Animal Health News & Notes for June 2, 2023

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Brakke Consulting’s
Animal Health News & Notes for June 2, 2023
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting News
Transaction Insights seminar
Industry Overview Japan

Earnings News
Chewy
Kane Biotech
Pets at Home

Other News
Acumen Detection
Aptimmune Biologics
Cargill
Cronus Pharma
Dairy One
DCP Capital
Elanco
Huvepharma
IMV Technologies Group
Lifecare Veterinary
Medgene
Merck Veterinary Manual
Petco
QSM Diagnostics
Thermo Fisher
Vet Candy
Veterinary Solutions
Victor Medical
VIN

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BRAKKE CONSULTING
Transaction Insights: Unlocking the Secrets to Successful Business Deals in Animal Health
New seminar coming August 30-31, 2023 in Kansas City

Are you seeking to navigate the complex landscape of buying and selling businesses in the animal health and nutrition industry?  We are excited to announce the relaunch of our educational due diligence seminar, tailored specifically for animal health professionals.

It’s more than just due diligence – we will help you unlock the secrets to successful deals in animal health. Our comprehensive seminar is designed to equip you with the knowledge, tools, and strategies to make informed decisions and to successfully manage a transaction. Presenters include Bob Jones, Jim Kroman, Randy Freides, and Ron Brakke as well as Damian Burke, Main Street Capital and Mark Stoneman, Armstrong, Teasdale, LLP.  The preliminary agenda can be found here.

This Seminar will be held after the KCAHC Animal Health Summit in Kansas City on Wednesday and Thursday, August 30-31.  Sign up today to receive a discount by registering at [Registration Link].  For more information, contact Amanda McDavid at amcdavid@brakkeconsulting.com or 336.396.3916.

www.BrakkeConsulting.com
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EARNINGS NEWS RELEASES

• Chewy, Inc. released its financial results for the first quarter of fiscal year 2023 ended April 30, 2023. Net sales were $2.78 billion, an increase of 15% year over year. Net income was $22.2 million, an increase of 20%. (company press release)
• Kane Biotech announced its first quarter 2023 financial results. Total revenue was C$677,617 (US$497,000), an increase of 20% compared to the three months ended March 31, 2022. Loss for the first quarter of 2022 was C$(1,244,684) (US$926,000), an increase of 8% compared to C$(1,152,164) for the quarter ended March 31, 2022. (company press release)
• Pets at Home announced results for its fiscal year ended March 30, 2023. Revenue was GBP 1.4 billion ($1.7 billion), a year-over-year increase of 8%. Profit before tax was GBP 122.5 million ($155.5 million), a decline of 18%. (GlobalPets

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2023 Animal Health Summit
August 28-29, 2023
Location: Midland Theatre | Kansas City, MO
Registration is now open for the 2023 Animal Health Summit

Register today! The Animal Health Summit features two days of networking, 1:1 business partnering, industry thought leaders, panel discussions, speakers and emerging company presentations. Learn more.

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COMPANY NEWS RELEASES

• Elanco Animal Health announced it has entered into an agreement with Aptimmune Biologics, Inc., as the US exclusive distributor of their porcine reproductive and respiratory syndrome inactivated vaccine based on Aptimmune’s Barricade technology platform. Administered intranasally rather than by injection, Aptimmune’s PRRS killed autogenous vaccine is complementary to traditionally injected modified live vaccines like Elanco’s Prevacent PRRS. (National Hog Farmer)
• MerckVetManual announced that its animal health content can now be accessed directly on the Veterinary Information Network (VIN). (company press release)
• The FDA announced it has approved Huvepharma’s Pennchlor and Monovet (chlortetracycline and monensin) type A medicated feed articles for beef calves and growing beef steers and heifers. (FDA)
• The FDA announced it has approved Cronus Pharma Specialties India’s Doraject (generic doramectin) injectable solution for cattle and swine. (FDA)
• Petco Health and Wellness Company, Inc. unveiled its new flagship store in New York City. The two-story, 25,000 square-foot flagship pet care center includes a grooming salon, full-service veterinary hospital, JustFoodForDogs kitchen, curated merchandise assortment and more. (company press release)
• Dairy One announced it has partnered with Acumen Detection to provide testing for Mycoplasma bovis, identifying Mycoplasma bovis DNA in submitted milk samples using PCR technology. (com)
• QSM Diagnostics announced it has signed its first distribution agreement with Victor Medical Company to expand US channel partnerships for their suite of at-home and in-clinic diagnostic tools. (company press release)
• Thermo Fisher has released SureCount Salmonella Species, Typhimurium and Enteritidis Multiplex PCR Kit, a new multiplex PCR test that can significantly streamline Salmonella monitoring processes. (Feedstuffs)
• Lifecare, which is developing a long-lasting glucose sensor the size of a grain of rice, announced it is launching a new company called Lifecare Veterinary to bring its technology to pets. (Marketscreener)
• The USDA’s National Institute of Food and Agriculture has awarded Medgene grant funding to study the Asian longhorned tick and its ability to spread diseases in animal livestock. The company will be using its proprietary platform technology to develop and test vaccine approaches to prevent the spread of diseases caused by the tick. (Beef Magazine)
• Vet Candy announced its new membership platform, offering all-in-one access to exclusive RACE-approved continuing education, a members-only newsletter, a year of Vet Candy Magazine, specialist and expert moderated forums and more. (PRnewswire)
• BELGIUM IMV Technologies Group announced it has acquired Belgian-based Veterinary Solutions, a developer of veterinary digital radiography x-ray and veterinary patient archiving and communication system (PACS) software. Financial terms were not disclosed. (VetTimes)
• CHINA Cargill announced it is selling its poultry farming and processing business in China to private equity firm DCP Capital. Financial terms were not disclosed. (Feedstuffs)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• WORLD – DRUG REGULATION The FDA and the European Union (EU) announced their decision to expand the scope of the US-EU Mutual Recognition Agreement (MRA) Sectoral Annex for Pharmaceutical Good Manufacturing Practices (GMP) to include inspections of veterinary pharmaceuticals. This MRA entered into force on November 1, 2017, but initially included only pharmaceuticals intended for human use. (FDA)
• UK – SHEEP HEALTH Wales announced the launch of Gwaredu Scab – a national sheep scab eradication program that is funded by Welsh Government. Welsh Government have committed GBP 1.5 million each year, for a minimum of two years, to offer a complete service from testing to treatment at no cost to farmers. (com)
  

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Brakke Consulting

Announcing the 2023 Brakke Industry Overview – Japan
Presented via webinar on June 7, 2023, 10:00 am -12:00 pm (Japan Time) 

Brakke Consulting will present a special edition of  its highly regarded Animal Health Industry Overview specifically for Japan on June 7.  The presentation will be both in English and Japanese.  Key topics and presenters include:

• Industry and top global company performance in 2022, and a preview of 2023 performance, presented by Bob Jones
• What a new normal looks like in veterinary practices and for pet owners in the United States, presented by John Volk
• A closer look at US pet pharmacy consumerization and how we can all thrive in this new era, presented by Bob Jones
• A Q&A session to follow

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. You will gain a better understanding of the US market and how those trends might be seen in Japan.

Sign up using this link. You can also email Amanda McDavid or call at +1-336-396-3916. Registration cost is $500 and $1,200 for three or more attendees from the same company meeting room.

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BRAKKE CONSULTING VIEWPOINT

H.G. Wells famously wrote, “Adapt or perish, now as ever, is nature’s inexorable imperative.”

Ironically, as humans, we tend to be creatures of habit, which means we’re oftentimes reluctant to changes that must occur to best adapt and adjust to our changing environment.

Essentially, change is inevitable, and the ones who don’t adapt will be left behind.  And, now with rapid advancements in computing technology – think AI, autonomous driving, Google Maps — the “evolution of the ever-changing” is happening much faster than previous generations.

Managing this change dynamic is especially important in today’s business world.  For example, COVID-19 pushed many consumers away from retail stores and into online shopping platforms with home delivery options and/or online shopping with curbside pick-up.  Businesses from Amazon to pet product manufacturers and veterinary hospitals to Apple stores have all made significant changes in day-to-day operations in effort to meet different customer needs.

Once popular retailers like Bed, Bath & Beyond, Party City and David Bridal have all recently filed for bankruptcy.  However, people haven’t stopped sleeping in beds, having parties or getting married.

In reality, the key driver behind these downfalls is inexplicably linked, in one critical way or another, to the failure to adapt to the changing environment in which it finds itself.

Richard Hayworth

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YOUR VIEW
Last week we asked about your company and their use of generative artificial intelligence (AI).  Interestingly, a third of respondents stated that their company has not started on any AI project and don’t think that they will and almost 30% said that their company has not started but is sure they will start an AI project.  About 20% of respondents said their company is actively developing AI projects now and about the same said they are actively using AI now in their business.

If you are one of those last two 20% groups, we would appreciate hearing from you – we are very curious how you are using AI today.  Send us an email by replying to the newsletter.

This week
This week, let’s stick to the AI topic and how you feel about companies that use it.  Click here to take this week’s short poll.