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Brakke Consulting’s
Animal Health News & Notes for July 26, 2019
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
New Consultant joins Brakke
OTC Channel
earnings news
Hill’s
Neogen
Vetoquinol
other news
Barkstrong
Curaleaf
Doc & Phoebe’s Cat Co.
Ethical Products
Green River Botanicals
Herdsy
Holistic Hound
Independent Pet Partners
Kent Nutrition Group
Mars Petcare
Pets at Home
Platinum Performance
Rapid Equine Solutions
Samsung
Sure Petcare
Tailster.com
Zoetis (Platinum Performance)
Zoetis (Simparica Trio)
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BRAKKE CONSULTING
RANDALL FREIDES JOINS BRAKKE TEAM
Brakke Consulting is pleased to announce the addition of Randy Freides, MBA, to the Brakke team.
Randy is a veteran finance executive who has worked in both the human pharmaceutical and veterinary medicine fields, having spent nearly 29 years with Merck & Co., Inc. in a number of financial leadership roles. Randy brings a new set of financial skills and expertise to the Brakke group, along with experience that cuts across companion animal, livestock and aquaculture markets. Randy will assist Brakke clients in analyzing business results, developing financial forecasts, and developing go-to-market and promotional strategies.
Randy can be reached at rtfconsultingllc@gmail.com or 908-256-1020.
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COMPANY EARNINGS RELEASES
• Vetoquinol reported results for the first half of 2019. Sales were EUR 184 million ($209 million), up 3.3% as reported from the first half of 2018 (+1.8% at constant exchange rates). The April 15, 2019 acquisition of Clarion Biociencias in Brazil boosted sales by 1.4%. Net income was EUR 12.8 million ($14,5 million). (company website)
• Colgate-Palmolive Company reported results for the second quarter of 2019. Hill’s Pet Nutrition net sales were $613 million, an increase of 3.5% compared to the second quarter of 2018. Unit volume increased 2.0%, pricing increased 4.0% and foreign exchange was negative 2.5%. (company press release)
• Neogen Corporation announced results for its 2019 fiscal year, which ended May 31. Revenues for the company were $414 million, an increase of 4% compared to the prior year. Net income for the year was $60.2 million, a decline of 5%. Neogen’s Animal Safety segment reported revenues of $201 million for the year, a 1% revenue decrease. Neogen’s worldwide animal genomics business recorded a broad-based increase of 12% in fiscal 2019 compared to the prior year. (company press release)
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2019 KC Animal Health Corridor Events
August 26-27, 2019
Kansas City, MO
Early-bird Pricing ends Monday, July 29
Market Insight Seminar
August 26, 3:00 – 5:00 pm
Join fellow animal health leaders in Kansas City this August for the 4th annual KC Animal Health Corridor Market Insight Seminar. All registration proceeds will be donated to New Horizon Ranch and Rose Brooks Center.
Animal Health Corridor Homecoming Dinner
August 26, 5:00 – 9:00 pm
The KC Animal Health Corridor’s annual Homecoming Dinner is an exclusive gathering of industry leaders from around the world to celebrate global industry successes and growth.
Animal Health Investment Forum
August 27, 7:30 am – 6:00 pm
The KC Animal Health Investment Forum is one of the only opportunities in the world for early stage animal health companies to present their vision and business plan to potential investors.
For details, go to http://kcanimalhealth.thinkkc.com/events/annual-events
REGISTER NOW for Early Bird Pricing: https://www.eventbrite.com/e/2019-annual-kc-animal-health-corridor-events-tickets-61435035846
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COMPANY NEWS RELEASES
• Zoetis announced it has entered into an agreement to acquire Platinum Performance, a company with nutritional product formulas for horses, dogs and cats. Financial terms of the transaction were not disclosed. (company press release)
• Mars Petcare announced the launch of Kinship, a division of the company that aims to bring pet startups, veterinarians, investors, entrepreneurs and partners from all aspects of the pet care industry together. (Pet Product News)
• Kent Nutrition Group announced the launch of NutriVantage’s Nutrition Optimizer, a new line of supplements for pigs. (High Plains Journal)
• The FDA is alerting horse owners and veterinarians that one lot of a compounded combination drug product containing pyrimethamine and toltrazuril from Rapid Equine Solutions, LLC has been associated with adverse events in at least three horses. Two horses in Maine and one in Ohio ultimately died or were euthanized as a result. The FDA recently finalized testing that revealed that this lot of product contained approximately 18 to 21 times the pyrimethamine indicated on the labeling. This product lot is accounted for and is no longer in distribution. (FDA)
• Barkstrong LLC announced it has filed for chapter 7 bankruptcy as a result of the death of Barkstrong’s owner. (Pet Business)
• Ethical Products announced an exclusive licensing agreement with Doc & Phoebe’s Cat Co. Doc & Phoebe’s develops feline enrichment products, including the flagship product, The Indoor Hunting Feeder. (Pet Business)
• Sure Petcare announced the launch of the SureFeed Microchip Pet Feeder Connect, the next generation of the SureFeed Microchip Pet Feeder, which monitors the eating behavior of pets. (Business Wire)
• Holistic Hound announced it is partnering with Independent Pet Partners to carry Holistic Hound’s line of full spectrum hemp and mushroom supplements with CBD for pets. (Pet Business)
• Curaleaf announced the launch of Bido Pet Drops and Bido Baked Bites, CBD treats for pets. (Pet Business)
• Green River Botanicals announced the launch of a line of full spectrum hemp oil formulated for pets. (Pet Business)
• EU Zoetis announced that the European Medicines Agency’s Committee for Medicinal Products for Veterinary Use (CVMP) adopted a positive opinion for canine chewable medication Simparica Trio (sarolaner/moxidectin/pyrantel). Should the product receive full European authorization, it will be indicated for the treatment of tick, flea and gastrointestinal nematode infestations. It will also prevent heartworm disease and angiostrongylosis (Angiostrongylus vasorum). (Animal Pharm)
• UK Herdsy announced an exclusive collaboration deal with Samsung to globally scale its livestock farming technology. Herdsy has developed an Internet-of-Things (IoT)-based platform that automates farm data collection then analyzes the data gathered from animals and converts it into valuable insights to help farmers enhance their profitability. (Animal Pharm)
• UK Pets at Home announced an investment in the dog-walking and pet-sitting service Tailster.com. Tailster uses a network of 26,000 self-employed pet carers across the UK, which it connects with customers via an app that offers GPS tracking of dog walks, real time photos and free insurance. Financial terms were not disclosed. (GlobalPets)
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ANIMAL HEALTH NEWS
• US – CAT DECLAWING New York became the first US state to ban the declawing of cats this week after Gov. Andrew Cuomo signed the legislation into law. The state joins most of Europe, several Canadian provinces and a number of cities across the country in banning the procedure. The law does allow veterinarians to continue to perform the procedure for medical reasons, such as infection or injury. Similar declawing ban bills are pending in several states. (CBSnews.com)
• US – LARGE ANIMAL VETERINARIAN SURVEY The Centers for Disease Control & Prevention (CDC) is conducting a survey of large animal veterinary practitioners across the U.S. to better understand the circumstances and challenges these veterinarians experience when working up an abortion event in livestock. Information gathered will assist CDC with future interventions in veterinary education to decrease occupational exposures to zoonotic infectious diseases, specifically those associated with obstetric spread. The voluntary survey – available at https://airc.cdc.gov/surveys/?s=EETXHTRMXA – is open through Oct. 31, 2019. (Feedstuffs)
• US – VETERINARY MEETING The AVMA Board of Directors voted to approve submitting a letter of intent to host the 2022 World Veterinary Association Congress. The congress would be held in conjunction with AVMA Convention 2022 in Philadelphia. (AVMA)
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BRAKKE CONSULTING
UNDERSTANDING THE OVER-THE-COUNTER MARKET
Whether your business is considering the OTC channels for new business opportunities or you have been distributing in the OTC channels for years, Brakke Consulting’s team can provide significant and quality assistance to businesses seeking to learn more about the details of the OTC channels of distribution. If you are looking for meaningful insights into the OTC channels, the trends found there, and the opportunities that exist, contact us at 336-396-3916 or Joel Adamson at adamson.joel@cox.net.
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BRAKKE CONSULTING VIEWPOINT
As you read at the beginning of this week’s newsletter, we welcomed Randy Freides to the Brakke Consulting team. He brings a strong set of skills and experiences in Finance from one of the biggest and best pharmaceutical and animal health companies in the world. Maybe a bit selfishly, I am particularly glad to have him on the team because I recall how much better I was when running businesses with a strong and experienced finance leader working beside and with me.
Last week, Ron mentioned the quarterly earnings of one of the top ten animal health companies and how given the market shares that the top companies have, their growth, good or bad, drives the overall global growth rate. We know that the growth rates are driven by great products. And this week Zoetis announced a positive opinion from the EU’s CVMP on their Simparica Trio product – I am sure they are anxiously awaiting approval in the US. The competition for market share and desire to drive compliance will be strong in the US when all the new combination products reach the market, which should drive growth.
But we also know that people drive growth. People, in the right roles that match their talents and motivations, all going in the right direction can drive growth. And they don’t have to have the newest products. Randy might not have heard me say this, but a few of you reading this have, “It’s All About People.”
Bob Jones
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