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Animal Health News & Notes for October 24, 2008 10/24/2008

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Brakke Consulting's
Animal Health News & Notes for October 24, 2008

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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JUMP TO:
 
earnings news
Elanco
Fort Dodge
IDEXX
Intervet/Schering-Plough
Merial
Nestle
PetMed Express
Pfizer
VCA Antech
Vetoquinol
Virbac SA
 
other news
Curamedics
Gourmetceuticals
Intervet/Schering-Plough
JBS & Swift
Mars Veterinary
Merial
MSC
Novartis
National Beef Packing
Smithfield Beef Group
Virbac
 
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COMPANY EARNINGS RELEASES
 
> Schering-Plough Corporation reported financial results for the third quarter of 2008. Sales for animal health division Intervet/Schering-Plough totaled $759 million in the 2008 third quarter. Included in the third quarter of 2008 were net sales of $503 million related to products from the acquired Intervet business. (company press release) 
 
> Pfizer Inc. reported financial results for the third quarter of 2008. Animal health revenues were $708 million, an increase of 11% compared to the third quarter of 2007. (company website)  
 
> Merck & Co., Inc. announced financial results for the third quarter of 2008. Sales for joint venture Merial were $652 million, an increase of 12% compared to the third quarter of 2007. (company press release)
 
> Wyeth reported results for the 2008 third quarter ending September 30, 2008. Worldwide net revenue for Fort Dodge Animal Health increased 11% to $261 million for the third quarter of 2008, due primarily to higher sales of livestock products, equine products and the favorable impact of foreign exchange. (company press release)
 
> Eli Lilly and Company announced financial results for the third quarter of 2008. Worldwide sales of animal health division Elanco were $277 million, an increase of 17% compared with the third quarter of 2007. (company press release)
 
> IDEXX Laboratories, Inc. reported that revenue for the third quarter of 2008 increased 9% to $251 million compared to the third quarter of 2007. Companion Animal Group revenue for the third quarter of 2008 increased 9% to $205 million. (PRNewswire) 
 
> Nestle SA reported results for the first nine months of 2008. PetCare sales were CHF 9.0 billion ($8.2 billion), an increase of 5% compared to the first nine months of 2007.  Organic growth was 11%. (company press release)
 
> Virbac SA reported results for the third quarter of 2008.  Net sales were EUR 115 million ($166 million), a 4% increase compared to the third quarter of 2007.  (company website)  
 
> Vetoquinol reported results for the third quarter of 2008.  Revenues were EUR 54.5 million ($79 million), a decline of 1% compared to the third quarter of 2007.  At a constant rate of exchange, revenues increased 2%. (company website)
 
> VCA Antech, Inc. reported financial results for the third quarter ended September 30, 2008, as follows: revenue increased 8% to a third quarter record of $332 million; while net income increased 11% to $36 million. Laboratory revenue in the third quarter increased 4% to $77 million. Animal hospital revenue in the third quarter increased 10% to $253 million driven primarily by acquisitions. (company press release)
 
> PetMed Express, Inc. announced its financial results for the quarter ended September 30, 2008. Net income was $5.8 million for the quarter, compared to net income of $4.5 million for the quarter ended September 30, 2007. Net sales for the quarter ended September 30, 2008 were $59.6 million, an increase of 16% compared to the quarter ended September 30, 2007. (Business Wire) 
 
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COMPANY NEWS RELEASES
 
> Schering-Plough Corporation announced the transition of leadership of its Animal Health unit from Ruurd Stolp, D.V.M., Ph.D., to Raul E. Kohan, who was previously the Deputy Head of the Animal Health unit. In his role as senior vice president and president, Intervet/Schering-Plough Animal Health, Kohan will continue reporting to Fred Hassan, chairman and chief executive officer. (company website) 
 
> Novartis announced the appointment of George Gunn as head of the company's Consumer Health division.  Gunn will remain head of Novartis Animal Health while adding responsibility for Ciba Vision and Novartis OTC Medicines, the other Consumer Health groups. (company press release)
 
> Virbac Animal Health announced the addition of Novifit NoviSAMe to its line of nutraceuticals to combat brain aging in dogs and cats. The product is available for dogs and cats. (DVM News)
 
> Mars Veterinary announced that the newly updated Wisdom Panel MX can now detect 157 breeds that may be present in a mixed-breed, covering 153 of the 158 American Kennel Club (AKC) registered dogs plus four breeds found on the AKC's Foundation List. Wisdom Panel MX can now pinpoint the breeds of mixed-breed dogs with an increased accuracy level of 90%. (PRNewswire)
 
> MSC announced the acquisition of a manufacturing facility in Whitehall, Wisconsin from SPF North America.  The transaction will allow MSC to further expand its spray drying and processing facilities. Financial terms were not disclosed. (company press release)  
 
> The U.S. Department of Justice filed a civil antitrust lawsuit to block JBS-Swift & Co.'s proposed acquisition of National Beef Packing Co., contending the deal would cause financial hardship on consumers and producers and harm industry competition. At the same time, the Department of Justice approved JBS-Swift's acquisition of Smithfield Beef Group and its Five Rivers cattle feeding operations. (Meating Place)
 
> Gourmetceuticals LLC and Curamedics Pharmaceuticals Inc. announced a licensing agreement to co-develop animal treats for canines and equines. The treats will include Gourmetceuticals’ ingredients, PPL-240, an antioxidant with photoprotective properties, and GLPH-1, an immune booster. The products are expected to launch nationally in 2009. (Veterinary Practice News)
 
> BRAZIL   Merial's Brazilian division, Merial Sa├║de Animal, has launched Aftobov, a new foot and mouth disease (FMD) vaccine that does not produce false positives in immunized cattle tested for the disease. The launch follows the introduction of new guidelines from the Brazilian Ministry of Agriculture, which will ban the sale of products that induce the production of antibodies to non-structural proteins  of the FMD virus, causing false positives. (Animal Pharm) 
 
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ANIMAL HEALTH NEWS
 
> GERMANY - AVIAN INFLUENZA   German veterinary authorities have confirmed that the H5N1 strain of avian influenza virus was found in a flock of ducks at a poultry farm in the east of the country.  Immediately after the announcement, authorities slaughtered the 1,400 ducks in the farm, and established a 3 km radius quarantine zone around the farm and a 10 km radius observation zone. This is the first occurrence of the virus recorded there since December 2007.  (Animal Pharm)
 
> US - MILITARY VETERINARY HOSPITAL  A new $15 million veterinary hospital for four-legged military personnel opened at Lackland Air Force Base, offering a facility that gives advanced medical treatment for combat-wounded dogs. Some 2,500 dogs are working with military units. The new hospital has operating rooms, digital radiography, CT scanning equipment, an intensive care unit and rehab rooms with an underwater treadmill and exercise balls, among other features. A behavioral specialist has an office near the lobby.  Lackland is also training 750 dogs, which is nearly double the number of dogs there before the Sept. 11 attacks. (AP)
 
> US - VETERINARY STUDENTS   The University of Georgia has initiated an incentive program to helping encourage students to enter food animal medicine. The program, which started in 2007, is an early admission program designed for Georgia high school students interested in food animal practice. Students in the program major in animal science, avian biology, dairy science or poultry science. After their undergraduate graduation, they enter the College of Veterinary Medicine, provided they fulfill admission requirements. (Southeast Farm Press)
 
> US - COOL CONSUMER BROCHURE   The American Meat Institute this week released a new consumer-oriented brochure to explain country-of-origin information on meat packages and in retail meat cases. The brochure outlines what products will carry labels, what different labels mean and how and why meat is imported. To see the brochure, go to http://www.meatmattersinfo.org/ht/d/sp/i/42735/pid/42735 . (Food Systems Insider)
 
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BRAKKE CONSULTING VIEWPOINT
 
The initial results for the third quarter are in, and so far companies seem to be reporting some nice increases in revenues.  Some of the increases are due to acquisitions and the impact of currency exchange rates, but there appears to be some organic growth as well.  The fourth quarter will no doubt be challenging for all, but keep your sights set on the longer term rather than making reactionary short-term adjustments that will hurt your company's chance for long-term success.
 
Have a great weekend!
 
Lynn Fondon
 
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