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Brakke Consulting’s
Animal Health News & Notes for November 11, 2022
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
2022 Flea Control & Heartworm Markets report – last week to pre-order
Earnings News
Cryoport
Elanco
Heska
Hester Biosciences
Intervacc
Novozymes
PetIQ
PetMed Express
Phibro
SeQuent Scientific
Trupanion
Zenoaq
Other News
Animal Care Technologies
Biotangents
Coa
Encompass Pet Group
Fuzzu
Fuzzy
IntelGenx
JetBlue
Multipet
Nanomix
Patterson
Pet Desk
PetExpert
Relief Services for Veterinary Practitioners
Royal Blue s.r.o
SeQuent Scientific
Sona Nanotech
Tineta
Trupanion
Veterinary Growth Partners
Vetigenics
WildPaw
Woodley Equipment Company
Zoetis
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BRAKKE CONSULTING
2022 US FLEA CONTROL AND HEARTWORM MARKETS REPORT
EARLY-BIRD DISCOUNT ENDS NOV. 18
Are you on top of the trends in the largest market segment in companion animal health? Brakke Consulting will soon be publishing our 2022 report on the US Flea Control and Heartworm Markets.
The report includes valuable information on the US market for small animal parasiticides including:
– Product descriptions, prices (veterinarian cost and online pricing), and sales for the leading veterinary flea, tick and heartworm products
– an overview of the veterinary and OTC flea control markets
– discussion of new product launches
– 2022 survey of 340 veterinarians
– 2022 survey of 500 pet owners
The report on the US Flea Control & Heartworm Markets will be available for a purchase price of $7,495 if ordered by FRIDAY, NOVEMBER 18, and $7,995 after that date.
Please contact Dr. Lynn Fondon at 336-396-3916 or lfondon@brakkeconsulting.com to pre-order the report, or for more information visit our website. .
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EARNINGS NEWS RELEASES
- Elanco Animal Health Incorporated reported financial results for the third quarter of 2022. Revenue was $1,028 million, a decrease of 9% on a reported basis compared with the third quarter of 2021 (decline of 4% currency adjusted). Net loss was $(49) million compared with a net loss of $(104) million for the same period in 2021. (company press release)
- Phibro Animal Health Corporation announced financial results for its first quarter ended September 30, 2022. Animal Health net sales were $155 million, an increase of 10%. Animal Health adjusted EBITDA was $27.0 million, a decline of 2%. (company press release)
- Zenyaku Kogyo (Zenoaq) reported results for the first half of its fiscal 2022 ended September 30. Sales of animal health products were JPY 17,962 million ($122 million), an increase of 2% to compared to the same period of the previous fiscal year. (IHS Markit Connect – subscription)
- Heska Corporation reported financial results for the third quarter of 2022. Consolidated Revenue was $61.5 million, an increase of 2% year-over-year. Net loss was $(0.1) million compared to a net loss of $(1.6) million in the prior-year quarter. North America revenue was $40.3 million, an increase of 7%. (Seekingalpha)
- PetIQ, Inc. reported financial results for the third quarter of 2022. Net sales were $210 million, a decrease of 0.4% compared to the prior year period. For comparative purposes, net sales increased 1.3%, excluding $3.5 million of sales in the prior year period related to the previously disclosed loss of distribution rights in the prior year period. Product segment net sales were $176 million, a decrease of 3%; Services segment net revenues were $33.5 million, an increase of 16%. Net loss was $(49.6) million including a $47.3 million non-cash goodwill impairment charge, compared to a net loss of $(8.3) million in the prior-year quarter. (company press release)
- PetMed Express, Inc. announced its financial results for its second quarter ended September 30, 2022. Net sales were $65.4 million, a decrease of 3% compared to the second quarter of the prior year. Net income was $2.6 million, compared to net income of $6.3 million for the prior year quarter. (seekingalpha)
- SeQuent Scientific reported results for its fiscal second quarter of 2023 ended September 2022. Turnover INR3.4 billion ($41.4 million), a 4% year-on-year decline (+3% growth on a constant currency basis). (IHS Markit Connect – subscription)
- Hester Biosciences reported results for the second quarter of its fiscal 2023. Total product sales were INR720 million ($8.8 million), an increase of 27% year-on-year. (IHS Markit Connect – subscription)
- Intervacc reported results for the first 9 months of 2022. Sales were SEK5.8 million ($530,390), an increase of 39%. Net loss was SEK(14.6) million for the nine-month period, compared with an SEK(8.3) million loss last year. (IHS Markit Connect – subscription)
- Trupanion, Inc. announced financial results for the third quarter of 2022. Total revenue was $233.8 million, an increase of 29% compared to the third quarter of 2021. Total enrolled pets (including pets from our other business segment) was 1,439,605 at September 30, 2022, an increase of 30%. Net loss was $(12.9) million compared to net loss of $(6.8) million in the third quarter of 2021. (company press release)
- Cryoport, announced financial results for the third quarter of 2022. Animal Health revenue was $9.6 million, a year-over-year increase of 17%. (PRNewswire)
- Novozymes reported results for the third quarter of 2022. The agriculture, animal health and nutrition unit recorded turnover of DKK444 million ($58.1 million), a 7% decline in sales on an organic basis. (IHS Markit Connect – subscription)
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COMPANY NEWS RELEASES
- Zoetis announced it has received approval for Librela (bedinvetmab) in Japan and Australia for the alleviation of pain associated with osteoarthritis in dogs. Zoetis also gained authorization for Solensia (frunevetmab) injectable monoclonal antibody for pain associated with osteoarthritis in cats in Japan and Chile. (IHS Markit Connect – subscription)
- Patterson Companies, Inc. announced that it has, through a subsidiary, signed an agreement to acquire substantially all of the assets of Relief Services for Veterinary Practitioners and Animal Care Technologies (RSVP and ACT), a company that provides innovative solutions to veterinary practices through data extraction and conversion, staffing and video-based training services. Financial terms were not disclosed. (company press release)
- Vetigenics announced a second discovery collaboration with an unspecified major animal health pharmaceutical company for use of the Vetigenics Canibody Platform. The aim is to jointly discover and develop novel therapeutic antibodies to treat chronic diseases of companion animals. (PRnewswire)
- Scottish startup Biotangents announced an agreement with Canada’s Sona Nanotech to evaluate and potentially commercialize Sona’s rapid test for bovine tuberculosis. (IHS Markit Connect – subscription)
- Nanomix Corporation, a developer of mobile, affordable, point-of-care (POC) diagnostics, announced that it has entered into an exclusive distribution agreement with Woodley Equipment Company, Ltd. Under the agreement, Woodley – which supplies equipment for all aspects of laboratory diagnostics with a specialization in emergency and critical care devices – will work with Nanomix to develop species specific ranges for the S1 critical infection panel (including sepsis) and distribute the eLab system in the veterinary market for regions outside of the United States. (Marketscreener)
- PetDesk announced the launch of PetDesk CE University (CE U), a veterinary business learning portal that aims to provide veterinary professionals with exclusive, thought-provoking, on-demand continuing education (CE) courses that will focus on business processes and invigorate their passion for the job. (Streetinsider)
- Encompass Pet Group announced it has acquired WildPaw, a provider of hemp-based supplements and wellness products for dogs. Financial terms were not disclosed. (Pet Business)
- Pet product designer and supplier Multipet announced it has acquired Fuzzu, a maker of silkscreen dog and cat toys created from original drawings. Financial terms were not disclosed. (Pet Business)
- Veterinary Growth Partners (VGP) announced the addition of Coa to their preferred partnerships. Coa is an online gym for mental health, offering online emotional fitness classes and on-demand content, led by therapists. (DVM360)
- Fuzzy digital pet health company and JetBlue announced a new partnership that includes an exclusive membership offer for JetBlue customers who jet with their pets. JetBlue customers who book their flights with a pet will receive an exclusive, pre-flight Fuzzy membership offer valid for one year. (com)
- EUROPE Trupanion, Inc. announced the signing of a definitive agreement to acquire Royal Blue s.r.o, the parent company of PetExpert, a veterinary-centric pet insurance provider with tens of thousands of policies and operations in the Czech Republic and Slovakia. There are an estimated 1,300 veterinary hospitals in the Czech Republic and Slovakia and over 95% of these have connectivity to the PetExpert platform. Financial terms were not disclosed. (company press release)
- INDIA SeQuent Scientific Limited announced it has signed a definitive agreement to acquire 100% stake in Indian company Tineta Pharma Private Limited for an enterprise value of INR 218 Crores ($27 million), which will be paid as cash consideration of INR 153 Crores and preferential allotment of SeQuent’s equity shares of INR 65 Crores. Tineta specializes in India’s livestock segment. (Equitybulls)
- CANADA IntelGenx announced a feasibility study and development deal focused on its VetaFilm oral film formulation for use in companion animals. IntelGenx will provide its undisclosed animal health partner with a cannabidiol-infused VetaFilm product prototype for clinical investigation. (IHS Markit Connect – subscription)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- WORLD – PAIN MANAGEMENT GUIDELINES The World Small Animal Veterinary Association (WSAVA) announced the launch of its updated Global Pain Management Guidelines. The new Guidelines have been published by the Journal of Small Animal Practice (JSAP), the WSAVA’s official scientific journal, and are available for free download from the WSAVA website and from the JSAP website. (association press release)
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BRAKKE CONSULTING VIEWPOINT
There’s an old song from my generation called the ‘Wreck of the Edmund Fitzgerald’, in which the lyrics waxed about the ‘Gales of November’(hurricane force winds) and their effect on ships crossing the Great Lakes which could be quite catastrophic.
It seems we have something like this now as some companies are presenting their results this month for Q3. And like those ships, it can be rough sailing for companies if expectations have not been managed well.
The animal health business has very strong and reliable long term success drivers- but it can be in the short term impacted by the same issues that affect all businesses: supply chain disruptions, workforce issues, and cost increases. Management must recognize these problems and provide clear, effective solutions to keep the business moving forward. And communicate those to our customers and investors, in that order. How is it in your company or practice?
We as an industry also need to see that COVID provided a strong tailwind for the last couple of years that unfortunately may have been used to build future growth targets. As the business appears to be settling back to a more ‘normal’ performance( which is still very good), this now becomes an ‘uncomfortable truth’ for some to explain.
But animal health has a great story to tell, and it reminds me of a famous saying: success is a journey, not an event.
Paul Casady
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YOUR VIEW
Last week, we asked if you would consider investing in a wearable device for your dog. Responses were split about 50:50 between yes and no, but only 11% said you would definitely do so (the rest said only if it is affordably priced).
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