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Animal Health News & Notes for June 8, 2007 6/8/2007

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Brakke Consulting's
Animal Health News & Notes for June 8, 2007

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
KMG
Smithfield Foods
 
 
other news
AllVet
Cambria Biosciences
Healthy Pet
IDEXX
Merial
Novartis
Nutreco
Onstream Communications
Onswitch Insight
Pfizer
Tenusa Trouw Nutrition Mexico
VCA Antech
VDxI
Velcera
Vet'Kiosk
Vetstart
Vetstream
Webster
 
 
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BRAKKE CONSULTING, INC.
2007 INDUSTRY OVERVIEW AND MID-YEAR UPDATE
AT THE AVMA ANNUAL CONVENTION
JULY 16, 2007
WASHINGTON, DC
 
For the first time, Brakke Consulting will be presenting our 2007 Industry Overview at the American Veterinary Medical Association Annual Convention.  The Mid-Year update will include current information on the leading animal health companies, observations of successes and challenges for new product and company entries into the marketplace, and estimates for year end 2007.  We’ll have a special section on our expectations for the market place in 2008 for your planning purposes.  We would encourage you to have your senior marketing and sales management participate in this Mid-Year update.
 
Early registration is $350 for the first company attendee and $325 for each additional attendee from the same company at the same presentation.  To register online, visit our website at http://www.brakkeconsulting.com/2007AVMA.html.  Or call Jane Morgan in the Dallas office at 972-243-4033 or email jmorgan@brakkeconsulting.com .
 
www.BrakkeConsulting.com
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COMPANY EARNINGS RELEASES
 
> KMG Chemicals, Inc. announced unaudited financial results for the third quarter ended April 30, 2007. The Animal Health segment’s sales rose 96% to $7.6 million in the third quarter, primarily due to the successful launch of the company's new Avenger insecticide cattle ear tag. Animal Health generated 27% of KMG’s revenues in the quarter, up from 18% in the comparable period. (Business Wire)
 
> Smithfield Foods Inc. reported net earnings for the 13 weeks ended April 29 were $37 million, compared with earnings of $1.1 million in the year-earlier period. Revenues were up 14%, reaching $3.06 billion. (Meating Place)
 
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COMPANY NEWS RELEASES
 
> The Board of Directors of Merial Ltd. announced that Jose Barella will succeed Jerry Belle as Executive Chairman of Merial, effective June 1st. Barella has been serving Merial as Chief Operating Officer and Head of Business Operations since 2005. He also heads global supply chain.  Barella joined Merial in June 2001 as Head of Companion Animals franchise. (CattleNetwork) 
 
> Cambria Biosciences LLC, announced a research collaboration agreement with Pfizer Animal Health to guide the discovery and development of new classes of safe and effective antiparasitic drug products. Cambria Biosciences will use its chemical genetics platform to elucidate the molecular targets that have responded to Pfizer’s candidate parasiticidal compounds. The compounds have potentially novel modes of action that could overcome the resistance that parasites have developed to many current medicines. (Business Wire)
 
> Velcera, Inc. announced it has entered into a global licensing agreement with Novartis Animal Health that calls for Novartis to develop, register and commercialize a novel canine product utilizing Velcera's patented oral mucosal drug delivery technology branded Promist. While the terms of the agreement are confidential, it calls for upfront payments, milestone payments along the development path and royalties based upon Novartis sales. (Marketwire) 
 
> IDEXX launched RealPCR Tests, a new line of real-time diagnostic assays that use polymerase chain reaction (PCR) methodology to diagnose several diseases in companion animals.  There are four test panels, two for cats and two for dogs.  For cats, the 5-pathogen Feline Upper Respiratory Disease (URD) Panel and the Feline Hemotropic Mycoplasma Test are available. For dogs, the 7-pathogen Canine Respiratory Disease Panel and a canine distemper virus (CDV) test are available.  The tests have a turnaround time of one to three days. (company website)
 
> Veterinary Diagnostics Institute (VDxI), Inc., announced that Webster Veterinary will be VDxI’s exclusive distributor for CardioCare, the first canine- and feline-specific N-terminal pro brain natriuretic peptide (NT-proBNP) blood test to detect heart disease and heart failure in dogs and cats. (Business Wire)
 
> VCA Antech, Inc. announced it has completed its acquisition of Healthy Pet Corp. VCA Antech, Inc. VCA acquired Healthy Pet for $152.9 million (less assumed debt, excluding capital leases, and subject to adjustment for working capital items). Healthy Pet operates 44 animal hospitals with pro forma annual revenue of approximately $80.0 million. (Business Wire) 
 
> Nutreco Holding N.V. announced that it has acquired the remaining 40% shares in Tenusa Trouw Nutrition Mexico.  Nutreco noted that gaining 100% ownership enables Nutreco to optimize the integration process with the activities of BASF Mexico. (Feedstuffs) 
 
> A management buyout of certain veterinary assets of JCA Media Group and a merger has created a new company called Onstream Communications Ltd. Onstream comprises Vetstream; Onswitch Insight Ltd.;  Veterinary Review; Vetstart; Vet’Kiosk; and the Allvet database. (company press release)
 
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ANIMAL HEALTH NEWS
 
>  US - FAMILY FARMS   Most US farms, even among the largest operations, are family farms, according to a new report from USDA’s Economic Research Service. Small family farms make up the overwhelming majority of US farm numbers, but produce a modest share of farm output and receive substantial off-farm income. USDA’s ERS counted 2.13 million farms in the US during 2002, the latest year data is available. Of those farms, 1% had sales exceeding $1 million, but account for nearly one-fourth of agricultural sales. Regardless of farm type, family farms remain the norm, even among large farms. For instance, USDA says 87.8% of all million-dollar farms in the US are family farms. (Drovers Alert)
 
> US - BEEF EXPORTS   US officials said that records for all beef shipped to South Korea have been reviewed and have verified that they meet South Korea's requirements - except one shipment for which they are still matching paperwork. South Korea's government has all US beef in quarantine awaiting official verification of its eligibility. It was the latest disruption of beef trade, and it came in the wake of two boxes of bone-in beef that were mistakenly shipped to Korea by Am-Mex of San Diego, CA, a third-party distributor. (Feedstuffs)
 
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BRAKKE CONSULTING VIEWPOINT
 
It’s been a most interesting time in the Midwest the past few days.  It’s difficult to remember a time when it’s been so green.  Rain has been plentiful in all the areas we’ve visited to date, so much so that farmers are having some problems completing the planting of corn and soybeans. 
 
Yesterday while in Mitchell, SD we were joined by the professional storm chasers in our hotel.  They arrived to follow some very severe thunderstorms that were predicted for the area.  And true to form Mother Nature cooperated.  We had as spectacular display of winds, lightning, etc., but NO tornados or hail in our area.  The weather has not been easy on the wildlife including the nesting of the pheasants. 
 
Last Friday we attended a special animal health industry recognition dinner for Wes Remington in St. Joseph, MO.  Congratulations to Wes for a job well done with the various companies you’ve started over the years.
 
Have a great weekend!!
 
Ron Brakke
 
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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