Animal Health News & Notes for March 4, 2022

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Brakke Consulting’s
Animal Health News & Notes for March 4, 2022
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting News
2022 Industry Overview at WVC is Monday!

 Earnings News
Cryoport
Freshpet
Heska
J.M. Smucker
Ouro Fino Saúde Animal
Patterson
PetIQ
Zomedica

Other News
Aurora Pharmaceutical
Avianax
CareVet
Ceva
Columna Capital
Compana Pet Brands
Elanco
Enova
Healthy Pet Connect
Hollywood Feed
Huvepharma
iM3
JustFoodForDogs
L Catterton
Manna Pro Products
Mars
Merck
Norbrook
Olymel LP
PetIQ
PetPeople Holdings
Pet Supplies Plus
Petco
PIC
Royal DSM
SantéVet Group
SignalPET
Vet2Pet
Vetsource
VetSuccess
Wag N’ Wash

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Brakke Consulting
Announcing the 2022 Brakke Industry Overview

Presented at WVC: Monday, March 7th, 2-4 pm, Four Seasons Hotel, Acacia Ballroom

We are back to being in person!  Come join us at Brakke Consulting’s annual Industry Overview presented at VMX and WVC in 2022. The Overview will feature industry and top global company performance, brand new market research from companion animal veterinarians, and a closer look at the current and future use of monoclonal antibodies in veterinary medicine.

Brand new this year – led by Brakke Senior Consultant Paul Casady, a panel of industry leaders will discuss their views on the outlook for the companion animal market, so you can hear firsthand from these experts.  Panelists for WVC will include:

– Mr. Randolph Legg, President and Head of Commercial Business, Boehringer Ingelheim Animal Health USA
– Mr. Steve Shell, President, MWI Animal Health
– Mr. Greg Hartmann, Chief Executive Officer, NVA

Sign up today using this link, or email Amanda McDavid or call her at 336-396-3916.  Pre-registration cost is $399; there are discounts for multiple attendees from the same company.  We look forward to seeing you there!

www.BrakkeConsulting.com
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EARNINGS NEWS RELEASES

• Patterson Companies, Inc. reported results for its fiscal third quarter ended January 29, 2022. Animal Health segment net sales were $945 million, an increase of 6% over the prior-year quarter. (company press release)
• Heska reported results for the full year 2021. Sales were $254 million, an increase of 29%. North American revenues reached $159 million (+21%). Net loss was $(1.1) million compared to a loss of $(14.8) million in 2020. (IHS Markit Connect)
• Ouro Fino Saúde Animal reported financial results for 2021. Revenues were R$669 million (US$131 million), an improvement of 23% year-on-year. Net income for the full year grew 32% to R$113 million (US$22 million). (IHS Markit Connect)
• Zomedica announced financial results for the full year 2021. Total revenue was $4.1 million, compared to $0 in 2020. PulseVet revenue was $4.0 million; TRUFORMA product revenue was $73,000. Zomedica recorded net loss of approximately $(18.4) million compared to a loss of approximately $(16.9) million for the year ended December 31, 2020. (company website)
• PetIQ, Inc. reported financial results for the full year 2021. Net sales were $933 million, an increase of 20% compared to 2020. Product segment net sales increased 14% to $825 million; Services segment net revenues increased 97% to $107 million. Net loss was $(16.4) million compared to a net loss of $(85.7) million in 2020.  (company press release)
• The M. Smucker Co. announced results for the third quarter ended January 31, 2022, of its 2022 fiscal year. U.S. Retail Pet Foods revenue was $697 million, a 9% decline compared to the prior-year quarter. Excluding noncomparable net sales in the prior year related to  divested businesses, net sales decreased 1%.  Segment profit was $95.7 million, a decline of 29%. (company website)
• Freshpet, Inc. reported financial results for its full year 2021. Net sales were $426 million, a year-over-year increase of 34%. Net loss was $(29.7) million compared to net loss of $(3.2) million in the prior year. (Yahoo.com)
• Cryoport reported results for 2021. The firm’s animal health division reported revenues of $33.4 million, an increase of 325% year-on-year due to the acquisition of MVE Biological Solutions in mid-2020. (IHS Markit Connect)

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COMPANY NEWS RELEASES

• Merck announced that the FDA has approved Arovyn (generic tulathromycin) for the treatment & control of bovine respiratory disease (BRD); the treatment of infectious bovine keratoconjunctivitis; the treatment of bovine foot rot (interdigital necrobacillosis); and the treatment of swine respiratory disease (SRD). Merck also received FDA approval for NUFLOR-S (florfenicol) Injectable Solution for treatment of swine respiratory disease. (company press release)
• The FDA announced it has approved Elanco‘s Increxxa 25 (generic tulathromycin) for the treatment & control of bovine respiratory disease (BRD) in calves; and the treatment of swine respiratory disease (SRD). (FDA)
• The FDA announced it has approved Norbrook Labs‘ Midamox for Dogs (generic imidacloprid + moxidectin) topical solution. (FDA)
• The FDA announced it has approved Huvepharma‘s Tilmovet AC (generic tilmicosin) for the treatment of swine dysentery associated with Brachyspira (formerly Serpulina or Treponema) hyodysenteriae and for treatment of swine pneumonia. (FDA)
• Ceva announced the addition of Adaptil Chews for Dogs to its line of behavior products. Adaptil Chew contain colostrum, green tea extract (L-theanine), L-tryptophan and thiamine (vitamin B1) to help calm dogs when facing stressful situations. (Vettimes.co.uk)
• Mars Veterinary Health announced three new veterinary workforce studies commissioned to understand the scope of the chronic shortage of companion animal veterinarians, veterinary technicians, and veterinary specialists — and begin to identify industry-wide solutions. (company press release)
• Manna Pro Products announced the company is now Compana Pet Brands. (Petfood Industry)
• PetIQ announced the launch of Nexstar (Fipronil, Cyphenothrin, (S)-methroprene) flea & tick topical for dogs and cats. (IHS Markit Connect)
• The FDA announced it has approved Aurora Pharmaceutical‘s TiaGard 12.5% (generic tiamulin) for the control of swine respiratory disease. (FDA)
• Petco Health and Wellness Company, Inc. announced an expansion of its partnership with JustFoodForDogs. As part of the expansion, Petco and JustFoodForDogs will co-develop a new human-grade fresh and frozen owned brand pet food for Petco’s WholeHearted line, as well as pilot a custom food program at Petco’s pet care centers. Additionally, Petco will receive a warrant for JustFoodForDogs equity tied to the successful execution of the parties’ 2022 plan, and will have the opportunity to acquire additional equity over time. (company press release)
• Pet Supplies Plus announced its acquisition of Wag N’ Wash, a natural pet food, self-washing and grooming franchise with 15 locations. Each company will continue to operate as a separate entity. Financial terms were not disclosed. (Petfoodprocessing.net)
• Hollywood Feed, LLC. announced it has entered into an agreement to acquire PetPeople Holdings, LLC. With this acquisition, Hollywood Feed increases its store count from 104 to 180, and adds five new states to its roster. Financial terms were not disclosed. (Pet Business)
• Vetsource announced it has added data and insights and client engagement offerings to its portfolio of customer solutions. The portfolio expansion is the result of Vetsource’s investment in two companies – VetSuccess and Vet2Pet. (Newswire.ca)
• CareVet – an operator of independent veterinary hospitals in 30+ states – introduced Carebnb, a program that gives eligible Veterinarians free access to luxury vacation properties annually. The program is the latest initiative to launch under The Ultimate CarePackage, CareVet’s suite of innovative Veterinarian benefits. (PRnewswire)
• PIC has entered into definitive agreements with Olymel LP – the largest porcine producer in Canada – for provision of genetic products and services in connection with the Olymel’s AlphaGene porcine genetic improvement program. Under the transaction, PIC has acquired all intellectual property in Olymel’s porcine genetics for a consideration of C$25 million ($US20 million). The parties have also entered into an exclusive long term genetics collaboration agreement. (Feedstuffs)
• Avianax announced it is searching for a licensing agreement with an animal health partner for its ParvoONE therapeutic antibodies for canine parvovirus. (IHS Markit Connect)
• Healthy Pet Connect announced the launch of its new Fit Pets for Rescues (FPR) web-based weight management system (that now include free scales) to share pet home health data to a pet’s veterinarian to prevent disease. (DVM360)
• EU Royal DSM announced that European Union (EU) member states approved the marketing of Bovaer, a methane-reducing feed additive for dairy cows, in the EU. After inclusion in the EU registry, expected in the coming weeks, it will be the first time that a feed additive authorized in the EU for environmental benefits can be marketed. (Feedstuffs)
• AUSTRALIA SignalPET and iM3 announced a reseller partnership to expand SignalPET’s AI technology to the Australian and New Zealand veterinary market. iM3 will be the exclusive partner of SignalPET for the SignalSMILE technology to serve animal companion dental customers in the region. (Newswire.com)
• CHINA L Catterton announced an investment in Enova, a Shanghai-based premium pet food company, to continue to build the company’s domestic premium pet brand Pure & Natural. Financial terms were not disclosed. (GlobalPets)
• FRANCE SantéVet Group – a French pet health insurance company – announced it has raised EUR 150 million ($167 million) in capital to accelerate growth in Europe, led by its majority stakeholder Columna Capital. The company expects to reach 300,000 active insurance contracts by 2022 and EU 100 million in gross written premiums. (GlobalPets)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• US – MEAT PRODUCTION S. meat production in 2022 is forecast to be down fractionally to 106.6 billion pounds, the first decline since 2014, according to a USDA economist at USDA’s Agriculture Outlook Forum. Beef and pork will be down, but poultry will be higher, both for broilers and for turkeys. (Feedstuffs)
• US – PET FOOD A joint letter signed by 17 organizations, including the Association of American Feed Control Official (AAFCO) and the Pet Food Institute (PFI), calls for more scientific research on the safety of hemp in pet nutrition. The document has been forwarded to agricultural leaders and state policymakers seeking their support to ensure the safety of hemp as an animal-feed ingredient. At present, no hemp or hemp derivative ingredients have been validated in the US through the established animal-feed ingredient-approved pathways. (GlobalPets)
• WORLD – RESOURCES The FDA’s Center for Veterinary Medicine announced the availability of “Responsible and Prudent Use of Anthelmintic Chemicals to Help Control Anthelmintic Resistance in Grazing Livestock Species,” a resource drafted in part by FDA experts and published by the World Organization for Animal Health (OIE). (FDA)
• SCOTLAND – EQUINE HEALTH The University of Glasgow has created and updated Equi-BCS, a free weight management app to help owners monitor their horse’s bodyweight and condition. The app allows owners to record and share their horse’s weight data, making it much easier for professionals to support horse owners to help them keep their horse’s weight on track. (University press release)
• US – VACCINE RESEARCH Researchers at Virginia Tech and the Virginia-Maryland College of Veterinary Medicine are developing a nanoparticle-based vaccine for porcine epidemic diarrhea virus in a study supported by a four-year, $630,000 USDA grant. (AVMA SmartBrief – Wisconsin Ag Connection)

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BRAKKE CONSULTING VIEWPOINT

Zoetis’s Draxxin® has been the best example for me to use to explain that livestock producers will pay for innovation.  Tulathromycin, the antibiotic in Draxxin, is highly effective and livestock producers are willing to pay the high price for it to treat their cattle and swine – it works.

Merck and Elanco now join Bimeda, Ceva and Virbac in having a generic tulathromycin approved, bringing the total FDA approved generic products to five.  In Zoetis’s earnings call last month, they announced that generic competition reduced Draxxin revenue 15% in 2021 compared to 2020 and they expect another decline in 2022 of 20% compared to 2021 – peak sales are now in the past.

Unfortunately, these tulathromycin competitors will be battling in a livestock market this year that is forecasted to not grow much from 2021.  The USDA expects beef production to be up fractionally in 2022 and pork production for 2022 will likely be slightly lower that 2021.  And producer profits will be under pressure all year due to higher feed and input costs.  (But tulathromycin costs won’t be higher.)

Draxxin is a great product, a great brand.  Given the successful innovation from Zoetis and the other major animal health companies, we hope there is a new “Draxxin” being discovered.  Remember, livestock producers will pay for innovation.

Bob Jones

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YOUR VIEW

Last week, we asked about the stability of the people in the animal health industry, and we had a pretty good response from our readers.  In answer to the question, “How long have you been a part of the veterinary/animal health industry?”, 68% of the respondents said more than 20 years.  Only 8% had 5 years or less in the industry.  If you are interested, we wrote about job satisfaction last summer at Animal Health Jobs and will have an updated report very soon.

This week

This week why don’t we help out all those companies selling a tulathromycin in the livestock industry with a crowdsourced recommendation…so, here’s your chance (and be honest!).

What is most important factor when selling a generic antibiotic in the livestock industry?