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Brakke Consulting’s
Animal Health News & Notes for May 11, 2018
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
Animal Health Industry Overview webinar – LAST WEEK TO REGISTER
Veterinary Practice Home Delivery report
AnimalHealthJobs.com
earnings news
Balchem
Central Garden & Pet
Henry Schein
Heska
Kindred Biosciences
PetMed Express
Phibro
Tyson Foods
other news
Agri-Sales Associates
Amazon
Aurora Pharmaceutical
Bo Brown Company
J.M. Smucker
Kindred Biosciences
Nestle
Partner in Pet Food
Tails.com
Zomedica
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2018 KC Animal Health Corridor Events
August 20-21, 2018
Kansas City, MO
Market Insight Seminar
August 20, 3:00 – 5:00 pm
Join fellow animal health leaders in Kansas City this August for the 3rd annual KC Animal Health Corridor Market Insight Seminar. All registration proceeds will be donated to Kansas State Animal Response Team (KS SART) and KSDS Assistance Dogs, Inc.
Animal Health Corridor Homecoming Dinner
August 20, 5:00 – 9:00 pm
The KC Animal Health Corridor’s annual Homecoming Dinner is an exclusive gathering of industry leaders from around the world to celebrate global industry successes and growth.
Animal Health Investment Forum
August 21, 7:30 am – 6:00 pm
The KC Animal Health Investment Forum is one of the only opportunities in the world for early stage animal health companies to present their vision and business plan to potential investors.
For details, go to http://kcanimalhealth.thinkkc.com/events/annual-events
REGISTER NOW for Early Bird Pricing: https://www.eventbrite.com/e/2018-annual-kc-animal-health-corridor-events-tickets-42649524877
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COMPANY EARNINGS RELEASES
• Phibro Animal Health Corporation announced its financial results for its third quarter ended March 31, 2018. Animal Health net sales were $132 million, an increase of 9%. (company press release)
• Heska Corporation reported financial results for its first quarter ended March 31, 2018. Net revenue was up 11% to $32.8 million; core Companion Animal segment revenue was up 13% to $26.8 million. Net income attributable to Heska Corporation was $2.2 million, compared to $4.6 million in the first quarter of 2017. (company website)
• Henry Schein, Inc. reported results for the first quarter of 2018. Animal Health sales were $920 million, an increase of 13%, consisting of 7% growth in local currencies and a 6% increase related to foreign currency exchange. North American Animal Health sales were $458 million, an increase of 8%. (company press release)
• Central Garden & Pet Company announced financial results for its fiscal 2018 second quarter ended March 31, 2018. Second quarter net sales for the Pet segment was $322 million, an 8% increase from the same period a year ago. (company press release)
• PetMed Express, Inc. announced financial results for the fiscal year ended March 31, 2018. Net sales were $274 million, an increase of 10% compared to the prior fiscal year. Net income was $37.3 million, an increase to net income of 57%. (company website)
• Kindred Biosciences, Inc. announced financial results for the first quarter of 2018. KindredBio reported a net loss of $(10.0) million compared to a net loss of $(6.5) million for the same period in 2017. As of March 31, 2018, KindredBio had $70.8 million in cash, cash equivalents and investments, compared with $82.5 million as of December 31, 2017. The company will begin taking orders for its first product, Mirataz, in two weeks, with product shipping in two to three months. (PRNewswire)
• Balchem Corporation reported results for the first quarter 2018. The Animal Nutrition & Health segment sales were $46.1 million, an increase of 21% compared to the prior year quarter. (Globenewswire)
• Tyson Foods released its fiscal second-quarter financial results. Tyson generated net sales of $9.8 billion that advanced 7.6% year over year. Net income for the quarter was $316 million, down from $341 million during the same period last year. (Marketwatch)
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BRAKKE CONSULTING
VETERINARY PRACTICE HOME DELIVERY REPORT
COMING IN JUNE
Pharmacy sales represent an important component of a veterinary clinic’s revenues. In today’s competitive environment, veterinarians increasingly need to offer innovative, convenient solutions to successfully compete with online pet pharmacies and retail sources.
Developed from the data collected for Brakke’s biannual 2017 Distributor Effectiveness Study, the Veterinary Practice Home Delivery Report contains key information about companion animal veterinarians’ approach to providing the convenience in purchasing veterinary products demanded by their clients. The 20-page report, based on data from over 1,100 companion animal practice respondents, answers questions such as:
• How are veterinarians serving clients who prefer to order products online or by telephone?
• What are the trends in writing prescriptions for online pharmacies?
• How many clinics have online stores, and what is the sales volume through the stores?
• Which online services providers are clinics utilizing, and how do veterinarians rate their performance?
The Veterinary Practice Home Delivery Report’s projected publication date is early June. The price of the report is $8,900, with a $500 discount for orders placed by June 1, 2018.
For more information, contact Lynn Fondon at lfondon@brakkeconsulting.com.
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COMPANY NEWS RELEASES
• Kindred Biosciences, Inc. announced that the FDA’s Center for Veterinary Medicine has approved Mirataz (mirtazapine transdermal ointment) for the management of weight loss in cats. Mirataz is the first and only transdermal medication specifically developed and FDA approved for cats. (PRNewswire)
• Aurora Pharmaceutical, LLC, announced that their proprietary Oral-Pro Sodium Salicylate is available in a cost-effective, low-dose 48.6% concentrate ideal for managing pyrexia (fever), pain and inflammation in beef and dairy calves associated with viral and bacterial infections, processing stress and shipping/handling, and has a zero-day withdrawal period for meat. (company press release)
• Zomedica Pharmaceuticals Corp. announced it has entered into an agreement with Seraph Biosciences, Inc., giving Zomedica exclusive global veterinary industry rights to develop and market an innovative point-of-care diagnostic instrument. Leveraging principles of Raman spectroscopy, Zomedica and Seraph are partnering to bring human diagnostic technology to veterinarians, beginning with the examination of urine and fecal samples. (Globenewswire)
• The J.M. Smucker Company announced plans for the retirement of Barry C. Dunaway, president, pet food and pet snacks. He will be succeeded by David J. Lemmon, president, Canada, International and US away from home. (GlobalPETS)
• Agri-Sales Associates, Inc. announced the merger with Bo Brown Company, effective June 1, 2018. The combined company will operate as Agri-Sales Associates, Inc. Financial terms were not disclosed. (company press release)
• Amazon announced it has launched its own brand of pet products, called Wag. The Wag brand debuted with dry dog food, with other pet products to be added later. Wag products are available to purchase only by Amazon Prime subscribers. (Vet Advantage – CNET)
• UK Nestle’s Purina PetCare division announced it has acquired a majority stake in Tails.com, a British tailor-made dog food company, from venture capital group Draper Esprit. Tails.com will continue to operate as a stand-alone entity. Financial terms were not disclosed. (GlobalPETS)
• HUNGARY International private equity firm, Cinven, announced an agreement to acquire Hungarian pet food manufacturer Partner in Pet Food (PPF) for an undisclosed amount. Partner in Pet Food has nine manufacturing operations across Europe and produces more than 450,000 tons of pet food per annum, distributed across 38 countries in Europe. (GlobalPETS)
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ANIMALHEALTHJOBS.COM
The best place on the web to find qualified job applicants!
AnimalHealthJobs.com is an exceptionally capable partner for your recruiting efforts in the animal health and pet markets.
AnimalHealthJobs.com consistently maintains a high degree of talent: two-thirds of our registered users have a Bachelor’s degree, and 20% have some kind of advanced degree; one-quarter have over 10 years of industry experience. All registered job applicants have animal health experience or background, or pharmaceutical sales experience.
When you are seeking the best, come to AnimalHealthJobs.com – first.
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ANIMAL HEALTH NEWS
• US – VETERINARY SPECIALTIES The AVMA has granted full recognition to the American College of Veterinary Sports Medicine and Rehabilitation and the Exotic Companion Mammal specialty under the American Board of Veterinary Practitioners, on recommendations from the AVMA American Board of Veterinary Specialties. The AVMA had granted provisional recognition of the ACVSMR as a veterinary specialty organization in 2010 and of the Exotic Companion Mammal specialty within the ABVP in 2008. (JAVMA)
• US – VETERINARY SCHOOLS The Amarillo Economic Development Corporation announced that they will pledge up to $69 million to ensure the construction and operation of a veterinary school at Texas Tech University. Including private funding and previous donations, these funds will act as a financial guarantee for the $90 million project. (newschannel10.com)
• CANADA – RACEHORSE HEALTH Researchers at the University of Guelph examined 1,713 cases of racehorse deaths from 2003 to 2015 and found that racing was connected to some of the deaths. Thoroughbreds had the highest exercise-associated mortality rate and risk at 2.27 exercise-associated deaths out of every 1,000 races. The mortality rate and risk were lowest for standardbreds, at 0.28 deaths per 1,000 race starts; mortality related to high-intensity exercise in quarter horses was 1.49 deaths per 1,000 race starts. For all breeds, musculoskeletal injury was the major contributing cause of mortality. The results were published in Published the Equine Veterinary Journal. (Feedstuffs)
• SWEDEN – CHICKEN GENETICS Five genes that affect sociality-related behavior in chickens have been identified by researchers at Linköping University in Sweden. The new study was published in Genetics. (Feedstuffs)
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ANIMAL HEALTH INDUSTRY: REVOLUTION OR EVOLUTION?
BRAKKE CONSULTING SPECIAL 2-HOUR WEBINAR
MAY 22, 2018
10:00 am – 12:00 pm CDT
LAST WEEK TO REGISTER!
The largest distributor just sold off its animal health business. One of the largest pharmaceutical companies suffered a 24% drop in its US food animal business in 2017. Corporate consolidators now own nearly half of all specialty-referral veterinary practices. Are these trends . . . or radical changes in direction for the industry? How do they impact your company? Your job?
Learn about all the factors affecting the global animal health and nutrition industry in a special two-hour webinar on May 22. Brakke experts Dr. Bob Jones and John Volk will present an up-to-the-minute edition of Brakke’s Annual Industry Overview. In addition to the presentation, you’ll have an opportunity to interact with seminar participants and ask questions. Plus you’ll receive a copy of the complete presentation.
The Overview provides the most current perspective available on the industry in the US and around the world. Register today: go to www.brakkeconsulting.com and scroll to the “What’s New Box. Registration is $395.
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BRAKKE CONSULTING VIEWPOINT
The revenue growth recorded for the first quarter by most of the companies reporting is very impressive. There was revenue growth regardless of the market channel. If this trend continues for the next 9 months, the animal health industry will have an excellent 2018.
The announcement that Amazon is launching its own brand of pet food adds to the growing interest of this large company in the pet products space. We believe you can expect more product categories to be available on-line with brick & mortar retailers suffering loss of market share.
We hope you read with interest the advertisement for our new Veterinary Practice Home Delivery Report. This new study provides some important insights on how clinics are adjusting to the on-line world in providing pet prescriptions to pet owners. It also rates the on-line service providers.
Have a great weekend now that summer is arriving in most parts of the US!
Ron Brakke
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This electronic newsletter is the sole property of Brakke Consulting, Inc.
Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting, Inc.
For more information about Brakke Consulting’s services and syndicated studies, visit our website at www.brakkeconsulting.com.
Brakke Consulting, Inc.
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Dallas, TX 75234 USA
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