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Brakke Consulting’s
Animal Health News & Notes for November 17, 2006
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
earnings news
Bioniche
Gold Kist
PetSmart
Pilgrim’s Pride
Ridley
Seaboard
Spectrum Brands
Tyson
other news
Embrex
Merial
Novartis
Pfizer
Synbiotics
Virbac (merger)
Virbac (Iverhart Max)
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COMING IN DECEMBER:
2006 US FLEA CONTROL AND HEARTWORM MARKETS
ORDER NOW FOR EARLY-BIRD DISCOUNT
Brakke Consulting will be publishing our latest annual report on the US Flea Control and Heartworm Markets in December. The report will include the following valuable information:
– Information on a number of new products expected to enter the market in 2007
– Up-to-date pricing and sales data on the leading products
– Advertising budgets for flea and heartworm products
– Opinion survey of small animal veterinarians
The report on the US Flea Control & Heartworm Markets will be available for a purchase price of $4,500 if ordered BEFORE DECEMBER 1, and $4,995 after that date.
Please contact Dr. Lynn Fondon at (972) 243-4033 or lfondon@brakkeconsulting.com to pre-order the report or for more information.
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COMPANY EARNINGS RELEASES
> PetSmart, Inc. reported net income of $31.7 million for the third fiscal quarter of 2006. That compares with net income of $31.1 million for the third quarter of fiscal 2005. PetSmart generated net sales of $1.0 billion for the third quarter of 2006, up 14% from $907.7 million for the same period in 2005. Comparable store sales (sales in stores open at least a year) grew 6.8% in the third quarter. Pet services sales were $89.7 million, up 25% from the same period last year. (company website)
> Bioniche Life Sciences Inc. released first quarter results for Fiscal 2007 ended September 30, 2006. Total revenues were C$7.7 million (US$6.9 million) for this period, as compared to C$5.8 million in the same period in Fiscal 2006. This 33% increase is the result of strong marketing efforts by the Company’s Animal Health division. (company website)
> Spectrum Brands, Inc. announced results for the fourth quarter and year ended September 30, 2006. Global Pet segment sales for the fourth quarter were $140 million, a 7% increase compared to the fourth quarter last year attributable largely to robust growth from Tetra branded products. Global Pet segment sales for the year were $543 million compared to segment sales of $286 million in FY 2005. (company website)
> Ridley Inc. reported earnings results for its fiscal 2007 first quarter ended September 30, 2006. Net earnings were $1.8 million compared with $2.5 million in the comparable period last year. Revenues were $124 million for the quarter, compared to revenues of $121 million in the comparable period last year. (company website)
> Tyson Foods, Inc. reported results for the fourth quarter of fiscal 2006 ended September 30. Fourth quarter 2006 and 2005 sales were both $6.5 billion. Net loss was ($56 million) compared to net income of $117 million for the fourth quarter of fiscal 2006 and 2005 respectively. Sales for the full year 2006 were $25.6 billion compared to $26.0 billion in 2005. Net loss for the year was ($196 million) compared to net income of $372 million in 2005. (company website)
> Pilgrim’s Pride reported a net loss of ($34.2 million) on total sales of $5.2 billion for the 12 months ended Sept. 30, 2006. Included in net income for fiscal 2006 are non-recurring U.S. and foreign tax expenses of $25.8 million. In 2005, the company reported earnings of $265 million on sales of $5.7 billion. (company website)
> Gold Kist Inc. reported net earnings of $3.2 million for the 13 weeks ended Oct. 1, 2006, compared with $25 million last year, citing low broiler prices and costs related to Pilgrim’s Pride Corp.’s attempt to takeover the company. Gold Kist’s fourth-quarter sales were $544.3 million, down 7% from $582.7 million a year ago. For the 12 months ended Sept. 30, 2006, Gold Kist swung to a loss of ($17.7 million), compared with $112.2 million in 2005. (Meating Place)
> Seaboard Corp, parent of Seaboard Farms, reported financial results for the third quarter. The company reported earnings of $61.2 million for the quarter that ended Sept. 30, a 16% increase from the same quarter last year. Sales for the quarter were $678 million, up 6.5% from $637 million last year. (PigSite.com)
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BRAKKE CONSULTING, INC.
SIGN UP NOW TO ATTEND Brakke Consulting’s 2007 INDUSTRY OVERVIEW
Brakke Consulting will once again be presenting our 2007 Industry Overview at the North American Veterinary Conference and the Western Veterinary Conference.
NAVC (North American Veterinary Conference)
The 2007 Industry Overview will be presented on Monday, January 15 from 2:00 pm – 4:00 pm at the Gaylord Palms.
WVC (Western Veterinary Conference)
The 2007 Industry Overview will be presented on Monday, February 19 from 2:00 pm – 4:00 pm at the Four Seasons hotel adjacent to the Mandalay Bay.
Early registration is $325 for the first company attendee and $300 for each additional attendee from the same company at the same presentation. To register online, go to the home page at www.brakkeconsulting.com and click on the registration link. You may also register by calling Jane Morgan in the Dallas office at 972-243-4033.
www.BrakkeConsulting.com
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COMPANY NEWS RELEASES
> Pfizer Animal Health announced it has agreed to acquire Embrex, Inc. Under the terms of the agreement, Pfizer will acquire through a merger 100% of the equity of Embrex for $17 per share in cash, making Embrex a wholly-owned subsidiary of Pfizer Inc. The transaction has an aggregate equity purchase price of approximately $155 million. In 2005, Embrex reported revenues of $52.5 million. (PRNewswire)
> Merial, the maker of CORID (amprolium), announced that the product will soon be available as an in-feed formulation, making prevention and treatment of coccidiosis even easier for beef and dairy producers. The new in-feed formulations can be blended with feed or used as a topdress to break the coccidia life cycle and prevent or treat an outbreak of bloody scours. (company press release)
> Novartis Animal Health chief executive George Gunn has been elected president of IFAH for two years. Mr. Gunn succeeds former Pfizer Animal Health president Pedro Lichtinger. Mr. Gunn, a Scottish veterinarian, has headed up Novartis Animal Health since 2004, and was previously responsible for the worldwide animal health business of Pharmacia. (Animal Pharm)
> Virbac S.A. and Virbac Corporation announced the completion of the merger of Labogroup Holding, Inc., an indirect wholly owned subsidiary of Virbac S.A., into Virbac Corporation. As a result of the merger, Virbac Corporation is now 100% owned by the Virbac Group and is delisted from NASDAQ. (PRnewswire)
> Virbac announced the planned launch of Iverhart Max (ivermectin/pyrantel pamoate/praziquantel) in December 2006, a new product in Virbac’s veterinary line of endoparasitic products. The new product is backed by the Iverhart Max Guarantee. In this commitment to veterinarians and pet owners, Virbac will cover the cost of treatment should an animal test positive for heartworms, roundworms, hookworms or tapeworms while taking Iverhart Max. (PRNewswire)
> The USDA granted full marketing and distribution approval to Synbiotics for its Flu Detect avian influenza (AIV) test strip kits. The company had been marketing Flu Detect in the US under a conditional USDA license. Flu Detect tests for all Type A antigens, including H5N1 and other subtypes, delivering results in approximately 15 minutes. The kit includes all necessary materials for testing and does not require refrigeration. (Animal Pharm)
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ANIMAL HEALTH NEWS
> JAPAN – BSE Japanese officials confirmed the country’s 30th case of BSE. The animal was a 5-year-old dairy cow from a ranch on the island of Hokkaido. (Meating Place)
> US – OFFICIAL ANIMAL ID NUMBERS USDA has released official Animal Identification Numbers (AIN) as part of the National Animal Identification System. Tags are available to livestock producers who want to voluntarily participate in the program. An official tag must contain a picture of the US shield, start with the number 840 and include the words, “Unlawful to Remove.” Producers who have already registered their premises can get the official tags by visiting the USDA AIN website. Select the desired tag from the available list, then call the manufacturer, distributor or seller listed there and order the tags. Official AIN tag numbers will be linked to your premises. (Drovers Alert)
> US – ARS PATENTS BACTERIAL REDUCTION PRODUCT The USDA’s Agricultural Research Service patented a chlorate based compound that, when mixed into livestock feed or water 2 days before slaughter, could help reduce the risk of Salmonella and E. coli O157:H7 infection in meat or poultry products. Researchers are working to further develop the product for regulatory approval. (Feedstuffs)
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BRAKKE CONSULTING VIEWPOINT
As we approach the Thanksgiving holiday week here in the US, it’s time to reflect on our activities and experiences during 2006. It’s been another good year for the industry, and our firm has been one of the supporting beneficiaries.
We want to thank each of you for your business and support in 2006. Without our clients, we’d actually have to look for a real job.
We want to wish all of our readers and clients an enjoyable and safe holiday season.
Have a great weekend!!
Ron Brakke
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