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Brakke Consulting’s
Animal Health News & Notes for February 17, 2017
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
Market research reports
2017 Industry Overview at WVC
earnings news
Alivira Animal Health
Animalcare
Jaguar Animal Health
Nestle
Nexvet Biopharma
Pilgrim’s Pride
Trupanion
Zoetis
other news
Alivira Animal Health
Cal-Maine Foods
Ceva
Evonik
Happy Hen Egg Farms
Nexvet Biopharma
Ocean Harvest Technology
Pilgrim’s Pride
Sanderson Farms
Smartbow
Tyson Foods
Zoetis (Smartbow)
Zoetis (Stronghold Plus)
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BRAKKE CONSULTING, INC.
MARKET RESEARCH REPORTS
Brakke Consulting is an industry leader in timely market research on topics of high interest to stakeholders in the animal health, pet and veterinary markets. Reports published in the past year include:
• New Strategies for Health and Performance in US Livestock and Poultry Production
• US Flea Control and Heartworm Markets (annual report)
• Manufacturer Sales Force Effectiveness Study (biannual report)
• US Veterinary Generic Drugs Market
• Changing Pet Ownership Study
• US Companion Animal Veterinary Technical Services Study
• Pain Management Products for Dogs and Cats (annual report)
• Distributor Effectiveness Study (biannual report)
Prices for reports vary. For more information about these reports or to see the complete list of available reports, visit our website at https://brakkeconsulting.com/multi-client-studies.aspx or contact us at info@BrakkeConsulting.com.
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COMPANY EARNINGS RELEASES
• Zoetis reported results for the full year 2016. The company reported revenue of $4.9 billion, an increase of 3% compared with 2015 revenue. Net income was $821 million, compared with $339 million for 2015. (company website)
• Nestle reported results for the full year 2016. Petcare sales were CHF 12.1 billion ($11.8 billion), an increase of 5% compared to the prior year. (company website)
• SeQuent Scientific announced financial results for its fiscal third quarter. Sales for subsidiary Alivira Animal Health were $27.5 million, an increase of 10% over the company’s second fiscal quarter. (Animal Pharm)
• Animalcare reported results for the first half of fiscal 2017 ended December 31, 2016. The company recorded 12% sales growth to GBP 8.0 million ($9.9 million). The firm’s operating profit climbed by 23.5% to GBP 1.85 million ($2.3 million). (Animal Pharm)
• Jaguar Animal Health reported results for the full year 2016. Revenues were $141,523 in 2016, a decline of 45% from the prior year. Net loss was $(14.7) million compared to net loss of $(16.3) million in 2015. The company had cash and cash equivalents of $951,000 as of December 31, 2016. (company website)
• Nexvet Biopharma reported results for its second fiscal quarter of 2017 ended December 31, 2016. The firm recorded a net loss of $(5.4) million, compared to a $(5.7) million loss in the same period of 2015. (Animal Pharm)
• Trupanion, Inc. announced financial results for the year ended December 31, 2016. Total revenue was $188 million, an increase of 28% compared to full year 2015. Net loss was $(6.9) million, compared to a net loss of $(17.2) million in the full year 2015. Total enrolled pets was 343,649 at December 31, 2016, up 18% over the prior year period. (company website)
• Pilgrim’s Pride Corp. reported results for the full year 2016. Net sales were $7.93 billion, a 3% decrease from 2015. Operating income was lower at $713.5 million, down 37% from $1.04 billion in 2015. (Feedstuffs)
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COMPANY NEWS RELEASES
• Zoetis and Smartbow announced an exclusive, three-year worldwide distribution agreement for the latter’s Eartag LIFE device. The product is a new type of eartag developed by Smartbow for use in cattle breeding, which also enables animal identification and behavior monitoring. Smartbow will receive a EUR 5 million ($5.3 million) expansion investment from Zoetis to further develop its pipeline. (Animal Pharm)
• Ceva Animal Health announced that it has begun selling its feline flea and tick control product Catego through Amazon. Additionally, all US-based PetSmart stores will begin carrying Catego in March, and independent pet stores will be able to sell the product as well. (PRNewswire)
• SeQuent Scientific announced it is divesting its human health business to focus on animal health subsidiary Alivira Animal Health. (Animal Pharm)
• Nexvet Biopharma announced it has received a non-exclusive license to certain patents in the Pfizer portfolio for anti-NGF antibodies. Nexvet will pay Pfizer a $1 million upfront license fee and may pay additional amounts based on regulatory and sales milestones. The firm may also pay Pfizer a royalty. (Animal Pharm)
• Evonik announced the US launch of the poultry probiotic GutCare PY1, its first in-house-developed poultry gut probiotic. After its US introduction the product will become available globally. (Animal Pharm)
• Ocean Harvest Technology announced the North American launch of its flagship product OceanFeed Swine, a patented, all-natural, seaweed-based, animal feed ingredient. According to the company, OceanFeed Swine has a positive impact on gut health and immunity, without affecting performance or pork quality. (Econotimes.com)
• Tyson Foods disclosed it has received a subpoena from the US Securities and Exchange Commission following allegations it conspired with rivals including Pilgrim’s Pride and Sanderson Farms for years to fix chicken prices. US poultry buyers claimed in a lawsuit in 2016 that poultry producers had colluded since 2008 to reduce output and manipulate prices. (Vet Advantage – Reuters)
• Cal-Maine Foods Inc. announced a definitive agreement to acquire substantially all of the assets of Happy Hen Egg Farms Inc. related to its commercial shell egg production, processing, distribution and sales. The assets to be acquired include commercial egg production and processing facilities with a current capacity of approximately 350,000 laying hens and related distribution facilities in Texas. Financial terms were not disclosed. (Feedstuffs)
• EU Zoetis Inc. announced that the European Commission has granted the company a license for Stronghold Plus (selamectin/sarolaner), a topical combination of parasiticides that treats ticks, fleas, ear mites, lice and gastrointestinal nematodes and prevents heartworm disease in cats. (company press release)
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ANIMAL HEALTH NEWS
• KOREA – FMD South Korea reported a large outbreak of foot-and-mouth disease (FMD), with some 100 cattle found to have been infected with the type A strain of the virus. The affected cattle will likely be culled. A quarantine area has been established and premises disinfected, and a vaccination strategy is being employed. (Animal Pharm)
• US – PET AMENITIES JFK Airport announced the opening of several features of The Ark, the airport’s luxury pet terminal: the Equine & Livestock Export Center; the Aviary In-Transit Quarantine; and the “Pet Oasis.” The Pet Oasis is intended as an all-purpose animal wellness center, offering veterinary care and basic travel services, as well as micro-chipping, health check-ups and “premium service individual animal reports.” Phase 2 will include a grooming area and a full import/export center for horses. The third and final phase will include a full veterinary clinic, a veterinary blood laboratory, and pet boarding and grooming facility. (NY.curbed.com)
• US – CANCER TREATMENT The University of Minnesota announced the breakthrough trial of a new drug that improves survival rates in dogs diagnosed with hemangiosarcoma (HSA). The drug, eBAT, was tested on 23 dogs of various breeds and improved the 6-month survival rate to approximately 70%. The research and results were published recently published in the Journal of Molecular Cancer Therapeutics. (Veterinary Practice News)
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BRAKKE CONSULTING, INC.
2017 INDUSTRY OVERVIEW
REGISTRATION FOR OVERVIEW AT WVC
Brakke Consulting is pleased to announce the 2017 Industry Overview. The 2017 US Animal Health Industry Overview will be presented at the Western Veterinary Conference in Las Vegas, Nevada:
• WVC: Tuesday, March 7, 2017, 2:00 – 4:00 pm, Four Seasons.
To register, go to www.BrakkeConsulting.com and scroll down to the “what’s new” area of the home page.
www.BrakkeConsulting.com
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BRAKKE CONSULTING VIEWPOINT
The revenue and earnings releases this week reflect that there was steady averaged growth of about 4% for the leading companies in animal health and pet care, which fits with our earlier projections for 2016. Smaller and medium sized companies that have been in the marketplace for some period of time reported double digit growth rates, while two of the early stage companies demonstrated again how challenging and costly it is to develop and move products through the regulatory process to commercialization. Licensing agreements and new product launches filled out the balance of this week’s news.
We also pointed out early in the newsletter that Brakke Consulting produced a number of quality reports for the industry in 2016. It is our plan to expand our animal health studies in 2017 with some already underway. We cover some of the findings in these studies in our annual industry overview which will be held in Las Vegas on March 7th. We look forward to seeing you there.
Have a great weekend!
Ron Brakke
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This electronic newsletter is the sole property of Brakke Consulting, Inc.
Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting, Inc.
For more information about Brakke Consulting’s services and syndicated studies, visit our website at www.brakkeconsulting.com.
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Dallas, TX 75234 USA
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