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Brakke Consulting’s
Animal Health News & Notes for October 19, 2018
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
US Flea Control & Heartworm Market report
OTC Channel
earnings news
Nestle
Vetoquinol
Virbac
other news
Alivira
Alltech
Avivagen
Boehringer Ingelheim (Ingelvac Provenza)
Boehringer Ingelheim (vaccine plant)
Boehringer Ingelheim (Dopharma)
Cal-Maine Foods
Companion Animal Health
CouvLotta
Diversified Ingredients
Dopharma
Farmers Ranchers Cooperative Association of Ainsworth
Featherland Egg Farms
Fressnapf Group
Gilman Co-Op Creamery
Mazen Animal Health
MIMAJA
MyVet Imaging
Nanospectra Biosciences
Outward Hound
Pathway Vet Alliance
Paragon Specialty Products
Planet Dog
Pet Product SRL
Rayence
Royal De Heus Group
Universal Agri Bisnisindo
VetPartners
Viphavet
Wilbur-Ellis
Zinpro
Zoetis
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BRAKKE CONSULTING, INC.
2018 US FLEA CONTROL AND HEARTWORM MARKETS REPORT
PREORDER NOW
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 lfondon@brakkeconsulting.com to pre-order the report, or for more information visit our website.
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COMPANY EARNINGS RELEASES
• Virbac S.A. reported financial results for the third quarter of 2018. Group revenue reached EUR 204 million ($237 million), an increase of 6% compared to the same period in 2017 (+9% at comparable exchange rates). The quarter’s growth was mainly driven by activity in the US. (Globe newswire)
• Vetoquinol reported results for the third quarter of 2018. Sales were EUR 90.2 million ($104 million), an increase of 0.8% (1.9% at constant exchange rates) compared to the same period last year. (company website)
• Nestlé reported results for the first nine months of 2018. Petcare sales were CHF 9,350 million ($9,520 million), an increase of 3% compared to the prior-year period. (company website)
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COMPANY NEWS RELEASES
• The USDA’s Agricultural Research Service (ARS) announced that ARS will grant Zoetis an exclusive license to two US patents related to the development of an attenuated African swine fever (ASF) virus vaccine. ARS said that it is in the public interest to license these inventions to Zoetis, which has submitted an application for a license. (Feedstuffs)
• Boehringer Ingelheim announced the launch of Inglevac Provenza, an intranasal vaccine for protection against influenza A, types H1N2 and H3N2, in swine as young as one day old. (Feedstuffs)
• Alltech announced it has launched an online retail store where customers can research and shop for animal nutrition and crop offerings and have those products delivered straight to their doorstep or farm gate. The new online store carries products across all major animal species. (Feedstuffs)
• Alivira announced it has been awarded an international patent to develop firocoxib through a simple process with better purity and yield. (company press release)
• Zinpro Corp. announced it is acquiring Paragon Specialty Products LLC (PSP) and CouvLotta LLC. PSP primarily serves the US poultry and swine industry with a broad product line of water acidifiers, vitamins and nutritional supplements and also offers opportunities to serve cattle and aquatic farming operations. CouvLotta provides innovative, customized, antibiotic-free nutritional support products and programs for cattle, swine, poultry, aquaculture and pets. Financial terms were not disclosed. (Feedstuffs)
• Pathway Vet Alliance announced that it acquired 15 veterinary practices in several states from July through September, bringing its total to more than 150 locations. (Todays Veterinary Business)
• Wilbur-Ellis Company and Diversified Ingredients, Inc., were sentenced in federal court pay more than $7 million relating to their introduction of adulterated and misbranded pet food ingredients into interstate commerce. In connection with the guilty pleas, the court was advised that pet food ingredients shipped from a Wilbur-Ellis facility – specifically, chicken meal and turkey meal – were adulterated and misbranded through the use of cheaper substitute ingredients, such as feather meal and feed grade chicken bone by-product meal, and adulterated and misbranded by omitting premium ingredients, such as turkey meal, from products identified as turkey meal. The adulterated pet food ingredients did not pose a threat to the health or safety of any animal. (FDA)
• The FDA has issued warning letters to two feed mills, Gilman Co-Op Creamery in Minnesota and Farmers/Ranchers Cooperative Association of Ainsworth in Nebraska, that mixed horse feed containing monensin. These firms did not adhere to the Current Good Manufacturing Practice (CGMP) requirements for medicated feed mills. They are also subject to FDA’s Preventive Controls for Animal Food regulations. (FDA)
• MyVet Imaging, Inc. announced it is now a subsidiary of South Korean digital imaging company Rayence. Financial terms were not disclosed. (Veterinary Practice News)
• Companion Animal Health (CAH) announced an exclusive partnership with Nanospectra Biosciences Inc. to treat canine mast cell tumors using a combined laser and nanoshell therapy procedure that has the ability to destroy solid tumors without damaging adjacent healthy tissue. (Veterinary Practice News)
• Mazen Animal Health has developed a novel Valley fever sub-unit vaccine for companion animals that has been found to reduce the burden of coccidioides — the fungus that can cause Valley fever — in mice. The maize-produced antigen would allow for both injectable and chewable formats for vaccination. (Veterinary Practice News)
• Outward Hound announced it has acquired Planet Dog, a maker of toys and travel products for dogs. Financial terms were not disclosed. (Pet Business)
• Cal-Maine Foods Inc. announced it will acquire the assets of Featherland Egg Farms Inc. relating to its commercial shell egg production, processing, distribution and sales business. Financial terms were not disclosed. (Vet Advantage – Meat+Poultry)
• FRANCE Boehringer Ingelheim announced the opening of its new global veterinary vaccine center for biological research and development in Lyon, France. Boehringer has pledged a EUR 70 million ($81 million) investment for the 14,500 square meter facility. he commencement of this R&D center is the final phase in the transfer of Merial’s laboratories from their Gerland district in Lyon, to the new site. (Animal Pharm)
• FRANCE Dopharma announced it has acquired a manufacturing facility in France from Boehringer Ingelheim. The facility, which became part of Boehringer through its acquisition of Merial, primarily produces generics and antibiotics for livestock. Financial terms were not disclosed. (Animal Pharm)
• EUROPE Fressnapf Group announced the opening of the 1500th Fressnapf Maxi Zoo store in Paris. (GlobalPets)
• EUROPE The Rohatyn Group announced the successful completion of its acquisitions of Pet Product SRL, a leading pet supplies company in Romania, and MIMAJA d.o.o., a leading pet supplies company in Slovenia. Pet Product operates pet stores and an online store under the “Animax” brand name; it is also a leading distributor of pet products in Romania. MIMAJA operates a retail chain of 16 stores throughout Slovenia, as well as an online store, under the “Mr. Pet” brand name. Financial terms were not disclosed. (GlobalPets)
• INDONESIA Royal De Heus Group has signed a share purchase agreement to acquire 100% of the shares in Universal Agri Bisnisindo, a private Indonesian animal feed company producing 300,000 tons of poultry, fish and shrimp feed per annum, held by a consortium of several private shareholders. The acquisition represents De Heus’ entry in the Indonesian animal feed market. Financial terms were not disclosed. (Feed Strategy eNews)
• UK VetPartners announced it has acquired Lynwood School of Veterinary Nursing in Dorchester, the first establishment of its kind to join the group. The school, a subsidiary of Lynwood Vets, has been acquired with the five-site small animal practice in Dorset. Financial terms were not disclosed. (insidermedia.com)
• VIETNAM Avivagen announced that it has entered into a distribution agreement for Vivamune Health Chews in the Vietnamese market with Viphavet Co. Ltd. (company press release)
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ANIMAL HEALTH NEWS
• SCOTLAND – BSE A case of bovine spongiform encephalopathy (BSE) has been confirmed on a farm in Scotland. Precautionary movement restrictions have been put in place at the Aberdeenshire farm, while further investigations to identify the origin of the disease occur. (Eveningtelegraph.co.uk)
• UK – BLUETONGUE The UK reported that bluetongue virus (BTV) was detected during routine testing in four sheep imported from France. All four sheep were culled as a result. (Animal Pharm)
• US – BRUCELLOSIS Wyoming announced that there is a new case of brucellosis in a cattle herd in Park County, which is in the Wyoming brucellosis designated surveillance area. Further testing will be conducted to confirm serology results. Wyoming’s last cases of brucellosis were found in late 2015, and the last affected herd was released in June 2017. (Feedstuffs)
• CHINA – ASF China reported a new African swine fever case on a farm with nearly 20,000 pigs, the largest farm yet to report the highly contagious disease in the world’s top pork producer. The latest outbreak was one of three new cases confirmed in Liaoning province. (Mercury.postlight.com)
• COLOMBIA – FMD The Colombian Agriculture Institute (ICA) reported that Foot-and-Mouth Disease has been confirmed on two farms, involving both swine and cattle. Colombia has been working hard to get a status of ‘free from Foot-and-Disease with vaccination’, but the country’s status with the OIE was temporarily suspended between September and December 2017 due to a few outbreaks. Prior to 2017, the last notified FMD outbreak in Colombia was in 2009. (Pig Progress)
• US – EHD The Minnesota Board of Animal Health confirmed the state’s first cases of Epizootic Hemorrhagic Disease (EHD) in captive white-tailed deer. Officials say six of seven animals in the affected herd died of the disease earlier this month. The disease was previously detected in two Minnesota cattle in 2012 and 2013. (Startribune.com)
• US – BRUCELLOSIS RULES The Montana Department of Livestock (MDOL) has adopted changes to rules affecting brucellosis vaccination requirements and the boundary of its brucellosis designated surveillance area (DSA).The newly adopted brucellosis vaccination rule mandates that eligible animals in 10 Montana counties must be vaccinated against brucellosis. Prior to this rule, animals in 4 counties were required to be vaccinated. (Feedstuffs)
• EU – ANTIBIOTICS USAGE A report by the European Medicines Agency (EMA) stated that sales of veterinary antimicrobials for food-producing animals in Europe decreased by over 20% between 2011 and 2016. The report features data from 30 countries from the EU and the European Economic Area, as well as Switzerland. (Animal Pharm)
• US – SWINE DISEASE RESEARCH Researchers at the University of Missouri, Kansas State University and Genus PLC have succeeded in breeding pigs that are resistant to transmissible gastroenteritis virus (TGEV) by means of gene editing. Previous research had identified an enzyme called ANPEP as a potential receptor for the virus. The team produced a litter of pigs that did not produce this enzyme, and as a result, they did not get sick when exposed to the virus. The research was published in Transgenic Research. (Feedstuffs)
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BRAKKE CONSULTING, INC.
UNDERSTANDING THE OTC CHANNEL
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 adamson.joel@cox.net.
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BRAKKE CONSULTING VIEWPOINT
Some interesting news this week that confirms some of the industry topics that have been discussed many times by managers, either in the board room or around the water cooler or coffee section in the cafeteria. The first one that caught my eye related to a litter of pigs that had been altered genetically and did not get sick when given the TGE virus. While this is still an early stage research project, it could confirm that new genetic technologies can impact the animal health business. If animals do not get sick, they will not need to be treated. How will your company factor genetic modification of animals to reduce disease into your long term planning?
The second story was the EU report indicating that antimicrobials usage in food animals has declined by 20% from 2011 to 2016. This report confirms that the market for antimicrobial products for food animals is declining. Many have wished this would not happen, but the handwriting has been on the wall for some time. What alternatives is your company exploring to replace these products? We’d be pleased to assist your company in and opportunities to fit into this changing marketplace.
Have a great weekend! I’m in South Dakota this weekend participating in the 100th annual season opening of the harvesting of the ring neck pheasant.
Ron Brakke
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