The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for May 5, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA


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Dierenartsen Groep Nederland
Elanco (Varenzin-CA1)
Elanco (Canine Parvovirus Monoclonal Antibody)
GS Partners
J.M. Smucker
Post Holdings

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  • Zoetis reported its financial results for the first quarter of 2023. Revenue was $2.0 billion, an increase of 1% compared with the first quarter of 2022. On an operational basis, revenue increased 4%, excluding the impact of foreign currency. Net income for the first quarter of 2023 was $552 million, a decrease of 7% on a reported basis. US revenue was $1.0 billion, a decline of 1%. (company press release)
  • IDEXX Laboratories, Inc. announced results for the first quarter of 2023. Revenues was $900 million, an increase of 8% (+10% organic growth). Net income was $214 million, an increase of 10%. Companion Animal Group revenue was $827 million, an increase of 9%. (company press release)
  • Colgate-Palmolive Company reported results for first quarter 2023. Net sales for Hill’s Pet Nutrition were $1.06 billion, an increase of 22% (+14% organic sales increase). Segment operating profit was $183 million, a decline of 10%. (company press release)
  • Phibro Animal Health Corporation announced financial results for its third quarter ended March 31, 2023. Animal Health net sales were $164 million, an increase of 11%. Animal Health adjusted EBITDA was $34.2 million, an increase of 17%. (company press release)
  • Central Garden & Pet Company announced its second quarter fiscal 2023 financial results for the period ended March 25, 2023. Net sales for the Pet segment were $475 million, a decline of 5%. Pet segment operating income was $55 million compared to $61 million a year ago. (company press release)


  • The FDA announced it has granted conditional approval for Elanco Animal Health’s Varenzin-CA1 (molidustat oral suspension) for treating nonregenerative anemia associated with chronic kidney disease in cats. This marks the first time a drug has been approved under the FDA’s expanded conditional approval pathway, which allows for one year of marketing with the potential for four additional annual renewals. (FDA)
  • Elanco Animal Health announced the USDA has provided a conditional license for the first Canine Parvovirus Monoclonal Antibody, the first and only approved therapeutic solution proven to treat canine parvovirus. The Canine Parvovirus Monoclonal Antibody is expected to begin shipping in the coming weeks, pending individual state approvals. (company press release)
  • The M. Smucker Co. has closed its transaction to sell several pet food brands, including the Rachael Ray Nutrish, 9Lives, Kibbles ‘n Bits, Nature’s Recipe and Gravy Train brands as well as the company’s private label pet food business to Post Holdings, Inc. The transaction value is approximately $1.2 billion, consisting of $700 million in cash, subject to a working capital adjustment, and approximately 5.39 million shares of common stock of Post Holdings, Inc. (Pet Product News)
  • Chewy announced it is planning an international expansion in 2023, and the company is actively building the capabilities and team to launch its first international market over the next few quarters. (Pet Product News)
  • DSM announced plans to build a next-generation nutritional premix plant in Kansas. The new location will supply the pet food industry with high-quality nutritional premixes for use in branded pet food products worldwide. The facility is expected to break ground in July 2023 and be fully operational by early 2025. (PRweb)
  • The American Veterinary Medical Association (AVMA) has joined MentorVet to launch MentorVet Connect, a structured mentorship program that connects early-career veterinarians with trained mentors. The MentorVet Connect program is designed to complement in-clinic mentorship when available, offering broader connections that span geographic and practice boundaries. (association press release)
  • Innovad announced it will acquire all the shares of Herbonis, a Swiss-based company, and its affiliates, including Wyreside in the UK. Financial terms were not disclosed. (Feed Strategy)
  • AUSTRALIA Merck Animal Health announced that the Australian Pesticides and Veterinary Medicines Authority (APVMA) has approved a novel injectable formulation of Bravecto (fluralaner) for use in dogs for the treatment and prevention of flea infestations for 12 months, control of paralysis tick (Ixodes holocyclus) for 12 months, control of brown dog tick (Rhipicephalus sanguineus) for 11 months and control of flea allergy dermatitis (FAD). (company press release)
  • EU Virbac announced it has acquired 100% of the shares of GS Partners, its distributor in the Czech Republic and Slovakia.  Financial terms were not disclosed. (Marketscreener)
  • NETHERLANDS UK-based VetPartners announced it has acquired Dutch veterinary group Dierenartsen Groep Nederland (DGN). DGN has 26 clinics in 33 sites across the Netherlands. Financial terms were not disclosed. (com)



  • US – PET INSURANCE The North American Pet Health Insurance Association (NAPHIA) released its 2023 State of the Industry Report. The report showed a record $3.51 billion in total premiums for 2022, a 23.5% increase 2021; and over 5.36 million total pets insured across North America, a 21.7% increase. (association press release)
  • US – PET INSURANCE Mississippi has adopted a new law regulating the sale of pet insurance. The new legislation will oblige insurance companies to include various levels of details in the policies regarding coverage, exclusions, deductibles, and payment limits when it comes into effect on 1 July 2023. All insurers will also be required to disclose exclusion information about preexisting conditions, hereditary disorders, congenital anomalies, or any chronic diseases. In January, Maine adopted the Pet Insurance Act, introducing requirements for pet insurance companies and agents.  (GlobalPets)
  • NETHERLANDS – LIVESTOCK MANAGEMENT The European Commission has approved, under EU State aid rules, two Dutch programs with a total budget of around EUR 1.47 billion  ($1.61 billion) to buy out livestock producers in order to reduce nitrogen deposition on nature conservation areas. The program will be open to small and medium-sized livestock farmers in the Netherlands that voluntary close breeding sites, provided that their current nitrogen deposition load exceed certain minimum levels.  (Feedstuffs – subscription)

Recently, I read an article about consumers returning to historical purchasing patterns as it relates to food that struck a chord with me.  We are slowly exiting a high inflation period but food inflation remains stubbornly high (about 8.5%).  Many consumers continue to make difficult economic and purchasing decisions to stretch their food dollars.  This includes trading down from premium food items to less expensive cuts of meat and cheaper store brands.

I started to think about these choices and the linkage to Maslow’s hierarchy of needs.  The first two slices of the pyramid are “Physiological Needs” which relate to basic survival and “Safety and Security” which is where financial uncertainty comes into play and where our ability to fulfill our basic needs are challenged, leading to frugal behaviors.  The article goes on to say that the need to trade down and the constant search for the lowest prices on weekly items has resulted in a new term for me, “frugal fatigue”.

With economic pressures starting to ease, consumers are beginning to make more discretionary purchases, starting to focus on themselves and their emotional needs.  This is the climbing of Maslow’s pyramid up two steps to “Esteem” where people are seeking respect, self-esteem and status.  As a result, consumers should go back to more normal spending habits, purchasing products with more premium attributes.  Hopefully, food producers and ranchers will benefit from future trading up.  The question will be, can supply match changing consumer dynamics?

 Randy Freides

Last week, we asked about your expectations for growth in animal health in 2023.  Half of you (52%) thought growth would be in the 0-4% range, and another 30% thought it would be 5-6%. 12% thought it would be more than that, and 6% feel we will see negative growth this year.

This week
For this week’s polling question, tied into this week’s viewpoint, let’s focus on our four-legged family members.  Given the inflationary environment, have your pet food purchasing behaviors changed?

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