The Experts in Animal Health

***********************************
Brakke Consulting’s
Animal Health News & Notes for June 18, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
************************************

IN THE NEWS:

Earnings News
Chewy

Other News
AniCon Labor
Best Friends by Sheri
Elanco (KindredBio)
Elanco (Credelio Plus)
Farma Vet Balear
FERA Diagnostics and Biologicals
Freshpet
Huvepharma
Kindred Biosciences
KRUUSE
Nuzoa
Outward Hound
PetMedix
Pet Valu Holdings
Prospect Hill Growth Partners
SAN Group
Tetracore
VetriMax Veterinary Products
Zarasyl

************************************
2021 DIGITAL ANIMAL HEALTH SUMMIT
August 24-26, 2021
Location: Online

Registration is now open for the Digital Animal Health Summit.

Register today! The Digital Animal Health Summit features 27 hours of 1:1 business partnering, 8 LIVE programs, 10+ on-demand webinars and 10+ emerging company presentations. Learn more

************************************
COMPANY EARNINGS RELEASES

  • Chewy, Inc. reported financial results for the first quarter of fiscal year 2021 ended May 2, 2021. Net sales were $2.14 billion, an increase of 32% year over year. Net income was $38.7 million, compared to a net loss of $(47.9) million in the prior-year period. (company website)

************************************
COMPANY NEWS RELEASES

  • Elanco Animal Health and Kindred Biosciences, Inc. announced the parties have entered into a definitive agreement for Elanco to acquire KindredBio. Elanco will acquire all outstanding stock of Kindred Biosciences at a price of $9.25 per share, or approximately $440 million, a premium of 52% based on the 30-day average. Elanco intends to fund the acquisition with pre-payable debt. KindredBio brings three potential dermatology blockbusters expected to launch through 2025, as well as a number of additional R&D programs for other chronic disorders and unmet needs, including canine parvovirus. (company press release)
  • Huvepharma announced plans for an initial public offering in Amsterdam, and plans to raise 300 million euros ($363 million) from selling new shares. It will also sell a to-be-decided portion of shares held by its current owners. (Reuters)
  • VetriMax Veterinary Products, LLC announced it has signed an exclusive distribution agreement with FERA Diagnostics and Biologicals for the UTid+ In-Clinic Diagnostic System. The UTid+ test uses chromogen technology to accurately diagnose common urinary, skin and ear infections in as little as 16 hours. (company press release)
  • Freshpet announced a voluntary recall of a single lot of Freshpet Select Small Dog Bite Size Beef & Egg Recipe Dog Food due to potential contamination with Salmonella. The Freshpet team had designated this single lot for destruction, but it was inadvertently shipped to retailers in limited geographic markets between June 7 and June 10, 2021. (TheProgressnews.com)
  • KRUUSE announced the introduction of the Buster Complete Collar for dogs, a new recovery cone collar solution that includes features to enhance animal comfort and safety during their post-operative recovery and recovery from minor injuries. (Business Wire)
  • Outward Hound, a portfolio company of Prospect Hill Growth Partners, announced it has acquired pet bed company Best Friends by Sheri. Financial terms were not disclosed. (Pet Product News)
  • Tetracore introduced the VetAlert FMDV RNA High Throughput Test Kit , the first USDA-licensed real-time PCR test for the detection of foot and mouth disease in cattle, pigs and sheep in the US. (PRnewswire)
  • PetMedix announced it has completed its Ky9 dog antibody discovery platform, successfully transferring more than 4Mbp of canine antibody DNA into the mouse genome. The Ky9 platform is designed to be used for the discovery of fully canine therapeutic antibodies. PetMedix has also begun work on the Felyne platform, a similar platform for cats. (IHS Markit Connect)
  • Zarasyl Ltd announced the availability of their equine barrier cream, an FEI-safe, steroid- and antibiotic-free barrier cream to manage equine skin issues, even on race day. (company press release)
  • AUSTRALIA Elanco has received Australian approval for Credelio Plus (lotilaner/mibemycin oxime), a monthly oral flea, tick and heartworm product for dogs. The product has already been approved and launched in Japan; it has also received a positive opinion ruling for European marketing authorization. (IHS Markit Connect)
  • SPAIN Nuzoa, the leading national distributor in Spain, announced an agreement to acquire Farma Vet Balear, expanding its catalog of products and services in the Balearic Islands. The joint estimated sales of both companies nationwide will be above EUR 90 million ($110 million) at the end of this year. Financial terms were not disclosed. (company press release)
  • CANADA Pet Valu Holdings announced it has filed a preliminary prospectus for an initial public offering (IPO) on the Toronto Stock Exchange. The number of common shares to be sold and the price per common share have not yet been determined. (Pet Product News)
  • SINGAPORE SAN Group announced it has acquired German manufacturer AniCon Labor. he deal helps SAN Group build a stronger portfolio of autogenous vaccines and veterinary diagnostics. Financial terms were not disclosed. (IHS Markit Connect)

***********************************
ANIMAL HEALTH STOCK PRICE TRACKER

***********************************
ANIMAL HEALTH NEWS

  • US – DOG IMPORTATION The CDC found that more than 450 dogs imported to the US last year had fraudulent or falsified rabies certificates, up 52% from the prior two years. The government has placed a one-year ban on importation of dogs from 113 countries as a result. About 1 million dogs are brought into the US each year, and the ban is expected to apply to 4% to 7.5%.  (AVMA SmartBrief – ABC News)
  • UK – VETERINARY EDUCATION The Royal Veterinary College has launched a smartphone app that allows veterinary students to sharpen their clinical reasoning and case management skills. The free app was developed by the VetCompass team at the RVC in response to pandemic restrictions that limited opportunities for clinical experiences. It presents cases to students using anonymized and randomized clinical data sourced from more than 20,000 dogs. A future version of the app will focus on cats. (Vet Advantage)
  • US – PET CHARITIES Amazon shoppers can now support animal shelters and rescues by buying from wish lists. Through Amazon’s new Adopt a Shelter Pet page, shoppers can browse each of the organization’s wish list as well as purchase items that they need and get them sent directly to the respective animal shelter and/or rescue. (Pet Product News)

************************************
BRAKKE CONSULTING VIEWPOINT
It wasn’t that long ago when no one was sure exactly how many pigs there were in China – every household had two pigs behind it.  Over the last couple of decades, the pig industry steadily consolidated and industrialized.  Then came African Swine Fever and massive reductions in pig production starting in 2018.  Everyone knew that when the herd was rebuilt, it would be industrial production units leading the way – the backyard farmer and small farmers would be history.

A publication from Genus illustrates just how concentrated Chinese pig production now is.  Their 2021 World Mega Producer report shows some surprising numbers.  In 2020, the top 40 global producers in the world together had 16.5 million sows and almost 60% of them are in China – 9.5 million sows.  As a comparison, the US has about 6 million sows.  In 2019, China accounted for only 40% of the sows in the top 40.  These industrialized Chinese producers increased their sow herds 4.8 million pigs – or about 75% of the US sow population – in one year.

So how is this working out?  Since the beginning of the year, pig prices have fallen 60% and are below the cost of production for most producers.  Panic selling of pigs, high pork imports, and weak demand are some suggested reasons for this price plunge.  Looks like a bumpy road ahead for Chinese pig production – but the destination is more consolidation. 

Bob Jones
***********************************
YOUR VIEW

Last week we asked if you are still following the pandemic restrictions of masking and social distancing.  Half of the respondents said they were not because they were fully vaccinated, 15% just said no and 35% said that they were for the most part.  Seems like our respondents track close to national averages.

This week

This week let’s move away from the pain being felt by Chinese pig producers and toward products used to treat pain in dogs.  With the announcement of the acquisition of KindredBio by Elanco, we learn the driver behind this is access to a monoclonal antibody (mAb) platform, with one product used to treat osteoarthritis (OA) pain in dogs.  We know mAbs for pain in dogs are being developed by other companies too.  So, the question for this week…

In five years’ time, what share will all mAbs take of the total OA pain market for dogs?

en_USEnglish (United States)