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Brakke Consulting’s
Animal Health News & Notes for May 20, 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
Benchmark
ImmuCell
Ourofino Saúde Animal
Swedencare
Other News
Alfa Chemistry
Artemis Technologies
Blue Ocean Barns
Ceva
Clayton, Dubilier & Rice
Covetrus
Fear Free
Financière Forêt
Gencove
Glanbia Nutritionals
Heart of Texas Veterinary Specialty Center
HerdWhistle Technologies
Lemna
Mella Pet Care
Neogen
PacMoore Processing Technologies
Pathway Vet Alliance
Penn Foster
Perstorp Group
PetMed Express
Petronas Chemicals Group
PharmAust
Sterling Technology
Structured Monitoring Products
TPG
Vetster
Whistle
Zomedica
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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.
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EARNINGS NEWS RELEASES
- Ourofino Saúde Animal announced results for the first quarter of 2022. Turnover was R$202.3 million ($39.4 million), a year-over-year increase of 20%. Adjusted net profit was R$13.9 million ($2.7 million), an improvement of 45% year-on-year. (IHS Markit Connect – subscription)
- Swedencare announced results for the first quarter of 2022. Turnover was SEK377.7 million ($37.4 million), an increase of 182% (organic currency-adjusted growth of 7%). NaturVet (acquired in February) contributed SEK110.5 million, while Innovet (acquired in March) added SEK10.6 million. Sales in North America increased 264% to SEK306.8 million ($30 million). EBITDA was up 188% to SEK57.9 million ($5.7 million). (IHS Markit Connect – subscription)
- ImmuCell Corporation announced its unaudited financial results for the quarter ended March 31, 2022. Sales were $6.0 million, a 46% increase from the prior-year quarter. Net income was $736,000 compared to a net loss of ($441,000) during the quarter ended March 31, 2021. (company press release)
- Benchmark reported results for the six months ended March 31, 2022. Revenues were GBP 79.2 million ($98.3 million), a 33% upturn in sales. Adjusted EBITDA for the half-year improved 100% to GBP 15.9 million ($19.7 million). (IHS Markit Connect – subscription)
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COMPANY NEWS RELEASES
- Clayton, Dubilier & Rice, LLC and TPG (together, the “Sponsors”) announced they have submitted a letter setting forth a non-binding proposal to acquire all of the outstanding shares of Common Stock of Covetrus that are not owned by the Sponsors or their affiliates for cash consideration of $21.00 per share of common stock. The Sponsors already own roughly 33.7 million shares of Covetrus common stock. The offer does not create any legal obligations and no such obligations will arise unless and until definitive transaction documentation with the Issuer has been executed and delivered. (streetinsider,SeekingAlpha)
- Neogen announced the launch of InfiniSEEK, a whole genome and genotyping sequencing platform for cattle breeders. Neogen built the InfiniSEEK technology in collaboration with Gencove, a whole genome sequencing and analysis software company. (IHS Markit Connect – subscription)
- PetMed Express, Inc. and Vetster announced a collaboration wherein PetMeds will become the exclusive e-commerce provider of pet medications for Vetster, and Vetster becomes the exclusive provider of telehealth and telemedicine services to PetMeds’ customers. (DVM360)
- Zomedica announced that it has purchased a $1.0 million convertible note from Structured Monitoring Products, Inc. (SMP), makers of the VetGuardian wireless remote pet monitoring platform, and in connection therewith has acquired the option to act as a sales agent for SMP’s platform. Under the terms of the agreement, Zomedica will also have the option to acquire the VetGuardian product line for use in Animal Health. (digitaljournal.com)
- Whistle announced the launch of Whistle Health, an AI-enabled, data-driven smart device for dogs aimed at preventive care. Whistle Health tracks health behaviors; when paired with the Whistle app, the Whistle Health device can detect issues and alert pet parents of potential problems, and automatically connects them to a veterinarian through Whistle’s Ask a Vet feature. (valdostadailytimes)
- HerdWhistle Technologies announced the release of v2.0 of its proprietary cattle monitoring system, HerdWhistle Feedlot, providing individual animal monitoring on large scale (1,000 – 1,000,000 head). According to the company, the System has the longest UHF RFID sensor in the world. (Investingnews.com)
- Glanbia Nutritionals announced it has acquired Sterling Technology, a manufacturer of dairy bioactive solutions derived from bovine colostrum, for $60 million plus deferred consideration. Glanbia Nutritionals also recently acquired PacMoore Processing Technologies, which specializes in extrusion, spray-drying and blending, as well as its R&D facility, for $53 million. (Feedstuffs – subscription)
- PharmAust announced a collaboration with Pathway Vet Alliance and Heart of Texas (HoT) Veterinary Specialty Center to conduct trials for PharmAust’s monepantel as a treatment for canine B cell lymphoma. (IHS Markit Connect – subscription)
- Mella Pet Care announced that its Mella Smart Thermometer – a pet underarm thermometer – has been approved by Fear Free for the Preferred Product Program. (company press release)
- Blue Ocean Barns announced it has been awarded a commercial license by the California Department of Food and Agriculture (CDFA) for Brominata, a sustainability focused cattle feed supplement made from red seaweed that the firm claims has been proven in trials to reduce enteric methane emissions by more than 80%. (IHS Markit Connect – subscription)
- Alfa Chemistry, a supplier of analytical reagents, announced that it has started to offer forensic and veterinary chromatography drug & metabolite standards that could be used for forensic and veterinary research. (thomasnet.com)
- Malaysia’s Petronas Chemicals Group announced it has acquired Swedish business Perstorp Group from private equity firm Financière Forêt at an enterprise value of RM10.5 billion ($2.4 billion). Perstorp’s animal nutrition business sells a portfolio of products for food animals. The Perstorp group recorded annual revenues of SEK13.5 billion ($1.36 billion) in 2021; the animal nutrition business accounts for around 10% of yearly sales. (IHS Markit Connect – subscription)
- Lemna, an emerging environmental technology company for the agricultural industry, announced a non-binding Memorandum of Understanding (MOU) with five leading dairy operations in California to initiate a pilot project to help remediate animal wastewater using Lemna’s proprietary phytoremediation process. Lemna uses the controlled environment agricultural growth of lemnaceae (duckweed) as a key part of its proprietary process for the treatment of farm-generated wastewater. (Feedstuffs – subscription)
- Penn Foster announced the launch of the Veterinary Team Telehealth Career Certificate program, a new certification program designed to help veterinary assistants build telehealth skills. The curriculum – promoted as the first-ever accredited training program specifically tailored for remote pet care – is targeted for current veterinary technicians, assistants, and administrators. (PRNewswire)
- CANADA Ceva Sante Animale announced it has acquired the Canadian company Artemis Technologies, Inc. Artemis manufacturer Onrab, a rabies glycoprotein recombinant oral vaccine licensed for use in striped skunks in Canada. The product has also had positive field trial use in the USA in wild raccoons and skunks. Financial terms were not disclosed. (company press release)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – VETERINARY RESOURCES The AVMA is offering four new printable resources for its members to quickly reference antibiotic prescription recommendations and communicate with clients about when antibiotics may or may not be needed. The resources include client handouts for dog and cat owners, as well as back-office resource sheets for veterinarians, also specific to cats and dogs. (Vet Advantage – subscription)
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BRAKKE CONSULTING VIEWPOINT
Earnings season for 1Q22 is now behind us with the top animal health companies reporting continued strong sales growth. Excluding the impact of exchange, the scorecard for some in the largest companies for the first quarter is as follows: Zoetis (+9%), Merck Animal Health (+9%), IDEXX (+8%), Heska (+7%), Covetrus (+6%), MWI (+4%), and Elanco (+2%). The strong growth was largely driven by the companion animal segment.
As we move further into 2022, there are signs that growth rates may be moderating. Recent reports indicate clinic visits may be flat to slightly negative in 1Q22. This is not surprising as the industry saw a surge coming out of the pandemic in 2021. The overall economic condition of the country is another area of concern with inflation surging. Some data suggests that the US economy is likely heading toward a recession. The last time we faced a recession in 2008-2010, vet visits declined by 2-3% annually as consumers juggled pet healthcare with other household spending.
The rest of 2022 will be a delicate balancing act for the industry with rising input costs and wage pressures relative to decisions to increase end-user prices to maintain profitability. We know that the veterinary industry is not recession proof, but it is rather recession resistant – people still eat and still take care of their pets.
Randy Freides
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YOUR VIEW
Last week we asked what percentage of companion animal practices you thought offered home delivery to their clients. 36% said “20% or less”; 26% said “21-40%”; 24% said “41-60%” and 14% said more than 60%. In truth, our Veterinary Home Delivery report – a survey of 1,400 veterinarians – found that nearly two-thirds offered an online store/home delivery. Want to find out more? You’ll have to purchase our new report.
This week
This week, given all the financial news and first quarter earnings reports, let gauge how you feel about the economy heading into a recession. (The (unofficial) definition of a recession is two consecutive quarters of negative GDP growth.)
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