I am writing this in the early days of April, but we are finishing now the period of what we call ‘March Madness’ for the college basketball championship tournament period. For me, one of the most exciting sports events of the year. It’s always especially interesting to see who the ‘Cinderella team’ turns out to be (hopefully the NIL and transfer portal will not damage this event, but I have my concerns).

Every year it seems that a group of people start believing in themselves, so much so that they overcome all odds to defeat teams that appear better, at least on paper. And from my view, this starts with the coach who is inspirational, but also helps the players perform at their best levels with a clear winning strategy. How about you and your company? Are you that sort of leader, and does your company provide that leadership?

‘March Madness’ also occurs in business, when we look at performance at the end of Q1 (March) and compared to budget: you are either ahead (good conservative planning), on target (lucky), or behind (oops). And if you are in a publicly traded company, the noise starts, both positive and negative.

How are you doing at the end of Q1? Do you have a realistic plan the rest of the way?

Paul Casady

In the newspaper business, this would be called a “slow news day.”  Perhaps it’s a reflection of spring break season.  Or maybe many are distracted by the NCAA basketball tournaments.  Exciting stuff, eh?  Regardless, the items in today’s newsletter are important in their own right, and reflect the expanding role of technology in animal health.

Another item notes that the American Association of Colleges of Veterinary Medicine has published a new report on the future need for veterinarians.  It’s an important topic that’s getting a lot of attention.  Clearly the 2020-2022 period was a bubble of veterinary demand and workforce shortages caused in part by the fact that the government pumped $5 trillion (yes, trillion) into the economy during the pandemic. People had money to spend and pets got lots of attention.  Since then veterinary visits have started easing back a bit, and the percentage of veterinary practices with openings has declined, according to our most recent survey.  But the veterinary job market is still strong.  The fact that a dozen universities have announced plans to start veterinary medical colleges also introduces a new wrinkle.  I’m sure it’s not the last we’ve heard on this topic.

John Volk

What do you think of when you see a pig?  Do you start to salivate thinking about bacon, ham, a big juicy pork chop or a slab of ribs?  Rick Slayman, a 62-year old Massachusetts resident with end-stage kidney disease sees pigs as a potential ticket to a dialysis-free life.

On March 21, doctors at Mass General Hospital performed the first transplant of a genetically modified kidney from a pig.  According to the Organ Procurement and Transplantation Network, approximately 27,000 kidneys were transplanted in 2023.  However, the waitlist for human kidneys has approximately 89,000 individuals on it.  Just think about how many people could live a productive, happy, healthy life if this operation proves to be a complete success.  This could potentially eliminate the largest barrier to transplantation which is organ supply.

The most critical obstacle to the use of animal organs in humans is organ rejection.  The kidney used in this procedure was genetically modified by eGenesis Bio to increase human compatibility.  eGenesis employed new technology to make 69 precise edits to the pig’s DNA (snipping certain characteristics out and adding others) to try to prevent the human body from seeing the kidney as a foreign body.  That, combined with monoclonal antibody treatments to reduce the likelihood of rejection, provide a possible pathway for animal organ transplantation.

Think again as you stare at that slab of ribs smothered in barbeque sauce.  Pigs might not only be a sustainable food supply but might provide a hugely critical source of organs for critical care human patients.

Randy Freides

Finding value in your distribution partner – full circle

A few weeks ago, we reported on the decision of Elanco to restructure their operations, with a shift in resources from farm animal to pet health operations. As part of this restructuring a reduction of 420 jobs is envisioned.

Less than two years ago, a similar shift occurred at Boehringer Ingelheim Animal Health.

These changes in focus from leading veterinary pharmaceutical manufacturers, may result in several possible opportunities for companies serving the markets, where focus and resources are being removed.

One direct result is loss of voice to the ultimate user of the product.

Enter the livestock distributor partner.

Distribution in the livestock segment has had to navigate major challenges during the past decade, from major manufacturers going direct to end consumer, the pandemic and the entry of an array of generic products, putting pressure on margins.

How did they manage to survive, and in many cases, thrive during this period? By changing with the times and doing some basic things really well. Distribution companies expanded through increased footprint by acquiring historic competitors, improving sales force efficacy and starting or significantly expanding private label offerings. This strategy, did in some cases set them up as a competitor to a manufacturer.

We are now entering a period where livestock distribution partners will be required to get product to the end customer again. The livestock product manufacturers who provide a successful business proposition to their distribution partner, may yet be the group to grow and be successful, especially when the cattle and swine cycles improve.

Lourens Havenga

Telemedicine in Veterinary Practice: What’s the Future?
Technology continues to reshape our lives, it’s no surprise that the veterinary industry is also embracing digital solutions, and as the sun sets on pandemic-era telemedicine regulations, a new dawn emerges for veterinary medicine. With California, Colorado, and Florida lifting restrictions, we stand at a crossroads—a moment to ponder the trajectory of telemedicine in our industry.

In general, telemedicine refers to the use of technology to remotely deliver health information, education, or care, and the COVID crisis increased focus and accelerated demand – especially in human health. However, the animal health industry, has been slow to embrace it’s use, and the jury seems to still be out on its future.

So, what are the overall upsides and hurdles?

The Upside

• Accessibility – Telehealth bridges geographical gaps, allowing rural pet owners to access expert advice.
• Convenience – No more stressful car rides for anxious pets—consultations happen from the comfort of home.
• Efficiency – Faster diagnoses mean quicker treatment decisions, better follow-up after in-clinic visits.
• Client Education – Telehealth educates pet parents in preventive care and behavior management.

The Hurdles

• Vet to pet owner relationship is critical – Telehealth must complement, not replace, in-person visits.
• Regulations – State laws vary and navigating them can be complex.
• Privacy and Security – Protecting sensitive data is paramount.

As the industry adapts, collaboration between veterinarians, telehealth providers, and regulators will be key. We must tread carefully, ensuring technology enhances, not replaces, our connections. Will telehealth help enhance the care delivered by veterinarians?  Will it help bring more pets into veterinary care?  We will see soon in a few States.

Richard Hayworth

This week Paul Casady and I attended the Animal Health, Nutrition and Technology Innovation Europe event held in London, which was held by Kisaco Research.  This was the ninth event held in Europe and nearly 600 people attended.  Once again, this was a great opportunity to hear about our animal health industry, what challenges we face in the future and what new innovations are on the horizon.

Many of the topics covered at the meeting were discussed by panelists, who also answered questions from the audience.  A few topics deserve mention here, like one on the role of artificial intelligence will play in animal production presented by a representative of Microsoft.  In particular, one of the future challenges will be to bring all this data together so that producers will not be overwhelmed with bits of pieces of information.

Another topic for a panel discussion was “Dual Impact: Strategies to Mitigate Methane Emissions in Ruminants and Increase Productivity”, which was expertly led by Paul.  I pleaded for him to joke about bovine belches, but he didn’t.  Instead, he and the panel challenged us to think not with an “or” frame of mind, but with an “and” frame of mind when it comes to the environment and animal protein productivity.

Thanks to Kisaco, were able to learn more about the future of our industry and see friends that help make this a great industry.

Bob Jones

Aquaculture industry: A rising star in animal health

The recent acquisition of Elanco’s aquaculture business unit by Merck (MSD) has sent shockwaves through the industry. The transaction’s value alone is noteworthy, but the underlying financial analysis reveals even more intriguing insights.

Aquaculture is still a relatively unknown sector within the veterinary industry, but my recent professional experience in this field has ignited a passion for its potential. With a focus on salmon production in countries like Norway, Chile, Canada, and the United Kingdom, the aquaculture industry is pioneering cutting-edge technologies and attracting investments in novel solutions based on big data and artificial intelligence.

Merck’s strategic vision for animal health emphasizes precision aquaculture farming and innovative product development platforms. The company’s leadership in DNA-based vaccines, acquired as part of the Elanco deal, further cements its commitment to this growing sector.

Driven by passionate individuals, the future of aquaculture is poised to become a leader in technology and innovation for other animal health species.

Brakke: Your partner in unlocking opportunities in the aquaculture animal health market

Our team of experts can help you navigate the complex landscape of the aquaculture industry and identify lucrative growth opportunities. With our deep understanding of the market and extensive network of contacts, we are uniquely positioned to provide you with the insights and support you need to succeed.

Mauri Ronan Moreira

This week I attended Viticus Group’s 96th WVC Annual Conference in Las Vegas.  Like VMX earlier this year, the attendance was impressive and there was robust foot traffic in the Exhibit Hall. I spoke with several exhibitors, all of whom were extremely pleased with their engagement with veterinarians at the conference.  There were also many interesting lecture topics, including one I attended recapping Operation Ukraine, which is providing veterinary care to animals in Ukraine in the midst of a war. Congratulations to Viticus for a great event.

Brakke also presented our annual Industry Overview at WVC, with over 80 attendees.  We thank everyone for your interest in hearing our thoughts on how the industry fared in 2023, and where we believe it’s going in 2024. And a huge “thank you” to our panelists Dr. Dan Markwalder and Dr. Christine Royal for sharing your insights with us.

If you are interested in the Overview but weren’t able to attend at either VMX or WVC, we are happy to present it personally to your management team, or you can purchase the recording – just reach out to Amanda McDavid (amcdavid@brakkeconsulting.com) for more details.

Lynn Fondon

Reading Animal Health News and Notes this week brings seminars to my mind.  If you haven’t already done so, by all means sign up today for the Brakke 2024 Animal Health Industry Overview that will be conducted at the Western Vet Conference on Monday, Feb. 19 from 2:00pm to 4:00pm.  If you attended the Overview at VMX last month, you know that it was a standing room only audience, so please reach out today to Amanda McDavid to reserve your seat!  The space is filling fast, but there are still places available.

Two additional seminars will be conducted on Monday morning, in the same room as the Overview later that day.  At 9:30 am to 10:30 am, Yuki Ujimasa, DVM, MS will present an overview of the process to be followed in registering veterinary products in Japan.  For anyone considering starting the process of bringing products to Japan, you’ll find Yuki’s presentation to be invaluable in describing the steps to be followed and some background on working with the regulatory agencies in Japan.  Yuki is a great resource for you if you are interested to pursue this important market.

At 11:00 am Jeff Santosuosso will present a very informative, practical overview on strategies to identify talent as you compete to hire the best.  Jeff has a wealth of knowledge about recruiting top talent and can help you break through the clutter.  You’ll get some solid information from Jeff and have the benefit of useful discussion among the participants.  I attended this seminar at VMX and I found it very informative and extremely well done.

Both morning seminars are available to you at no cost, but they do require that you RSVP to secure a spot.  See the links earlier in the Newsletter to sign up!

Recently we’ve also had several inquiries about our Transaction Insights seminar that was last conducted in Kansas City in August 2023.  Currently, we are setting up plans to conduct this seminar again at the conclusion of the Kansas City Animal Health Corridor in August.  More details will be available in coming weeks.

Jim Kroman

February is National Pet Dental Month. Many of you have heard about this. Many actively promote it! The AVMA’s focus includes an instructional video, a photo contest, a veterinary tool kit, and more. There’s also a section designed for pet owners, describing various oral maladies and how veterinarians can help. Likewise, more suppliers are promoting the event, from food manufacturers to those marketing treats, rinses, gels, and other treatment forms.

We’re reminded that poor pet oral hygiene can lead to severe bacterial infections, resulting in diabetes, kidney disease, and heart disease (according to the American Veterinary Dental College). Increases in pet owner and veterinary awareness, plus advances in oral radiography and other technologies provide great promise, more precise diagnosis, and better prognosis.

Though this initiative is not new, one wonders how effective it is – and how effectively we’re managing it at a staff and client/patient level. What happens at the clinical level? In particular, to what degree are we leveraging staff? How confident are we that our technicians are prepared to manage screening of these cases we solicit? Can we optimize work flow for best patient and client outcomes, case management, and human resources?

Jeff Santosuosso