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Animal Health News & Notes for May 25, 2007 5/25/2007

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Brakke Consulting's
Animal Health News & Notes for May 25, 2007

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
Sanderson Farms
Webster Veterinary Supply
other news
Ivy Animal Health
Maple Leaf
Nutramax Labs
Plusfood Groep
JULY 16, 2007
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 $325 for the first company attendee and $300 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 .
> Patterson Companies, Inc. reported results for the fiscal 2007 full year ended April 28.  Sales for the Webster Veterinary Supply unit were $399 million, a 15% increase compared to fiscal year 2006. (Business Wire) 
> Sanderson Farms reported earnings for the three months ended April 30 were $26.9 million, compared with a loss of ($16.6 million) for the same period last year. Revenues swelled 51%, jumping to $361million from $239 million last year. (Meating Place)
> Eli Lilly & Co. announced that it has signed an agreement to acquire Ivy Animal Health Inc. Upon deal closing, Ivy will become a wholly owned subsidiary of Lilly and will be an operating unit of Lilly's Elanco Animal Health division. Ivy will continue to operate from its current location in Overland Park, KS. The transaction is expected to close near the end of the second quarter of 2007. Financial terms were not disclosed. (Feedstuffs)
> Bayer Animal Health announced the introduction of new QuickBayt Spot Spray with imidacloprid.  QuickBayt Spot Spray provides powerful fly control where it is needed most, treating places conventional granular baits can't reach, and killing flies in less than 60 seconds. (PRNewswire)
> Nutramax Labs announced it is taking Cosequin over the counter because of widespread diversion into Internet retail channels.  Dasuquin, its next-generation joint health product, will continue to be sold exclusively through veterinarians and will take steps to control unauthorized distributor sales. (DVM Newsmagazine) 
> Imugene Limited announced results from further trials of its avian influenza vaccine for chickens showing efficacy levels reaching 100%. The trial group with 100% protection received the first dose of Imugene's vaccine injected directly into chicken eggs followed by an oral booster dose when the chickens were seven days old. All vaccinated chickens survived exposure to a high dose of a highly pathogenic Asian strain of the H5N1 avian influenza virus at age 21 days. All birds in this group remained healthy with no signs of disease. (company press release) 
> Maple Leaf Foods Inc. announced an agreement in which it will sell its animal nutrition business to Nutreco Holding N.V. for C$500 million (US$460 million). The transaction is scheduled to close in July. The animal nutrition business is the largest commercial feed manufacturer in Canada, operating 18 feed plants across Canada and also in New York. The business reported 2006 operating earnings of $47 million on sales that totaled $650 million. (Feedstuffs)
> JBS-Friboi confirmed it has submitted a bid to acquire Swift & Co.  Additional comment was not available.  JBS is the largest beef processor in Latin America and the sixth largest in the world. (Feedstuffs)
> Perdigao S/A announced an agreement in principle to acquire Dutch processor Plusfood Groep BV. Plusfood, a subsidiary of Dutch holding company Cebeco Groep B.V., manufactures poultry- and beef-based processed and convenience food products. The deal is worth approximately EUR 30 million ($40.35 million). (Feedstuffs)
> WORLD - AVIAN INFLUENZA   According to the OIE, 59 countries have reported outbreaks of the H5N1 strain of avian influenza from 2003 to date.  The Veterinary Services in the majority of these countries have successfully dealt with the outbreaks.  The disease remains endemic in at least three countries (Indonesia, Nigeria and Egypt) and continues to appear in previously unaffected countries. (AnimalNet - association press release)
>  UK - AVIAN INFLUENZA  An outbreak of avian influenza in north Wales was confirmed this week but does not involve the H5N1 strain of the virus.  The strain involved is the H7N2 low pathogenic avian influenza. (AnimalNet - the Guardian)
>  US - BRUCELLOSIS   Montana state animal health officials confirmed that a herd of seven cows has tested positive for brucellosis. The state's beef herds have been free of the disease since 1985. Montana has limited bison from moving into the state from Yellowstone National Park based on fears of brucellosis, but officials said this outbreak doesn't appear to be linked to bison. (Meating Place)
> US - BSE CLASSIFICATION  The World Organization for Animal Health (OIE) has formally classified the US as a controlled-risk country for BSE. The USDA said it will use this international validation to urge its trading partners to reopen export markets to the full spectrum of US cattle and beef products. Canada also received controlled-risk classification from the OIE. (Feedstuffs)
> US - RESEARCH INSTITUTE PROPOSED    The AVMA announced support for the concept of a national institute promoting companion animal and equine research.  According to the AVMA Council on Research, funding for health-related research dedicated to companion animals and horses is virtually nonexistent in comparison with research funding for human and livestock animal health. The concept is for an institute that would, among other things, recommend and coordinate veterinary medical research; identify and recommend strategic alliances among groups within and outside of veterinary medicine to support and encourage research that advances animal and human health; and provide recommendations on research policies and priorities. (association press release)
> US - WAGYU BEEF GENETICS   The Lone Mountain Cattle Co. announced that it is ready to supply genetics from its herd of full-blood Wagyu cattle to cattle producers.  Wagyu cattle are synonymous with Kobe beef that comes from Wagyu cattle in Japan's Kobe region.  Wagyu beef are known for producing bright red, highly marbled and tender beef that's extremely low in cholesterol.  (Feedstuffs)
Earlier this week I attended the 23rd Alltech Nutritional Symposium in Lexington, KY.  Congratulations to the management team at Alltech in organizing this very successful annual meeting for the industry.  This years timely symposium theme was THE NEW ENERGY CRISIS; FOOD, FEED OR FUEL?  A number of thoughtful presentations were made regarding the current and future conflicts regarding the resources needed to produce either food, feed, or fuel.  While no short term solutions were provided, I was reminded of the personal costs when I filled my car up with gasoline this morning.  It’s the opinion of many that our current energy issues will take a combination of solutions.  In the meantime, producers will need to confront increased feed grain costs to produce protein and may not be able to recover their additional costs in the value of products produced.  This is likely to impact various suppliers of products to producers and consumers.
As we approach the Holiday Weekend here in the US we need to remember that we each have a role to play in solving the energy issue in the short and long term.  Have a safe and enjoyable Holiday Weekend!!
Ron Brakke
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Brakke Consulting, Inc.
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