Animal Health News & Notes for July 7, 2023

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Brakke Consulting’s
Animal Health News & Notes for July 7, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Brakke Search

Earnings News
PetVivo Holdings

Other News
BioCraft Pet Nutrition
Boehringer Ingelheim
Bug Bite Thing
Elanco
Merck
Midmark
Pegasus Labs
PetCircle
PetCubes
Prysm Capital
Shor-Line
Swedencare
Symrise
TickEase
Tonisity International
Tyson

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BRAKKE CONSULTING
Formulation science / technical sales position in Florida

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EARNINGS NEWS RELEASES

• PetVivo Holdings, Inc. announced financial results for its fiscal year ended March 31, 2023. Revenues increased to $917,162, compared to revenues of $115,586 in the prior fiscal year. Net loss in fiscal 2023 was $(8.7) million, compared to a net loss of $(5.0) million in fiscal 2022. (Yahoo finance)

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COMPANY NEWS RELEASES

• The FDA announced a supplemental approval for Boehringer Ingelheim‘s NexGard for dogs, for the addition of the indication for the treatment and control of longhorned tick infestations. (FDA)
• The FDA’s Center for Veterinary Medicine announced the voluntary withdrawal of the combination medicated feed containing Safe-Guard (fenbendazole) and Lincomix (lincomycin), for use in swine at the sponsor (Merck Animal Health)’s request. Because this application has been withdrawn, mixing these two drugs in combination is no longer permitted, and VFD orders authorizing their use in combination may no longer be issued. However, both fenbendazole (SafeGuard) and lincomycin (Lincomix) remain available for use individually according to their approved labels. (Feedstuffs – subscription)
• The FDA announced it has approved Pegasus Labs‘ generic Firocoxib Chewable Tablets for Dogs. (FDA)
• Swedencare’s Board of Directors has unanimously advised against accepting the SEK5.9 billion ($544M) offer made by Symrise in June after the German firm reached a 30% stake in the company. Regulations require a mandatory offer to the stakeholders must be made when this amount of ownership is reached. Symrise clarified earlier in the month that it intended to increase its shareholding in Swedencare but not to acquire full ownership. (GlobalPets)
• Midmark announced it is now selling Shor-Line products through authorized distributors (company press release)
• Fresh pet food company PetCubes announced the launch of its ‘Veterinary Support Diet’ range to support the therapy and well-being of dogs with specific health conditions, including, but not limited to kidney disease, cancer, pancreatitis, and digestive issues. (Yahoo Finance)
• Tyson announced it will once again use certain antibiotics (such as ionophores) in its chickens, eight years after it announced plans to ditch the drugs in some of its production and slapped a “no antibiotics ever” label on its packaging; instead, Tyson-branded chicken will begin using a “no antibiotics important to human medicine” label by the end of 2023. (Wall Street Journal – subscription)
• BioCraft Pet Nutrition, formerly named Because, Animals, which develops slaughter-free pet food, introduced cultivated chicken for dog and cat food. (Pet Products SmartBrief – Vegconomist)
• Bug Bite Thing, the maker of the chemical-free, reusable insect bite relief suction tool, announced it has acquired TickEase, patented, two-sided and fine-tipped tweezers, created expressly for removal of embedded ticks from people and pets. Financial terms were not disclosed. (Pet Product news)
• PHILIPPINES Elanco Animal Health Incorporated and Tonisity International Limited have expanded their partnership to sell Tonisity’s novel, gut enhancing porcine product, Tonisity Px, into the Philippines. Elanco already distributes Tonisity Px in Brazil and several European countries. (com)
• AUSTRALIA PetCircle announced a capital injection of AU$75 million ($50M) from existing investor Prysm Capital. (GlobalPets)

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ANIMAL HEALTH STOCK PRICE TRACKER

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BRAKKE CONSULTING VIEWPOINT
My colleague, Jim Kroman, recently wrote about the confusing messages we receive regarding the state of the economy and inflation rates.  While we hear inflation, which is the rate of price growth, is moderating, prices are now at a much higher level than they were just 2 years ago.  We are seeing a slowing of food price growth but are not seeing actual price decreases with the exception of the price of eggs which has declined due to increased supply, bouncing back after the decimation that avian influenza had on layer flocks.

One of the biggest costs of pet ownership is the cost of pet food.  Pet food inflation continues to be stubbornly high with prices growing +13.8% in May 2023 vs. May 2022, a rate that is three times the rate of the Consumer Price Index growth of +4% and price increases for human food of +5.8% for the same period.  The good news (?) is that the rate of growth is down from +14.6% in April.

Per the St. Louis Fed economic data, the Producer Price Index for dog and cat food manufacturing has grown +14.3% May 2023 vs. May 2022.  Part of the rationale for the hefty increases centers around the average producer price increases for key inputs such as rendered meats and meat by-products, which has grown +22% during the same period of time.  Some of these inflation trends have plateaued.  Will prices actually decline, or will they be stuck at the higher levels for a while?  As you can see, having a four-legged family member is now an even more significant financial commitment – will this impact future pet ownership?

Randy Freides
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YOUR VIEW
Last week we asked you about air quality and heat and your outside plans.  Just under one-third of our respondents said that air quality or heat had forced them to cancel outdoor activities in the last few weeks and one quarter said that their health or the health of a family member had been impacted by this weather.  Well, it’s summer so it’s going to be hot and for now the winds are blowing the smoke from Canada’s forest fires away from the US.  However, there was lots of BBQ smoke in our neighborhood on Tuesday…

This week

This week, let’s find out what you think of Tyson Foods sort of announcing they are going to add ionophores back to some of their poultry feeds to control coccidiosis.  Ionophore antibiotics have no medical use in humans, but Tyson removed them from poultry feeds about 8 years ago and announced a “No Antibiotics Ever” labeling policy (NAE).  Tyson Foods processes about 20% of all US chickens and is the largest meat company in the US, so they are a heavyweight in the industry.  This change was first mentioned last month in an updated “Position Statement on Antibiotic Stewardship” but Tyson never issued a press release announcing the change in their NAE policy and new “No Antibiotics Important to Human Medicine” (NAIHM) labeling.

Do you think this change will be followed by other poultry processors?