Animal Health News & Notes for April 27, 2018

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Brakke Consulting’s
Animal Health News & Notes for April 27, 2018
Copyright © Brakke Consulting, Inc.

Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting news
Animal Health Industry Overview webinar
Market research reports

earnings news
Abaxis
Boehringer Ingelheim
Elanco
Hill’s
Nestle SA
Orion
Zenoaq

other news
Akorn
Aurora Pharmaceutical
DNA Genetics
DSM
Elanco
Fresenius Kabi
Hendrix Genetics
Henry Schein
Hypor
Kemin Industries
Neogen
PHARMAQ
Recombinetics
Vets First Choice
Vets First Corp
Zoetis

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ANIMAL HEALTH INDUSTRY: REVOLUTION OR EVOLUTION?
BRAKKE CONSULTING SPECIAL 2-HOUR WEBINAR
MAY 22, 2018
10:00 am – 12:00 pm CDT
REGISTER NOW
The largest distributor just sold off its animal health business. One of the largest pharmaceutical companies suffered a 24% drop in its US food animal business in 2017. Corporate consolidators now own nearly half of all specialty-referral veterinary practices. Are these trends . . . or radical changes in direction for the industry? How do they impact your company? Your job?

Learn about all the factors affecting the global animal health and nutrition industry in a special two-hour webinar on May 22. Brakke experts Dr. Bob Jones and John Volk will present an up-to-the-minute edition of Brakke’s Annual Industry Overview. In addition to the presentation, you’ll have an opportunity to interact with seminar participants and ask questions. Plus you’ll receive a copy of the complete presentation.

The Overview provides the most current perspective available on the industry in the US and around the world. Register today: go to www.brakkeconsulting.com and scroll to the “What’s New Box. Registration is $395.

www.BrakkeConsulting.com

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COMPANY EARNINGS RELEASES

• Boehringer Ingelheim reported results for the full year 2017. Animal Health revenues were EUR 3.90 billion ($4.67 billion), an increase of 167% compared to 2016 due to the acquisition of Merial. US animal health revenues were EUR 1.68 billion ($2.01 billion), an increase of 154%. (company website)

• Eli Lilly reported financial results for the first quarter of 2018. Sales for Elanco were $761 million, a decline of 1% compared to the prior-year quarter. (company press release)

• Nestle SA reported results for the first quarter of 2018. Petcare sales were CHF 3.02 billion, an increase of 2% compared to the comparable prior-year quarter. (company website)

• Colgate-Palmolive reported results for the first quarter of 2018. Net sales for Hill’s Pet Nutrition were $584 million, an increase of 5% over the comparable prior-year quarter. (company press release)

• Nippon Zenyaku Kogyo (Zenoaq) reported results for its full fiscal year ended March 31, 2018. The firm reported a 4.5% year-on-year improvement in revenues to ¥34,200 million ($318 million). (Animal Pharm)

• Abaxis reported financial results for the fiscal year ended March 31, 2018. Veterinary market revenues were $202 million for fiscal 2018, up 8% year-over-year. (PRNewswire)

• Orion reported results for the first quarter of 2018. Animal health revenues totaled EUR 20 million ($24 million), representing year-over-year growth of 4.6%. (Animal Pharm)

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COMPANY NEWS RELEASES

• Henry Schein, Inc. and Vets First Choice announced plans for Henry Schein to spin off its Animal Health business and merge it with Vets First Choice. The new company, to be called Vets First Corp., will have combined pro forma 2017 sales of approximately $3.6 billion, and will be a publicly traded company. (company press release)

• Neogen announced it has expanded its Prima line of animal safety products with the addition of the Prima-Shot, an accurate 50ml repeater syringe with a dose dial that enables the user to adjust from 0.5ml to 5ml, in 0.5ml increments. (Animal Pharm)

• Aurora Pharmaceutical announced that the FDA has approved the packaging of Altren (altrenogest) Solution 0.22% in a convenient 150 mL bottle. The new 150 mL bottle is designed to effectively treat a single mature mare once daily for 15 consecutive days for the suppression of estrus. (company press release)

• Fresenius Kabi reported that it is terminating the previously announced acquisition of Akorn, including Akorn Animal Health. According to Fresenius, an independent investigation into alleged breaches of US FDA data integrity requirements relating to product development at Akorn led to the cancellation of the transaction. Akorn categorically disagreed with Fresenius’ accusations, and has filed a complaint in Delaware Chancery Court, which asks Fresenius be required to fulfill its obligations under the definitive merger agreement. (Animal Pharm)

• Kemin Industries announced the launch of a new Kemin Animal Nutrition & Health division, AquaKulture. The AquaKulture division will direct the expertise of Kemin toward aquatic species and aqua feed. (Feedstuffs)

• DSM introduced its Rovimix HyD Solution for swine to boost vitamin D status, improve overall health, and support immune function more quickly after weaning. (National Hog Farmer)

• Hypor, the swine breeding business of Hendrix Genetics, announced it is joining a research alliance initiated by Recombinetics and DNA Genetics to develop a precision breeding technology that results in male piglets born “naturally castrated.” (Feedstuffs)

• CHINA Zoetis announced the start of construction on a combined global manufacturing and supply and research and development center in Suzhou, China, that will focus on development and production of quality vaccines for swine, cattle, fish and companion animals. Zoetis also marked the opening of an interim research and development facility nearby in Suzhou where the company’s PHARMAQ business will begin to develop vaccines for the farmed fish industry in China. (Business wire)

• EU The European Medicines Agency’s Committee for Medicinal Products for Veterinary Use (CVMP) announced a positive opinion for a label extension for Elanco’s Credelio (lotilaner), which adds additional lower tablet strengths of 12 mg and 48 mg for the treatment of flea and tick infestations in a new target species (cat). Credelio is currently authorized in Europe as a chewable tablet solely for dogs. (Animal Pharm)

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ANIMAL HEALTH NEWS

• US – MINOR SPECIES DRUGS The FDA has issued draft guidance for industry, “The Index of Legally Marketed Unapproved New Animal Drugs for Minor Species.” Drugs listed on the Index are unapproved but can be legally marketed for specified use(s) in specified minor species. The Index is not available for drugs intended for minor use in major species (such as horses, cattle, pigs, turkeys, chickens, dogs, and cats). To read the guidance, go to https://www.fda.gov/downloads/AnimalVeterinary/GuidanceComplianceEnforcement/GuidanceforIndustry/UCM575782.pdf. (FDA)

• EU – ALLERGY VACCINE Scientists at the University of Bern and the University of Zurich, in co-operation with private-sector partners, have developed a vaccine that shows promise in treating insect sting hypersensitivity (summer eczema) in horses and allergic dermatitis in dogs. The vaccine therapy is based on virus-like nanoparticles, which serve as a carrier of a T-cell epitope, an enhancer of the body’s immune response. The clinical potential of the vaccine for use in veterinary medicine is described in two articles in the Journal of Allergy and Clinical Immunology. (Horsetalk.co.nz)

• US – EXOTIC TICK The New Jersey Department of Agriculture announced that the East Asian tick, also known as Longhorned tick or the bush tick, which was discovered on a Hunterdon County farm last year, has survived the winter, despite steps taken when the incident was reported to eradicate the insect from the farm by using a chemical wash on the sheep and removing tall grass where the they are known to dwell. State and federal Department of Agriculture employees will be working with the public to determine if the tick has spread and to educate the public about protecting their livestock and pets from the pest. (nj.com)

• US – ANTIBIOTIC RESEARCH Researchers from the University of Illinois at Chicago (UIC) and Nosopharm, a biotechnology company based in Lyon, France, are part of an international team reporting on the discovery of a new class of antibiotics. The antibiotic, first identified by Nosopharm, is unique and promising on two fronts: its unconventional source, and its distinct way of killing bacteria, both of which suggest that the compound may be effective at treating drug-resistant or hard-to-treat bacterial infections. Called odilorhabdins (ODLs), the antibiotics are produced by symbiotic bacteria found in soil-dwelling nematode worms that colonize insects for food. (Vet Advantage – Feedstuffs)

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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:

• Pain Management Products for Dogs and Cats (April 2018)
• Veterinary Technical Services Study (March 2018)
• Equine Mega Study IV (January 2018)
• Distributor Effectiveness Study (December 2017)
• US Flea Control and Heartworm Markets (December 2017)
• Cancer in Dogs and Cats (fall 2017)
• New Strategies for Health & Performance in US Livestock & Poultry Production (2017)
• Manufacturer Sales Force Effectiveness Study (2016, biannual report coming in December)

Prices for reports vary. For more information about these or other reports, visit our website at https://brakkeconsulting.com/our-services/information/multi-client-studies/ or contact us at info@BrakkeConsulting.com.

www.BrakkeConsulting.com

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BRAKKE CONSULTING VIEWPOINT

This has been a rather exciting week in the animal health industry. There has been lots of speculation regarding the actual meaning of various announcements and trends. The industry has been filled with both rumors and facts related to the current and future status of the Elanco business. It is often challenging to separate facts from rumors.

However, one story that was clear was the announced spin-off of the leading veterinary distributor into a new public company. This move is attempting to create a new environment where manufacturers, distributors and veterinary clinics are brought closer to the pet-owning public. It appears to us that IT technology, social media, and veterinary medicine (including tele-medicine), when combined and integrated, could be a new paradigm for the industry. How your firm understands and adopts these trends will be important in the growth of your business. Can we help?

Have a great weekend!

Ron Brakke

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