Animal Health News & Notes for February 8, 2002

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Brakke Consulting’s

Animal Health News & Notes for February 8, 2002
Copyright © Brakke Consulting, Inc.

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Company Earnings Releases

>  Novartis reported that sales for its animal health division for the full year 2001 were CHF 962 million ($573 million) a decrease of 7% from the prior year.  Sales were affected by the economic slowdown and substantial inventory reductions at US companion animal veterinary clinics, as well as the impact of foot-and-mouth disease in the UK.  Most other European countries reported good performances, as did Latin America and the Asia/Pacific region.  Sales were lifted by the strongly growing vaccine and aquaculture businesses, and by sales of Tiamutin and Fortekor, the last posting double-digit growth. (company press release)

>  Pharmacia reported that sales for its animal health division for the fourth quarter 2001 were $125 million, a 7% increase over the comparable period in 2000.  Sales for the year were $469 million, an increase of 6% over the year 2000.  The increase in sales for the fourth quarter 2001 was led by the strong performance of the injectable antibiotic brands, Naxcel/Excenel.  For the full year, the Naxcel/Excenel brands led the business’ growth, supported by strong contributions from the mastitis product line which includes the J-5 Vaccine.  (company press release)

>  Virbac S.A. reported growth of 7.6% to reach 350 million Euros ($310 million) in 2001. The good evolution of the Group’s sales in the second semester (+7%) and especially in the 4th quarter (+8% with respect to the same period in 2000) has significantly contributed to these results. The strong acceleration of the growth in the year-end is explained, for the most part, by the commercial success encountered when launching new products, especially Iverhart (canine parasiticide) and Virbamec (bovine parasiticide ) in the USA, the electronic chip for identifying companion animals in France and the horse parasiticide Equimax in the UK. (company press release)

>  Virbac Corporation clarified a statement made in its press release dated January 28, 2002 regarding the FDA approval of Iverhart. In the press release, Thomas L. Bell, president and chief executive officer of Virbac Corp., stated that the company expects Iverhart to help the company achieve its “stated goal of $20 million in net income by 2004,” and would like to clarify that it hopes to achieve $20 million in operating income by 2004. This 2004 goal is consistent with previous guidance issued by the company. (Business Wire)

>  Colgate-Palmolive reported that Technology-based new products and veterinary endorsements are driving growth at Hill’s. Strong results both domestically and internationally contributed to fourth quarter sales and volume growth of 4.5%.  Operating profits increased 11% in the quarter, reflecting logistics optimization programs worldwide and continued productivity improvements at Hill’s manufacturing facility in the Netherlands and elsewhere. Sales and unit volume each rose 5.5% for the year and operating profits increased 16% versus 2000. (Business Wire)

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IF YOU ARE ATTENDING THE BRAKKE OVERVIEW IN LAS VEGAS:

Please note that the presentation will be held in room 303 of the MGM Grand Conference Center (not the hotel).  We look forward to seeing you there.

2002 Animal Health Industry Overview
Wednesday, February 13, 2002
9:00 am
Western State Veterinary Conference
Room 303, MGM Grand Conference Center

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Company News Releases

>  Gary S. Baughman has been named Chairman, President and Chief Executive Officer of Doskocil Manufacturing Company.  Baughman comes to Doskocil with a broad background in managing consumer product businesses. Most recently, he was President & CEO of Fisher-Price, Inc. He replaces former Doskocil President, Larry E. Rembold, who is retiring.  Rembold will continue serving on the company’s board of directors.  (company press release)

>  eMerge Interactive and Excel Corporation announced an agreement to integrate eMerge’s verifEYE meat inspection system into Excel’s beef operations to finalize specifications for commercialization.  The verifEYE system is designed to help detect even minute traces of the organic contamination that can harbor bacteria such as E. coli.  The verifEYE technology was developed and patented by scientists at Iowa State University and the Agricultural Research Service of the USDA; eMerge Interactive hold exclusive rights to its commercialization.  (company press release)

>  Highland VetPharma announced that Elanco licensed its patented oral drug delivery system, ConSeal, for the development of a proprietary product for use in veterinary medicine.  The ConSeal system provides enhanced taste-masking for drug-related tastes and odors while suspending active ingredients in a chewable, flavored carrier. (company press release)

>  Anitech, a company that provides a pork grading probe and data collection system in Canada and Mexico, announced it has secured its first purchase order in the United States. The technology keeps detailed production records on individual carcasses and respond to HACCP regulatory requirements. (AnimalNet – Lean Trimmings)

>  EUROPE   European Patent Office has granted a patent on aspects of nuclear transfer technology in the cloning of nonhumans to Geron Corp., the company that owns the technology that cloned Dolly the sheep. Geron said its nuclear transfer patent portfolio now includes two issued U.S. patents, 19 patents that have been granted or accepted in other countries and over 60 pending patent applications worldwide for cloning technology. (Reuters)

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BRAKKE CONSULTING, INC.
2002 Animal Health Industry Manufacturers Directory

Brakke Consulting’s annual update of our Manufacturers Directory is at the printing company, and we will begin shipping the week of February 18, 2002 for those who have already placed orders.  If you are interested in obtaining a copy of this valuable resource, you can order this directory for $250.00 by contacting Jane Morgan at 972.243.4033 or email jmorgan@brakkeconsulting.com

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Animal Health News

>  HONG KONG   Hong Kong authorities culled thousands more chickens in a bid to control the third suspected outbreak in four years of avian influenza.  The Agriculture, Fisheries and Conservation Department (AFCD) killed 60,000 chickens at a farm in Yuen Long apparently infected in the new outbreak.  Some 100,000 chickens were slaughtered days ago on another farm in Yuen Long after some 10,000 birds died nearby, suggesting they were infected.
AFCD officers also began investigating a third farm in an area where approximately 30 chickens were found dead. (AnimalNet – Reuters)

>  UK   British cattle markets closed by last year’s outbreak of foot-and-mouth disease will reopen next week under strict cleanliness standards. Those markets not meeting the standards will be closed again.  Cattle markets were shut and livestock movements severely restricted after the foot-and-mouth outbreak was detected in February 2001. Some markets since have resumed limited trading. There have been no new cases of the airborne disease since Sept. 30, and the
World Organization for Animal Health declared Jan. 23 that Britain was free of the disease. (AP)

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Brakke Consulting Viewpoint

I’m writing this week’s comments from beautiful downtown Denver, where many people from the animal health industry are attending the 2002 Cattle Industry Annual Convention and Trade Show. The meeting is well attended and there is great anticipation regarding the address by President George W. Bush on Friday at 9:30AM (Denver time). This is the first time a standing president has addressed the cattlemen at the national convention in the 104-year history of the national association.

The exhibit received a through going over by the security dogs and other sniffing devices on Thursday night. It will not open again until about 11AM on Friday.  This should not make a great deal of difference since there were so few cattlemen on the trade show floor on Thursday that it was hard to tell whether the show was open or closed.    I’m sure there will be a surge in sales of both beef and products for beef producers following the Presidents address.  Watch the cattle futures!! At least something exiting is happening other than the Johnson Amendment, which seems to have every type of beef producer disturbed in one way or another. 

We have received notes from a number of you regarding innovative new products at your company.  We thank you for your responses.  For those of you who have not responded, we encourage you to send us a note at info@brakkeconsulting.com and share your company’s efforts with us.  The number of early responses we’ve received would indicate that we’re lacking in innovation.  We’ll see many of you next week in Vegas at the Western Veterinary Conference.

Have a great weekend and remember to eat “BEEF”. 

[Ron Brakke]

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