The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for November 2, 2018
Copyright © Brakke Consulting, Inc.

Editor: Lynn Fondon DVM MBA

Brakke Consulting news
Market research
US Flea Control & Heartworm Markets report

earnings news
Alivira Animal Health
Aratana Therapeutics
Hester Biosciences
Orion Animal Health

other news
Advanced Animal Diagnostics
Anatara Lifesciences
Assisi Animal Health
Boehringer Ingelheim Vetmedica
In Ovo
Liiv Organics
Monarch Pet Products
No More Fleas Please
Pet Food Experts
Phyto Animal Health
Royal De Heus
Universal Agri Bisnisindo
Zoetis – AAD
Zoetis – Anatara


Are you on top of the trends in the largest market segment in companion animal health? Brakke Consulting will soon be publishing our 2018 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, and sales for the leading veterinary flea, tick and heartworm products
– an overview of the veterinary and OTC flea control markets
– discussion of new flea and tick products
– 2018 survey of 300 veterinarians
– 2018 survey of 500 pet owners

The report on the US Flea Control & Heartworm Markets will be available for a purchase price of $7,250 if ordered by WEDNESDAY, NOVEMBER 21, and $7,750 after that date.

Please contact Dr. Lynn Fondon at (972) 243-4033 or to pre-order the report, or for more information visit our website.


• Zoetis reported its financial results for the third quarter of 2018. The company reported revenue of $1.48 billion, an increase of 10% compared with the third quarter of 2017 (+12%,excluding the impact of foreign currency). Revenue in the US segment was $757 million, an increase of 11%; revenue in the International segment was $709 million, an increase of 8% on a reported basis. Net income was $347 million, an increase of 16% on a reported basis. (company press release)

• IDEXX Laboratories, Inc. reported results for the third quarter of 2018. Revenues were $545 million, an increase of 11% compared to the prior year period. Net income was $93 million compared to net income of $71 million in the third quarter of 2017. Companion Animal Group revenue was $478 million, an increase of 12%. (company press release)

• Nippon Zenyaku Kogyo (Zenoaq) announced financial results for the first half of its fiscal 2018. The company reported first-half sales of JPY 15,711 million ($140 million), a 2% increase in revenues. (Animal Pharm)

• Aratana Therapeutics, Inc. announced its third quarter 2018 financial results. Total net revenues were $21.6 million compared to revenues of $6.2 million in the third quarter of 2017. Net income was $8.8 million compared to a net loss of $(8.9) million in the comparable prior-year quarter. The net revenues for the quarter included a $15.0 million commercial milestone, which resulted in profitability for the quarter. (company press release)

• Orion Animal Health reported results for the third quarter of 2018. Revenues were EUR 19.2 million ($21.9 million), an increase of 30% compared to the third quarter of 2017. (Animal Pharm)

• Alivira Animal Health reported results for the second quarter of fiscal 2019. Revenues were $35.9 million, an increase of 27% compared to the comparable prior-year quarter. Operating profit was $4.6 million, an increase of 68% over the prior-year quarter. (company press release)

• Hester Biosciences reported results for the second quarter of fiscal 2019. Sales were INR 425 million ($5.8 million), an 11% increase compared to the comparable prior-year quarter. The company’s net profit was INR 99.3 million ($1.4 million), an increase of 12% year-on-year. (Animal Pharm)


• Boehringer Ingelheim Vetmedica announced the launch of Lockout, a new teat sealant for dairy mastitis prevention. Lockout is a non-antibiotic paste that creates an immediate physical barrier against causative bacteria of mastitis during dry-off or in pre-fresh dairy heifers. (Animal Pharm)

• Advanced Animal Diagnostics (AAD) announced that it has entered into a license and commercialization agreement with Zoetis to bring AAD’s QScout MLD (milk leukocyte differential) mastitis detection technology to dairy producers and veterinarians outside of the US. The agreement builds off a successful pilot program that was launched between the two companies in 2016; Zoetis introduced the QScout MLD technology in key European markets. (PRNewswire)

• Tropichem announced the unification of its businesses under the new company name Vetio, effective immediately. The new name was chose to better reflect the company’s exclusive focus as a Contract Development and Manufacturing Organization for animal health. (company press release)

• Pet Food Experts, Inc., announced it has acquired the operating assets of Monarch Pet Products. Monarch Pet Products’ distribution business has been servicing independent pet retailers in the Mountain Region since 2009. Financial terms were not disclosed. (Pet Business)

• The FDA issued a warning letter to No More Fleas Please stating that products sold under the Queen City Animals brand name are unapproved new animal drugs that violate the Federal Food Drug & Cosmetic Act. The drugs cited included Praziquantel Tapeworm Dewormer Capsules, Liquid Vanilla Flavored Wormer (pyrantel pamoate), Lufenuron, and Nitenpyram Flea Killing Capsules. (FDA)

• Phyto Animal Health announced it has signed an exclusive distribution agreement with Liiv Organics to sell its cannabidiol (CBD) products in the US. Under the terms of the deal, Liiv will no longer sell any other brand of CBD pet products, besides Phyto’s products and its own Pet Calming Blend line. (Animal Pharm)

• Nutreco announced it has established Nutreco NuFrontiers investment division. Nutreco NuFrontiers focuses on leveraging new technologies, ingredients or formulations that can benefit Nutreco’s two divisions – Trouw Nutrition (animal nutrition) and Skretting (aquaculture feed). (Animal Pharm)

• Assisi Animal Health, in collaboration with Sleepypod, introduced the Assisi Loop Lounge, a therapeutic pet bed powered by the Assisi Loop’s targeted pulsed electromagnetic field (tPEMFTM) technology. (PRNewswire)

• Trupanion announced enrollment of its 500,000th pet. The milestone represents a jump of 18% in less than 11 months. (Todays Veterinary Business)

• AUSTRALIA Anatara Lifesciences announced it has received approval from the Australian Pesticides and Veterinary Medicines Authority (APVMA) for the use of Detach, an antibiotic alternative designed to aid in the control of scours in weaned piglets from three weeks of age and to help increase survivability of scouring pre-weaning piglets. Anatara has an exclusive worldwide agreement with Zoetis for Detach. (Animal Pharm)

• INDONESIA Royal De Heus announced the acquisition of Universal Agri Bisnisindo, a private animal feed company in Indonesia. Universal has a total annual sales volume of 300,000 tons of poultry, fish and shrimp feed. Financial terms were not disclosed. (Animal Pharm)

• NETHERLANDS Evonik announced that it has invested in the biotechnology start-up In Ovo through its venture capital unit and now holds a minority stake in the company. In Ovo has developed a method for determining the sex in poultry eggs that is particularly fast and reliable and can be readily integrated into the workflow of large hatcheries. The first commercial product is expected to be launched on the market in 2020. (Feedstuffs)

• EU The European Medicines Agency’s Committee for Medicinal Products for Veterinary Use (CVMP) has adopted a negative opinion for the approval of HorStem, a stem cell-based suspension for injection developed by Spanish firm EquiCord-Ymas for treatment of lameness in horses. The grounds for the negative opinion are related to issues with quality and efficacy. (Animal Pharm)


• US – BOVINE TB The Wisconsin Department of Agriculture, Trade & Consumer Protection confirmed that a dairy herd in Dane County, Wisconsin, has tested positive for bovine tuberculosis (TB) after meat inspectors identified a carcass during a routine slaughter inspection. The originating herd has been quarantined. Wisconsin has been certified as TB-free since 1980, and with a thorough investigation and containment of the outbreak, Wisconsin will maintain its TB-free status with USDA. (Feedstuffs)

• US – BIOTECHNOLOGY INNOVATION The FDA announced the Plant and Animal Biotechnology Innovation Action Plan to outline the key priorities the agency will pursue to support innovation in plant and animal biotechnology while advancing the agency’s public health mission. To read about the Action Plan, go to . (FDA)

• US – CAT FEEDING GUIDELINES The American Association of Feline Practitioners announced the publication of Consensus Statement, Feline Feeding Programs: Addressing Behavioral Needs to Improve Feline Health and Wellbeing, in the Journal of Feline Medicine and Surgery (JFMS). The Consensus Statement can be read at . (association press release)


Depend on Brakke Consulting to meet your company’s market research needs, whether it is:

• Assessing the feasibility of a new product or technology
• Identifying the opinions and trends of veterinarians, pet owners or producers
• Determining the current market for products

With our in-house database of veterinarians and the ability to custom-tailor surveys of a wide variety of target audiences, we provide reliable insights into this unique industry. We also produce multi-client reports in a number of high-interest animal health market areas. For more information, see our website or call our Dallas office at 972-243-4033.


Based on the third-quarter results of two of the leading animal health companies, it appears that larger might actually be better when it comes to increasing revenues. Three of the largest animal health companies have reported double-digit growth for the year which, in our opinion, is impressive. We often hear that larger companies are not as customer responsive and have challenges increasing revenues on a percentage basis off this larger revenue base. Is it the breadth of the lines each company offers consumers and producers, or is it the critical mass that allows for increased awareness and leveraging of marketing funds? Whatever the answer is, it appears to be working quite successfully in 2018.

We’ve also heard that some of these same companies are creating some challenging growth targets going forward into 2019 and beyond. It is becoming more obvious that critical mass is a key to being able to afford the regulatory costs of new and current products. The registering of new products and technologies is becoming a barrier to entry for smaller and mid-sized firms.

Have a great weekend!

Ron Brakke

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