Animal Health News & Notes for July 9, 2021

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Brakke Consulting’s
Animal Health News & Notes for July 9, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting News
Animal Health Jobs

Earnings News
General Mills

Other News
Better Choice Company
Boqii Holding Limited
Butterfly Network
Central Garden & Pet
Chanelle
CUBEX
D&D Commodities
Dermoscent
Feedworks USA
Felix Pharmaceuticals
General Mills
Hill’s
iRXis
Lintbells
Mars Petcare
MWI
Nestlé Purina PetCare
Nutreco
Nutrimin
PetMed Express
Sentrx Animal Care
Smithfield Foods
Trouw Nutrition
Tyson Foods
Zivo Bioscience
Zoetis (Draxxin KP)
Zoetis (COVID vaccines)

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COMPANY EARNINGS RELEASES

• General Mills reported results for the fiscal year ended May 30, 2021. Pet segment net sales increased 2% to $1.73 billion, driven by positive contributions from volume growth on a like-for-like basis, partially offset by the comparison to an extra month of results a year ago. Segment operating profit was $415 million, an increase of 6% year-over-year. (company press release)

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COMPANY NEWS RELEASES

• Zoetis announced that the FDA has approved Draxxin KP (tulathromycin and ketoprofen injection) for the treatment of bovine respiratory disease (BRD) associated with Mannheimia haemolytica, Pasteurella multocida, Histophilus somni and Mycoplasma bovis, as well as the control of pyrexia associated with BRD. (IHS Markit Connect)
• Zoetis announced it is donating over 11,000 doses of its experimental COVID-19 vaccine to protect animals at zoos in the US. The firm’s vaccine has been authorized for experimental use on a case-by-case basis by the USDA and the appropriate state veterinarians. The doses will be supplied to more than 100 mammalian species at nearly 70 zoos and other exotic animal (company press release)
• The FDA announced the approval of Felix Pharmaceuticals‘ generic Carprofen Chewable Tablets for dogs, as well as the company’s generic Deracoxib Chewable Tablets for dogs. (FDA)
• The FDA announced the approval of Chanelle Pharmaceuticals Manufacturing‘s Parasedge Multi (generic topical imidacloprid + moxidectin) for cats and dogs. (FDA)
• Hill’s Pet Nutrition announced the launch of its new ActivBiome+ prebiotic technology as part of its prescription diet range. (Pet Gazette)
• Nestlé Purina PetCare announced plans to invest $182 million to expand its manufacturing operation in King William County, Virginia, to increase capacity and enhance business operations in the U.S. and Canada for its Tidy Cats litter products. (Pet Product News)
• Mars Petcare announced the launch of KARMA Balanced Nutrition, a new brand that offers recipes for dogs that feature plant-based superfoods and high-quality protein. The brand’s recipes are made with more than 60% plants and supplemented with real chicken or white fish. (Pet Business)
• General Mills announced it has completed its acquisition of Tyson Foods’ pet treats business for $1.2 billion in cash. The business, which includes the Nudges, Top Chews and True Chews brands, is a leader in natural meat treats for pets. (Pet Business)
• Better Choice Company announced a strategic investment by Boqii Holding Limited, China’s largest pet-focused platform and the Company’s retail partner. (Finance.yahoo.com)
• Central Garden & Pet announced it has acquired D&D Commodities D&D develops, manufactures and sells food for birds, small animals and wildlife under the 3D, Wild Delight, Better Bird and L’Avian Plus brands. Financial terms were not disclosed. (Pet Product News)
• PetMed Express announced it has named Chief Financial Officer Bruce S. Rosenbloom as interim chief executive and president. The company previously said in a Securities and Exchange Commission filing that in late May the board notified President and CEO Menderes Akdag the company won’t extend his employment agreement, which would end on July 30. (Marketwatch.com)
• Lintbells announced the launch of YuCALM One-a-Day chews for dogs to help dogs cope with stress and anxiety. YuCALM contains lemon balm, L-Theanine, B Vitamins, and a proprietary blend of natural fish protein hydrolysates. (company press release)
• Dermoscent announced the launch of ATOP 7 spot-on, a 100% natural skin care product specifically conceived to help soothe and repair the allergic skin of dogs and cats. (IVC Journal)
• Sentrx Animal Care announced the completion and opening of its new 22,000 square foot manufacturing facility in Salt Lake City, Utah. (Valdostadailytimes.com)
• Butterfly Network, and MWI Animal Health announced an agreement through which MWI Animal Health will be warehousing and selling the Butterfly iQ Vet single probe, whole-body ultrasound system. (company press release)
• Feedworks USA announced the launch of Agolin Ruminant – the first product certified by the Carbon Trust to improve feed efficiency and reduce enteric methane – to the U.S. dairy industry. Agolin is a plant-based feed additive that harnesses a blend of scientifically selected essential oils. (company press release)
• CUBEX announced the introduction of the CUBEX Flex Bundle, a solution for veterinarians looking for an all-encompassing solution to manage controlled substances and high-priced pharmacy items in one DEA-compliant cabinet bundle. (PRnewswire)
• iRXis announced the launch of software release Version 1.1, which builds on the iRXis Veterinary-specific inventory system foundation, and provides veterinarians and veterinary hospitals with rigorous control over their inventory and related purchasing process. Highlights of this release include intelligent forecasting models for predicting future purchase requirements, plus the tools necessary to abandon the legacy MOQ (Minimum Order Quantity) approach. (einnews.com)
• Zivo Bioscience announced it has gained around $750,000 in funding through a sale of 150,000 shares of common stock at a price of $4.99 per share. The company’s combined proceeds from the over-allotment option and its listing on the Nasdaq Capital Market came to about $14.6 million. (IHS Markit Connect)
• Smithfield Foods announced it has reached an agreement to settle all direct-purchaser class claims asserted against the company in antitrust litigation currently pending in federal court in Minnesota. Under the agreement, the company will settle all direct-purchaser class claims for a single payment of $83 million, while denying any liability. (Feedstuffs)
• DENMARK Nutreco announced plans to acquire Nutrimin under its Trouw Nutrition Nutrimin produces feed products for pigs, cattle, poultry, horses, goats and fish, and offers a feed advice service to customers. Financial terms were not disclosed. (IHS Markit Connect)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• US – JOHNES RESEARCH Scientists with the USDA’s Agricultural Research Service (ARS) have developed a new experimental vaccine to protect cattle from the bacterium that causes Johne’s disease, Mycobacterium avium paratuberculosis (MAP). The vaccine combines four proteins from the bacterium in a single recombinant vaccine cocktail. The researchers note the need for additional efficacy trials and welcome collaboration with an industry partner to explore the patented vaccine cocktail’s commercial potential further. (Feedstuffs)
• US – PET NUTRITION The American Animal Hospital Association announced the release of the 2021 AAHA Nutrition and Weight Management Guidelines for Dogs and Cats. (association press release)
• WORLD – PET WELLNESS The World Small Animal Veterinary Association (WSAVA) and the Global Alliance of Pet Food Associations (GAPFA) have signed a memorandum of understanding to collaborate on advancing common priorities and topics related to pet wellness, nutrition, and clinical care of companion animals.  (association press release)
• US – FOOD ANIMAL RESEARCH The USDA’s National Institute of Food and Agriculture announced an investment of $14 million in research to protect agricultural animals from disease as part of NIFA’s Agriculture and Food Research Initiative’s Diseases of Agricultural Animals program area priority. Funded projects will focus on developing new and improved vaccines, diagnostics and antimicrobial alternatives, along with breeding disease-resistant animals, and understanding better ways to manage animals to minimize disease outbreaks. (drgnews.com)
• US – FELINE RESEARCH Veterinarians at the University of California, Davis, have found that a cat’s DNA impacts how it responds to Clopidogrel, a medication used to treat hypertrophic cardiomyopathy (HCM). The researchers identified genetic mutations within the drug pathway that were responsible for reducing the drug’s effectiveness. While testing like this is not yet commercially available, researchers hope that eventually veterinarians will be able to rapidly test cats with HCM for these mutations as they are making prescribing decisions. The study was published in the Nature Portfolio journal, Scientific Reports. (AVMA Smartbrief)
• US – SONGBIRD DEATHS Songbirds throughout Mid-Atlantic, Southern and Midwestern states are falling victim to an unidentified illness that causes neurological and eye problems and death, and wildlife veterinarians are asking the public to remove bird feeders and baths from their yards while scientists investigate. Jays, chickadees, wrens, cardinals, finches, robins and bluebirds are among the affected species, according to the University of Pennsylvania. (AVMA Smartbrief)

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BRAKKE CONSULTING VIEWPOINT

Believe it or not, 2021 is half over.  Fortunately, 2021 is shaping up to be a much better year than what we all experienced in 2020.  As I look back at the first half of the year, I see an industry that continues to exemplify resiliency, a concept Brakke Consulting highlighted in our mid-year review almost a year ago.

The companion animal segment continues to deliver strong growth.  According to an investment analyst report that I recently read, overall veterinarian practice revenues increased +13% YTD as of the week ended June 19th.  Purchase volumes of canine/feline vaccines grew +23% YTD while parasiticide purchases are up +14% YTD.  Comparisons to 2020 become more challenging given last year’s strong finish and the industry adapting to new operating models.

On the livestock side some recent data indicates a positive sign to the global recovery from the COVID-19 pandemic.  The US Meat Export Federation (USMEF) reported in a July 7 publication that values of US beef and pork exports far surpassed previous records for the month of May.  US beef exports grew +88% while pork exports grew +31% both on a value ($US) basis.  Strong end-product demand should benefit the value and input chain.

We look forward to the 2Q financial reports from the public animal health companies, which should arrive toward the end of July or in early August.

Randy Freides

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YOUR VIEW

Our survey last week dealt with vacations and your pets.  Almost 85% of respondents said they would take a vacation in the US this year and almost a quarter said that they would take their pet with them.  Lucky pets and even luckier pet owners.

This week

Last week, Zoetis announced that they had donated over 11,000 doses of its experimental COVID-19 vaccine to protect more than 100 species of mammals across almost 70 zoos.  Let’s stay on the theme of our pets…

If a COVID-19 vaccine were available for your pets (dogs and cats), would you have them vaccinated?