***********************************
Brakke Consulting’s
Animal Health News & Notes for January 26, 2024
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
************************************
IN THE NEWS:
Brakke Consulting News
Industry Overview at WVC
Complimentary WVC seminars: Recruiting and Expanding into the Japanese Market
Pet Medications Home Delivery Study – now available
Earnings News
Vetoquinol
Other News
Agria
Benchmark Holdings
Bimeda
Center Point Bio-Tech
Ceva
Destination Pet
Diamond Animal Health
Eco-Shell
EMERGE US Holdings
Fear Free
Globe Buddy
Granite Creek Capital Partners
IGNITE Veterinary Solutions
Independence Pet Group
Inventory Ally
Mars Corporation
MyAnIML
Nationwide
Odie Pet Insurance
Petco
PetPath
PetRx
Precision Livestock Technologies
Scout Bio
Shepherd Veterinary Software
Tiny Fund I
Veterinary Pharmaceutical Solutions
VOSD
WholesalePet.com
Ÿnsect
*****************************************
Brakke Consulting
Complimentary 1-hour seminars
Monday, February 19, 2024 at WVC
Four Seasons Hotel, Acacia Room
Stepping into the Japanese Animal Health Market
9:30 – 10:30 am
Would you like to grow your companion animal business outside the US but are not sure where and now? How about in one of the most valuable markets in the world, Japan? Brakke Consulting can help.
For the first time, Brakke Consulting will be presenting a seminar on taking the first step in Japan at the Western Veterinary Conference on Monday, February 19th from 9:30-10:30 am in the Acacia 1 room at the Four Seasons Hotel. This seminar will be presented by Yuki Ujimasa, DVM, MS, a Brakke senior consultant based in Tokyo, who has broad experience in the Japanese market. Yuki will focus on the steps needed to get your product approved by the regulatory authorities in Japan. This will be a great seminar for companies looking to expand their global business but need some help to get started. There is no cost, but please RSVP here to secure your seat.
Recruiting Seminar
11:00 – 12:00 Noon
Hiring managers and talent professionals, join us for an informative and practical seminar at VMX hosted by Executive Recruiter Jeff Santosuosso. We’ll review and discuss the latest ways of breaking through the clutter to attract and hire top talent in today’s increasingly challenging global marketplace. Specific topics will include: attracting Millennials and Gen Z, using video, how to avoid pitfalls in recruiting, and more. If you’re in the market for talent, we know you’ll leave our seminar better equipped and more confident about hiring those stars for your team. There is no cost, but please RSVP here to secure your seat.
*********************************************
EARNINGS NEWS RELEASES
- Vetoquinol reported results for the full year 2023. Sales were EUR 529 million ($576 million), a year-over-year decline of 2% (stable at constant exchange rates). (businesswire)
*********************************************
Brakke Consulting
Presented at WVC: Monday, February 19th, 2-4 pm, Four Seasons Hotel
How did the top animal health companies perform in 2023? And what critical issues will impact industry performance in 2024? Answers to these questions and more will be covered at Brakke Consulting’s annual Industry Overview at the 2024 WVC conference. Key topics and presenters include:
- Industry and top global company performance, presented by Bob Jones
- What 2023 looked like in vet practices and with pets, presented by John Volk
- An overview of the post-COVID home delivery channel for pet medications including results from the new Pet Medicines Home Delivery Study, presented by Rich Hayworth
- With recent advancements in technology-related products in livestock production and pet care, where is the value and what are the risks? presented by Lourens Havenga
Also, again at both events, you will be able to hear directly from a panel of top leaders in the animal health industry. Moderated by Paul Casady, the topic for the panel will be “Opportunities and Challenges in 2024.” The panel for WVC will be :
- David Markwalder, Chief Veterinary Officer, Mission Veterinary Partners.
- Christine Royal, Vice President, US Companion Animal and Equine Business, Merck Animal Health.
This information-packed 2-hour session will be especially valuable for executive leadership, sales and marketing, strategy, and finance managers and for decision makers in the animal health industry.
Click here to register for WVC
You can also email Amanda McDavid or call at 336-396-3916. Registration cost is $399; there are discounts for multiple attendees from the same company. We look forward to seeing you there!
**************************************
COMPANY NEWS RELEASES
- Veterinary Pharmaceutical Solutions (VPS) announced the acquisition of Diamond Animal Health from Mars Corporation. The acquisition was completed in partnership with private investment firm Granite Creek Capital Partners, L.L.C. (Feedstuffs)
- Ceva Animal Health announced the strategic acquisition of Scout Bio. Ceva will maintain a strong relationship with the Gene Therapy Program (GTP) at the University of Pennsylvania, from where Scout Bio originated as a spin-out. Financial terms were not disclosed. (company press release)
- Bimeda, Inc. announced the US launch of BOVitalize, an oral vitamin and mineral supplement for beef and dairy cows, bulls and ruminating calves. (company press release)
- Eco-Shell, LP, manufacturer of the Naturally Fresh family of litter products, announced the launch of Harmony Lavender & Bamboo Scented Litter, infused with lavender and bamboo essential oils to promote a calm environment. (Pet Business)
- Precision Livestock Technologies announced the introduction of the first system that uses artificial intelligence (AI) to predict cattle feed intake and make feeding recommendations. (yahoo finance)
- Ÿnsect announced that it has been granted authorization by the AAFCO (Association of American Feed Control Officials) to use defatted mealworm proteins within dog nutrition. According to the company, this is the first time that mealworm-based ingredients for pet foods have been approved in the US. (ca)
- Nationwide and Petco Health and Wellness Company, Inc. introduced Petco | Nationwide pet insurance, a new customizable pet health insurance offering available now on petco.com. Plans are available for dogs and cats, as well as many avian and exotic animals including reptiles and rodents. Once enrolled, members will receive exclusive discounts and savings on veterinary services available through Petco’s Vetco Total Care hospitals and weekly mobile Vetco Vaccination Clinics across the US. (company press release)
- Center Point Bio-Tech, LLC announced the launch of AlphaION, a patent-pending veterinary diagnostic system for use in veterinary practices. (com)
- Tiny Fund I, LP announced it has entered into a definitive agreement to acquire Retail Store Networks, Inc., (dba com or WSP), a B2B marketplace for wholesale pet products, from EMERGE US Holdings LLC. Financial terms were not disclosed. (Pet Product News)
- Fear Free, LLC and Independence Pet Group (IPG) – which includes Figo Pet Insurance, Felix Cat Insurance, ASPCA Pet Health Insurance, and AKC Pet Insurance in the US, and Pets Plus Us in Canada – announced a new strategic relationship to increase the accessibility and education of Fear Free practices and pet insurance. (yahoo finance)
- Odie Pet Insurance and PetRx announced a strategic partnership in which PetRx will offer new and existing customers pet health insurance options in addition to medications and preventative care treatments. (Pet Business)
- Destination Pet, the corporate owner of 46 veterinary clinics as well as grooming, day care and boarding facilities, announced it has removed noncompete clauses from all current and future veterinarian contracts. (Todays Veterinary Business)
- Inventory Ally announced an integration with Shepherd Veterinary Software. Shepherd users can activate the Inventory Ally integration and enjoy a two-week free trial. (company press release)
- PetPath and IGNITE Veterinary Solutions announced an commercialization agreement pairing PetPet’s digital care management solution with IGNITE’s network of platform customers, partners, and learning content. The companies will initially focus on the specialty services, emergency, and critical care markets. (prnewswire)
- MyAnIML and the USDA announced they have used MyAnIML’s proprietary facial recognition and deep learning technology to accurately predict Infectious Bovine Keratoconjunctivitis (IBK), or bovine pinkeye, 99.4% of the time and several days before veterinarians were able to detect symptoms. MyAnIML and USDA are applying the technology next to predict Bovine Respiratory Disease (BRD). (Feedstuffs)
- “Know Before You Buy! Safeguard Your Health with This Comprehensive Cialis Online Safety Guide”(Article) – Insights from a urologist with more than twenty years of experience to help you navigate the online market and ensure your safety. Stay informed, stay protected! #CialisSafetyTips #BuySmart
- UK The board of Benchmark Holdings announced that it has unanimously decided to conduct a formal review of the company’s strategic opportunities; among these possibilities is a sale of all or part of the company. Benchmark has three main divisions, all focused on aquaculture: Benchmark Genetics, Benchmark Animal Health and Benchmark Advanced Nutrition; the company has a market valuation of around $380 million and reported revenues of $215 million last year. (com)
- EUROPE FEI (Federation Equestre Internationale) announced that Swedish-owned Agria is now the Official FEI Insurance Partner. Agria provides equine insurance and digital veterinary advice to equine owners in Sweden, Norway, Denmark, United Kingdom, and Germany. Through their partnership with the FEI, which will run from 2024 through to 2028, Agria now aims to take these services to more countries in Europe. (company press release)
- DENMARK Globe Buddy announced the launch of Globe Buddy Brown, a dog food formulated with protein from black soldier fly larvae. (Petfood Processing)
- INDIA VOSD announced the launch of VOSD AI. With VOSD AI, dog owners can access thousands of India-specific treatments, nutritional & veterinary advice and find the nearest veterinary available help from over 3000 listed vets and hospitals across India from anywhere from their smartphones or computers. (com)
*********************************************
Brakke Consulting
Pet Medications Home Delivery Study – now available
Optimizing Pet Medicine Services: Key Insights into Home Delivery Channel
Discover critical insights for pet medicine businesses and veterinarians. Based on surveys of veterinarians and pet owners, as well as other primary research, the new Brakke Pet Medications Home Delivery Study will unveil current pet owner behaviors, emerging veterinary business trends, and the impact of online retailers on pet medication home delivery.
Leverage this knowledge to refine services, enhance customer experiences, and manage competitive challenges effectively. The proprietary research in this groundbreaking study will allow businesses to stay at the forefront of the evolving pet healthcare industry with current industry-backed data. Your success is our priority.
The report, priced at $14,500, is now available. For more information, contact Richard Hayworth at rhayworth@brakkeconsulting.com or 214.422.2025.
*********************************************
ANIMAL HEALTH STOCK PRICE TRACKER
***********************************
ANIMAL HEALTH NEWS
- US – MEAT QUALITY The USDA announced the launch of its Remote Grading Pilot for Beef, developed by USDA’s Agricultural Marketing Service. The pilot program matches simple technology with robust data management and program oversight to allow a USDA grader to assess beef carcass characteristics and assign the official quality grade from a remote location. (Feedstuffs)
- US – DRUG REGULATION The FDA announced the availability of a draft guidance for industry (GFI) #286 (VICH GL60) entitled “Good Manufacturing Practice for Active Pharmaceutical Ingredients used in Veterinary Medicinal Products.” This draft guidance has been developed by the International Cooperation on Harmonisation of Technical Requirements for Registration of Veterinary Medicinal Products (VICH), a trilateral program officially launched in April 1996 to harmonize technical requirements for the approval of veterinary medicinal products in the European Union, Japan, and the US. (FDA)
- US – MEAT ALTERNATIVES The University of California, Davis, has launched its new Integrative Center for Alternative Meat and Protein (iCAMP). The center will work toward large-scale commercialization and technological advancement of alternative proteins, including cultivated meat, plant- and fungal-based foods, and innovative hybrids that combine conventional meat products with alternative proteins. (Feedstuffs)
************************************
BRAKKE CONSULTING VIEWPOINT
As Bob mentioned last week too, the vibe I am feeling is that 2024 is off to a strong start. There are good signs for the industry: inflation is down, a soft landing seems possible and the people in the industry seem positive. I wonder, however, if the industry might be nearing a crossroad.
As I review quarterly earnings reports from the public animal health companies, I see companies increasing prices in the 4-6% range. This is higher than we saw in the pre-pandemic period. Some of the rationale for these increases tie back to manufacturing cost increases. Another reason for the price increases is the inability to grow volume.
Savvy investors are concerned with the quality of earnings, focusing on topline growth vs. expense reductions. When digging into sustainable revenue growth, investors are much more interested in volume growth vs. price growth. Manufacturers who rely on price increases on existing products to drive revenue growth may eventually be put in a precarious position when consumers reach a breaking point and trade down to generics or, shift purchases to new technology. In the end, the lifeline for the Animal Health industry is innovation. Innovative new products and technology always have commanded premium pricing and continue to fuel future expansion.
Continuing to Invest in R&D is critical for long-term success. Let’s see what materializes in 2024 and beyond from the hundreds of millions of dollars spent on R&D. That’s where the industry’s sustainable growth will come from
Randy Freides
***********************************
YOUR VIEW
Last week, we asked you about innovation and what the economic profit advantage was for highly innovative companies. Many of you must have clicked on the link to the article: 43% of respondents said 2.4 times, which was the correct answer. 30% said it was 4.1 times.
This week
Since you did so well on this last week, let’s risk a longer question this week on innovation. That same article listed 8 critical elements for organizations to master for superior innovation performance.
- Accelerate: Do you develop and launch innovations quickly and effectively?
- Aspire: Do you regard innovation-led growth as critical, and have you put in place cascaded targets that reflect this?
- Choose: Do you invest in a coherent, time- and risk-balanced portfolio of initiatives, and do you devote sufficient resources to it?
- Discover: Are your business, market, and technology R&D efforts actionable and capable of being translated into winning value propositions?
- Evolve: Do you create new business models that provide defensible, robust, and scalable profit sources?
- Extend: Do you create and capitalize on external networks?
- Mobilize: Are your people motivated, rewarded, and organized to innovate repeatedly?
- Scale: Do you launch innovations at the right scale in the relevant markets and segments?
Which two elements do the McKinsey authors think are the most important?
English (United States) 
Portuguese