The Experts in Animal Health

Brakke Consulting’s
Animal Health News & Notes for September 28, 2018
Copyright © Brakke Consulting, Inc.

Editor: Lynn Fondon DVM MBA

Brakke Consulting news

earnings news
Blue Buffalo

other news
Boehringer Ingelheim
CannPal Animal Therapeutics
Carr’s Group
Mars Petcare
MYOS RENS Technology
Smart Pet LLC


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• Neogen Corporation announced results for the first quarter of its 2019 fiscal year ended Aug. 31, 2018. Revenues increased 6% to $99.6 million; net income increased 28% to $15.2 million. Neogen’s Animal Safety segment reported revenues of $47.4 million, a decline of 1% compared to the prior-year quarter. Revenues from Neogen’s worldwide animal genomics business increased 15%. (company press release)

• General Mills reported results for the first-quarter of fiscal year 2019. General Mills’ pet segment net sales, including Blue Buffalo, totaled $343 million. Net sales for Blue Buffalo were up 40% on a pro forma basis in Q1, including a stub period at the end of April after the acquisition was closed; excluding those additional days, pro forma net sales were up mid-single digits. (Petfood Industry)


• Mars Petcare US, Inc. and Arbor Investments announced that they have entered into an agreement under which Arbor will acquire Mars Petcare’s US-based Exclusive Brands (EB) business. The agreement includes the division of Mars Petcare that produces private label pet food products for a variety of US customers through five manufacturing plants. Financial terms were not disclosed. (Petfood Industry)

• MYOS RENS Technology Inc. announced the launch of MYOS Canine Muscle Formula, the company’s first Fortetropin-based veterinary product. Fortetropin is a proprietary bioactive composition derived from fertilized egg yolk that helps build lean muscle. (PRNewswire)

• CannPal Animal Therapeutics announced it has been granted a US FDA sponsor fee waiver for its lead drug candidate CPAT-01. The company is developing CPAT-01 for pain control in cats and dogs. The cannabis-derived drug candidate can now enter a phase 1B study, which will involve 48 dogs. (Animal Pharm)

• Wagz Inc. announced it has acquired Smart Pet LLC’s (SPT) Link AKC smart collar. Financial terms were not disclosed. (Pet Product News)

• EU Boehringer Ingelheim announced the EU launch of Bovalto Respi Intranasal, a new vaccine against bovine respiratory disease (BRD). The vaccine is registered in most European countries for the active immunization of cattle against bovine respiratory syncytial virus and bovine parainfluenza 3 virus. (Animal Pharm)

• UK Agricultural manufacturer Carr’s Group has acquired UK livestock trace element supplement manufacturer Animax for GBP 8.5 million ($7.2 million). The deal features initial cash consideration of GBP 6 million, with an additional cash consideration of up to GBP 2.5 million payable up until November 2020, based on the achievement of financial targets. (Animal Pharm)

• INDIA Alivira announced it has acquired an API manufacturing facility at Mahad, India, through its parent entity SeQuent Scientific Limited. The facility is approved by EUGMP, COFEPRIS Mexico and is compliant to global cGMP & EHS norms and is one of the largest manufacturer of Albendazole in the world with a dedicated production line. (company announcement)

• ECUADOR Neovia announced it has acquired Ecuadorian Balnova, a food manufacturer for the shrimp with 40,000 tons of production per year. Financial terms were not disclosed. (Feed Strategy)


• UK – BLUETONGUE The United Kingdom reported that bluetongue virus was identified in two cattle imported from France through routine post-import testing regime. Action is being taken to ensure that the risk of the disease’s spread is reduced, with movement restrictions at the affected premises. The two cattle were isolated and have been humanely culled. The UK has been officially free from the disease since July 2011. (Feedstuffs)

• US – ADUFA FEES The FDA announced the fiscal year 2019 rates and payment procedures for animal drugs subject to user fees under the Animal Drug User Fee Amendments of 2018 (ADUFA IV) and Animal Generic Drug User Fee Amendments of 2018 (AGDUFA III). To see the fee schedule go to . (FDA)

• WORLD – ANIMAL WELFARE The World Small Animal Veterinary Association (WSAVA) has highlighted the key role of veterinarians as advocates for animal welfare with the launch of its Animal Welfare Global Guidelines for Companion Animal Practitioners and the Veterinary Team. The Guidelines can be found at (association press release)

• US – POULTRY VACCINE RESEARCH The US Poultry & Egg Assn. (USPOULTRY) and the USPOULTRY Foundation announced the completion of a funded research project at the University of Georgia in which researchers created a new rapid method to develop live infectious bronchitis virus (IBV) vaccines. (Feedstuffs)


It appears from the limited number of stories this week that, as of the writing of these comments, most companies are very busy closing out the third quarter of the year rather than producing press releases. We continue to believe that the revenue growth in the industry in 2018 is likely to exceed that of the past couple of years. We’ve also heard rumblings from some sales managers that the 2019 budgets for revenue growth in a number of companies will be challenging! Based on these optimistic forecasts we look forward to learning about all of the new technologies and products that will be launched this fall for 2019.

Evidently, the research and development departments have been quite productive during 2018 and the government regulatory groups have been supportive in assisting in the approval process. Is that not the case with your firm? What is the age of your company’s product line? What percentage of revenue is being produced by products that have been on the market 2 years, 5 years, 10 years or 15 years? This is a measurement we often use in our consulting projects with clients. We’d be pleased to assist your firm with a third party evaluation of product and category life cycles. The results could tell you a great deal about the productivity of various current and past investments and whether or not there needs to be some modification in strategy!

Have a good weekend! Fall is here.

Ron Brakke

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