Animal Health News & Notes for September 18, 2020

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Brakke Consulting’s
Animal Health News & Notes for September 18, 2020
Copyright © Brakke Consulting
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Other News

American Regent
Applied DNA Sciences
AUA Private Equity Partners
Boehringer Ingelheim
Chewy
DoorDash
Evonik Industries
Evvivax SRL
Petlove
PetSmart
Vetnique Labs
Vetus
Westminster Pet Products
Zoetis

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COMPANY NEWS RELEASES

• Zoetis announced the launch of the VetScan Imagyst diagnostic platform for veterinary clinics. VetScan Imagyst combines image recognition technology, algorithms and cloud-based artificial intelligence (AI) for in-clinic testing. It will initially be available to test fecal samples for parasites but has the potential for broader applications to different types of testing in the future. (IHS Markit Connect)
• Boehringer Ingelheim announced the US launch of the Aservo EquiHaler (ciclesonide inhalation spray), the first FDA-approved inhalant therapy for horses with severe equine asthma. (PRNewswire)
• PetSmart announced it will offer on-demand delivery service across more than 1,400 of its store locations nationwide, powered exclusively through DoorDash. (GlobalPets)
• Chewy, Inc. announced that it has commenced an underwritten public offering of approximately $275 million of shares of its Class A common stock, at a price of $55.25 per share. The underwriter, Morgan Stanley & Co. LLC, has agreed to purchase all of the shares offered. The Company intends to grant the underwriter an option to purchase up to 15% additional shares of Class A common stock. The Company expects to use the net proceeds from the Offering for general corporate purposes, including growth initiatives to expand its total addressable market. (company press release)
• A production supervisor of manufacturing at American Regent (formerly Luitpold Pharmaceuticals) has been indicted for the theft of Adequan valued at over $1 million. Between 2012 and January 2020, the defendant allegedly stole thousands of bottles of Adequan from American Regent and sold them to horse trainers and veterinarians at New York racetracks. (IHS Markit Connect)
• Vetnique Labs announced the launch of Dermabliss, is an all-natural veterinary supplement specifically designed for dogs with allergies, atopy, and other skin conditions in response to seasonal and other environmental factors. Dermabliss contains premium natural ingredients including Omega 3-6-9, Quercetin, Vitamins, and Bovine Colostrum. (company press release)
• Evonik Industries announced the global launch of GuanAMINO, a guanidinoacetic acid (GAA) livestock feed additive that provides livestock with the natural creatine precursor GAA, as a granulated feed additive. (IHS Markit Connect)
• AUA Private Equity Partners announced it has acquired Westminster Pet Products, a family-owned developer and marketer of pet treats, chews and supplies as well as shoe care products. Westminster represents AUA Private Equity’s first platform investment in the pet industry. Financial terms were not disclosed. (GlobalPets)
• Applied DNA Sciences announced plans to initiate clinical trial of one of its five LineaDNA vaccine candidates for veterinary use to prevent coronavirus infections in domestic cats. The trials will be conducted in collaboration with biotechnology firm Evvivax SRL on receiving approval from the USDA. (Livemint.com)
• BRAZIL Petlove announced it has acquired fellow Brazilian startup Vetus. The acquisition is part of Petlove’s plan to remain competitive in the Brazilian pet e-commerce sector. Financial terms were not disclosed. (GlobalPets)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• US – BOVINE TB Texas Animal Health Commission officials confirmed bovine tuberculosis (TB) in a beef cattle herd in Sutton County in the Texas Hill Country of western Texas. The affected premises was identified as a result of routine slaughter surveillance.  The commission is conducting an epidemiological investigation to determine the possible origin and to prevent potential disease spread. (Feedstuffs)
• US – CANCER DATABASE The National Cancer Institute has announced the development of the Integrated Canine Data Commons (ICDC) . Developed by the Frederick National Laboratory for Cancer Research, the cloud-based repository of spontaneously arising canine cancer data was created with the goal of advancing human cancer research by enabling comparative analysis of canine cancer. (Vet.purdue.edu)
• WORLD – PSEUDORABIES RESEARCH Swine Health Information Center (SHIC) and the Canadian Food Inspection Agency (CFIA) have developed a single-tube triplex real-time-PCR assay for differential detection of variant strains of PRV, including an endemic strain of pseudorabies virus (PRV) that is circulating through China’s pig herd. The assay is also able to differentiate wild-type PRV from the gE-deletion PRV mutant marker vaccines. (Porkbusiness.com)
• US – COVID RESEARCH Researchers from the Auburn University College of Veterinary Medicine are partnering with cancer treatment developer Humane Genomics Inc. to develop a potential vaccine for COVID-19. The university had previously worked with Humane Genomics in the area of cancer treatment, specifically an attempt to custom synthesize viruses to target tumors. (Vet Advantage)

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BRAKKE CONSULTING VIEWPOINT

My parents were children of the Great Depression and never purchased anything unless they had the money to pay for it.  The only debt they ever carried was a modest home mortgage that they paid off as quickly as possible.  I thought of them when I read the notice of Chewy’s new stock offering.  In the most recent quarter, Chewy had sales of $1.7 billion, and lost 2 cents for every dollar of sales.  It has never been profitable as a public company.  Yet year-to-date, its stock has doubled in value.

The idea of spending more than you make is something that my folks never would have understood.  But, as Amazon and others did before it, Chewy is operating under the philosophy that “if you build it, they will come.”  The COVID-19 pandemic and resulting shift to online ordering no doubt makes it likely that Chewy will cover its bets sooner than it would have otherwise.  After all, it is 98% there.

John Volk

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YOUR VIEW

Last week we asked which of these four strategies are most important for animal health and nutrition companies to build resilience:  1) Reimagine your customer experience, 2) Reshape your culture, 3) Reignite your leadership and 4) Reignite your workforce.  We had a great response.  65% of you said “Reimagine your customer experience.”

This week

Our question this week:

When the pandemic is over, do you think veterinarians will win back some of the sales they have lost to online retailers, or are those sales gone forever?

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