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Animal Health News & Notes for October 27, 2017 10/27/2017

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Brakke Consulting's
Animal Health News & Notes for
October 27, 2017
Copyright © Brakke Consulting, Inc.

 

Editor: Lynn Fondon DVM MBA
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IMPORTANT NOTE: Our email marketing service changed on October 25, 2017. If you have trouble receiving the newsletter after this date, please check your spam folders. You may need to add the new domains to your safe senders list to resume receiving the newsletter. Please go to http://www.brakkeconsulting.com/newsletter.aspx  for more information.

 

IN THE NEWS:

 

Brakke Consulting news

Veterinary Technical Services Study

Transaction Assistance

 

earnings news

Abaxis

Bayer

Elanco

PetMed Express

 

other news

Cargill

Diamond V

Elanco

Hendrix Genetics

iAqua

Midmark

PetSmart

Zoetis

 

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VETERINARY TECHNICAL SERVICES STUDY

COMING SPRING 2018

EARLY ORDER DISCOUNT ENDS NOVEMBER 1

 

Brakke Consulting is pleased to announce a national study among companion animal veterinarians evaluating the veterinary technical services support provided by animal health and nutrition companies.

First conducted in 2016, the new study determines companion animal practitioner’s expectations for veterinary technical services and compares how each of the 13 companies’ teams deliver on those expectations. In addition, each company’s veterinary technical service team is compared to those of peer competitors. 

The cost of the study upon publication will be $27,000; discounts are available for orders placed by November 1, 2017 and for purchasers of the 2016 Veterinary Technical Services Study. For more information or to order the study, contact Dr. Cary Christensen at
crychris123@gmail.com or (913) 205-6578.

 

www.BrakkeConsulting.com

 

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COMPANY EARNINGS RELEASES

 

·         Eli Lilly and Company announced financial results for the third quarter of 2017. Revenue for animal health division Elanco totaled $741 million, an increase of 5% compared with the third quarter of 2016. (company press release)

 

·         Bayer reported financial results for the third quarter of 2017. Animal Health sales were EUR 359 million ($424 million), flat compared to the third quarter of 2016 (+1.4% currency & portfolio adjusted). Animal Health's EBITDA before special items declined by 9% to EUR 81 million ($96 million). (company website)

 

·         Abaxis, Inc. reported financial results for the second fiscal quarter ended September 30, 2017. Veterinary market revenues were $48.5 million, up 1% over last year's comparable quarter. (Business Insider)

 

·         PetMed Express, Inc. announced financial results for the quarter ended September 30, 2017.  Net sales for the quarter were $67 million, an increase of 10% compared to the prior-year quarter. Net income was $8.8 million compared to net income of $4.9 million in the prior-year quarter, a 79% increase. (company website)

 

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BRAKKE CONSULTING, INC.

JOHN VOLK HONORED BY UNIVERSITY OF ILLINOIS

 

Brakke Consulting is pleased to report that John Volk, Senior Consultant at Brakke Consulting, is the 2017 recipient of the University of Illinois Alumni Spirit Award “presented to those who have consistently demonstrated extraordinary spirit and pride in support of the University, the Alumni Association, and related organizations, exemplifying a positive image of their Alma Mater while inspiring loyalty and pride in their fellow alumni."  He and his wife Marcia will ride in the Homecoming Parade and be introduced on the field at halftime.  Congratulations John!

 

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COMPANY NEWS RELEASES

 

·         Lilly announced that it is reviewing strategic alternatives for the Elanco Animal Health business. This could include an initial public offering (IPO), merger, sale or retention of the business.  (company press release)

 

·         Midmark Corp. announced the TotalView DR Digital Radiographic System for the veterinary market. The TotalView DR panel produces a low X-ray dose while still achieving premium results, providing a better safety option for both patients and staff.  (company press release)

 

·         Cargill announced that it has signed a binding agreement to acquire Diamond V, and will encompass all of Diamond V’s business, including the human health business, Embria Health Sciences, and its branded product EpiCor. Cargill said that the Diamond V brand will be the platform for future investments in natural solutions for safer animal food production. Financial terms were not disclosed. (Feedstuffs)

 

·         Hendrix Genetics announced it has completed a deal with Integrated Aquaculture International L.L.C. (iAqua) to participate in the breeding and production of shrimp, Hendrix Genetics’ first entry into warm water species in aquaculture breeding. iAqua produces genetically improved Pacific white shrimp broodstock under the brand name Kona Bay and will soon launch its line of SPF black tiger shrimp. Financial terms were not disclosed. (WattAgNet)

 

·         PetSmart announced the opening of its first store concept focused exclusively on pet grooming services, The Groomery by PetSmart,  in New York City's Upper West Side and Oak Park, Ill., a suburb of Chicago. The Groomery features classic pet grooming services, and “Spaw” treatments, as well as a self-service dog wash. Additional locations will open soon. (Pet Product News)

 

·         CHINA  Zoetis announced plans to build a new vaccine manufacturing facility and R&D center in Suzhou, China. The manufacturing site will increase the firm's capacity to develop and produce vaccines for swine, cattle and farmed fish for the Chinese market. The facility will be co-located with a new research and development laboratory. (Animal Pharm)

 

 

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ANIMAL HEALTH NEWS

 

·         US - ADUFA RENEWAL  The USDA announced its draft recommendations developed for submission to Congress for the reauthorization of the Animal Drug User Fee Act (ADUFA) and Animal Generic Drug User Fee Act (AGDUFA). The agency is also extending the currently open comment periods until November 24, 2017 to allow interested persons to submit comments on these draft recommendations. For more information, go to https://www.fda.gov/AnimalVeterinary/NewsEvents/CVMUpdates/ucm581789.htm. (FDA)

 

·         US - GIPSA  US Agriculture Secretary Sonny Perdue withdrew an interim final rule and a proposed regulation of the Farmer Fair Practices Rules under USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA). The interim rule, proposed late last year by the administration of former President Barack Obama, would have made it easier for meat producers to file lawsuits against major processors if the farmers believed their operations had been harmed by potentially unfair or non-competitive business practices. (Vet Advantage - USAgNet)

 

·         US - AQUACULTURE  Scientists with the US Agricultural Research Service (ARS) Aquatic Animal Health Research Unit together with industry partners announced they have developed tilapia that are resistant to both Streptococcus iniae and S. agalactiae,  which cause an estimated $1 billion in losses annually. (phys.org)

 

·         US - ANTIBIOTIC USE REPORT  The FDA, along with its National Antimicrobial Resistance Monitoring System (NARMS) partners, the Centers for Disease Control and Prevention and the USDA’s Food Safety and Inspection Service, released the 2015 NARMS Integrated Report. The annual report highlights antimicrobial resistance patterns in bacteria isolated from humans, raw retail meats, and animals at slaughter. To read the report, go to https://www.fda.gov/AnimalVeterinary/NewsEvents/CVMUpdates/ucm581433.htm. (FDA)

 

·         US - DOG MUSEUM  Massachusetts announced plans to open a museum dedicated to dogs. Museum of Dog (M.O.D), housed in an 8,000 square-foot historic space, will feature a private collection of more than 180 dog-inspired paintings, drawings, sculptures, photographs and accessories from notable artists ranging from William Wegman photographs to Mary Engel "Watch Dog" sculptures and rare dog collars dating back to the 1800s. (Pet Product News)

 

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BRAKKE CONSULTING, INC.

TRANSACTION ASSISTANCE

 


Buying, selling or merging? We can help!

 

Brakke Consulting assists many clients with mergers, acquisitions and divestitures. Our transaction experts can provide the insight, ability and contacts you need in the animal health, pet, veterinary and nutrition markets. Please contact any of our offices for a confidential consultation.

 

www.BrakkeConsulting.com
 

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BRAKKE CONSULTING VIEWPOINT

It was an interesting week in animal health.  One never knows what might finally happen when a company announces that they are reviewing strategic alternatives for a major division. One can reasonably assume there will be changes.  It does give the industry something to speculate and create rumors about for the coming months until it is resolved. 

 

I could not help but notice that the company recording the highest percentage of growth for the quarter this week was an internet company that markets direct to the pet owners.  During a drive this week I was listening to NPR radio and heard a large consumer research firm report that in a   recent survey of consumers, those surveyed indicated that they plan to purchase over 50% of their holiday gifts over the internet in 2017. 

 

Have a great weekend!! Ron Brakke
 

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