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Animal Health News & Notes for September 12, 2008 9/12/2008

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Brakke Consulting's
Animal Health News & Notes for September 12, 2008

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Animal Health Int'l
Novozymes
 
other news
Ceva
Delvet
Healionics
IdentiGEN
Interpet
Merial
Nature's Premium Brand
Pfizer (Improvac)
Pfizer (Schering products)
Romage
Schering-Plough
Sergeant's
TR Biosurgical
 
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BRAKKE CONSULTING, INC.
The Success of Veterinarians Is Essential
 
The Practice Management Group of Brakke Consulting, Inc. can help your company increase its value to existing and potential veterinary customers through sponsored seminars that are educational, relevant, enjoyable and very beneficial to veterinarians and their staffs.  Contact Christine A. Merle, DVM, MBA, CVPM at cmerle@brakkeconsulting.com to learn how our practice management consultants can help maximize your company’s exposure to the veterinary profession.
 
www.BrakkeConsulting.com
 
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COMPANY EARNINGS RELEASES
 
> Animal Health International, Inc. announced results for the fiscal year ended June 30, 2008. Net sales increased $87.0 million, or 14%, to $717 million. Acquisitions accounted for $60 million (69%) of this increase. Organic sales increased 4% from the same period last year. Net income for the year was $11.1 million, an increase of 112% from last year's net income of $5.2 million. (company press release)  
 
> Novozymes reported results for the first six months of 2008.  The business made an operating profit of DKK 749 million ($142 million), a decline of 5% on sales that were 9% higher at DKK 4.1 billion ($777 million). The company's profitability was 5% higher, after excluding a DKK 75 million one-off cost. (Animal Pharm)
 
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COMPANY NEWS RELEASES
 
> Merial Animal Health Argentina announced the acquisition of Argentinian company Romage, which specializes in veterinary products for the swine and dairy sectors.  Romage has an average turnover of $2 million per year.  Financial terms were not disclosed. (Animal Pharm)
 
> Ceva Sante Animale announced it has acquired  Delvet.  Delvet specializes in the companion animal sector of the Australian veterinary market and regional export markets.  The move marks Ceva's entry into the Pacific Rim region.  Financial terms were not disclosed. (company press release) 
 
> Schering-Plough Corporation announced the successful closing of its previously announced transaction with Pfizer Animal Health, to divest certain animal health products from selected franchises in the European Economic Area to Pfizer for approximately EUR 116 million ($162 million) in cash. Pfizer acquired products from the parasiticide, swine E. coli vaccine, ruminant Clostridium vaccine, equine influenza vaccine, ruminant neonatal vaccine, anti-inflammatory, companion animal/insulin and companion animal/euthanasia, and rabies vaccine franchises of Intervet/Schering-Plough Animal Health. This agreement does not affect Intervet/Schering-Plough Animal Health’s marketing of these products in other global markets beyond Europe. (company press release)  
 
> Sergeant’s Pet Care Products, Inc., announced it has reached an agreement to purchase the Aquarium Products Business of Interpet, LLC. The brands and technology include Aquari-Sol, Clout, Crystal Clear, Genesis and Quick Cure.  Financial terms were not disclosed. (Business Wire)
 
> Healionics Corp. announced that it has entered into a manufacturing, supply and distribution agreement with TR BioSurgical, LLC (TRBIO) for use of its flagship STAR biomaterial scaffold in a veterinary glaucoma implant.  Under this exclusive, multi-year agreement, Healionics will provide its STAR biomaterial scaffold for TRBIO’s TR-ClarifEYE, an innovative implant for the treatment of glaucoma in animals, which is planned for limited market launch in the first quarter of 2009. (company press release) 
 
> Nature's Premium Brand, an all-natural fresh pork product, reported that it is the first North American pork company to track DNA to trace hogs back to the farm where they were raised. Nature's Premium will use IdentiGEN's DNA TraceBack system, a USDA Process Verified, DNA-based traceback system for product verification. (Pork Alert)
 
> SWITZERLAND  Pfizer Animal Health announced that the Swiss licensing authority has approved Improvac, a vaccine that uses the pig’s own immune system to temporarily block the function of the testes, and thus reduce the level of boar taint compounds. Switzerland is the first market in Europe to approve the new product. (ThePigSite.com) 
 
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ANIMAL HEALTH NEWS
 
> US - AVIAN INFLUENZA   A southwestern Idaho bird farm has been quarantined after two birds there were found to have the H5N8 avian influenza virus, a low-pathogen strain of the virus. It does not appear as if the virus spread to any animals beyond the two at the farm. (AnimalNet - AP)
 
> US - TB STATUS   The USDA’s Animal and Plant Health Inspection Service (APHIS) reclassified New Mexico as modified accredited advanced for bovine tuberculosis. This action is consistent with finding two or more TB-affected herds during a 48 month period. (Cattle Network)
 
>  CANADA - BSE LAWSUIT   A $10-billion class action lawsuit targeting the Canadian government for economic losses caused by an outbreak of BSE in 2003 has been given a green light to proceed. An Ontario Superior Court justice permitted the class action yesterday by 115,000 cattle farmers to pass the stage of legal certification. The class action faults federal inspectors for negligently allowing a situation where a single case of BSE closed international borders to Canadian cattle. (AnimalNet – Globe and Mail)
 
> US - DOWNER LAW   California has enacted the first legislation to prohibit the marketing of non-ambulatory pigs, sheep and goats, along with cattle. The state strengthened its 1994 Downed Animal Protection Act, which prohibits non-ambulatory animals at stockyards and slaughter plants from being dragged, pushed, held or sold. It's now expanded to prohibit such animals from being bought, sold, transported or slaughtered for human consumption. DAPA also requires that slaughter plants immediately euthanized non-ambulatory animals. Stockyards, auctions and dealers also must immediately euthanize such animals or provide them with veterinary care. (Pork Alert)
 
> US - COMPANIES ESCHEW CLONED ANIMALS   According to Pork Magazine, twenty food companies have committed to not using or supplying milk or meat from cloned livestock. The companies include Smithfield Foods, Kraft Foods, Wal-Mart and Tyson Foods. The ban does not include offspring of clones. (Pork Alert)
 
> CANADA - LIVE BSE TEST   Researchers at the Public Health Agency of Canada's National Microbiology Laboratory have demonstrated that protein levels in urine samples can indicate both the presence and progress of BSE in cattle. The scientists hope their discovery might lead to the development of a urine-based test for live cattle. (Feedstuffs)
 
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BRAKKE CONSULTING VIEWPOINT
 
In 2000, Brakke Consulting created a check list of 21 questions for our clients that was titled: "Twenty-One Measurements for Success in the 21st Century."  Recently I uncovered a copy of that document and after reading it again felt it was worth sharing one more time.  This will allow each client or individual to benchmark his or her company or personal results and actions for the past 8 years against our suggestions in 2000.
 
Question 2 from 2000: Have you introduced Flexible Management Systems?
 
Small, affordable computers with the ability to analyze millions of bits of information and variables will allow managers to make decisions based on real time data.  More importantly, they can make decisions and move the communication of these decisions around the world instantaneously.  No one person or company will have a corner on all of the management information.  What the leading companies will have is flexible management systems that can rapidly analyze and implement changes needed in their operations based on the information in their system.  This means there will be competition for information and a need for shared and distributed decisionmaking.
 
Our view on how many of you have done:
 
We’ve been very impressed with how well both manufacturing and distributing companies have improved their processes to develop current field information regarding sales of their products in various types and sizes of outlets.  Companies have also improved the speed with which this information is analyzed and then shared with the sales force and others in the organization in order to maximize results.  Again, the investments in IT hardware and software have paid off for many firms.
 
Have a great weekend. It looks like “Hurricane Ike” will drop lots of rain here in Texas!! 
 
Ron Brakke
 
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Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA