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Animal Health News & Notes for November 14, 2008 11/14/2008

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Brakke Consulting's
Animal Health News & Notes for November 14, 2008

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Heska
Phibro
Ridley
Spectrum Brands
Tyson Foods
 
other news
Ceva
Embrace Pet Insurance
First Priority
Heska
IMULAN
SNIF Labs
 
 
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COMING SOON!
US FLEA CONTROL AND HEARTWORM MARKETS
2008 UPDATE
 
ORDER NOW FOR EARLY-BIRD DISCOUNT
 
Brakke Consulting will soon be publishing our 2008 report on the US Flea Control and Heartworm Markets.  Our annual survey of over 250 veterinarians will include questions regarding usage of many of the new products introduced in the past two years, as well as perceptions of trends in flea, tick and heartworm product sales.
 
The report on the US Flea Control & Heartworm Markets will be available for a purchase price of $4,995 if ordered by WEDNESDAY, NOVEMBER 26, and $5,500 after that date. 
 
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 EARNINGS RELEASES
 
> Phibro Animal Health Corporation reported first-quarter sales of $140 million, up 24% compared to the same quarter last year. Net loss for the first-quarter, including non-cash foreign currency losses related to inter-company balances and interest and income taxes, was $(8.7) million. Adjusted earnings before interest, taxes and depreciation and amortization totaled $12.5 million, an increase of 18% from last year. (RTTNews)  
 
> Heska Corporation reported financial results for its third quarter ended September 30, 2008. Total revenue was $21.7 million, an increase of 11% compared to the third quarter of 2007. Core Companion Animal Health product revenue was $18.9 million, an increase of 21% from the prior year period. Net income was $577,000, compared to net income of $1.01 million in the third quarter of 2007. (company press release)  
 
> Spectrum Brands, Inc. announced results for its fiscal year ended September 30, 2008. Global Pet Supplies revenues were $599 million, an increase of 6% compared to the 2007 fiscal year. (company website)
 
> Ridley reported results for the first fiscal quarter ended September 30, 2008.  Revenue was $169 million, an increase of 21% compared to the comparable period in the prior year. Net earnings were $2.9 million, compared to $2.6 million in the comparable period in the prior year. (company website)  
 
> Tyson Foods reported that earnings for the year ended Sept 27 totaled $86 million, but reported a loss of $118 million in its chicken segment due in large part to increased feed ingredient costs. Sales were $26.9 billion for the year, up 4% compared to the prior year. (Feedstuffs, company website)
 
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COMPANY NEWS RELEASES
 
> Heska Corporation announced the appointment of Michael McGinley to the position of President and Chief Operating Officer effective January 1, 2009.  Dr. Robert Grieve will continue in his role as Chairman of the Board and Chief Executive Officer. (company press release)  
 
> The FDA has approved an original abbreviated new animal drug application (ANADA) filed by First Priority, Inc.  The ANADA provides for the veterinary prescription use of phenylbutazone tablets in horses for the relief of inflammatory conditions associated with the musculoskeletal system (AnimalNet - Federal Register)
 
> IMULAN BioTherapeutics announced it will relocate its headquarters and operations from Prescott, AZ. to St. Joseph, MO. The company is the first tenant in the new Christopher “Kit” Bond Science and Technology Incubator in St. Joseph. The St. Joseph operation will handle R&D, logistics, clinical trials, marketing and sales. (company press release)  
 
> Embrace Pet Insurance announced the completion of its first institutional investment round of $2.1 million, funded by NCT Ventures of Columbus, OH. The financing will support Embrace's goal of profitable market leadership through product development and expansion of the company's sales and marketing activities. (MarketWatch)
 
> SNIF Labs unveiled a pet accessory, the SNIF Tag, that combines wireless sensing and social networking technologies. The tag attaches to a dog’s collar and records its daily movements and social encounters and then uploads them to the Internet. The tag compiles data on the dog, building a pattern that allows the owner to compare their dog’s activities, health and habits with other dogs. (Business Wire) 
 
> BRAZIL   Ceva Vetbrands has launched a new line of vaccines for cattle, sheep and goats in Brazil. They are designed to help fight diseases such as leptospirosis, rabies, clostridiosis, tetanus and other important livestock disease. (Animal Pharm)  
 
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ANIMAL HEALTH NEWS
 
> GERMANY - BLUETONGUE   Three cases of bluetongue serotype 6 (BTV6) have been reported in cattle in northern Germany, close to the Dutch border.  The farms are within the restricted zones set up by the Dutch authorities after the virus was found there in late October.  (Pharm Fresh)
 
> THAILAND - AVIAN INFLUENZA   A case of avian influenza was confirmed in Thailand by the Ministry of Agriculture in early November. It is the first outbreak since the country was declared free from the virus six months ago. The H5N1 strain of the virus was found in a dead chicken on a backyard farm in the province of Sukhothai, prompting the slaughter of 270 other birds nearby. (Pharm Fresh)
 
> US - POULTRY GENETICS   A study involving scientists from the USDA, universities and industry has found that commercial chickens lack more than half of the genetic diversity native to species. According to the researchers, this could make them more vulnerable to diseases, and could reduce long-term sustainability. (Pharm Fresh)
 
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BRAKKE CONSULTING VIEWPOINT
 
The erosion in the financial markets is creating a level of uncertainty regarding the 4th quarter of 2008 and the first half of 2009.  One positive is the significant drop in energy prices over the past few weeks; however, the stock market decline continues to send shock waves through the financial system. When will it end and what will be the impact on animal health? 
 
We believe that it's obvious that the animal health market will be impacted negatively by the recent events in the financial markets.  Consumers are likely to reduce or modify their behavior in the purchase of higher-priced cuts of meat, and possibly even spend less on their family pet. 
 
Having just returned from South Dakota, I have a sense from my food production friends that they are confused about what actions to take related to planning for next year.  Costs have risen significantly and price of most products they are producing and selling has dropped over the past few months.
 
It appears that it's going to be a rocky ride the next few weeks and months, so be efficient in your operations and prepared to move quickly when opportunities develop. 
 
Have a great weekend!!
 
Ron Brakke
 
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Dallas, TX  75234    USA