The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for November 30, 2018
Copyright © Brakke Consulting, Inc.

Editor: Lynn Fondon DVM MBA

Brakke Consulting news
Veterinary Practice Home Delivery report
OTC Channel

earnings news
Central Garden & Pet
J. M. Smucker

other news
Boehringer Ingelheim
Ceres Tag
Marine Tech International
Qorvo Biotechnologies
Southern Veterinary Partners
Vets Plus
Zoetis Revolution Plus
Zoetis Smartbow


Pharmacy sales represent an important component of a veterinary clinic’s revenues. In today’s competitive environment, veterinarians increasingly need to offer innovative, convenient solutions to successfully compete with online pet pharmacies and retail sources.

Developed from the data collected for Brakke’s biannual 2017 Distributor Effectiveness Study, the Veterinary Practice Home Delivery Report contains key information about companion animal veterinarians’ approach to providing the convenience in purchasing veterinary products demanded by their clients. The report, based on data from over 1,100 companion animal practice respondents, includes regional and practice size data analysis in addition to the national aggregate data. It answers questions such as:
• How are veterinarians serving clients who prefer to order products online or by telephone?
• What are the trends in writing prescriptions for online pharmacies?
• How many clinics have online stores, and what is the sales volume through the stores?
• Which online services providers are clinics utilizing, what are their market shares, and how do veterinarians rate their performance?

The Veterinary Practice Home Delivery Report is available for immediate purchase for $8,900. For more information, please contact Lynn Fondon at


• The J. M. Smucker Company announced results for the second quarter of its 2019 fiscal year ended October 31, 2018. U.S. Retail Pet Foods segment sales net sales increased 32% to $728 million, reflecting the $184 million contribution from the Ainsworth acquisition. Excluding Ainsworth, net sales declined 1%. Segment profit increased 1% to $123.9 million. (company website)

• Central Garden & Pet Company announced financial results for its fiscal fourth quarter ended September 29, 2018. Net sales for the Pet segment were $339 million, an increase of 3% from the same period a year ago despite one less week in the quarter versus a year ago. The Pet segment’s operating income rose 17% to $32.2 million compared to the fourth quarter a year ago. (company press release)

• Krka reported results for the first nine months of 2018. The company’s animal health division reported sales of EUR 50.4 million ($58 million) for the period, an increase of 4% over the prior-year period. (Animal Pharm)


• Zoetis announced that the FDA has approved Revolution Plus (selamectin and sarolaner topical solution), a new combination topical product providing 6-in-1 parasite protection against fleas, ticks (Black-legged or deer tick, Gulf Coast tick, and American dog tick), ear mites, roundworms, hookworms and heartworms for cats and kittens. Zoetis expects to begin shipping the product in early 2019. (company press release)

• Zoetis announced the launch of Smartbow, a cow monitoring system that integrates the use of radio frequency identification tags and data analytics to enable three functionalities: rumination monitoring, heat detection, and real time localization for adult dairy cattle that are housed indoors. Zoetis acquired Smartbow GmbH earlier this year. (

• Bayer announced it intends to exit the Animal Health business and is assessing available options. Bayer intends to allocate the investment resources necessary to support Animal Health to Bayer’s core businesses of Pharmaceuticals, Consumer Health and Crop Science. (company press release)

• Vets Plus Inc. announced plans to expand its Menomonie, Wisconsin, plant by 30,000 square feet. The additional space will increase total production floor space by 40%. (Todays Veterinary Business)

• Ecoplanet announced the launch of Sx Calf Oral Electrolyte and Nutritional Supplement, a patented solution developed for dehydrated calves. Patents are pending in other countries around the world. The product is available in the US and Canada through major distributors, farm ranch stores and internet retailers. (company press release)

• Zomedica announced a global development and supply agreement with Qorvo Biotechnologies to bring the latter’s piezo-electric bulk acoustic wave (BAW) sensor to the veterinary health market. Zomedica and Qorvo will collaborate on the development of veterinary diagnostic point-of-care assays that will initially target five assay cartridge candidates to detect thyroid and adrenal disorders in dogs and cats. Zomedica has agreed to pay Qorvo $1.0 million in cash and to issue to Qorvo unregistered common shares having a value of $3.9 million, plus additional milestone payments totaling $10 million; the agreement will be funded via a private offering of 6,578,947 common shares at a price of $1.52 each for proceeds of $10 million. (Globe Newswire, Animal Pharm)

• The Treatibles line of organic full spectrum hemp oil products for pets announced the introduction of soft chews for cats and dogs. (Pet Age)

• Southern Veterinary Partners announced it has acquired its 14th animal hospital in Alabama, bringing it to a total of 65 hospitals across 10 Southern states. (

• EU, AUSTRALIA Boehringer Ingelheim Animal Health announced it has received approval to expand the label claims for its NexGard (afoxolaner) and NexGard Spectra (afoxolaner/milbemycin) in the EU and Australia to include the treatment of demodicosis and sarcoptic mange. (Animal Pharm)

• UK Alivira Animal Health announced the launch of Sevotek (sevoflurane) in the United Kingdom for induction and maintenance of general anesthesia for dogs and cats. (company announcement)

• THAILAND Aquaculture company Benchmark announced it has succeeded in a patent infringement case against Marine-Tech International (MTI) in Thailand. The IP&IT court in Bangkok ruled that MTI infringed two patents that cover Benchmark’s Artemia hatching and enrichment technologies. (Animal Pharm)

• AUSTRALIA Australia’s Commonwealth Scientific & Industrial Research Organization (CSIRO) and Ceres Tag announced the development of a smart ear tag for cattle that can track where their herds graze, if an animal has escaped or has been stolen and even unusual movements that could indicate that an animal is giving birth or is sick. (Feedstuffs)


• CHINA – ASF China reported the first cases of African Swine Fever to be discovered in its capital when the disease was found on two farms in a southwestern district of sprawling Beijing. The country said it will adjust its rules on controlling the spread of African swine fever to keep pork supplies stable. (Reuters)

• US – GENOME EDITING WEBINAR The FDA’s Center for Veterinary Medicine announced that it is postponing its Public Webinar about Genome Editing in Animals, originally scheduled for December 3, 2018, to a later date, in order to provide for a more comprehensive overview and opportunity for discussion. (FDA)

• US – MUMS GRANTS The FDA announced an open period for applications for grants to support the development of new animal drugs intended to treat uncommon diseases (minor uses) in major species (horses, dogs, cats, cattle, pigs, turkeys and chickens) or to treat minor species (MUMS). This is Funding Opportunity Announcement (FOA) Number PAR-18-827. The deadline to submit applications is January 18, 2019, through or the NIH ASSIST system. The complete FOA is available at . (FDA)

• WORLD – PARASITE GENOMES An international team of scientists conducted genomic studies of 81 worm species, including 45 that had never been sequenced before, and documented nearly a million new genes. With further study, some of those genes might present promising targets for new medical treatments to combat parasitic worms. The researchers found that some of those gene families show up in more than one species, meaning a single treatment could be effective against multiple parasites, spanning roundworms and flatworms. The research was published in Nature Genetics. (Feedstuffs)


Whether your business is considering the OTC channels for new business opportunities or you have been distributing in the OTC channels for years, Brakke Consulting’s team can provide significant and quality assistance to businesses seeking to learn more about the details of the OTC channels of distribution. If you are looking for meaningful insights into the OTC channels, the trends found there, and the opportunities that exist, contact our Dallas office or Joel Adamson at .


This week another of the large human pharma companies announced that they will be exiting animal health. How they plan to exit will be revealed next week to the employees and the investment community. While animal health remains an excellent growth area, some of the prior synergies between animal health divisions and the large pharma parent seems to have lost its benefits. Or is it because of the high interest in animal health by the investment community that large pharma believes they can unlock some value from the animal health business that can be better utilized in other portfolios of their business?

Also, in last week’s newsletter you should have noted that Express Scripts, one of the largest suppliers of human prescription plans, will partner with a Petco to provide home delivery of veterinary prescriptions to pet owners. It seems that the companion animal clinic pharmacy business may have caught the eye of a number big human players in the human prescription supply business who would like to wrestle the veterinary prescription business away from the clinic.

Have a good weekend!

Ron Brakke

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