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Brakke Consulting’s
Animal Health News & Notes for June 30, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Animal Health Jobs
Transactions Insights Seminar
Earnings News
General Mills
Other News
At One Ventures
Carelogy
Cargill
Chewy
Dalan Animal Health
Destination Pet
EPiQ Animal Health
Fuzzy
Lemonade Pet
Lyka
Mylab Discovery Solutions
PDX Biotech
Pet Palace Pet Boarding Resort
Pet Supermarket
Prime Movers Lab
Purina Pro Plan
Rising Sun Holdings
Spectrum Brands
Spot Pet Insurance
Trupanion
Zoonivet
Zydus Animal Health
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BRAKKE CONSULTING
Transaction Insights: Unlocking the Secrets to Successful Business Deals in Animal Health
New seminar coming August 30-31, 2023 in Kansas City
Are you seeking to navigate the complex landscape of buying and selling businesses in the animal health and nutrition industry? We are excited to announce the relaunch of our educational due diligence seminar, tailored specifically for animal health professionals.
It’s more than just due diligence – we will help you unlock the secrets to successful deals in animal health. Our comprehensive seminar is designed to equip you with the knowledge, tools, and strategies to make informed decisions and to successfully manage a transaction. Presenters include Bob Jones, Jim Kroman, Randy Freides, and Ron Brakke as well as Damian Burke, Main Street Capital and Mark Stoneman, Armstrong, Teasdale, LLP. The preliminary agenda can be found here.
This Seminar will be held after the KCAHC Animal Health Summit in Kansas City on Wednesday and Thursday, August 30-31. Click here to sign up today and receive a discount.
For more information, contact Amanda McDavid at amcdavid@brakkeconsulting.com or 336.396.3916.
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EARNINGS NEWS RELEASES
- General Mills, Inc. reported results for the fiscal year ended May 28, 2023. Pet segment net sales increased 9% to $2.5 billion. Segment operating profit was down 5% to $446 million. (company press release)
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COMPANY NEWS RELEASES
- Chewy announced the availability of new CarePlus insurance and wellness offerings that feature expanded coverage options and price points from two providers, Lemonade Pet and Trupanion. (company press release)
- Spectrum Brands Holdings, Inc. announced it has closed a previously announced sale of the Company’s Hardware and Home Improvement business to ASSA ABLOY for $4.3 billion in cash. Among other things, the company intends to use the proceeds from the sale to fund opportunistic M&A activities, remaining committed to its strategic goal of “becoming a … pure play Global Pet Care and Home & Garden company.” (Pet Business)
- Purina Pro Plan Veterinary Supplements announced the availability of Joint Care, a new soft chew supplement that supports mobility, healthy cartilage and joints in dogs and puppies. Joint Care contains collagen, hyaluronic acid, glucosamine and chondroitin sulfate, along with omega-3 fatty acids. (PRnewswire)
- Dalan Animal Health, Inc. announced the successful closure of a $4.5 million Series Seed 3 funding round. The round was led by Prime Movers Lab with participation from At One Ventures. The additional funding will enable Dalan to expedite its product pipeline and expand its operations beyond the United States. (yahoo finance)
- PDX Biotech announced that OraStripdx – a periodontal disease diagnostic test for pets – is now available to all authorized veterinary distributors and customers nationwide via a partnership with EPiQ Animal Health. (PRweb)
- Veterinary care startup Fuzzy, founded in 2016, is no longer active and its website and mobile apps have been taken down, Coverager Fuzzy provided 24/7 live chat and telehealth for $15 a month, ship-to-home prescriptions, veterinarian-curated items in its e-commerce marketplace, and programs for nutrition, training and obedience. (Vet Advantage)
- Pet Supermarket announced a partnership with Spot Pet Insurance. Pet Supermarket will make Spot Pet Insurance available to its employees, as well as to its customers. (Pet Business)
- Destination Pet announced it has acquired Pet Palace Pet Boarding Resort, a pet care facility with 11 locations in Ohio, Indiana, North Carolina, and Pennsylvania. Financial terms were not disclosed. (Pet Business)
- INDIA Zydus Animal Health, a wholly-owned subsidiary company of Zydus Lifesciences, has entered into a share purchase agreement with Rising Sun Holdings Private Limited to acquire a 6.5% stake in Mylab Discovery Solutions Private Limited at an agreed consideration of 106 crore. Mylab is engaged in the business of researching, developing, manufacturing, marketing and selling in-vitro diagnostics kits, equipment, reagents and related therapeutic products. (Times of India)
- INDIA Cargill announced an expansion into the Indian pet care industry with the acquisition of pet telehealth player Zoonivet. The service, launched in October 2022 with the help of Cargill Digital Studios, connects pet parents with veterinarians via video call. Financial terms were not disclosed. (GlobalPets)
- AUSTRALIA Lyka, a fresh dog food manufacturer, announced it has closed funding of AU$25 million (US$16.9M). Six months ago the firm closed an additional AU$30 million, bringing the total investment amount to AU$55 million. (GlobalPets)
- JAPAN Carelogy partnered with Nihon University’s College of Bioresource Sciences to produce “Cat Pain Detector,” an app trained on thousands of cat photos that they say can tell you when a cat is in pain. The app – based on a scoring system designed by the University of Montreal – claims an accuracy level of more than 90%. Cat Pain Detector has over 43,000 users, mostly in Japan but also in Europe and South America. (org)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH JOBS
With today’s tight competition for top animal health talent, you need every advantage to attract the best people. There’s a reson Animal Health Jobs is the premier job board for the animal health and animal nutrition industry. With our tiered packages, you choose the level of service that’s right for your company. We accept roles across animal health, in marketing, development, communications, technical sercices sales, R&D and more. Whether you need a cat, dog, horse, pig, cow or poultry person, you’ll find the best ones here.
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ANIMAL HEALTH NEWS
- US – VETERINARY SCHOOLS Clemson University trustees officially approved the development and launch of the first College of Veterinary Medicine in South Carolina. This follows the completion of the fiscal 2024 state budget, which allotted additional support for the new college. (com)
- IRELAND – VETERINARY EDUCATION The Republic of Ireland intends to more than double the number of veterinarians it graduates each year by creating up to three new veterinary schools and expanding capacity at its only existing school. The ambitious undertaking is part of a broader government initiative to plug skills shortages in the country’s health-care sector, and would see 230 more veterinary students trained each year. (VIN News)
- US – AVIAN INFLUENZA The USDA announced it is providing an additional $502 million under the Animal Health Protection Act to the Animal and Plant Health Inspection Service (APHIS) to prepare for potential additional detections of highly pathogenic avian influenza (HPAI) in the United States. USDA said it continues to successfully combat HPAI in the United States, with no additional cases of HPAI in commercial poultry since April 19, 2023. (Feedstuffs – subscription)
- US – DAIRY COW HEALTH University of Minnesota researchers have developed a highly sophisticated model to assess lactating cow heat stress, a problem that can lead to numerous health complications for cows and financial difficulties for dairy producers due to reduced milk production and pregnancy rates. The research was recently detailed in two papers in the journal of the American Society of Agricultural and Biological Engineers; the first paper describes the equations and cow characteristics used in the modified model, and the second paper compares model results with data from cows experiencing heat stress and unpublished data from solar panel shade work. (Feedstuffs – subscription)
- POLAND – FELINE DEATHS Veterinarians in western Poland are raising concerns about feline neurological and respiratory illness, and in some cases animals have tested positive for influenza, including H5N1 avian influenza. Veterinarians in Gdansk are reporting 25 of 28 cats with an unusual illness have died, and Poland’s veterinary inspection service is collecting data and launching a scientific investigation. (AVMA SmartBrief – BNO News)
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BRAKKE CONSULTING VIEWPOINT
What is the fastest growing pet product in the US? A case can be made for pet health insurance. The industry has been growing at more than 20% per year for more than 5 years. Revenues in 2022 were $3.5 billion, 23.5% higher than 2021, according to NAPHIA, the North American Pet Health Insurance Association. There are now nearly 5 million pets – mostly dogs – covered by pet health insurance.
What’s driving the growth? There are several likely factors. Veterinarians – the number one influencer – have embraced pet health insurance more enthusiastically thanks to educational efforts by NAPHIA and its members. Veterinary costs are rising due to inflation and more advanced, more expensive medical treatments. And pets owners are more emotionally attached to their animals than ever before, willing to protect their health.
Even with this rapid growth in the US market, we get asked frequently why pet insurance here isn’t as common as in many European countries. There are several reasons, but the most important is that the industries are not comparable. The US is a much more regulated insurance market; policies are sold by licensed insurance agents. Veterinarians for example, can’t sell it. In many European countries pet insurance is much more of an OTC product, similar to travel insurance here.
John Volk
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YOUR VIEW
We are an industry of sports fans. Last week we asked if you planned to attend a professional sporting event this summer. 68% said Yes!
This week
For a couple of days this week Chicago, where I live, had the worst air quality in the country thanks to the Canadian wildfires and a weather inversion. Many other areas of the country were impacted by poor air quality and/or excessive heat. Our questions this week are:
(1) Has air quality or heat forced you to cancel outdoor activities in the last few weeks?
(2) Was the health of you or a member of your household negatively impacted by the poor air quality or excessive heat?
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