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Brakke Consulting’s
Animal Health News & Notes for October 29, 2021
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Earnings News
ADM
Merck
Novozymes
PetMed Express
Other News
Akeso Biomedical
Algenex
Astro Pet Health
Boehringer Ingelheim
Cosmic Pet
Easyvet
Global Dx
IDEXX
ImpriMed
Nutreco
PanTheryx
Petco
Platinum Equity
RealmFive
Relevance Ventures
Rockpool Investments
Stellapps
Transfur
Trusted Housesitters
Vetoquinol
VetPawer
VetSuccess
Zenoaq
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COMPANY EARNINGS RELEASES
- Merck announced financial results for the third quarter of 2021. Animal Health sales totaled $1.42 billion, an increase of 16% compared with the third quarter of 2020 (+14% currency adjusted). (company press release)
- PetMed Express reported results for the second quarter of fiscal 2021. Sales were $67.4 million, an 11% drop from the prior-year quarter. Net income was down 24.5% to $6.3 million. (IHS Markit Connect)
- ADM reported financial results for the third quarter of 2021. Animal nutrition sales reached $889 million, a 21% increase from the prior-year quarter. ADM reported a nearly two-fold jump in animal nutrition profits for the third quarter. (IHS Markit Connect)
- Novozymes reported results for the third quarter of 2021. The company reported a strong animal health performance in the third quarter, driving 15% higher sales to DKK430 million ($67 million) for its larger agricultural, animal health and nutrition division. (IHS Markit Connect)
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COMPANY NEWS RELEASES
- Boehringer Ingelheim Animal Health announced a partnership with RealmFive that will see Boehringer bringing RealmFive’s Barn View – wireless technology that provides cloud-based data on feed, water, air and effluent parameters – together with its own Farmera mobile app, a farm management tool that allows evidence-based decision making in swine production systems. (IHS Markit Connect)
- Petco Health and Wellness Company, Inc. announced the opening of Reddy SoHo – the first concept flagship for Reddy, Petco’s premium lifestyle owned brand for dogs – in New York City. The launch of boutique-style Reddy SoHo marks the first time the company has opened a retail location dedicated to a single, exclusive brand. (company press release)
- PanTheryx, an integrative digestive and immune health company, announced the launch of its new patent-pending bovine (cow) colostrum formulation of ColostrumOne. The new proprietary product is scientifically shown to increase protection of Immunoglobulin G (IgG), immune and growth factors as they enter the digestive tract. (Businesswire.com)
- ImpriMed, Inc., announced that it now offers separate stand-alone immunophenotyping service via flow cytometry and clonality testing by PARR (PCR for Antigen Receptor Rearrangement) for canine hematopoietic cancers. (Globenewswire.com)
- Platinum Equity announced it has acquired Cosmic Pet, a designer, marketer and distributor of pet products. Cosmic Pet will be combined with recently-acquired Petmate; financial terms were not disclosed. (Pet Product News)
- Easyvet walk-in veterinary franchise announced the close of a $7 million Series A funding round led by Relevance Ventures. (Businesswire.com)
- VetSuccess announced the launch of Compliance Tracker, a new monthly subscription-based report that highlights key metrics and provides critical insight into whether clients are following a practice’s preventive care recommendations. (PRnewswire.com)
- Venture Varsity Studio announced the launch of startup company Transfur, which will offer a software platform for veterinarians underpinned by AI that it says will harmonize the veterinary referral management process. (Wisbusiness.com)
- VetPawer introduced the Automated Virtual Assistant—AVA—a software that provides voice-automated scheduling assistance to clients who call the veterinary clinic. (Vet Advantage)
- Pet health startup Astro Pet Health announced that a free preview of its cloud-based digital pet health records system is available for advance sign-up. Customers who sign up will be invited to a private beta in early 2022. (Businesswire)
- Trusted Housesitters, a pet sitting network, announced it has closed $10 million in Series A funding led by Rockpool Investments. It will be leveraged to build awareness among pet owners and avid travelers in the US, with emphasis on expansion in California. (Pet Product News)
- JAPAN Vetoquinol and Nippon Zenyaku Kogyo (Zenoaq) have mutually agreed to end their joint venture in Japan. After the dissolution has been completed, Vetoquinol will purchase all the shares held by Zenoaq, making Vetoquinol Zenoaq a 100% owned and controlled subsidiary of Vetoquinol; the joint venture will change its name to Vetoquinol Japan. (IHS Markit Connect)
- UK IDEXX and the British Small Animal Veterinary Association (BSAVA) announced a partnership on a monthly, topical podcast and a dedicated online resource collection that will feature in the BSAVA library. (Vettimes.co.uk)
- INDIA Nutreco announced it led an $18 million pre-series C funding round for Stellapps, an Indian dairy technology start-up. Existing investors also participated in the round. Stellapps dairy technology, dubbed smartMoo, aims to improve traceability, milk quality and productivity by linking farmers to an ecosystem of veterinary care services, animal nutrition and financial services. (IHS Markit Connect)
- SPAIN Algenex SL and Global Dx Ltd announced the adoption of Herdscreen ASFV Antibody Test – a point-of-care rapid diagnostic test that identifies animals which have been exposed to the African Swine Fever Virus (ASFV) using whole blood, plasma or serum samples – by a major Spanish producer of pig-derived food and meat. (Globenewswire)
- EU Akeso Biomedical, Inc., announced that it has obtained authorization in the European Union to market CI-FER as a zootechnical feed additive for piglets and minor porcine species. CI-FER [iron (III) citrate chelate] for piglets is Akeso’s first product for the EU market based on its Fe3C technology. (PRweb.com)
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ANIMAL HEALTH STOCK PRICE TRACKER
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ANIMAL HEALTH NEWS
- GERMANY – AVIAN INFLUENZA Germany reported an outbreak of highly pathogenic H5N1 bird flu at a goose farm in the northern part of the country. The outbreak occurred at a farm of 663 birds. (Reuters.com)
- WORLD – DISEASE INFORMATION The Food and Agriculture Organization of the United Nations (FAO) announced the launch of EMPRES-i+, a new global animal disease information system. EMPRES-i+ replaces an earlier version, EMPRES-i, which was first launched in 2004. The new system’s features include a cloud-based platform with ability to link to other data platforms; advanced data analytics for users to easily identify disease events and trends; and forecasting and early warning functions to allow countries to monitor disease spreading and the risk of new outbreaks. (Feedstuffs)
- CHINA – HOG PRODUCTION China recently reported its highest third-quarter pork production in three years. This comes after producers built thousands of large breeding farms last year to repopulate the hog herd, which was dented by African swine fever. Pork output for July through September was 12.02 million metric tons, up 43% compared with a year earlier. (Vet Advantage – Reuters)
- US – ZOONOSIS RESEARCH The School of Veterinary Medicine at the University of Pennsylvania (Penn Vet) announced the launch of the Institute for Infectious and Zoonotic Diseases (IIZD) to confront emerging and re-emerging zoonotic and vector-borne diseases, with a goal of fostering innovations in disease surveillance, treatment, and vaccine development. (PRweb)
- US – VALLEY FEVER RESEARCH A canine vaccine for coccidioidomycosis, or Valley fever, is being tested at the University of Arizona. The study found the disease was either prevented or reduced in dogs that received an initial vaccine and a booster dose about a month later; any disease symptoms they observed were extremely mild. The researchers believe the vaccine might be on the market within two years. (AVMA SmartBrief – KOLD.com)
- UK – GENE EDITING The Roslin Institute has developed a gene-editing tool that could improve heat tolerance in cattle. Scientists have recreated a naturally occurring genetic change that cattle can pass on to their offspring through natural breeding. The technique was tested in a small-scale study by researchers from the institute’s Centre for Tropical Livestock Genetics and Health (CTLGH). (IHS Markit Connect)
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BRAKKE CONSULTING VIEWPOINT
Some reflections about the impact of Animal Health M&A events on companies and more importantly, people. In my career I was a participant in many acquisitions, both as ‘being bought’ and ‘being sold’. And of all sizes.
It seems to me there are three phases:
- Accommodation: the early period, where words were used such as ‘we bought it for the people’ and even moving the HQ to the acquired companies facilities. Some business activities of both companies are preserved and not many material changes occur. Analysts are happy. Lots of cultural events sponsored by HR. Consultants are everywhere.
- Assimilation: the acquiring company usually starts rationalizing production sites, R&D is ‘synergized’, ERP systems begin to morph and processes merge. Brands disappear and new ones show up. New policies start to be slowly introduced. Leadership changes start to occur. Business practices morph into the acquiring company’s form. Analysts start asking hard questions. Consultants are scarce and the partners that worked on the deal are long gone and on to their next project.
- Annihilation: You wake up one morning and the acquired company is really gone and you may be one of the last people from the company that was purchased. Even people from the acquiring company are disappearing as promises also disappear. Customers start complaining as the impacts are felt at that level. Products disappear due to rationalization. Analysts demand answers and even more pressure is brought on the new company. A new consultancy is hired and they are everywhere.
My advice is to recognize where you are at in the process and manage your career accordingly. Manage change on your own terms- do your best not to let someone else do it! Not always possible to predict these events but how you react is purely in your control.
Paul Casady
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YOUR VIEW
Last week we asked about supply chain interruptions and clinic staffing challenges. 80% of you said you have seen supply chain interruptions, and 75% have seen veterinary clinic staffing problems. Looks like the challenges are pretty widespread in our industry.
This week
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