Animal Health News & Notes for November 12, 2021

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Brakke Consulting’s
Animal Health News & Notes for November 12, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting News
2021 Flea Tick & Heartworm Markets report – early order discount ends next Friday!

Earnings News
Cryoport
Elanco
Freshpet
VolitionRx

Other News
ADM Tronics Unlimited
Avego Healthcare Capital
AXIS Insurance
Boehringer Ingelheim
Bond Pet Foods
Boss Pet Products
Centrovet
Ceva
Ellie Diagnostics
Frank Rowe & Son
Freelance Surgical
Hester Biosciences
Hill’s
OrthoPets
PetPlan
SBLP Capital
Thrishool Exim
Vimian Group
Virbac

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Brakke Consulting
2021 US FLEA CONTROL AND HEARTWORM MARKETS REPORT
EARLY-BIRD DISCOUNT ENDS NOV. 19

Are you on top of the trends in the largest market segment in companion animal health?  Brakke Consulting will soon be publishing our 2021 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, including CREDELIO CAT, FRONTLINE SHIELD, and generic imidacloprid/moxidectin products

– 2021 survey of 400 veterinarians
– 2021 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 19, 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.

www.BrakkeConsulting.com

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COMPANY EARNINGS RELEASES

• Elanco Animal Health Incorporated reported financial results for the third quarter of 2021. Revenue was $1,131 million, an increase of 27%. On a pro forma combined company basis, Elanco’s revenue grew approximately 6%. Legacy Elanco revenue in the third quarter was $710 million; products from the legacy Bayer Animal Health business contributed $421 million.  Net loss was $(104) million, compared with a net loss of $(135) million for the same period in 2020. (company press release)
• Freshpet, reported financial results for its third quarter ended September 30, 2021. Net sales were $107.6 million, an increase of 28%. Net loss was $(2.1) million, compared with prior year net income of $3.5 million. (company website)
• VolitionRx Limited announced financial results for the third quarter of 2021. Net loss for the third quarter of 2021 was $(7.2) million versus $(5.6) million the prior quarter, with the increase primarily due to non-cash items. Cash and cash equivalents as of September 30, 2021, totaled approximately $22.9 million compared with $19.4 million as of December 31, 2020. (PRnewswire)
• Cryoport announced results for the third quarter of 2021. Revenues were $56.7 million, up from $11.1 million of revenue during the same period last year. (bizjournals.com)

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COMPANY NEWS RELEASES

• Boehringer Ingelheim Animal Health announced the launch of Bovikalc Dry, an oral mineral supplement that contributes to comfort and well-being for dairy cows. (company press release)
• Ceva announced the launch of QTest for ruminants, a new diagnostic for Q fever (Coxiella burnetii) based on the already established FTA card technology. QTest fixes and inactivates bacteria on collection cards, enabling samples to be safely sent by conventional mail without the need for refrigeration. (IHS Markit Connect)
• Hill’s Pet Nutrition and Bond Pet Foods, announced a partnership to develop an alternative to one of Hill’s most popular meat proteins, made specifically to address the dietary needs of cats and dogs. Bond Pet Foods employs precision fermentation to produce nutritionally complete, nature-identical chicken, beef, fish and other meat proteins for pet food applications. (Yahoo finance)
• OrthoPets announced the launch of UPETS Total Limb Cast, a safe and effective casting solution for veterinarians. The anatomically shaped splints cover the entire range of casting treatments, from full leg cast to paw or toe injuries. (yahoo finance)
• ADM Tronics Unlimited, Inc. announced it has appointed SBLP Capital LLC as ADMT’s exclusive marketing agent for the promotion, marketing, distribution and sale of ADMT’s Vet-Sonotron Veterinary Therapy Device to the equine and small animal markets in the US, Canada, Ireland, England, Mexico, Italy and Saudi Arabia.  The Vet-Sonotron is a non-invasive veterinary electronic therapy device that employs pulsed radio frequency therapy (“PRFT”) for the treatment of musculoskeletal pain and inflammation associated with degenerative conditions and trauma. (Globenewswire)
• Ellie Diagnostics announced an undisclosed investment from Avego Healthcare Capital. Ellie plans to expand its diagnostic services for veterinarians across the US. (Dallasinnovates.com)
• AXIS Insurance announced it will provide underwriting capacity for PetPlan’s insurance policies for dogs and cats in the US and Canada, marking AXIS’ entrance into the companion animal insurance sector. (IHS Markit Connect)
• Boss Pet Products, a subsidiary of Boss Holdings, Inc. (BSHI), announced it has acquired the business assets of Frank Rowe & Son, Inc., a wholesale supplier of high-quality pet grooming supplies and equipment. Financial terms were not disclosed. (Pet Business)
• CHILE Virbac announced it has acquired the remaining 34% interest in Chilean aquaculture health business Centrovet for $43.7 million, making the company fully owned by Virbac. An additional consideration – subject to the fulfillment of certain unspecified conditions – that will be less than 10% of the purchase price will be added if applicable. (IHS Markit Connect)
• TANZANIA Hester Biosciences announced it has entered into a pact to acquire 50% stake in Tanzania-based animal health products distribution firm Thrishool Exim Ltd, for $2.25 million. Thrishool’s product line includes veterinary feed additives, feed raw materials, nutritional supplements, therapeutics and equipment sourced from recognized international producers. (health.economictimes.indiatimes.com)
• UK Vimian Group announced it will acquire Freelance Surgical, which markets surgical products and orthopedic implants to 1,500 veterinary clinics across the UK. Freelance Surgical has annual revenues of around GBP 6 million ($8.2 million); financial terms were not disclosed. (IHS Markit Connect)

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ANIMAL HEALTH STOCK PRICE TRACKER 

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ANIMAL HEALTH NEWS

• US – PRECISION FARMING NCBiotech announced an Animal Health and Nutrition Virtual Forum on “Precision Farming of Livestock – It’s Not Just For Crop Production Anymore.”  The Virtual Forum will review the use of commercially available technologies in cattle production (Wade King Ph.D.) and the application of these technologies in swine (Joshua Peschel Ph.D.).  The Virtual Forum – which will be presented on Tuesday, November 16, 2021 from 4 to 6 p.m. EST – is free, but registration is required.  Click here for details. (organization press release)
• US – LIVESTOCK REPORTING US Senators plan to introduce their new Cattle Price Discovery and Transparency Act in the coming days as Congress works towards reauthorization of the Livestock Mandatory Reporting set to expire Dec. 3, 2021. In brief, this legislation will enhance price discovery and transparency by requiring packers to participate in the cash market on a plant-by-plant basis within each major cattle feeding region; creating a library of formula contracts; and expediting the report of average carcass weights to the public. It also requires a cost benefit analysis after two years to ensure the program is working as intended. (Feedstuffs)
• US – WORKING DOG GUIDELINES The American Animal Hospital Association has released the “2021 AAHA Working, Assistance and Therapy Dog Guidelines,” the first comprehensive consensus report to guide veterinary teams caring for protection dogs with police, military and security forces; odor and scent detection dogs; service dogs for people with diagnosed disabilities or physical limitations; emotional support dogs; and therapy dogs. (Vet Advantage)
• CHINA – LIVESTOCK FEED RESEARCH Researchers at China’s Feed Research Institute of the Chinese Academy of Agricultural Sciences say they’ve figured out how to produce an animal feed protein from carbon monoxide, potentially helping reduce the country’s reliance on high volumes of imported soybeans. The protein produced has been approved by the agriculture ministry for feeding to animals. (Vet Advantage – Reuters)

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BRAKKE CONSULTING VIEWPOINT

We have written about inflation in the Viewpoint a few times the last few months, but the news this week is notable enough to write about it again. The Labor Department published on Wednesday that the US inflation hit a 32 year high in October as consumer prices jumped 6.2% over the prior year and is the fifth straight month over 5%.  Many of our readers may not be old enough to remember what high inflation does to an economy because we haven’t really had high inflation since the 1970s.

We have been trained to accept low single digit inflation, especially in developed countries, which allow for modest price increases and modest wage and salary gains. The impacts of high inflation can be profound. Rapidly rising prices will drive down consumer demand and increases the cost of businesses must pay for materials and inventory. High inflation makes borrowing more expensive and stymies major investments. With global supply chains, a weaker dollar makes international purchases more expensive. Wage increases rarely keep up with inflation – employees suffer more than companies due to inflation.

The first round of budgeting for most animal health companies is over, but we expect that budgets will be overhauled in the next few months, not just fine tuned.  Brace yourself for some “days gone by” price increases next year.

Bob Jones

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YOUR VIEW
Last week we asked about expected growth rates next year – a well timed question given the inflation report this week.  Almost 40% of the respondents thought that their businesses would grow between 6 and 10%.  Almost 25% of respondents thought that growth would be more than 20% – wow.

This Week

This week let’s see what your expectations are for inflation in 2022 (based on the Consumer Price Index). For some perspective, let’s review the past. Since 1970, the highest US inflation rate was 13.6% in 1980 and the lowest was -0.4% in 2009.  The average inflation rate in the 1970s was 7.25%, in the 1980s it was 5.82%, 3% in the 1990s, 2.5% in the 2000s and 1.75% in the 2010s.

Is the inflation we are seeing now just transitory or will it last? Let’s see what you think.