“the Big 4”) that have been filed on behalf of cattle producers and Chicago Mercantile Exchange (CME) users. R-CALF USA filed the first complaint in April, alleging that the nation’s four largest beef packers violated US antitrust laws, the Packers & Stockyards Act and the Commodity Exchange Act by unlawfully depressing the prices paid to American ranchers. (Feedstuffs)
• Walkin’ Pets by HandicappedPets.com introduced a new mobility solution for paralyzed pets, the Walkin’ Scooter. The Walkin’ Scooter offers six sizes to choose from. (company press release)
• Simulations Plus Inc. announced it has entered into a five-year research collaboration agreement with the FDA’s Center for Veterinary Medicine to test drug efficacy in animals. The drug simulation company said the FDA will use its software to assess “product bioequivalence” in dogs to see if one drug is more efficient than another in producing the desired result. (sfvbj.com)
• Perfect Day announced the launch of its limited-edition ice cream, allowing people, for the first time, to taste a product powered by Perfect Day’s flora-based, animal-free dairy protein. Perfect Day has been developing and scaling a method for producing functional, nutritious protein using fermentation of microflora. According to the company, Perfect Day’s proteins are identical to the proteins found in cow’s milk. (Feedstuffs)
• UK Virbac announced the launch in the UK of VeggieDent Zen, a multi-functional chew designed for dogs that includes L-theanine. L-theanine is an amino acid which can positively influence GABA levels in the brain to help reduce anxiety and increase mental focus. (vetsurgeon.org)
• EU Ceva Animal Health announced it will launch Salmoporc, a live attenuated vaccine against Salmonella typhimurium in pigs, in 12 European countries over the rest of 2019. Salmoporc has been used on German and Polish farms for over 15 years and has proved to be safe and effective in controlling salmonella. The vaccine can be administered orally in piglets and via subcutaneous injection in sows. (VetSurgeon.org)
• EU Vets Plus, Inc., announced it has been awarded Feed Chain Alliance (FCA) certification for animal feed products entering the European Union. The Feed Chain Alliance Standard (formerly known as GMP Regulation) is the internationally accepted feed safety and quality system. Vets Plus is the first and only US-based feed products manufacturer to receive this certification. (company press release)
• CANADA, CHINA Kane Biotech Inc. announced that it has signed an agreement with FreeMind Group, a premier international consulting firm dedicated to securing non-dilutive funding from various public and private sources for its clients. Kane Biotech Inc. also signed an exclusive distribution agreement with Chinese company Eetoys Pet Products Limited to distribute Kane’s Oral Care products (bluestem and StrixNB) to over 2,000 retailers across major markets in China. (company press release)
• CANADA EveryPig has entered into a strategic partnership with Glacier Pig Management to bring its swine health management platform to Canada. EveryPig markets a pig health and management tool, which enables producers to oversee their pig population and receive real-time health insights. (Animal Pharm)
• US Upton’s Naturals, a maker of plant-based meat alternatives, and the Plant Based Foods Association have sued Mississippi state officials over the state’s new law banning plant-based or cell-cultured products from being labeled as meat or a meat food product. The complaint was filed in federal court the day the law went into effect. The plaintiffs claim the law violates their First Amendment rights and that terms like “vegan burgers,” “vegan bacon” and “vegan chorizo” are not misleading for customers. (Vet Advantage – Food Dive)
ANIMAL HEALTH NEWS
• US – ANTHRAX The Texas Animal Health Commission (TAHC) announced that between July 9 and July 16, animals on eight premises in three Texas counties have been confirmed with anthrax, including antelope, goats, horses and cattle. Affected premises have been quarantined, and producers have been advised to vaccinate exposed animals and instructed on the proper disposal of affected carcasses. (Feedstuffs)
• US – BOVINE TB RESEARCH Scientists at Penn State University have developed a skin test that can distinguish between cattle that are infected with tuberculosis (TB) and those that have been vaccinated against the disease. The team created its tests by targeting specific proteins, previously identified by scientists from Denmark and the United Kingdom, that are missing from, or not secreted by, the widely used vaccine strain, called BCG. The research was published in Science Advances. (Science Daily)
• CANADA – CATTLE GENETICS A new study by University of Alberta researchers, using functional genomics and computational statistics, has identified 19 genes related to feed efficiency that could pave the way to making cattle farming cheaper and more sustainable. The study was published in the journal Bioinformatics. (Feedstuffs)
• US – VETERINARY BENEFITS The American Veterinary Medical Association announced that the AVMA-sponsored association health insurance program is once again available for purchase in nine eligible states: Arizona, Georgia, Illinois, Indiana, Montana, Nebraska, Oklahoma, Texas and West Virginia. In other states, the association is navigating complicated regulations and market conditions to expand coverage as quickly as possible. (association announcement)
• US – VETERINARY EDUCATION The U.S. House of Representatives passed a spending bill including a $1 million increase in funding for the Veterinary Medicine Loan Repayment Program, which will help the program place more food animal and public health veterinarians in high-need areas to close veterinary access gaps. The AVMA is working with Senate lawmakers to secure the same funding level in the Senate spending package. (association announcement)
BRAKKE CONSULTING VIEWPOINT
There were two items that struck me in today’s newsletter. The first was that one of the top 10 animal health companies reported a positive second quarter with growth in the 4% range before currency adjustments. When one evaluates the growth in the marketplace year-over-year, the growth or lack of growth is driven by the top 10 companies. Obviously some of the largest companies with revenue in the billions can drive this annual growth comparison up or down reasonably quickly.
The second area that struck me is the growth in the company news release section. This newsletter has 22 announcements covering various topics from several companies; however, only a handful of these news releases involve top 10 companies. Is there a message here about innovation and investments from the leading companies regarding products and technologies? Or are there just many more companies with unique products or services serving the industry that are successfully getting their messages out and we’re picking their releases up more effectively? Whatever the case might be, the animal health market has a great deal of activity, which is why the financial community is taking notice and investing.
Have a great weekend and stay COOL!
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