Animal Health News & Notes for September 24, 2021

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Brakke Consulting’s
Animal Health News & Notes for September 24, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Earnings News
Neogen

Other News
American Veterinary Group
AUA Private Equity Partners
AVet Health
Butterfly Network
Canela Capital
CAPInnoVet
CVC Capital Partners
D1 Capital Partners
Dechra (Zoetis)
Dechra (ProVet)
EVAH Corp
Fidelity Management & Research
FountainVest Partners
Hassinger Biomedical
Inflexion
Medivet
Midmark
Neogen
Pet ‘n Shape
PetSmart (The Pharmacy)
PetSmart (Afterpay)
Prelude Dynamics
Shor-Line
TriviumVet
Veterinary Emergency Group
Veterinary Health Research Centers
VetNova
Westminster Pet Products
Ziwi
Zoetis

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COMPANY EARNINGS RELEASES

• Neogen reported results for the first quarter of fiscal 2022 ended August 31, 2021. Animal safety revenues were $65.6 million, an increase of 19% compared to the prior-year quarter. (company website)

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COMPANY NEWS RELEASES

• Zoetis, the maker of Cerenia (maropitant), has claimed in a lawsuit that Dechra’s generic version, Emavert, infringes a patent. According to the complaint Zoetis is seeking court order blocking Dechra from making its product until patent has expired and cash compensation if it’s made before then. (news.Bloomberglaw.com)
• Neogen Corporation announced that it has acquired CAPInnoVet, Inc., a companion animal health company that provides pet medications to the veterinary market. Terms of the agreement were not disclosed. (PRnewswire)
• Dechra Veterinary Products announce it has acquired the veterinary marketing and distribution rights to the ProVet APC (Autologous Platelet Concentrate) and ProVet BMC (Bone Marrow Concentrate) systems from Hassinger Biomedical. These two patented medical devices concentrate platelets or bone marrow in 90 seconds with a processing time of 2.5 minutes from start to finish. The ProVet products will be added to Dechra’s equine product line. (company press release)
• TriviumVet announced that the FDA’s Center for Veterinary Medicine has determined that the company can pursue the expanded conditional approval pathway for its feline hypertrophic cardiomyopathy therapeutic candidate, Felycin (delayed-release rapamycin). (company press release)
• VetNova announced the launch of its US affiliate, VetNova Animal Health LLC., serving veterinarians in the USA; the site will also function as the North and South American headquarters. VetNova began in Spain in 2007 and is now present in over 20 countries in Europe, Asia, Africa, and America. (company press release)
• Midmark Corp announced it has acquired Shor-Line, a 74-year-old manufacturer of animal cages and veterinary tables. Financial terms were not disclosed. (Todays Veterinary Business)
• PetSmart announced the launch of The Pharmacy at PetSmart. Customers with a prescription from their veterinarian are now able to easily place orders on petsmart.com. Prescription medications are then processed through PetSmart’s online pharmacy and shipped straight to the customer and their pet. (Pet Business)
• PetSmart announced it is partnering with Afterpay to give customers more flexible payment options when shopping both in-store and online. PetSmart customers using Afterpay can make purchases and pay for them in four interest-free installments, due every two weeks; customers receive their products upfront just like any other purchase method. Afterpay is available for all PetSmart products, as well as pet services. (Pet Business)
• AUA Private Equity Partners, on behalf of its portfolio company Westminster Pet Products, announced it has acquired substantially all of the assets of Pet Ventures dba Pet ‘n Shape, which offers pet treats and chews. Financial terms were not disclosed.  (Pet Product News)
• Butterfly Network, Inc. and American Veterinary Group (AVG) announce a collaboration to equip all UrgentVet clinics with a Butterfly iQ Vet single probe, whole-body ultrasound system. (company press release)
• Veterinary Emergency Group (VEG) announced it has closed a $100 million financing round co-led by D1 Capital Partners and Fidelity Management & Research Company VEG also announced it has eliminated noncompete agreements, freeing its veterinarians to take other jobs if they wish; and offering its veterinarians an equity shareholder opportunity. (Todays Veterinary Business)
• Veterinary Health Research Centers LLC announced the launch of new clinical research capabilities with a global network of veterinary practices to expedite clinical trials for companion pets. VHRC Certified Practices – including general practices and specialty hospitals – provide comprehensive clinical study solutions for large and small pharmaceutical companies, biotechs, entrepreneurs and innovators worldwide. (company press release)
• Prelude Dynamics, an eClinical technology company for animal and human health researchers, announced that it has been acquired by private investment firm Canela Capital. Financial terms were not disclosed. (company press release)
• UK CVC Capital Partners announced it has acquired a majority stake in veterinary group Medivet from private equity firm Inflexion, in a deal reportedly worth more than GBP 1 billion ($1.36 billion). The backing of CVC will enable Medivet to continue to grow, with a goal of expanding on its portfolio of 50 sites in Europe. (Business-sale.com)
• NEW ZEALAND Chinese private equity firm FountainVest Partners is reportedly buying Ziwi, a New Zealand-based pet food company in a deal “that would value closely-held Ziwi at about NZ$1.5 billion ($1.06 billion). (Pet Product News)
• AUSTRALIA AVet Health announced that it has raised A$5 million ($3.7 million) in its pre-IPO fundraising; the business originally planned to raise A$3 million. AVet plans to list on the Australian Stock Exchange in the first half of calendar 2022 and expects to raise a further A$8 million from the IPO. AVet owns the Wagg & Purr brand, which has 30 products across parasite control, antibiotics, anesthetics, pet supplements and ear care. It expects to launch another 13 products by the end of December. (IHS Markit Connect)
• CANADA EVAH Corp., a biotechnology company specializing in the development of biological products for preventing bacterial diseases in food animals, announced that they are about to close their $20 million Series A funding round. The company also designs microbiome solutions for improved growth performance and medicated feed against parasites. (finance.yahoo.com)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• UK – BSE A classic case of bovine spongiform encephalopathy (BSE) has been diagnosed on a farm in the southwest UK. The animal died and was removed from a farm in Somerset, and there is no danger to food health. (UK.news.yahoo.com)
• HAITI – ASF An outbreak of African swine fever (ASF) has been confirmed in Haiti, near the Dominican Republic border. This marks the first case of ASF in Haiti since 1984. Separately, the USDA issued a federal order blocking interstate movement of all live swine, swine germplasm, products and byproducts from Puerto Rico and US Virgin Islands to the mainland. The suspension will remain in place until APHIS sets up mitigations to authorize movemen (IHS Markit Connect)
• US – DRAFT GUIDANCE The FDA issued for public comment two draft guidance documents that, if finalized, will help manufacturers of animal cells, tissues, and cell- and tissue-based products (ACTPs) understand current good manufacturing practice requirements (CGMPs) for new animal drugs. The FDA is accepting public comments on both draft guidance documents until November 22, 2021. Click here for more information on Draft Guidances #253, “Good Manufacturing Practices for Animal Cells, Tissues, and Cell- and Tissue-Based Products” and #254, “Donor Eligibility for Animal Cells, Tissues, and Cell- and Tissue-Based Products.”  (FDA)
• US – VETERINARY TOOLS The American Veterinary Medical Association (AVMA) has released the “Language of Veterinary Care,” a set of comprehensive new online tools to help veterinarians effectively communicate to pet parents about the value of pet preventive care and the importance of wellness visits. With assistance from Synchrony’s products, CareCredit, and Pets Best Insurance Services, the AVMA is currently developing a series of content pieces available to its members for translating this research into actionable information for veterinary use. (DVM360)
• US – CANINE ARTHRITIS RESEARCH Researchers from North Carolina State University, Washington University in St. Louis, and Cytex Therapeutics, have developed a new, dissolving, textile-based stem cell implant has reduced pain and restored hip joint function to dogs with moderate osteoarthritis. The implant is partially 3D printed, and partially made in advanced textiles. Immediately after surgery, the implant acts like artificial cartilage, restoring function from day one; but over time, it’s designed to dissolve away, leaving nothing but the body’s own new cartilage tissue that’s grown to replace it. The research was published in Science Advances. (AVMA SmartBrief – New Atlas)

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BRAKKE CONSULTING VIEWPOINT

I am intrigued by the  phenomenon that many employers are having unusual difficulties finding qualified new employees the last few months, especially since COVID vaccines are widely available. My recent recruiting experience and answers from you to our question in last week’s Your Viewpoint have helped me understand the situation better.

Last week, we asked you to think about your company and your own views of hybrid work and the hybrid work paradox, if you had to pick the most important and impactful trend to be addressed right now, which would it be?  The top three trends (about 30% for each of them) from your answers are: 1) high productivity is masking an exhausted workforce; 2) Leaders are out of touch with employees and need a wake-up call; and 3) Flexible work is here to stay.

While the question is about your view on hybrid work, the answers do help me understand why more people recently are changing jobs and employers are having difficulties in finding qualified new employees. It seems that people are reevaluating what they want to do after the COVID pandemic. Leaders of a business (big or small) need to understand the psychological and physical impacts of the unprecedented stress from this pandemic and provide financial as well as emotional support to improve work-life balance for current employees.

Jishu Shi
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YOUR VIEW

This week

Let’s stay on this theme of hybrid paradox but focus on how well you feel teams are performing with hybrid work being more commonplace and given the response from companies to the COVID-19 pandemic.  Zoom and Microsoft Teams have changed the way that people work together in virtual teams – maybe they work…let’s see what you think.

Click here for this week’s poll.