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Animal Health News & Notes for August 3, 2007 8/3/2007

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Brakke Consulting's
Animal Health News & Notes for August 3, 2007

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Alpharma
Boehringer Ingelheim Vetmedica
Ceva
Dainippon Sumitomo Pharma
ImmuCell
Maple Leaf Foods
MWI Veterinary Supply
Pilgrim's Pride
Tyson Foods
 
other news
AgriLabs
Bayer
Embrace Pet Insurance
IdentiGEN
Imulan BioTherapeutics
Pfizer
Van Beek
Velcera
 
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ANNOUNCING NEW PET OWNER
CHANNEL USE STUDY
 
Several fundamental changes are underway that potentially affect the way pet owners purchase products.  The number of pet products is proliferating. Internet usage is growing as a source of information and sales.  Traditional OTC marketers are launching veterinary divisions, and vice versa.  Vet-only products are “leaking” in larger and larger quantities into OTC.  Major products are going off patent, and may soon face OTC branded competition. 
 
The Pet Owner Channel Use Study from Brakke Consulting and Market Directions is a survey of more than 1,000 dog and cat owners that examines purchasing frequency by brand and by type of outlet, channel switching, and the importance of convenience, price and veterinary recommendation on purchasing decision.
 
Products included:
 - Wellness and therapeutic pet foods
 - Flea and tick control
 - Heartworm prevention
 - Dental treats and products
 - Pain management and other chronic-use medications
 - Joint health supplements
 - Pet health insurance
 - Boarding and day-care services
 
The study will be fielded in September 2007.  Companies that order by August 17, 2007 and pay in advance receive a $1,000 early-order discount.  Upon publication, the price of the study is $12,500.
 
For more information about the Pet Owner Channel Use Study, contact John Volk, Brakke Consulting at jvolk@brakkeconsulting.com or (773) 327-4941.
 
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COMPANY EARNINGS RELEASES
 
> Boehringer Ingelheim reported results for the first half of 2007. The Animal Health business made excellent progress in its core segments swine and small animals, achieving growth of 7.3% on sales of EUR 195 million ($263 million). In particular, the introduction of the vaccine Ingelvac Circoflex for porcine circovirus 2 associated disease (PCVAD) in the US and Canada boosted growth in the swine segment. The currency-adjusted growth of 11% in the US compared to 2006 was a particularly positive development. (company website)  
 
> Ceva Group recorded sales of EUR 159 million ($214 million) for the first half of 2007, an increase of 6.7% compared to the first half of 2006. (company website)  
 
> Alpharma reported results for the second quarter of 2007.  Animal Health revenues increased 10% to $90.5 million, compared to $82.6 million in 2006. Excluding currency effects, revenues increased 8% over 2006 levels, driven by increased volumes of poultry and livestock products in the US, as well as increased sales in the European, Latin American and Asian markets. (company press release)
 
> Dainippon Sumitomo Pharma reported financial results for its fiscal year 2006 ended March 31, 2007.  Net sales for the Animal Science Division increased by 3.9% to Yen 27,066 million ($225.5 million) compared with fiscal 2005.  Although small animal product sales rose by 5.1%, large animal and poultry product sales decreased by 10.7%, and aquaculture products declined by 16.5%. (company news)  
 
> ImmuCell reported financial result for the three months ended June 30, 2007. For the second quarter, product sales were $791,000, an increase of 6% compared to the same period in 2006.  The company incurred a net loss of ($60,000) for the quarter, compared to a net income of $16,000 during the same period in 2006. (company press release)
 
> MWI Veterinary Supply, Inc. announced financial results for its third quarter of fiscal year 2007 ended June 30, 2007. Revenues were $184 million for the quarter, approximately 12% higher than revenues for the same period in fiscal 2006. The increase in revenues for the quarter ended June 30, 2007 was attributable to an increase in product sales volumes for both new and existing customers. Net income for the quarter was $4.3 million, approximately 13% higher than net income for the same period in fiscal year 2006, despite a $1.0 million pretax reduction in vendor rebates during the quarter. (CNN.com)  
 
> Tyson Foods Inc. reported results for its fiscal third quarter ended June 30, 2007. Sales increased 9%, reaching $6.96 billion, compared with $6.38 billion last year. Net earnings for the quarter were $111 million, compared with a loss of ($52 million) in the same period last year. (Meating Place) 
 
> Pilgrim's Pride Corp. reported results for its fiscal third quarter ended June 30.  Sales increased 65%, reaching $2.12 billion, compared with $1.29 billion last year. Net earnings for the quarter were $62.6 million, compared with a loss of ($20.5 million) in the year-earlier period. (Meating Place)
 
> Maple Leaf Foods Inc. reported a loss of ($1.6 million) for the three months ended June 30, compared with earnings of $20.1 million in the same period last year. Sales were $1.26 billion, a decline of 2.4% compared to $1.29 billion a year earlier. (Meating Place) 
 
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2007 Animal Health Industry Overview and Mid-Year Update at the Central Veterinary Conference
September 17, 2007
 
Brakke Consulting will present its Mid-Year Update Overview at the Central Veterinary Conference in Kansas City on Monday, September 17.
 
Early registration fees, good through August 10th, are $325.00 for the first person from a company to register and $300 for each additional person from the same company.
 
To register, go to the Brakke homepage on www.brakkeconsulting.com and click on the link at the bottom for details. You can also call Jane Morgan in the Dallas office to register at (972)243-4033.
 
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COMPANY NEWS RELEASES
 
> Pfizer Animal Health announced that Cerenia (maropitant citrate), the first and only FDA-approved medication for the prevention and treatment of canine vomiting from a wide range of causes, including motion sickness, is now available by prescription in the US. Cerenia is administered once daily, and is available in  tablet and injectable forms. (Business Wire) 
 
> Bayer Animal Health announced the introduction of Profender Topical Solution (emodepside/praziquantel), the first and only topical feline dewormer that treats and controls ascarids, hookworms and tapeworms in a single dose.  Profender is available by prescription only from veterinarians. (company website)
 
> Velcera, Inc., announced the initiation of pivotal studies evaluating the safety and efficacy of VEL-504, a treatment candidate for canine pain management formulated with Velcera's PROMIST delivery system. In conjunction with the commencement of pivotal testing, Velcera is shipping PROMIST VEL-504 to 25 investigational sites in the US and Europe. (Earthtimes.org)
 
> AgriLabs introduced the Triple Calcium Bolus, the first bolus for dairy cows to contain three calcium compounds. Featuring an industry-high 44 grams of available calcium from calcium propionate, calcium chloride and calcium carbonate, it provides both rapid and sustained release of calcium. (company press release)
 
> Van Beek Global and Van Beek Scientific announced tat they have merged the businesses under the new company name Van Beek Natural Science.  The original brands will be replaced with the new Van Beek Natural Science brand over the next several months. (Feedstuffs)  
 
> IdentiGEN announced the official opening of its North American laboratories and facilities in Kansas.  The new, state-of-the-art labs will initially focus on DNA analysis for the global TraceBack program, IdentiGEN’s proprietary meat traceability system. The Kansas facility will also be the launching point for commercialization of DNA TraceBack in North America. (ThePigSite)
 
> Imulan BioTherapeutics announced that they have been awarded a grant from the AKC's Canine Health Foundation to study the effects of Imulan's immunomodulating T-Cell Receptor (TCR) Vaccine for canine dilated cardiomyopathy.  According to the company, Imulan's TCR Vaccine has previously demonstrated the ability to remodel cardiac tissue and restore cardiac function in lab animal models. (company press release) 
 
> Embrace Pet Insurance announced that it is now offering coverage for cats and dogs with genetic or hereditary medical conditions. Embrace covers all hereditary and genetic conditions including cancer, hip dysplasia, luxating patella, liver shunts, and heart conditions. This coverage is included with every Embrace Pet Insurance policy. (company press release)
 
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ANIMAL HEALTH NEWS
 
> US - MUMS FINAL RULE  The FDA published the final rule on designation of new animal drugs for minor uses or minor species.  The Minor Use and Minor Species Animal Health Act of 2004, among other things, created section 573 to establish new regulatory procedures that provide incentives intended to make more drugs legally available to veterinarians and animal owners for the treatment of minor animal species and uncommon diseases in major animal species.  This final rule implements section 573 of the MUMS act and describes the procedure for designating a new animal drug as a minor use or minor species drug.  The final rule published in the Federal Register can be viewed at http://www.fda.gov/OHRMS/DOCKETS/98fr/E7-14444.htm. (TheHorse.com)
 
> US - BOVINE TB FUNDING   The US government announced that an additional $35 million will go toward emergency funding for the bovine tuberculosis eradication program. This is in addition to $2 million in emergency funding already available for tuberculosis control and eradication. In the last five years, USDA's Animal and Plant Health Inspection Service has identified 35 TB affected herds. Currently all states are designated accredited free for TB, except Minnesota and portions of Michigan and New Mexico. (Meating Place)
 
> US - DIARY ID PARTNERSHIP   The USDA announced a partnership with the National Milk Producers Federation (NMPF) that will facilitate the registration of dairy farm, dairy calf and heifer grower premises as part of the National Animal Identification System (NAIS). The NMPF is spearheading the effort of IDairy, a consortium of dairy cattle associations formed in 2005 to promote NAIS in the dairy industry. Since IDairy was established, more than 30,000 dairy producers have registered their premises under the NAIS, but as many as 35,000 commercial dairy farms and dairy calf and heifer grower operations are yet to be registered. IDairy's goal is to have 100% of the operations registered in order to enable animal health officials to quickly respond to an animal health emergency. (USDA press release)
 
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KC Animal Health Corridor Homecoming
September 17, 2007
 
The 2nd Annual KC Animal Health Corridor Homecoming event is scheduled for September 17, 2007 in conjunction with CVC Central in Kansas City.  Executives from the animal health industry are invited to attend this exclusive evening event that will begin with a cocktail reception, dinner and will be capped off by a special keynote presentation from Mark Forbes, Head Animal Trainer for the movie, "Evan Almighty." For more information for the event go to www.kcanimalhealth.com/homecoming or RSVP to Lynn Parman at parman@thinkkc.com 
 
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BRAKKE CONSULTING VIEWPOINT
 
The financial reports for the second quarter and first half of the year remain positive for all those reporting.  It appears that many executives are now taking a well-deserved vacation during August.  Hopefully, they will all come back from vacation with new creative ideas that will flow into the 2008 sales and marketing plans.
 
There will be several new product launches and companies entering the companion animal market in 2008, which should make for some challenging times regarding market shares for many leading brands.  We'll watch as the battle unfolds.
 
Have a great weekend!
 
Ron Brakke
 
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Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting, Inc.
For more information about Brakke Consulting's services and syndicated studies, visit our website at www.brakkeconsulting.com.
 
Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA