The Experts in Animal Health

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Brakke Consulting’s
Animal Health News & Notes for May 13, 2022
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
2022 Veterinary Home Delivery Report – coming in May

Earnings News
Covetrus
Elanco
Evonik Industries
Heska
MWI Animal Health
PetMed Express
Spectrum Brands Holdings
Sumitomo Pharma Animal Health
Tyson Foods
Zenoaq
Zomedica

Other News
ADM
Avivagen
Boehringer Ingelheim (TwistPak)
Boehringer Ingelheim (Cryoport)
Covetrus
Crum & Forster Pet Insurance
Cryoport
Dandy
Eight Roads
F-Prime Capital
Fuzzy
GV
Invetx
Iven
KM Biologics
Marel
Maymó
Mayvet
Meiji Animal Health Company
Meiji Seika Pharma
Novo Holdings
PetSafe
PSIvet
South Sunrays Milling Corporation
TheraVet
Veterinary Instrumentation
Walmart
Wenger
Zendal Group
Zesty Paws

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Brakke Consulting
2022 VETERINARY HOME DELIVERY REPORT
COMING IN MAY

Product 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 2021 Sales Force 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 60-page report, based on data from 1,400 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 will be published in late May. The price of the report is $7,500.

For more information, contact Lynn Fondon at lfondon@brakkeconsulting.com.

www.BrakkeConsulting.com

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EARNINGS NEWS RELEASES

  • Elanco Animal Health Incorporated reported financial results for the first quarter of 2022. Total revenue was $1.225 billion, a year-over-year decline of 1% (+2% at constant exchange rates). Reported net income was $48 million compared to net loss of $(61) million in the prior-year quarter. (company press release)
  • Covetrus announced financial results for the first quarter of 2022. Net sales were $1.15 billion, an increase of 4% compared to the first quarter of 2021. Non-GAAP organic net sales growth was 6% year-over-year. Net loss attributable to Covetrus was $(2) million compared to net loss in the first quarter of 2021 of $(16) million. North America segment net sales were $696 million, an increase of 10%. (company press release)
  • AmerisourceBergen reported results for the second quarter of its fiscal 2022 ended March 31. MWI Animal Health revenues were $1.172 billion, an increase of 4% from the prior-year quarter. (IHS Markit Connect – subscription)
  • Nippon Zenyaku Kogyo (Zenoaq) announced results for its fiscal 2021 ended March 31, 2022. Total sales of animal health products were JPY 42,861 million ($328.6 million), a year-over-year increase of 5%. (IHS Markit Connect – subscription)
  • Heska Corporation reported financial results for the first quarter of 2022. Net revenue was $64.8 million, an increase of 7% from the prior-year quarter. Net loss attributable to Heska was $(10.0) million compared to net income of $1.9 million in the prior-year quarter. North America segment revenue was $37.4 million, unchanged from the prior-year quarter. (PRnewswire)
  • Sumitomo Pharma Animal Health (formerly DS Pharma Animal Health) announced results for its fiscal 2021 ended March 31, 2022. Sales of animal health products were JPY 5,680 million ($43.6 million) an increase of 19.5% compared to 2020, after accounting for the discontinuation of the company’s pet food business. (IHS Markit Connect – subscription)
  • Spectrum Brands Holdings, Inc. reported results from continuing operations for the second quarter of fiscal 2022 ended April 3, 2022. Global Pet Care net sales were $295 million, a year-over-year increase of 0.5%; segment operating income was $19.9 million, a decline of 50%. (company website)
  • Zomedica reported consolidated financial results for the three months ended March 31, 2022. Total revenue for the first quarter 2022 was $3.8 million, compared to $14,000 in the first quarter of 2021. PulseVet revenue was $3.7 million, an increase of 36% over its first quarter 2021 revenue as a standalone company. Zomedica recorded net loss and comprehensive loss of $(3.9) million, compared to an [operating] loss of $(4.0) million, and a special charge of $32.0 million, for the three months ended March 31, 2021. (Yahoo)
  • PetMed Express, Inc. announced its financial results for the fiscal year ended March 31, 2022. Net sales were $273 million, a decrease of 12% compared to the prior year. Net income was $21.1 million, a decline of 31%. (company website)
  • Evonik Industries reported results for the first quarter of 2022. Turnover from the animal nutrition unit was EUR 556 million ($589 million), an increase of 38%. (IHS Markit Connect – subscription)
  • Tyson Foods reported results for its fiscal 2022 second quarter. Sales were $13.1 billion, a year-over-year increase of 16%. Net income attributable to Tyson during the quarter was $829 million, up from $476 million during the same quarter last year. (company website)

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COMPANY NEWS RELEASES

  • Boehringer Ingelheim Animal Health announced the launch of TwistPak, a mixing platform that enables pig producers to combine the Ingelvac CircoFLEX and Ingelvac MycoFLEX vaccines for convenient administration. (company press release)
  • Cryoport announced a partnership with Boehringer Ingelheim Animal Health to support US clinical trials for Boehringer’s Arti-Cell Forte, a licensed stem cell-based product indicated for the reduction of mild to moderate lameness linked to joint inflammation in horses. (IHS Markit Connect – subscription)
  • Covetrus introduced Ascend – a cloud-based Practice Management software (PMS) built to enable veterinary practices across the United Kingdom, EMEA and Asia Pacific. (company press release)
  • Invetx announced that it has raised $60.5 million in an oversubscribed Series B financing. The investment was led by F-Prime Capital, Novo Holdings, GV (formerly Google Ventures) and Eight Roads. The proceeds allow the company to advance its monoclonal antibody (mAb) pipeline and pursue market approvals for therapeutics targeting chronic and serious diseases in dogs and cats. (company press release)
  • Fuzzy, a digital pet health company, announced its acquisition of Dandy, a personalized pet supplement company. Financial terms were not disclosed. (Petfoodprocessing – subscription)
  • PetSafe announced the launch of the Audible Bark Collar, a solution to nuisance barking that uses an innovative audible technology to deter the problem behavior. (Pet Gazette)
  • Zesty Paws announced it has partnered with Walmart to carry out a nationwide retail launch across the United States. (Petfoodprocessing – subscription)
  • Crum & Forster Pet Insurance Group, provider of the ASPCA Pet Health Insurance program, and PSIvet have entered into a partnership. With the partnership PSIvet member practices will have additional resources available to them, including CE courses and other educational tools that benefit the veterinary staff, clients, and pets. (company press release)
  • Marel, an Icelandic-based global provider of food processing equipment, announced it has acquired Wenger for $540 million. Wenger’s revenues in 2022 are expected to be $190 million. (GlobalPets)
  • JAPAN Meiji Seika Pharma and KM Biologics announced that their animal health divisions have combined to form a new business called Meiji Animal Health Company.  KM Biologics holds a 50.3% share and Meiji Seika Pharma a 49.7% share of the new firm. The new firm is focused on animal drugs and feed additives. (IHS Markit Connect – subscription)
  • UK TheraVet announced the signing of an exclusive distribution agreement with Veterinary Instrumentation (Vi) for the distribution of the Biocera-Vet product line in United Kingdom and Ireland. (Businesswire)
  • PHILIPPINES ADM announced the acquisition of a feed mill in the Philippines, from South Sunrays Milling Corporation. The new mill, will allow ADM to offer a wide range of feed products for swine, poultry and aqua for both backyard and commercial farm segments. Financial terms were not disclosed. (Feedstuffs – subscription)
  • SPAIN Zendal Group announced it has acquired a 46% stake in Maymó, which specializes in veterinary pharmaceuticals and is made up of Laboratorios Maymó in Barcelona, Iven headquartered in Madrid and Mayvet based in Mexico. The company’s portfolio largely consists of generics for food-producing animals, although it does have several original products. Financial terms were not disclosed. (IHS Markit Connect – subscription)
  • CHINA Avivagen announced that OxC-beta, its oxidized carotenoid-based feed additive product, has received approval for use in China. (company press release)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

  • NEW ZEALAND – MYCOPLASMA New Zealand is on the verge of eradicating Mycoplasma bovis, as 271 farms had been cleared of the bacterial disease and only a single farm in the country still had the disease. New Zealand would be the first country that has managed to wipe it out completely. (AVMA Smartbrief – AP)
  • US – FEED MANUFACTURING The FDA issued a draft guidance for industry (GFI) that compiles and describes established practices that medicated feed manufacturers can use to prevent contamination of animal food from unsafe drug carryover into other batches of medicated feed or non-medicated animal food. When finalized, draft GFI #272 will not change the substance of existing policies or introduce new policies. The FDA will accept public comments on Draft GFI #272, “Practices to Prevent Unsafe Contamination of Animal Feed from Drug Carryover.” through August 8, 2022. To electronically submit comments to the docket, visit regulations.gov and type FDA-2022-D-0173 in the search box. (FDA)
  • WORLD – ANTIBIOTIC USE RESEARCH Researchers from University of California, Davis and universities in Denmark and the Netherlands are joining forces in a new research project to reduce the need for antibiotics in pig production by improving intestinal resilience in developing piglets. The $21.2 million, 5-year PIG-PARADIGM project is funded by the Novo Nordisk Foundation. (Feedstuffs – subscription)

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BRAKKE CONSULTING VIEWPOINT
Traditionally, veterinary practices have been the leading purveyors of both prescription and non-prescription animal health and nutrition products.  With the advent of Internet sales, that pre-eminent position was seriously challenged.  In reality, it’s one of the most dynamic, rapidly-changing issues in the animal health industry.

Today’s newsletter includes several items relevant to this topic.  In the earnings section, Covetrus and PetMedExpress compete directly or indirectly on one side of the market for home delivery or the other.

This newsletter also features the announcement of a new report that sorts it all out – the Veterinary Home Delivery Report.  This study provides detailed information on the percentage and growth in number of veterinary practices that offer online sales and home delivery, which service providers they use, satisfaction with those service providers, growth rates of online sales, percentage of clients requesting prescriptions for third-party pharmacies, and substantial additional information.  It’s well worth a read and contains a lot of actionable information if you’re involved or invested in animal health product sales.

John Volk
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YOUR VIEW

Last week we asked how seriously you view the issue of heartworm resistance to current drugs.  On average, pretty seriously.  21% said “very serious,” 28% said “somewhat serious” and 23% said “serious.” Only 28% said “not very serious” or “not at all serious.”

This week

Sticking with the topic of home delivery, this week’s questions are:  What percentage of companion animal practices offer home delivery, the question is multiple choice, so it’s easy test your knowledge or take a guess.

What percentage of companion animal practices offer home delivery?

Thank you