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Brakke Consulting’s
Animal Health News & Notes for June 9, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Transaction insights seminar
Earnings News
BARK
J.M. Smucker
Other News
Acuity
Anivive Lifesciences
Because Animals
BioCraft Pet Nutrition
Dechra
EQT
Farm Health Guardian
Fast Genetics
Microchip ID Systems
MWI
NAN Group
Nor-Feed Holding
NoveTechnologies
Revival Animal Health
Shelters United
STgenetics
Stratford Care USA
Swedencare
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Southwest Veterinary Symposium- SWVS 2023
San Antonio, Texas – Henry B. Gonzalez Convention Center
September 21-24, 2023
Early Bird Registration — Now Until July 31st
It’s our 20th Anniversary Y’all!
Registration is NOW OPEN! Southwest Veterinary Symposium — a partnership of the Arkansas, Louisiana, New Mexico, Oklahoma, and Texas Veterinary Medicine Associations which provides continuing education for veterinary professionals. Join us this September in San Antonio, Texas, where you can learn about the latest innovations and products while exploring our exhibit hall, network with other veterinary professionals, and choose from more than 400+ hours of quality CE/RACE-approved sessions.
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EARNINGS NEWS RELEASES
- The M. Smucker Co. announced results for the fiscal year ending April 30, 2023. US Retail Pet Foods net sales were $3.04 billion, a year-over-year increase of 10%. Segment profit was $494.9 million, an increase of 25%. (Seekingalpha)
- BARK – supplier of the BarkBox subscription service – announced its financial results for the fiscal year ended March 31, 2023. Revenue was $535.3 million, a 5.5% increase year-over-year. Net loss was $(61.5) million, as compared to a net loss of $(68.3) million in the previous year. (Pet Business)
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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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COMPANY NEWS RELEASES
- Dechra Pharmaceuticals announced that it has agreed to a GBP 4.46 billion ($5.59 billion) takeover by EQT‘s Freya Bidco. Under the deal, accepting Dechra shareholders will get GBP 3.875 in cash for each share held, lower than the initial offer price of GBP 4.07 per share. (Marketscreener)
- Swedencare’s subsidiary Stratford Care USA announced that it has executed a long-term agreement with MWI Animal Health, wherein MWI secures the exclusive rights to market and promote the Stratford Care Brand of dermatology, dental, and nutritional products for the US veterinary market. (Marketscreener)
- Revival Animal Health announced the integration of Revival and Microchip ID Systems – acquired by Revival in 2021 – to better serve the pet industry and community. Existing Microchip ID Systems branded products will be refreshed and relaunched under the Revival Animal Health family of brands. (company press release)
- Anivive Lifesciences launched an outside fundraising campaign targeting $50 million in investments. The company is hoping for an equity raise between $15 million (which would allow for three new drug approvals) and $50 million (which would allow five new approvals and two commercial launches). (Los Angeles Business Journal)
- Farm Health Guardian and NoveTechnologies, LLC announced that they have combined forces and will operate under the Farm Health Guardian name. The merger will see the launch of a biosecurity management product that utilizes facial recognition, known as Protocol, to help farm managers lower the risk of diseases entering barns by proactively controlling the people entry points. Financial terms were not disclosed. (RealAgriculture)
- Because Animals announced a rebranding under the new name BioCraft Pet Nutrition to focus on the commercialization of cultured meat, R&D and work with producers interested in adding cultured meat to their pet food. (GlobalPets)
- Acuity and Fast Genetics, two swine genetics companies wholly owned by STgenetics, officially announce their joint brand, AcuFast. (Feedstuffs – subscription)
- Shelters United, a group purchasing organization that allows animal welfare groups to purchase animal care supplies and products at discounted prices, is launching a beta test for its newest initiative, the Pet Adoption Gateway. The Pet Adoption Gateway is an app and mobile-friendly website that will provide pet adopters with personalized support and guidance, as well as product recommendations, from the moment they consider adopting a pet, during the adoption process, and throughout their pet’s life. (company press release)
- VIETNAM Nor-Feed Holding signed an agreement to acquire Nor-Feed Vietnam shares owned by NAN Group, becoming sole shareholder of the Vietnamese company. (Feedstuffs)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – DRUG REGULATION Nearly 100 veterinary products that until now have been designated over-the-counter will require a prescription after June 11. These products are the last 4% of “medically important” antimicrobials federal regulators are placing limits on in order to slow pathogens’ evolution toward drug resistance. (Vet Advantage – VIN News)
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BRAKKE CONSULTING VIEWPOINT
I very recently joined Brakke Consulting to help the company expand into Latin America – and this is my first Viewpoint. I know most of you are based in the US, but I would think that many of you have traveled to Brazil and perhaps know a little about Latin America’s largest animal health market.
While The Brazilian animal health market has always been recognized for its dynamism in the farm animal segment, the pet market continues to emerge as one of the most significant ones in the world. According to Emilio Carlos Salani, EVP of Sindan, Brazil’s animal health industry association, even with the economic difficulties caused by a pandemic, the country saw a 30% increase in companion animal ownership in 2021. He feels that this expansion in pet ownership is very much related to the commitment of pet owners to offer the best in terms of food and health for their pets.
The growth in ownership of pets has directly impacted the veterinary industry and Sindan’s Market Information Commission forecasts growth in the companion animal veterinary segment by 16% for 2023 and 15% for 2024. So, there is no crisis in the Brazilian pet market! Always known for being an important market for parasiticide products, the Brazilian market is now open to innovations from around the world. The veterinary profession is rapidly developing in terms of veterinary specialties and sophistication and if you’d like to know more about the opportunities Brazil offers to animal health companies, we can help.
Mauri Ronan Moreira, DVM, MBA
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YOUR VIEW
Last week we asked you about trust companies that use AI – and about half of respondents (46%) trust companies that use AI as much as they trust other companies and about two thirds of respondents (63%) feel like they have a good understanding of AI. Here is where you fit on a very interesting chart:
If you’d like to read more about global opinions and expectations about AI, click here for the IPSOS report.
This week
This week, let’s see how well you know (or can guess) the size of the Brazilian animal health market for pets (ex-manufacturer and in USD). Is it…
English (United States) 
Portuguese