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Brakke Consulting’s
Animal Health News & Notes for May 14, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Earnings News
Better Choice Company
Cryoport
DS Pharma Animal Health
Elanco
Kindred Biosciences
Ouro Fino
Spectrum Brands Holdings
Zomedica
Other News
Advanced Animal Diagnostics
Alltech
Bio-Cide International
Boehringer Ingelheim
CannaHorse
Elanco
Kemin Industries
Pet Releaf
Rarebreed Veterinary Partners
Trouw Nutrition
Zenex Animal Health India
Zydus Animal Health
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COMPANY EARNINGS RELEASES
- Elanco Animal Health reported strong financial results for the first quarter of 2021. Revenue in the first quarter was $1,242 million, comprised of $683 million from the legacy Elanco portfolio and $559 million from the legacy Bayer Animal Health portfolio. Revenue increased 89% driven by the inclusion of the Bayer Animal Health business; legacy Elanco revenue in the first quarter was $683 million, an increase of 4% year over year. Net loss for the quarter was $(61) million compared to a net loss of $(49) million in the year-ago period. (company press release)
- Ouro Fino Saúde Animal reported results for the first quarter of 2021. Revenues were R$168.8 million ($32.3 million), an increase of 51% over the prior-year quarter. (IHS Markit Connect)
- DS Pharma Animal Health reported results for the fiscal year ended March 31, 2021. Sales were JPY 12,860 million ($118 million), an 11% decline from the prior fiscal year. The company was impacted by the discontinuation of its pet food business, including the cessation of a pact to distribute Hill’s Pet Nutrition diets in Japan, which ended in December 2020. Sales of the firm’s animal health products excluding the pet food segment increased by 13% in 2020. (IHS Markit Connect)
- Kindred Biosciences, Inc. announced financial results for the first quarter of 2021. Revenues were $2.4 million compared to revenues of $603,000 in the prior-year quarter. Of this, $227,000 were net product revenues for Zimeta; $326,000 were royalty revenue for Mirataz; and $1.8 million were revenues from contract manufacturing. Net loss was $(9.7) million compared to a loss of $(22.8) million in the prior-year period. (company website)
- Zomedica reported consolidated financial results for the first quarter of Revenue was $14,124 and resulted from the sale of Truforma products and associated warranties. The company commenced commercialization of Truforma on March 15, 2021. Net loss was approximately $(4.0) million compared to a loss of approximately $(2.5) million for the three months ended March 31, 2020. Zomedica had cash and cash equivalents of approximately $276.6 million as of March 31, 2021, compared to approximately $1.5 million as of March 31, 2020. (company press release)
- Spectrum Brands Holdings reported results for its second fiscal quarter ended March 31, 2021. Global Pet Care net sales were $294 million, an increase of 24% year-over-year. (company website)
- Better Choice Company reported its financial results for the First Quarter ended March 31, 2021. Net Sales were $10.8 million, a decline of 11% compared to the prior-year quarter. Net loss was $(12.85) million compared to a loss of $(9.45) million in the prior year. (Globenewswire)
- Cryoport reported financial results for the first quarter of 2021. Animal health turnover improved to $9 million from $0.2m in the comparative quarter of last year, primarily driven by its acquisition of MVE Biological Solutions. (IHS Markit Connect)
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COMPANY NEWS RELEASES
- Elanco Animal Health announced the launch of ZoaShield (zoalene) to offer poultry producers a proven and flexible solution that keeps coccidiosis under control in an easy, manageable way. (company press release)
- The FDA announced that, in response to a shortage of Vetmedin (pimobendan), the agency does not intend to object to the temporary importation of Vetmedin capsules and Vetmedin chews by Boehringer Ingelheim Animal Health USA, Inc., from Canada, the United Kingdom and Ireland to immediately increase the availability of Vetmedin in the US. There is no FDA-approved alternative to Vetmedin. Although the imported Vetmedin products have not been evaluated or approved by FDA, they are approved in their countries of origin and subject to those countries’ regulatory standards, including adherence to good manufacturing practices. (FDA)
- Kemin Industries announced it has acquired Bio-Cide International,, a leading multi-specialty source of chlorine dioxide-based antimicrobial technology. Financial terms were not disclosed. (joplinglobe.com)
- Alltech announced the launch of the Lifeforce brand of equine supplements. The new line includes supplements for: joint health and maintenance; digestion; hoof health; and weight maintenance. The line also includes an elite performance supplement for maintaining healthy cartilage and synovial fluid in joints, supporting muscle endurance and optimizing digestion. (IHS Markit Connect)
- Trouw Nutrition announced a $12.1 million facility expansion, increasing the existing 8,100-square-foot Pilot Plant to a 32,052-square-foot modern new facility. The new facility reflects Trouw’s continued investment in its U.S. Companion Animal Division and the broader pet food industry. (GobalPets)
- Advanced Animal Diagnostics announced it has sourced $7 million in investment funds to help it grow its point-of-care (POC) platform in both the animal health and human pharma sectors. In the livestock area, AAD will use the investment for the commercial expansion of its tests. Mountain Group Partners (MGP) led the financing round. (IHS Markit Connect)
- Pet Releaf announced the release of Sentesa, a veterinary line of hemp-based supplements formulated to manage a dog’s inflammatory response, discomfort, calmness, joint flexibility and mobility. Sentesa capsules contain cannabidiol (CBD), beta-caryophyllene and caprylic acid, a triglyceride. (Todays Veterinary Business)
- CannaHorse announced it has commercially launched Equilibrium Oral, its first equine cannabinoid therapeutic in the US. Equilibrium Oral is designed to reduce anxiety in horses and is available as a gel formulation for administration via syringe or in feed. (IHS Markit Connect)
- Rarebreed Veterinary Partners announced that it has closed a new round of financing, led by existing investors Halle Capital Management and Trilantic North America. The investment will be used to support Rarebreed’s continued growth through the acquisition of additional veterinary hospitals and enhancements to the services it provides to the healthcare teams within its network of 33 clinics in the Northeast. (BusinessWire)
- INDIA Cadila Healthcare announced a definitive agreement to sell its wholly-owned subsidiary Zydus Animal Health to a Multiples Alternate Asset Management-led consortium for Rs 2,921 crore ($398 million). The consortium is purchasing the undertaking through an special purpose vehicle (SPV) controlled by them, in the name of Zenex Animal Health India. Zydus Animal Health and Investments Ltd (ZAHL) has another animal healthcare business undertaking which is expected to commence animal health business in the US and certain European countries and this business undertaking is not part of the transaction. (Outlookindia.com)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – FDA BIOTECH SESSION The FDA’s Center for Veterinary Medicine (CVM) is announcing an Animal Biotechnology Stakeholder Outreach Session that will be open to the public and will take place virtually on Wednesday, July 28 from 3:40 – 4:45 PM ET via Zoom. The session is open to all stakeholders at no cost, and will take place in conjunction with the Genome Writer’s Guild 2021 conference. Click here for more information (FDA)
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BRAKKE CONSULTING VIEWPOINT
Should we go back to the office?
We have just participated in a grand experiment in moving quickly from the office to working remotely. Without a pandemic it is doubtful we would have ever seen such a dramatic shift in work environment. Many skeptics who thought working remotely in their business would never be functional have become believers.
The question for many businesses now is what is the next step? Finding the right answer involves consideration for morale, turnover, and productivity. Office space savings, childcare concerns, and ability to maintain a collaborative business environment are also factors in this decision.
A recent survey of 1,800 professionals and C-suite executives conducted by Littler, a California law firm, revealed two interesting issues about workers returning to the office:
- Only 4% of employers believed their workers preferred full-time return to in-person work, but 28% of employers plan to have most of their employees return full-time.
- 71% of employers believe their workers would prefer a hybrid model with remote options, but only 55% percent of employers plan to offer that setup.
Help us understand where you are with return-to-office issues by answering our survey question of the week.
Cary Christensen
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YOUR VIEW
Newsletter readers are bullish in 2021! Last week we asked, “What do you expect global growth in animal health to be in 2021?” The largest number of respondents, 54%, said 6-8%. Only 8% said the industry would grow less, while 38% said even more. Mean for all respondents was 8.2%. That compares to the 4.5-5% annual growth that has been typical for the past few years.
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