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» Animal Health News & Notes for May 10, 2019

May 10, 2019
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Brakke Consulting’s
Animal Health News & Notes for May 10, 2019
Copyright © Brakke Consulting

Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting news
Recruiting

earnings news
Aratana
Central Garden & Pet
Elanco
Heska
Hester Biosciences
Kindred Biosciences
Ouro Fino
PetIQ
PetMed Express
Phibro Animal Health
Spectrum Brands
Tyson Foods

other news
Beyond Meat
Biotangents
Carus Animal Health
Clinvet
Covetrus
Essentials PetCare
Hollard Insurance
Independent Pet Partners
Intract Pharma
Labiana Life Sciences
Loyal Companion
Mars Petcare
Marshall BioResources
Modern Veterinary Therapeutics
Ouro Fino
Pathway Vet Alliance
Perrigo Animal Health
PetIQ
PetSmart
Trupanion
Walmart
Zoetis
Zoleant Pharmaceuticals

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BRAKKE CONSULTING
RECRUITING THROUGH MANAGED SERENDIPITY

Option 1: Post a job. Pray for a response. Plow through resumes.

Option 2: Partner with Brakke Consulting, someone who is looking out for you, working for you 24/7/52 to assess talent, find potential. We will work with you to plan your needs, continuously scout who is available, who is ready for a move up (not just someone who has done the job before), and recruit the most promising candidates to your company.

To learn more about how we can help you find the right person for your position, contact John Mannhaupt at jackintx@aol.com.

www.BrakkeConsulting.com

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COMPANY EARNINGS RELEASES

• Elanco Animal Health reported its financial results for the first quarter of 2019. Global revenue was $731 million, a decrease of 1% compared to the first quarter of 2018 (+2% at constant currency rates). Revenue excluding strategic exits decreased 1% to $709 million. Net income for the quarter was $31.5 million compared to $72.7 million in the prior-year quarter. (company press release, Animal Pharm)

• Phibro Animal Health Corporation announced its financial results for its third quarter ended March 31, 2019. Animal Health net sales were $129 million for the quarter, a decline of 2% compared to the prior-year quarter. (company press release)

• Ouro Fino Saúde Animal reported results for the first quarter of 2019. Turnover was R$91 million ($22.9 million) for the quarter, a 1% decline compared to the first quarter of 2018. Ouro Fino’s Adjusted EBITDA for Q1 came to zero, compared to R$12.4 million during the same period of 2018. (Animal Pharm)

• Heska reported results for the first quarter of 2019. Revenue was $29.5 million, a 10% decrease from the first quarter of 2018. Net income attributable to Heska decreased to $0.8 million compared to $2.2 million in the first quarter of 2018. (company website)

• Aratana Therapeutics, Inc. announced its first quarter 2019 financial results. Aratana recorded $7.4 million in total revenues for the first quarter of 2019 compared to $4.0 million in total revenues in the first quarter of 2018. The net loss was $(6.8) million compared to a net loss of $(8.5) million for the corresponding quarter ended March 31, 2018. (company press release)

• Kindred Biosciences, Inc. announced financial results for the first quarter ended March 31, 2019. Net product revenues were $0.5 million for Mirataz, which was launched in July 2018. KindredBio reported a net loss of $(16.1) million, as compared to a net loss of $(10.0) million for the same period in 2018. (company website)

• Central Garden & Pet Company announced financial results for its fiscal 2019 second quarter ended March 30, 2019. Net sales for the Pet segment increased 5% to $338 million from the same period a year ago, driven by the acquisition of General Pet. Organic Pet sales were flat. (company press release)

• Spectrum Brands Holdings, Inc. reported results from continuing operations for the second quarter of fiscal 2019 ended March 31, 2019. Pet segment sales were $215 million, an increase of 2% compared to the comparable prior-year quarter. (company website)

• PetMed Express, Inc. announced its financial results for the fiscal year ended March 31, 2019. Net sales were $283 million, an increase of 3.5% compared to the prior fiscal year. Net income was $37.7 million compared to net income of $37.3 million for the fiscal year ended March 31, 2018, an increase to net income of 1%. (company website)

• PetIQ, Inc. reported financial results for the three months ended March 31, 2019. Net sales were $148 million, an increase of 29% compared to the first quarter of 2018. Product segment net sales were $126.1 million and Services segment revenues were $22.4 million in the first quarter of 2019. Net income was $2.3 million compared to a net loss of $(4.0) million in the prior-year quarter. (company press release)

• Hester Biosciences reported results for its fiscal year 2019. Revenues were INR1.7 billion ($24 million), an increase of 27% over fiscal 2018. Net profit increased by 44% to INR305.6 million ($4.4 million). (Animal Pharm)

• Tyson Foods Inc. reported results for its fiscal 2019 second quarter. Sales were $10.4 billion compared to sales of $9.8 billion in the second quarter of fiscal 2018. Net income for the second quarter was $430 million, compared to net income of $316 million in the prior-year quarter. (Feedstuffs)

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COMPANY NEWS RELEASES

• Covetrus announced a new partnership with Mars Petcare. Veterinarians can now purchase Mars Petcare’s Greenies products for their in-clinic and online channels exclusively from Covetrus. (AP)

• PetIQ, Inc. and Perrigo Animal Health announced they have executed a definitive agreement under which PetIQ will acquire Perrigo Animal Health from Perrigo Company. The $185 million cash transaction is expected to close in the third quarter of 2019. (company press release)

• PetSmart announced the launch of a new program to help pet parents protect their pets from flea-borne and tick-borne illnesses. “You Buy, We Apply,” is exactly what is sounds like — you buy a topical or “spot on” flea and tick treatment from PetSmart and they will apply it to your pet for free. (APPA enews)

• Pathway Vet Alliance grew to nearly 200 practices in the first quarter of 2019 by signing agreements with 17 clinics in 11 states. The Texas-based company moved into Idaho, Pennsylvania and Tennessee for the first time with the new agreements. (Todays Veterinary Business)

• Walmart announced that Essentials PetCare will expand its walk-in clinics to nine Walmart stores in the Dallas-Fort Worth area of Texas. The veterinary clinics are scheduled to begin opening later this month and in June. Walmart also announced a new online pharmacy, WalmartPetRx.com, that will deliver pet medications from more than 300 brands to customers’ homes and businesses. (company press release)

• Seven independent pet retailers with 52 locations recently combined to form the new umbrella brand Loyal Companion. The new brand, headed by parent company Independent Pet Partners, will focus on holistic pet wellness. The companies now under one roof include: Bark!, Especially For Pets, Kriser’s, Pet Life, Pet Source, Dogma—Life With Your Pet and Whole Pet Central. (Pet Product News)

• South Africa-headquartered contract research organization Clinvet announced a joint venture with US company Marshall BioResources. Clinvet will manage a clinical research site in Waverly, New York that was recently acquired by Marshall – a firm that specializes in purpose-bred animals for biomedical research – from Liberty Research. (Animal Pharm)

• Beyond Meat Inc., a maker of vegan beef and sausage substitutes, had the year’s best first day for a US initial public offering, rising as much as 192% from its IPO price of $25 per share. The shares, which opened at $46, closed their first day of trading up 163% to $65.75, giving the company a market value of about $3.8 billion. (Feedstuffs)

• CHINA Zoetis announced it has received approval of Apoquel (oclacitinib tablet) in China for the control of itching associated with allergic and atopic dermatitis in dogs. (Animal Pharm)

• BRAZIL Ouro Fino Saúde Animal announced it has become the chosen partner for the animal health sector with AgTech Garage, allowing Ouro Fino to connect with entrepreneurs and 350 start-ups in the local agribusiness sector. (Animal Pharm)

• AUSTRALIA Trupanion announced its entry into the Australian market in partnership with Hollard Insurance Co. (company press release)

• AUSTRALIA Modern Veterinary Therapeutics, LLC announced that the Australian Pesticides and Veterinary Medicines Authority (APVMA) has approved Ketoprofen V (ketoprofen injection) in Australia for use in horses, swine, and cattle. (company press release)

• UK Carus Animal Health and Intract Pharma announced that they will work together on a new oral companion animal drug. The partners will use Intract’s proprietary drug delivery technologies to bring a new drug to the companion animal market. (Animal Pharm)

• TURKEY Labiana Life Sciences has entered into its first acquisition in the animal health space by agreeing to purchase a majority shareholding in Turkish company Zoleant Pharmaceuticals International. Founded in 2016, Zoleant has a focus on the development and global marketing of niche alternative brand medicines for animal health. Financial terms were not disclosed. (Animal Pharm)

• SCOTLAND Biotangents announced it has secured GBP 1.5 million of new investment following the completion of a second funding round. The new funds will support the continued commercial development of Biotangents’ diagnostic platform which is used to quickly detect infectious diseases in livestock, on-site and same-day. (insider.co.uk)

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ANIMAL HEALTH NEWS

• WORLD – ASF New research has shown that wild boars can be immunized against African swine fever (ASF) through a new vaccine delivered in the animals’ food. The study also provides evidence that this immunity can be passed on via contact with immunized individuals, but further studies are needed to examine exactly how this occurs as well as the safety of repeated administration. The research was published in Frontiers in Veterinary Science. (Feedstuffs)

• US – ANIMAL WELFARE Washington state has passed a law that phases out the production and sale of eggs from caged hens, regardless of where the eggs were produced. In addition to banning cages and requiring more space per bird, the law also mandates that hens be provided with enrichments, including scratch areas, perches, nest areas and dust bathing areas. The measure follows similar actions in California and Massachusetts. (Feedstuffs)

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BRAKKE CONSULTING VIEWPOINT

This week, Walmart announced that it would be partnering with Essentials PetCare to expand the presence of walk-in veterinary clinics in Walmart stores, supplementing last year’s agreement with PetIQ. While there are currently only 21 Walmarts with clinics, the retailer plans to have 100 veterinary clinics 12 months from now. Walmart stores received an average of 275 million customer visits per week in 2018, and most of those customers probably have a pet or two. With the increasing consumer demand for convenience, how many veterinary clinic clients can Walmart capture?

In addition to the expansion of their in-store veterinary centers, Walmart announced that it was launching a dedicated pet pharmacy, WalmartPetRx.com. In 2018 Walmart surpassed Apple to become the third-largest e-tailer in the US, behind only Amazon and eBay, and online retailing is a key growth area for the company. This will no doubt put even more pressure on traditional vet clinic product sales.

How pet owners receive veterinary care and medications is evolving, and in order to be successful companies need to stay on top of the trends. Our team at Brakke Consulting has the experience and the know-how to help.

Lynn Fondon

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