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Animal Health News & Notes for December 1, 2006 12/1/2006

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Brakke Consulting's
Animal Health News & Notes for December 1, 2006

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Bayer
Del Monte
Hartville Group
Smithfield Foods
Webster Veterinary Supply
 
other news
Global Animal Management
Gold Kist
Maple Leaf Animal Nutrition
Modern Veterinary Therapeutics
Pilgrim's Pride
Schering-Plough
Sparhawk Labs
 
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BRAKKE CONSULTING, INC.
 
SIGN UP NOW TO ATTEND BRAKKE CONSULTING'S 2007 INDUSTRY OVERVIEW
 
Brakke Consulting will once again be presenting our 2007 Industry Overview at the North American Veterinary Conference and the Western Veterinary Conference.
 
NAVC (North American Veterinary Conference)
The 2007 Industry Overview will be presented on Monday, January 15 from 2:00 pm – 4:00 pm at the Gaylord Palms. 
 
WVC (Western Veterinary Conference)
The 2007 Industry Overview will be presented on Monday, February 19 from 2:00 pm – 4:00 pm at the Four Seasons hotel adjacent to the Mandalay Bay.
 
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, go to the home page at www.brakkeconsulting.com and click on the registration link. You may also register by calling Jane Morgan in the Dallas office at 972-243-4033.
 
www.BrakkeConsulting.com
 
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COMPANY EARNINGS RELEASES
 
> Bayer reported results for the third quarter of 2006.  Animal Health revenues were EUR 223 million ($283 million), an increase of 5% compared to the third quarter of 2005.  The division recorded particularly strong gains by Profender, the dewormer launched in Europe at the end of 2005, and the Advantage product line in North America. (company website) 
 
> Patterson Companies, Inc. reported results for the second quarter of fiscal 2007 ended October 28, 2006. Sales of the Webster Veterinary Supply unit increased 15% in the second quarter of fiscal 2007 to $95.4 million. (Business Wire)
 
> Hartville Group, Inc., a holding company whose wholly owned subsidiaries include Hartville Re Ltd., Petsmarketing Insurance.com Agency, Inc. and Wag N’ Pet Club, announced financial results for the Company’s third quarter of 2006. Gross revenue for the three months ending September 30, 2006 of $1.5 million 44% higher than the revenue for the comparative period of 2005. The net loss for the three months ending September 30, 2006 was ($5.8 million) compared to a net loss of ($1.8 million) in 2005. (Business Wire)  
 
>  Smithfield Foods issued its financial results for the second quarter of fiscal 2007. The company reported net income of $44.7 million for the period ending October 29, 2006, compared with a net income last year of $51.6 million. Sales were $2.8 billion, compared with $2.9 billion a year ago. (Wattnet Meatnews)
 
> Del Monte Foods Company reported fiscal 2007 second quarter results.  For the second quarter, Pet Products net sales were $327 million, an increase of 57% over net sales of $209 million in the prior year period. The increase was primarily driven by the Meow Mix and Milk-Bone acquisitions. Growth from new pet products and net pricing also positively contributed to the increase in net sales. These gains were partially offset by lower volume due to competitive marketing dynamics and elasticity. (Business Wire) 
 
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COMING IN DECEMBER:
2006 US FLEA CONTROL AND HEARTWORM MARKETS
 
Brakke Consulting will be publishing our latest annual report on the US Flea Control and Heartworm Markets in December.  The report will include the following valuable information:
 
 - Information on a number of new products expected to enter the market in 2007
 - Up-to-date pricing and sales data on the leading products
 - Advertising budgets for flea and heartworm products
 - Opinion survey of over 175 small animal veterinarians
 
The report on the US Flea Control & Heartworm Markets will be available for a purchase price of $4,995 and will be available in mid-December. 
 
Please contact Dr. Lynn Fondon at (972) 243-4033 or lfondon@brakkeconsulting.com to pre-order the report or for more information.
 
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COMPANY NEWS RELEASES
 
>  The FDA amended the animal drug regulations to reflect approval of an abbreviated new animal drug application (ANADA) filed by Sparhawk Laboratories, Inc.  The ANADA provides for the use of neomycin sulfate oral solution in livestock for the treatment and control of bacterial enteritis (AnimalNet - Federal Register)
 
> Modern Veterinary Therapeutics, LLC announced it has received FDA approval for Respiram, a respiratory stimulant for use in dogs, cats and horses.  Respiram is the company's first product in the anesthetic and critical care therapeutic area.  (company press release) 
 
> The Global Animal Management subsidiary of  Schering-Plough Animal Health (SPAH) received approval from the USDA for TRI-MERIT as a Process Verified Program. TRI-MERIT is a single-source age and tracking verification database for the cattle industry. The company also announced the launch of TRI-MERIT electronic ear tags to coincide with the USDA approval. (Animal Pharm)
 
> Maple Leaf Foods announced that it has retained RBC Capital Markets as its financial advisor to assist in the divestiture of Maple Leaf Animal Nutrition and related businesses. Maple Leaf Animal Nutrition is Canada's leading animal nutrition organization.  The company said that, excluding assets that will be retained to service its own hog production operations in western Canada, the animal nutrition business has sales of approximately C$650 million (US$570 million). (Feedstuffs online)
 
> Pilgrim's Pride Corporation announced that about 67% of Gold Kist's outstanding shares have been tendered and not withdrawn as of November 29. Accordingly, both Pilgrim's Pride and Gold Kist stockholders rightfully expect the Gold Kist directors to listen to the owners of the company and work with Pilgrim's Pride to complete this transaction quickly. Pilgrim's Pride also announced that it has extended its tender offer to purchase all of the outstanding shares of Gold Kist common stock for $20.00 per share in cash until December 27, 2006, unless further extended. (Wattnet Meatnews) 
 
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ANIMAL HEALTH NEWS
 
> CZECH REPUBLIC - BSE   A new case of BSE has been reported in the Czech Republic, bringing the country's total to 25. A 6-year-old cow from a farm in Semily, 100 kilometers northeast of Prague, tested positive for BSE. (Meating Place)
 
> SOUTH KOREA - AVIAN INFLUENZA   South Korean officials began a major campaign to cull tens of thousands of chickens in response to a new outbreak of highly pathogenic avian influenza. The H5N1 strain was detected in the southern city of Iksan, a major center of South Korean poultry production. This was the first new outbreak of H5N1 in South Korea in three years. More than a quarter of a million chickens and ducks will be destroyed by the end of the week. (Meating Place)
 
> US  ANIMAL ID SYSTEM TO REMAIN VOLUNTARY   The USDA says its national livestock identification program will be a permanently voluntary system.  By January 2007, USDA wants 25% of all livestock-producing premises registered. Thus far about 24% are registered. By January 2009, USDA had wanted 100% of all premises registered, 100% of all newborn animals identified and 60% of all animals less than a year old documented. (Drovers Alert)
 
> US - COMPANION ANIMAL MICROCHIP DATABASE The American Microchip Advisory Council for Animals (AMACA) announced the development of a nationwide umbrella database to assist in tracking microchips found in lost or displaced companion animals, birds and horses. The new database umbrella will operate 24 hours a day and coordinate with recovery networks already in operation. In contrast to over 30 individual pet registries in Europe, there are currently only a few registries in America. (Business Wire)
 
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BRAKKE CONSULTING VIEWPOINT
 
There are several stories this week related to the tracking of both food and companion animals.  It is becoming clear that electronic ID integrated with software will become standard operation in the coming years.  This technology provides the producers with a low cost alternative to manage productivity of each animal with regard to genetics, health programs and nutrition.  It has the added benefit of being able to track back animal protein sources rapidly in the event of a negative event. 
 
We believe it’s unfortunate that the USDA has allowed the time frame to slide for registering of producer facilities in the US.  In the long run it’s to everyone’s advantage to have a system that keeps the food system safe. Once bio-sensors are added as a new feature to electronic ID it will become even more advantageous for producers to utilize this technology. 
 
We also expect the companion animal electronic ID systems to expand as chips become part of the health records system and also provide the benefit of finding an animal in the event that it becomes lost.
 
Have a great weekend!!
 
Ron Brakke

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Dallas, TX  75234    USA