Animal Health News & Notes for November 22, 2023

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Brakke Consulting’s
Animal Health News & Notes for November 22, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting News
Brakke Industry Overview at VMX and WVC

Earnings News
Central Garden & Pet
Krka
Orion
Spectrum Brands

Other News
Bimeda
Chewy
Cold Water Technologies
GlobalVetLink
HHOLOVE
Neogen
Orion
Pawlicy Advisor
Pumpkin Insurance Services
VetriMax
Zoetis

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Brakke Consulting
Announcing the 2024 Brakke Animal Health Industry Overview

Presented at VMX: Monday, January 15^th, 2-4 pm, Hyatt Regency, Orlando Ballroom N
Presented at WVC: Monday, February 19^th, 2-4 pm, Four Seasons Hotel

How did the top animal health companies perform in 2023?  And what critical issues will impact industry performance in 2024?  Answers to these questions and more will be covered at Brakke Consulting’s annual Industry Overview at the VMX and WVC conferences next year.  Key topics and presenters include:

• Industry and top global company performance including a closer look at the performance of public companies in animal health, presented by Bob Jones
• What 2023 looked like in vet practices and with pets ­­– continuing vet practice consolidation, labor shortages and vet response to a new survey, presented by John Volk
• An overview of the post-Covid home delivery channel for pet medications including results from comprehensive veterinarian and pet owner surveys conducted for the new Pet Medicines Home Delivery Study, presented by Rich Hayworth
• With recent advancements in technology-related products in livestock production and pet care, where is the value and what are the risks, presented by Lourens Havenga

Also, again at both events, you will be able to hear directly from a panel of top leaders in the animal health industry.  Moderated by Paul Casady, the topic for the panel will be “Opportunities and Challenges in 2024.” Leaders from the Animal Health Industry will provide insight and guidance on what they see are the biggest challenges – but also the biggest opportunities in 2024.  The panel for VMX and WVC will be announced soon.

This information-packed 2-hour session will be especially valuable for executive leadership, sales and marketing, strategy, and finance managers and for decision makers in the animal health industry. After the WVC presentation, and once all numbers are finalized, you will receive a copy of the presentation by email.

Sign up today using this link. You can also email Amanda McDavid or call at 336-396-3916. Registration cost is $399; there are discounts for multiple attendees from the same company.  We look forward to seeing you there!

www.BrakkeConsulting.com
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EARNINGS NEWS RELEASES

• Krka reported results for the third quarter of 2023. Revenue was EUR 420 million ($459 million), up 9% from 3Q 2022. Net income was EUR 65.3 million ($71.4 million), unchanged from the prior-year quarter. (st)
• Orion Group reported results for the third quarter of 2023. Animal Health net sales were EUR 26.8 million ($29.3 million), a decline of 22%. (company website)
• Central Garden & Pet Company announced results for its fiscal year ended September 30, 2023. Net sales for the Pet segment were $1.9 billion, in line with the prior year. Fiscal 2023 benefited from an additional week compared to the prior year. (company press release)
• Spectrum Brands Holdings, Inc. reported results from continuing operations for the fourth quarter ended September 30, 2023. Net sales for the Global Pet Care segment were $292 million, an increase of 1.6%. Segment adjusted EBITDA was $53.5 million, an increase of 11%. (company website)

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COMPANY NEWS RELEASES

• The FDA announced it has approved Orion ‘s Bonqat (pregabalin oral solution) for the alleviation of acute anxiety and fear associated with transportation and veterinary visits in cats. The drug is administered orally approximately 1.5 hours before the start of the transportation or veterinary visit and can be given on two consecutive days. Bonqat is the first FDA-approved animal drug containing pregabalin; it will be marketed by Zoetis. (FDA, company announcement)
• Neogen Corporation announced it is voluntarily recalling ThyroKare (levothyroxine sodium tablets), 1.0 mg, for dogs due to subpotent assay values. (AVMA)
• VetriMax Veterinary Products LLC announced the launch of Allergy CZN Soft Chews for dogs, a proprietary blend of quercetin, zinc, probiotics and salmon oil for dogs affected by canine allergic dermatitis, formulated as a bacon flavored treat. (company press release)
• Cold Water Technologies, Inc, introduced Happy Scratch, a supplement that helps stop itching caused by dermatitis in cats and dogs. Happy Scratch is a powdered supplement that supports pets’ immune systems, and is made from pork mucosa that naturally contains a large amount of IgA, an anti-inflammatory antibody. (DVM360)
• Chewy has reportedly laid off more than 200 employees, according to TechCrunch. The online retailer laid employees off at multiple locations and in various roles, including HR, data, business intelligence and recruiting. (Pet Product News)
• GlobalVetLink announced that its Compliance Assistant Platform now includes EU Transit Certificates. An EU Transit Certificate is required for any pet traveling through an EU country before arriving at their destination. This new feature of the GVL Pet TravelPass will guide veterinarians through creating an EU Transit Pet TravelPass after completing the Pet TravelPass for the final destination. (Yahoo finance)
• Pawlicy Advisor, an independent pet insurance marketplace, announced that Pumpkin Insurance Services, has joined Pawlicy Advisor’s comprehensive network of pet care solutions. (Yahoo finance)
• HHOLOVE introduced the O Sitter, a companion robot for cats that automatically tracks the pet using a motion detector, adjusting the camera angle as they move throughout the room. It also has 2-way audio, allowing owners to connect with their cats at any time of day while they are away. The O Sitter also includes an interactive laser for cat playtime and an automatic food dispenser. (DVM360)
• CHINA Bimeda announced it has officially opened a new EUR 25 million state-of-the-art manufacturing plant in Shijiazhuang, China. The new Shijiazhuang plant is Bimeda’s first in China. (ie)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• US – CANINE DISEASE A respiratory illness with an unknown cause is sickening dogs in Oregon and other states.  From August to mid-November, Oregon’s state government received roughly 200 reports of the illness, which exhibits symptoms of a chronic cough or pneumonia that does not respond to antibiotics. Cases appear to share a viral cause, but common respiratory diagnostic testing has been largely negative. Anecdotally, similar cases have been seen in a number of other states. Oregon officials are working with veterinarians and scientists to begin a widespread sampling of cases to diagnose the cause and implement a diagnostic testing plan. (com)

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BRAKKE CONSULTING VIEWPOINT
Believe it or not, Thanksgiving is right around the corner and plans for the family dinner are beginning to take shape.  Families are determining how large a turkey will be needed to feed everyone.  Given the inflationary environment we are experiencing, one question on the minds of shoppers is how much will this year’s turkey cost?  Turkey prices hit an all-time high in 2022 primarily as a result of the impact that Highly Pathogenic Avian Influenza (HPAI) had on turkey flocks.

Well, HPAI is back.  This virus is like the horror film character, Jason, from the “Friday the 13th” movies…it just keeps coming back for more.  According to the USDA, 14 states have reported outbreaks since the 2023 fall bird migration began.

Fortunately, turkey supplies have recovered since the HPAI outbreak began in 2022.  The USDA’s annual “Turkey Raised report” estimates that 219 million turkeys were raised in 2023, an increase of +4% from 2022 and 1% above pre-HPAI outbreak levels in 2021.  Live weights are also up by 3.8% vs. 2022, in addition to increases in the numbers of turkeys raised.

Despite the spreading of HPAI, average turkey prices have fallen from $1.63/lb. in 2022 to $1.27/lb. in 2023 for an 8-16 lb. turkey due to increases in production.  This is a positive sign for those tasked with feeding hungry friends and relatives.  Eat and be merry!!!

Randy Freides  

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YOUR VIEW
Due to the Thanksgiving holiday, there’s no poll this week.  Last week’s results and a new poll question will be back next week!