Animal Health News & Notes for November 20, 2020

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Brakke Consulting’s
Animal Health News & Notes for November 20, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Earnings News
ImmuCell
JBS
Krka
Spectrum Brands
Tyson Foods

Other News
Argenta
Berwind
BluePearl
Clearlake Capital Group
EQT
Health & Happiness Group
IVC Evidensia
KKR
Nestle
PetHospice
Phillips Pet Food & Supplies
PromoVet
QBiotics Group
Solid Gold Pet
Tomlinson Group
Vetster
Virbac
WellPet
Zomedica

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COMPANY EARNINGS RELEASES

• Krka reported results for the first nine months of 2020. Revenues were EUR 55.8 million ($66 million), an increase of 9% year-on-year. (IHS Markit Connect)
• Spectrum Brands Holdings, Inc. reported results from continuing operations for the full year of fiscal 2020 ended September 30, 2020. Net sales for the Global Pet Group were $963 million, an increase of 11% year-over-year. (company website)
• JBS reported financial results for the third quarter of 2020. Net income was 3.133 billion reals ($581 million), a 778% increase from the third quarter of 2019. Revenues were 70.1 billion reals ($12.9 billion). JBS USA Beef posted third-quarter net revenue of 28.8 billion reals $5.3 billion), a 28.7% year-over-year increase. JBS USA Pork recorded net revenue of 7.7 billion reals ($1.4 billion), a 28.0% year-over-year increase. Pilgrim’s Pride Corp. posted net revenue of 16.5 billion reals ($3.1 billion), 50% growth versus the third quarter of 2019. (Feedstuffs)
• Tyson Foods reported results for the 12 months ended in 2020. The company reported $43.185 billion in sales, compared with $42.405 billion in the prior fiscal year. Beef Sales volume decreased 4.5% (-6.5% after removing the impact of an additional week) for fiscal 2020; pork increased 1.8% ( decreased slightly after removing the impact of an additional week); and chicken increased slightly (decreased 1.7% after removing the impact of an additional week). (Feedstuffs)
• ImmuCell Corporation announced unaudited financial results for the quarter ended September 30, 2020. Total product sales were $3.7 million, an increase of 25% over the prior-year quarter. Net loss was $(323,000) in comparison to net loss of $(503,000) during the quarter ended September 30, 2019. (company press release)

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COMPANY NEWS RELEASES

• The FDA announced it has approved QBiotics Group ‘s Stelfonta (tigilanol tiglate injection) to treat dogs with non-metastatic, cutaneous mast cell tumors (MCTs); as well as non-metastatic subcutaneous MCTs in particular areas of a dog’s leg. Stelfonta is injected directly into the MCT and works by activating a protein that spreads throughout the treated tumor, which disintegrates tumor cells. The product will be marketed and distributed by Virbac. (FDA, IHS Markit Connect)
• Zomedica announced that it expects to begin commercialization of its TRUFORMA point-of-care diagnostic platform on March 30, 2021. Zomedica has five initial assays under development, comprising two panels – one each to detect thyroid and adrenal disease. (Biospace.com)
• KKR & Co Inc announced it will buy a majority stake in New Zealand-based Argenta Limited from Tomlinson Group. Tomlinson will become a significant minority shareholder. KKR also owns US-based PetVet Care Centers. Financial terms were not disclosed. (Reuters)
• Phillips Pet Food & Supplies announced it has completed a comprehensive refinancing, including more than $20 million of new investment capital from a group of existing investors. Phillips also established an expanded revolving credit facility led by Wells Fargo Bank. (Globalpets)
• Health & Happiness Group International Holdings announced it has acquired Solid Gold Pet for $163 million. Solid Gold reported $55 million in sales from the US and its international markets in September alone, with a year-over-year growth rate of 39%. Solid Gold is H&H Group’s first venture into the global pet food space. (GlobalPets)
• Clearlake Capital Group, L.P., together with certain of its affiliates, announced a definitive agreement to acquire The Wellness Pet Food Holdings Company, Inc. (doing business as WellPet) from affiliates of Berwind Corporation. Financial terms were not disclosed. (Pet Product News)
• BluePearl Specialty and Emergency Pet Hospital announced it has acquired PetHospice, a California-based end-of-life services company focused on telehealth and education as well as in-home care for pets, their owners, and veterinarians. The company name will transition to BluePearl Pet Hospice. Financial terms were not disclosed. (finance.Yahoo.com)
• PromoVet announced it has partnered with ADP to provide payroll and human resources management services to its customers. (company press release)
• Vetster announced its official launch as a pet wellness platform virtually connecting pet owners in the US and Canada to a marketplace of licensed veterinary professionals for video, chat and voice enabled appointments. (PRNewswire)
• UK IVC Evidensia, Europe’s largest veterinary group, has appointed Goldman Sachs and Jefferies to work on a dual-track process, which could include an IPO or a sale of the company. IVC Evidensia’s current investors include private equity group EQT and Nestlé. The company employs 19,000 staff across 11 countries and has annual revenues above GBP 1 billion. (ft.com)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• US – BOVINE TB Michigan announced the discovery of a beef herd testing positive for bovine tuberculosis (TB) in Alpena County, Michigan. The herd is Michigan’s third TB-infected cattle herd to be identified in Michigan’s Modified Accredited Zone in the previous 12 months. (Feedstuffs)
• EU – ASF Germany, Poland and the Czech Republic have established a new taskforce to fight the cross-border spread of African swine fever (ASF). Germany, which led the development of the new taskforce, hopes it will result in more effective actions to contain existing ASF outbreaks and prevent the disease from spreading further. (IHS Markit Connect)
• US – MUMS GRANTS The FDA announced the Fall 2020 open period for applications for grants to support the development and approval or conditional approval of new animal drugs intended to treat uncommon diseases (minor uses) in major species or to treat minor species (MUMS). The individual award amount has been increased to a single funding level up to $250,000. Only animal drug sponsors with Designated MUMS animal drugs or their research partners are eligible to apply. For more information, click here  (FDA)
• US – FELINE GENOME The University of Missouri and Texas A&M University announced a new and improved cat genome to help develop new tests and treatments. The study, funded in part by Purina, was recently published in PLOS Genetics. A brief summary is below and the full article can be accessed here. (university press release)
• US – CANINE RESEARCH A new study by researchers at UC Davis found that mixed-breed dogs weighing more than 44 pounds as adults were more likely to develop one or more joint disorders if neutered before the age of one.  The researchers analyzed records from thousands of dogs at the University’s Veterinary Medical Teaching Hospital.  The research was published in Frontiers in Veterinary Science. (Veterinary Practice News)
• US – SARS-COV-2 RESEARCH Two recently published studies from Kansas State University researchers and collaborators have led to two important findings related to the COVID-19 pandemic: Cats can be asymptomatic carriers of SARS-CoV-2, but pigs are unlikely to be significant carriers of the virus. SARS-CoV-2 is the coronavirus responsible for COVID-19. They found that cats may not have obvious clinical signs of SARS-CoV-2, but they still shed the virus through their nasal, oral and rectal cavities and can spread it efficiently to other cats within two days; further research is needed to study whether cats can spread the virus to other animals and people. The studies were published in the journal Emerging Microbes & Infections.(Feedstuffs)

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BRAKKE CONSULTING VIEWPOINT

We are about halfway through the last quarter of 2020 – and the end of the year can’t come fast enough for some of us.  I am sure that nearly everyone that makes sales calls on veterinary clinics is ready to get back to the way they used to call on clinics as fast as possible.  But what if the COVID-19 pandemic has permanently changed the way veterinarians want to be called on?

Every other year since 2002, Brakke Consulting surveys veterinarians and summarizes their opinions of the biggest animal health companies and their sales forces – we call it the Sales Force Effectiveness Study.  This upcoming study will ask veterinarians specifically about how they view the support received during the pandemic-induced lockdowns from the companies and their sales representatives.  We will ask how veterinarians want to be called on in the future.  Has the pandemic changed how sales calls will take place in the future?  Are clinics happy with Zoom meetings?

We may have our own hunches on what changes in sales calls will last and what will not, but we will collect data to help us learn if our hunches are right or wrong.  Answers to these questions can’t come fast enough – 2021 is not far away.

Bob Jones

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YOUR VIEW

Last week, we ask you about your Thanksgiving plans and how they will change from last year.  About 17% of respondents said they spent Thanksgiving at home with their immediate family only last year, but this year that number triples to 60%.  Likewise, 42% said they spent last Thanksgiving with extended family and friends, but only 9% will similarly spend this Thanksgiving.  Interestingly, 28% said they would spend Thanksgiving with extended family this year, compared to 29% last year – not much change.  Looks like the friends are not getting invited over this year.

This week let’s stay on the Thanksgiving theme and this time focus on something really important: the turkey.

The best tasting turkey is…?