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Brakke Consulting’s
Animal Health News & Notes for October 2, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Earnings News
Animalcare
Anpario
Cal-Maine Foods
Other News
Animalcare
Animal Pharmaceuticals
Ascendis Health
Bimeda
Boehringer Ingelheim (Fraunhofer Institute)
Boehringer Ingelheim (Petpro Tele+)
Boehringer Ingelheim (NRP Group)
Boqii
Ceva
Elanco
Farmvet Systems
Genus Plc
Hipra
Invetx
Kane Biotech
NRP Group
Nutravet Limited
Rarebreed Veterinary Partners
STEM Animal Health
Stonehaven Incubate
Swedencare
Touchlight Aquaculture
Tropic Biosciences
Vetoquinol
Vidium Animal Health
Zoetis
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COMPANY EARNINGS RELEASES
- Animalcare reported results for the first six months of its fiscal 2020. The company recorded revenues of GBP 34.5 million ($44.4 million), a 4.4% year-on-year decline in sales. Underlying profit was GBP 3.5 million ($4.5 million) in the first half, which was slightly down on the GBP 3.9 million posted in H1 2019. (IHS Markit Connect)
- Anpario PLC reported results for the first six months of 2020. Sales were GBP 16.2 million ($20.6 million), an increase of 13% compared to the prior-year quarter. Adjusted EBITDA rose 24% to GBP 3.4 million ($4.3 million). (Feed Strategy)
- Cal-Maine Foods reported results for its first quarter of fiscal 2021 ended Aug. 29, 2020. Net sales were $293 million, a 21% increase compared to the first quarter of fiscal 2020. The company reported a net loss of $(19.4) million compared to a net loss of $(45.8) million for the first quarter of 2020. (Feedstuffs)
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COMPANY NEWS RELEASES
- Elanco Animal Health announced its first business restructuring two months after the closing of its acquisition of Bayer Animal Health. The company plans to eliminate more than 900 positions across nearly 40 countries, primarily in Sales and Marketing, but also R&D, Manufacturing and Quality, and back office support. The cost of the proposed actions is expected to be between $190 – $210 million with approximately $170 – $190 million in severance and approximately $20 million in asset impairments and other charges. These actions are expected to deliver $275 million to $300 million in synergies, with the first two-thirds coming in the first 30 months. (company press release)
- Boehringer Ingelheim and Fraunhofer Institute for Molecular Biology & Applied Ecology IME announced a newly formed collaboration that aims to provide novel, microbial-based natural products for development of next-generation animal health products fighting parasitic diseases. (Feedstuffs)
- The FDA announced the supplemental approval of Bimeda’s OvaCyst (generic gonadorelin injectable solution) for use with cloprostenol sodium to synchronize estrous cycles to allow for fixed time artificial insemination in lactating dairy cows and beef cows. (FDA)
- Swedencare AB announced it has acquired the operations of US pet supplements and topicals company Animal Pharmaceuticals for approximately SEK 131 million ($14.6 million), with a possible additional purchase price of maximum SEK 87 million ($9.7 million), paid as cash and new shares in Swedencare to the seller upon closing. Swedencare also announced the acquisition of 100% of the UK companion animal supplements company Nutravet Limited for approximately SEK 375 million ($41.8 million), paid as cash and shares in Swedencare to the seller upon closing. (company press release)
- Genus Plc and Tropic Biosciences announced a collaboration to explore the application of Tropic’s Gene Editing induced Gene Silencing (GEiGS) technology in porcine and bovine genetics, ultimately aimed at accelerating genetic improvement for farmers and tackling animal disease and suffering. (company press release)
- Hipra announced the launch of what it claims is the first needle-free device for the intradermal vaccination of pigs with Internet-of-Things connectivity. Hipradermic 3.0 records and automatically sends via 3G connectivity all the data generated during the vaccination process to HIPRAlink Vaccination. (IHS Markit Connect)
- Kane Biotech announced that it has entered into an agreement with Animalcare Group PLC under which the parties will form STEM Animal Health Inc., a company dedicated to treating biofilm-related ailments in animals. The agreement will see Animalcare commercialize Kane Biotech’s range of oral care products for companion animals in European and Asian markets and collaborate with Kane Biotech on the development of new biofilm treatments for animals. Animalcare will invest $3 million in installments over a period of 48 months to acquire a one-third plus one share equity interest with the right to acquire an additional one-sixth stake in the subsidiary for $4 million. (company press release)
- Translational Genomics Research Institute (TGen), an affiliate of City of Hope, announced the commercial launch of Vidium Animal Health, providing genomic-based precision-medicine to veterinary oncologists and pet parents. Vidium created SearchLight DNA, a test designed specifically to identify any of the nearly 120 known cancer-associated genetic mutations in dogs, and use the molecular profile of misbehaving genes to help guide diagnosis and treatment. (Eurekalert.org)
- Touchlight Genetics and Stonehaven Incubate announced a joint venture aquaculture company called Touchlight Aquaculture to utilize Touchlight Genetics’ innovative DNA-based Doggybone platform to develop new vaccines for the aquaculture industry. (TheFishSite.com)
- Invetx announced that it has raised an additional $10.5 million from new investors Casdin Capital and (funds managed by) Tekla Capital Management, bringing its total Series A financing to $25.5 million. (company press release)
- Rarebreed Veterinary Partners announced it has received a substantial minority investment (amount undisclosed) from New York private equity firm Trilantic Capital Management LP. Rarebreed’s existing equity investors, including lead investors Caremi Partners Ltd., Northwood Ventures and Halle Capital Management, also participated in the financing round. The investment in Rarebreed will fund its continued growth plan; the group currently supports 17 veterinary practices in New England. (Mainebiz.biz)
- Chinese pet supplies company Boqii announced it has launched an IPO in the USA, making it the first US-listed company in the Chinese pet industry. According to Frost & Sullivan, Boqii is China’s largest pet-focused online platform with 23 million registered users, including 3.5 million monthly active users. (GlobalPets)
- The AVMA has partnered with Boehringer Ingelheim’s Petpro Tele+ app to create the AVMA Telecast, the first veterinary information channel available via telehealth. The AVMA Telecast is a new way to access the content and resources available as benefits of AVMA membership. Through the app the AVMA will provide timely advice, updates on veterinary and public policy, links to new veterinary resources, and more. (AVMA SmartBrief, IHS Markit Connect)
- EU Zoetis announced that the European Medicines Agency’s Committee for Medicinal Products for Veterinary Use (CVMP) recently issued a positive opinion for the addition of a new indication for Cytopoint (lokivetmab) for the treatment of pruritus (itching) associated with allergic dermatitis in dogs. (IHS Markit Connect)
- CHINA Boehringer Ingelheim announced it has acquired an equity stake in China-based New Ruipeng Group (NRP Group), a fast-growing business that offers veterinary care, e-commerce and many other services to pet owners and the broader animal health market across China. Financial terms were not disclosed. (Biospace.com)
- FRANCE Ceva Santé Animale announced a EUR 8 million investment that has increased three-fold its production capacity for bacterial autogenous vaccines (primarily, for pigs and poultry) at its French plant. (company press release)
- EU Vetoquinol, Farmvet Systems and France’s National Society of Veterinary Technical Groups (SNGTV) have signed an agreement to pool their software offerings. Farmvet, which is majority-owned by Vetoquinol, is the developer of the VetIMPRESS technology platform for farmers; SNGTV has developed Vetélevage, which is software designed to allow veterinarians to enhance health monitoring services for farms and secure their core business of prescription medications. (IHS Markit Connect)
- SOUTH AFRICA Ascendis Health announced it has appointed an advisor to help divest its animal health assets in order to focus on its consumer health and human pharmaceuticals businesses. Ascendis expects the divestment to be completed during the first half of 2021. The firm’s animal health business reported ZAR489 million ($29 million) in fiscal 2020. (IHS Markit Connect)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- US – BIOTECHNOLOGY The FDA’s Center for Veterinary Medicine (CVM) announced a stakeholder outreach initiative for developers of animal biotechnology, including an informational, pre-recorded webinar and ongoing stakeholder engagement regarding the FDA’s oversight of products of animal biotechnology. Click here for more information about the webinar, which is intended to help developers understand data expectations for marketing of a new animal biotechnology product. (FDA)
- POLAND – WSAVA CONGRESS The World Small Animal Veterinary Association (WSAVA) announced that its 2020 World Congress, held in in collaboration with the Federation of Companion Animal Veterinary Associations (FECAVA) and the Polish Small Animal Veterinary Association (PSAVA), now scheduled to take place in Warsaw, Poland from 21-24 March 2021, is to be a hybrid event. The Congress will go ahead for face-to-face delegates with the state-of-the-art scientific program also available online for those for whom travel restrictions caused by the COVID-19 pandemic make getting to Poland difficult. (association press release)
- SPAIN – SARS-CoV-2 IN CATS New research from Spain on two cats that caught SARS-CoV-2 (the virus that causes COVID-19) suggests felines are able to develop their own antibodies that effectively neutralize COVID-19. Researchers believe the cats caught the virus from their owners. For more information click here. (APPA Weekly news)
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BRAKKE CONSULTING VIEWPOINT
How many of you have heard of the phrase, “sharpen the saw”? That was Steven Covey’s seventh habit published in his book “The Seven Habits of Highly Effective People” over three decades ago, yes, 31 years ago. One of the four dimensions of the “sharpen the saw” habit was mental renewal – to continually educate yourself, which is essential for effectiveness.
Thanks to the AVMA, we all have an opportunity to “sharpen the saw” later this month. Presented online October 26-28th, attending the AVMA’s Economic Summit will help you be more effective, whether you are a veterinarian or are in a business that services the veterinary industry. There is a great lineup of keynote presenters – I’ll highlight two here. Rick DeLuca, President of Merck Animal Health, will speak on business transformation and innovation. Brakke Consulting’s own John Volk will present results of our work on how the pandemic has change pet owner behavior.
The theme for this year’s AVMA Economic Summit is “Transformation Through Collaboration” and you can find out more about the event and sign up here. I thought last year’s event was great and expect the same this year. Even if it’s a virtual event, attending will still sharpen the saw.
Bob Jones
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YOUR VIEW
Last week turned to the livestock side of the animal health business and the challenges it faces in the future in terms of meat protein consumption. We asked this question: What do you think will be the biggest challenge facing the US meat protein production industry? We gave you five options for answers – quite interesting results. Here they are:
28% The environmental impact of meat animal production
26% The competition from alternative meats, either lab-grown or plant-based
19% The availability of export markets for US-produced meat
15% The consolidation and concentration of the meat packing and food production industries
13% The health perception of meat animal proteins by consumers
I’ll bet that quite a few of our readers are passionate about this topic and I’d like to hear from you – do these results make sense? Email Bob if you’d like to opine.
This week
This week let’s think about Steven Covey’s seven habits, which he felt were composed of the primary principles of character upon which happiness and success are based.
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