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Brakke Consulting’s
Animal Health News & Notes for November 5, 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 – pre-order now
Earnings News
Covetrus
Heska
Hester Biosciences
Hill’s
IDEXX
PetIQ
Phibro
Royal DSM
Trupanion
Zoetis
Other News
ACE Laboratories
Alpha Paw
Apiam
Baseimmune
Dechra (Sucromate)
Dechra (amoxicillin-clavulanate)
DMV Imaging
Ethos Discovery
FUJIFILM
Goddard Veterinary Group
Graftys
Heska
The Honest Kitchen
Hoxton Ventures
Jaguar Health
LexaGene
Merck
Purina
Smarty Pear
Sparhawk Laboratories
Tetracore
TheraVet
Thorn Bioscience
Vetigenics
VetPartners Group
VetZ GmbH
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.
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COMPANY EARNINGS RELEASES
- Zoetis reported financial results for the third quarter of 2021. Revenue was $1.990 billion, an increase of 11% compared with the third quarter of 2020. On an operational basis, revenue increased 10%, excluding the impact of foreign currency. Net income was $552 million, an increase of 15%. (company press release)
- IDEXX Laboratories, Inc. announced results for the third quarter of 2021. Revenues were $810 million, an increase of 12% as reported and 10% organically. Net income was $175 million, an increase of 20%. Companion Animal Group revenue was $732 million, an increase of 15%. (company press release)
- Phibro Animal Health Corporation announced financial results for its first quarter ended September 30, 2021. Net sales for Animal Health were $141.0 million, an increase of 10% compared to the prior-year quarter. Net sales of MFAs and other increased 6%; net sales of nutritional specialty products increased 10%; and net sales of vaccines increased 25%. (company press release)
- Covetrus announced financial results for the third quarter of 2021. Net sales were $1.16 billion, an increase of 3% compared to the third quarter of 2020. Net loss attributable to Covetrus was $(4) million, compared to net loss in the third quarter of 2020 of $(35) million. North America segment net sales were $697 million, an increase of 13% compared to the same period of the prior year. North America segment adjusted EBITDA was $55 million, an increase of 22%. (company press release)
- Colgate-Palmolive Company reported results for third quarter 2021. Sales for Hill’s Pet Nutrition were $845 million, an increase of 20% over the prior-year quarter. Operating profit for Hill’s was $233 million, an increase of 19%. (company press release)
- PetIQ, reported financial results for the third quarter of 2021. Net sales were $210.5 million, an increase of 30%. Product segment net sales were $181.6 million, an increase of 21.0%. Services segment net revenues were $29.0 million, an increase of $17.0 million. Net loss was $(8.3) million compared to a net loss of $(71.5) million in the prior-year quarter. (company press release)
- Heska Corporation reported financial results for the third quarter of 2021. Revenue was $60.2 million, an increase of 6% compared to the prior-year quarter. Net loss was $(1.6) million compared to a net loss of $(5.2) million in the prior-year quarter. (PRnewswire)
- Trupanion, Inc. announced financial results for the third quarter of 2021. Total revenue was $181.7 million, an increase of 40% compared to the third quarter of 2020. Total enrolled pets (including pets from our other business segment) was 1,104,376 at September 30, 2021, an increase of 37%. Net loss was $(6.8) million, compared to net loss of $(2.6) million in the third quarter of 2020. (company press release)
- Royal DSM reported results for the third quarter of 2021. The firm’s animal nutrition revenues were EUR 892 million ($1.03 billion), an increase of a 24%. The performance was driven by 14% volume growth. (IHS Markit Connect)
- Hester Biosciences reported results for the first half of its fiscal 2022. Sales were INR 1.15 billion ($15.4 million), an increase of 24%. Net profit margin was 20.9% compared to 19.2% in the first half of the previous fiscal year. (IHS Markit Connect)
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COMPANY NEWS RELEASES
- Vetigenics announced that it is extending its discovery collaboration with Merck Animal Health for use of the Vetigenics Canibody Platform to discover and develop novel therapeutic antibodies to treat chronic diseases of companion animals. (PRnewswire)
- The FDA announced approval for Virbac‘s generic Rac-45 Cattle (ractopamine hydrochloride Type A medicated article). (FDA)
- Dechra announced the acquisition of Sucromate Equine (deslorelin acetate) sterile suspension from Thorn BioscienceL.C. This acquisition expands Dechra’s equine portfolio in the reproductive category. Financial terms were not disclosed. (company press release)
- The FDA announced approval for Dechra‘s generic Amoxicillin and Clavulanate Potassium Oral Suspension for use in dogs and cats. (FDA)
- The FDA announced approval for Sparhawk Laboratories‘ generic enrofloxacin 100 for use in beef cattle, non-lactating dairy cattle, and swine; and generic florfenicol injection for use in beef and non-lactating dairy cattle. (FDA)
- Purina announced the completion of a $250 million expansion at the company’s Bloomfield, Mo., cat litter factory. The project adds two new buildings to the 1.1 million-square-foot campus, and is the first Purina cat litter factory to self-manufacture its own packaging. (Pet Product News)
- LexaGene Holdings, Inc., announced it has finalized the design of the MiQLab Pneumonia Panel for companion animals and completed initial multiplex testing. The pneumonia panel was developed in partnership with Ethos Discovery, and will be the second product launched for veterinary diagnostics. (Globenewswire)
- TheraVet announced the renewal and extension of the exclusive worldwide license with Graftys and the addition of a highly injectable bone substitute to its Biocera-Vet product line. This new bone substitute will offer very low viscosity to facilitate remote injections into closed bone cavities. (Businesswire)
- Jaguar Health announced it has completed its filing with the FDA for conditional approval of its Canalevia-CA1 (crofelemer delayed-release tablets) for the treatment of chemotherapy-induced diarrhea (CID) in dogs, and expects to commercialize the product in late December 2021. (IHS Markit Connect)
- Tetracore announced it has received USDA approval for its VetAlert African swine fever (ASF) virus DNA diagnostic test kit. The company said it is the first USDA license for an ASF diagnostic. Earlier this year, Tetracore secured the first USDA approval for a real-time multi-species foot-and-mouth disease test. (IHS Markit Connect)
- The Honest Kitchen announced the launch of their 100-percent human grade cat portfolio. The new line of products includes complete and balanced dehydrated, dry, and wet foods as well as toppers, treats, and a hydration booster. (PRnewswire)
- Smarty Pear, the maker of Leo’s Loo self-cleaning litter box, announced the launch of Leo’s Loo Too, an app-connected and Alexa and Google Assistant-enabled self-cleaning litter box. (PetBusiness)
- Alpha Paw announced the launch of Genius Litter, cat litter that changes color to alert pet owners of irregularities in the cat’s urine, such as blood, alkaline, bilirubin or abnormal pH levels. (Vet Advantage)
- GERMANY Heska Corporation announced a definitive agreement to acquire 100% of VetZ GmbH, a European leader in veterinary practice information management software solutions. VetZ’s offerings include easyVet practice management and PACS (picture archival and communications software) solution; vetsXL business-to-business platform for veterinarian businesses; and petsXL, animal health application and portal for pet owners. Financial terms were not disclosed. (company press release)
- FRANCE FUJIFILM Europe announced the acquisition of French distribution company DMV Imaging, which specializes in providing veterinary point-of-care laboratory diagnostics. Financial terms were not disclosed. (company website)
- UK VetPartners Group announced it has acquired UK-based Goddard Veterinary Group. Goddard has 47 sites including three RCVS Tier 3 hospitals and reported a turnover in excess of GBP 30 million ($40 million). Financial terms were not disclosed. (Insidermedia.com)
- AUSTRALIA Apiam announced it has received regulatory approval from the Australian Pesticides and Veterinary Medicines Authority (APVMA) to manufacture a vaccine for Histophilus somni for use with cattle, sheep and goats. The vaccine was developed by Animal Consulting Enterprises (ACE Laboratories). (Stockhead.com.au)
- UK Baseimmune announced it has closed $4.8 million in funding led by Hoxton Ventures. The firm was established with the aim of developing next-generation vaccines using its data-driven platform and plasticity engine antigen technology. Currently, Baseimmune has vaccine candidates against African swine fever, porcine reproductive and respiratory syndrome, COVID-19 and malaria at the pre-clinical stage in its pipeline. (IHS Markit Connect)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- INDIA – RABIES India has launched its new One Health-focused National Action Plan for Dog Mediated Rabies Elimination (NAPRE). The initiative aims to eradicate rabies by 2030. India is endemic for the disease and accounts for approximately 36% of human rabies fatalities transmitted by dogs globally. (IHS Markit Connect)
- DENMARK – AVIAN INFLUENZA Denmark reported an outbreak of highly pathogenic H5 bird flu at a turkey farm with 27,600 animals in the central part of the country. (USnews.com)
- US – SARS-COV2 People are probably transmitting SARS-CoV-2 to wild and captive white-tailed deer in North America, and infected deer appear to be transmitting the virus to other deer, suggesting that cervids could become reservoirs for the virus, according to a study posted before peer review on bioRxiv. Researchers tested samples taken from wild and captive deer in Iowa from April 2020 through January 2021 and found evidence of SARS-CoV-2 infection in up to 80% of them, reflecting the same variants circulating in people. (AVMA SmartBrief – New York Times)
- US – HUMAN ANIMAL BOND The Pet Care Trust, a nonprofit organization, announced it has partnered with Pet Partners, an organization that registers therapy animals for animal-assisted interventions, for the Dogs in the Classroom program. The pilot program will provide interactions with registered therapy dog teams in approximately 100 classrooms in select markets across the country, helping more students experience the benefits of the human-animal bond. (Pet Product News)
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BRAKKE CONSULTING VIEWPOINT
I find much of the recent overall economic news to be unsettling. Although there are mixed signals from government and the Federal Reserve, we are clearly living now with inflation at a level not seen in quite a few years. With overall interest rates still at rock-bottom, bond markets have been quite volitile in recent weeks and may continue in that vein in reaction to the inflationary pressure. In both our business and personal lives we’ll all be watching carefully to be sure that we are keeping a close eye on spending and covering costs with increased revenue when possible.
On the other hand, there is continued demand on the part of equity firms to hold animal health industry assets. In the past, firms in our industry have been managed and owned by individuals or corporations with a strong connection to either the animal health business or to human pharmacueticals. However, as time goes on we’ll see bigger pieces of our industry’s equity in the hands of primarily financial owners. Already several of the largest suppliers in our industry are stand alone publicly traded animal health companies, and that trend is likely to continue.
Today’s earnings news shows that all but one industry company that reported quarterly earnings this week achieved double digit increases in sales compared to the same period in 2020, and in most cases increased profits even more than they increased revenues. Results like these are the reason that so many investment firms are interested to hold animal health assets in their portfolios. This industry continues to be a great place to invest.
Jim Kroman
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YOUR VIEW
Last week’s question asked you to tell us if your academic studies prepared you adequately for the business aspects of either the animal health pharmaceutical business or running a veterinary practice? Only 14% of the respondents felt very much prepared, while 41% feel somewhat prepared but have supplemented their knowledge through CE, and 45% claim little or no academic preparation (full disclosure – I fall into this last category!). Somehow this doesn’t fit well with my statement above that over time, more animal health companies (and vet practices) will have financially savvy owners. I suspect that many of us need to upgrade our business skills in order to stay relevant.
This week
This week’s question asks you for a prediction for 2022, which is almost upon us. We’ll share those answers with you next Friday – have a great week!
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