Animal Health News & Notes for December 7, 2001

****************************************************************
Brakke Consulting’s
Animal Health News & Notes for December 7, 2001
Copyright © Brakke Consulting, Inc.
****************************************************************
The 2001 Brakke Flea & Heartworm Study is now available.
One more week to receive the discounted price – ORDER YOUR COPY NOW!

Each fall, Brakke Consulting updates its annual report on the US Flea Control and Heartworm Markets.  In addition to updated sales figures for the major products, the study includes two new surveys of small animal veterinarians and retail pet stores, as well as a special section covering the effect of the September 11 terrorist attacks on veterinary income.  The study also includes information on Fort Dodge’s new ProHeart 6 heartworm preventative, Novartis’ Capstar flea adulticide, the arrival of generic ivermectin heartworm preventatives, and a review of products in development. 

Orders placed before December 15 will receive a discounted price of $3,250.  After that time, the regular price of $4,000 will be charged.  To order your copy of the report, please contact us at lfondon@brakkeconsulting.com  or call (972) 243-4033. 

****************************************************************
Company News Releases

>  Bayer AG’s supervisory board is expected to approve a plan transforming the group’s four divisions into separate legal entities. Bayer has been urged by investors for years to separate its traditionally higher-margin drugs unit from its chemicals business.  The company has previously announced plans to put its key healthcare and agro-chemicals divisions into separate legal units, and has said it might do this with its chemicals unit. Its fourth division is polymers. (Reuters)

>  The FDA approved a supplemental new animal drug application (NADA) filed by Pfizer, Inc. that provides for a once daily, 2-milligram per pound (mg/lb) dosage of carprofen (Rimadyl), by oral caplet, for the relief of pain and inflammation associated with osteoarthritis in dogs. Rimadyl was previously labeled for twice-daily dosing.  (AnimalNet – Federal Register)

>  The FDA approved an abbreviated new animal drug application (ANADA) filed by First Priority, Inc. The ANADA provides for oral use of ivermectin solution in horses for the treatment and control of various species of internal and cutaneous parasites. (AnimalNet – Federal Register)

>  ABAXIS, Inc. announced the introduction of the VetScan Canine Heartworm Antigen Test and the signing of an exclusive multi-year OEM/distribution agreement with SA Scientific, a privately held developer and manufacturer of a wide-range of one-step rapid tests for various diseases. The VetScan Canine Heartworm Antigen Test is the first of a portfolio of rapid antigen tests ABAXIS intends to introduce to the veterinary market in the next 12 months. Future products are expected to address Feline Heartworm, Canine Parvovirus Antigen test and Feline Leukemia Virus Antigen test. (PRNewswire)

>  ImmuCell Corporation announced that the USDA approved Tip-Test: BLV, the Company’s Bovine Leukemia Virus antibody test kit. The product licensure represents ImmuCell’s fourth USDA approved product for the dairy and beef industry. Tip-Test: BLV is the Company’s second diagnostic product utilizing its rapid on-site testing technology; the Company obtained USDA approval of Tip-Test: Johne’s in December 1999. (Business Wire)

>  Smithfield Foods Inc. and meatpacker American Foods Group Inc. have ended discussions for Smithfield’s planned acquisition of American Foods. The companies did not disclose why talks were terminated.  The companies had announced an agreement in principle for the deal. If it had been completed, Smithfield’s third beef processing acquisition of the year would have propelled the company into the number four position in the industry, with a 9% market share. (AgWeb)

>  CANADA   Milestone Medica, Foragen and Immunotech Developments Inc. announced a C$1.8 million deal that will focus on developing a novel treatment for stress-related conditions in animals. The investment will be directed at developing a new anti-stress compound that will enhance animal health and counteract disease and weight loss in animals. (AnimalNet)

*******************************************************************
Brakke Consulting’s 2002 Animal Health Industry Overview

Every year Brakke Consulting inaugurates our Annual Industry Overview presentations at the North American and Western Veterinary Conferences.  Seating for these presentations is always limited and fills quickly.  We will be presenting the Overview twice at the North American Conference in Orlando and once at the Western Conference in Las Vegas.  You can register online by visiting our website homepage at www.brakkeconsulting.com and clicking on the time of the presentation at the location you wish to attend.  This information is located towards the bottom of our homepage beneath the world map.  Registration is $295.00 ($325.00 after 1/4/02) for the first attendee at the conference location from a company and $245.00 ($275.00 after 1/4/02) for each additional attendee at the conference location from the same company.

– North American Veterinary Conference
 Monday, January 14, 2002
 9:30 am OR 1:30 pm
– Western Veterinary Conference
 Wednesday, February 13, 2002
 9:00 am

For additional information please contact Jane Morgan at 972-243-4033 or by email at jmorgan@brakkeconsulting.com

*******************************************************************
Animal Health News

>  Veterinary Business Development Ltd. is sponsoring a conference entitled “EU Expansion: The Impact on Animal Health, Food Safety, and Agriculture.  Can We Survive It?” December 12-13 in Brussels.  This conference will address the problems and opportunities that future enlargement of the European Community will bring to agriculture, food safety, and animal health.  For more information, contact Dr. G.N. Henderson at nickhen@pncl.co.uk.

>  US   Genesis Bioventures, Inc. (formerly BioLabs, Inc.) announced that one of its portfolio companies, Prion Developmental Laboratories, Inc. (PDL) is currently in late-stage discussions with a European pharmaceutical company to provide them with an easy-to-use, patents pending rapid strip test for detecting Bovine Spongiform Encephalopathy (BSE).  The lateral flow strip test, developed by scientists at PDL, has been tested at Case Western Reserve University and the Institute for Basic Research and Developmental Disabilities. It is similar to a home pregnancy test and will be used on-site using brain tissue. The test takes less than five minutes to complete with
accurate, easily interpreted results. (PRNewswire)

>  JAPAN   Officials have confirmed Japan’s third case of bovine spongiform encephalopathy.  The most recent case was detected in a cow from the central Gunma Prefecture. The government is investigating whether inadequately sterilized meat and bone meal imported from Italy might be partly to blame for the outbreak. (Meating Place)

>  FINLAND  Concern is mounting that Finland, one of three European countries not to have a case of BSE, may be facing its first incident.  Routine tests on a slaughtered sick cow could have revealed BSE. The Finnish national veterinary medicines institute says that the first results are suspicious but BSE cannot be confirmed for at least a week or two while other tests are being carried out. The suspect case is in a cow born in 1995 on a farm in Uleaaborg in the north of Finland. (Wattnet)

*******************************************************************
Brakke Consulting Viewpoint

We believe 2002 will provide a great deal of excitement in the consolidation area.  The level of top- and bottom-line growth being forced upon animal health management by the parent companies could make it a rather uncomfortable year.  We see total market next year to be flat with maybe best case being a 1% or 2% growth.  The result before year-end 2002 will be the consolidation of one or more of the top 15 companies.  While no company has their animal health division for sale, we are finding an increasing degree of concern over the animal health growth opportunity. There is not a lot of good news to report regarding the future of animal health other than most of these businesses are quite profitable. In addition, the pipeline of new products for introduction in the next 12 months seems to be at an all time low.  Most companies are scrambling to find a few new products either via reformulation, acquisition, or in-licensing.

We believe that consolidations will provide the best opportunity for growth in manufacturers, distributors, and producers in 2002.  Brakke Consulting has a full line of services in the merger, divestiture, and licensing area.  We would be pleased to assist your firm with your needs in this area in 2002.

[Ron Brakke]

********************************************************************
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.

If this email was forwarded to you and you would like to be added to the circulation list, please send an email to info@brakkeconsulting.com (mailto:info@brakkeconsulting.com) with “add” typed in the subject line, and your name, title, and company affiliation in the body of the message, and you will be added to the mailing list.  If you would like for us to remove your name from the circulation list, please send an email to info@brakkeconsulting.com (mailto:info@brakkeconsulting.com) with “remove” and your name typed in the subject line.