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Animal Health News & Notes for August 22, 2008 8/22/2008

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Brakke Consulting's
Animal Health News & Notes for August 22, 2
008
Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Hartville Group
Jakks Pacific
Menu Foods
Spectrum Brands
Webster
 
other news
AHN International
Alpharma
Bradley Caldwell
Centaur Services
DRE Veterinary
Elanco
Imugene
IVX
Loveland Pet Products
Meridian
Monsanto
Old Mother Hubbard
Pala-Tech (Pala-ZYMES)
Pala-Tech (Cranberry Plus)
PetCARE TV
 
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BRAKKE CONSULTING, INC.
Expanded Services in OTC Companion Animal
 
In addition to its expertise in the ethical animal health market, Brakke Consulting also offers consulting services for the over-the-counter (OTC) companion animal market segment.  This expertise was strengthened with the recent addition of Joel Adamson to the Brakke team.  With considerable industry experience in operations, marketing, business development and general management, Joel Adamson can provide valuable assistance to clients  conducting or considering business in the companion animal OTC channels. 
 
For more information on our services in the OTC channel, contact Joel Adamson at 402.215.5635 or jadamson@brakkeconsulting.com
 
www.BrakkeConsulting.com
 
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COMPANY EARNINGS RELEASES
 
> Patterson Companies, Inc. reported results for the first quarter of fiscal 2009 ended July 26. Sales of the Webster Veterinary unit increased 12% in the first quarter of fiscal 2009 to $123 million. (Business Wire) 
 
> Menu Foods Income Fund reported revenues rose to C$60 million (US$57 million) from C$47 million (US$44 million) in the second quarter of 2007. The company reported a profit of C$735,000 (US$694,000) in the second quarter, up from a year-earlier loss of C$3.6 million (US$3.4 million). (Petfood Industry) 
 
> Spectrum Brands, Inc. announced results for the company's fiscal third quarter ended June 29, 2008. Global Pet Supplies net sales were $149 million, a 10% increase compared with the prior year. Companion animal product net sales grew 13%, while global aquatics net sales increased 9% from the prior year. (company website)
 
> Hartville Group, Inc. announced financial results for the three month period ended June 30, 2008. Gross revenue increased by 84% to $4.6 million. The net loss was ($0.7 million) compared to a net loss of ($2.5 million) in the comparable period in the prior year.  The number of pets insured by Hartville was 79,079, up 54% from the pets covered as of June 30, 2007. (Business Wire) 
 
> Jakks Pacific Inc. reported that its pet product sales in the second quarter of 2008 were $3.6 million, down from $4.1 million in the prior year.  The company said that it expects to exceed $30 million in sales for the full year.  Sales in the category are led by AKC and other licensed pet products. (Pet Product News) 
 
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COMPANY NEWS RELEASES
 
> Elanco announced that Lilly has signed an agreement to acquire the worldwide rights to the dairy cow supplement, Posilac (sometribove), as well as the product's supporting operations, from Monsanto Company. Under the terms of the agreement, Lilly will acquire all rights to the Posilac brand, as well as the product's US sales force and its manufacturing facility in Augusta, Georgia. In return, Monsanto will receive a $300 million upfront payment, as well as contingent consideration. (company press release) 
 
> King Pharmaceuticals disclosed that its $1.38 billion offer for Alpharma Inc. was rejected and said it would take its proposal to shareholders if it can't reach agreement. The unsolicited offer was made August 4 and was rebuffed by Alpharma's board. (Bloomberg) 
 
> AHN International LLC announced the acquisition of Centaur Services Ltd., a veterinary wholesaler located in Castle Cary, England.   Centaur Services has annual revenues in excess of $260 million.  Financial terms were not disclosed. (company press release)
 
> Teva announced that it has made the strategic decision to retain and develop IVX Animal Health into a leading veterinary pharmaceutical company. Teva has made substantial investments to position the company for future growth and believes the ongoing capital investments and upgrades will provide a competitive advantage in the animal health market. (company communication)
 
> Meridian Animal Health introduced two innovative surgical wound care products available exclusively to veterinarians. Surgi-Lock 2oc is an instant liquid tissue adhesive for veterinary procedures that provides a fast and safe alternative to traditional suture applications. Epi-Heal is a technologically advanced liquid spray bandage specifically designed to provide better wound adhesion and longer lasting adhesion on joints. (MarketWatch) 
 
> Pala-Tech announced the launch of Pala-ZYMES Granules, a highly palatable and balanced formulation that improves the digestion and nutritional benefits of a pet’s daily diet. Pala-ZYMES contains 14 natural plant enzymes to help control a variety of clinical conditions in dogs, cats and other mammals. (company press release)  
 
> Pala-Tech announced the launch of Cranberry Plus Chewable Tablets and Cranberry Plus Granules, both highly palatable, natural supplements formulated to maintain and support urinary tract health in dogs and cats. Each supplement contains cranberry extract, echinacea, Oregon grape root and sodium ascorbate. (company press release)
 
> Imugene announced that preliminary results from a trial of its modified PRRS vaccine demonstrate that the vaccine provides a high degree of protection when two doses are administered either orally or by injection. (company press release)
 
> Catterton Partners announced the sale of its investment in Old Mother Hubbard Inc./Wellness Pet Food. Various financial publications have reported Berwind Corp., a family-owned investment management company, acquired the company. (Petfood Industry) 
 
> DRE Veterinary announced it is distributing the Scale-Aire, a mobile veterinary dental cart. It comes fully equipped with a built-in ultrasonic scaler, polisher/drill, air-water syringe, and a compressed air system. (PRWeb)
 
> Bradley Caldwell, Inc. announced the acquisition of Loveland Pet Products.  The acquisition expands Bradley Caldwell's distribution area from 17 states to 26 states. Financial terms were not disclosed. (Pet Product News)
 
> PetCARE Television Network, Inc. (PetCARE TV)  launched a community-based Web site designed to foster the doctor-client-patient relationship. MyPetCareTV.com allows any veterinary practice to set up its own community site, invite clients and prospective clients to participate, and provide full access to a broad range of media-rich content. (company press release)  
 
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ANIMAL HEALTH NEWS
 
> CANADA - BSE   The Canadian Food Inspection Agency (CFIA) has confirmed BSE in a six-year-old beef cow from Alberta. No part of the animal’s carcass entered the human food or animal feed systems. The age and location of the infected animal are consistent with previous cases detected in Canada. (AnimalNet)
 
> US - NEWCASTLE DISEASE   The National Veterinary Services Laboratory in Ames, Iowa, reported that several wild water birds from two Minnesota lakes have tested positive for the virulent form of Newcastle disease.  Although poultry can catch the disease from wild birds, the Board of Animal Health reported that farm biosecurity measures help ensure that such a possibility is highly unlikely. (IndependentReview.net)
 
> US - EQUINE PIROPLASMOSIS   Five horses in Florida have been confirmed positive for equine piroplasmosis, a disease that was eradicated officially from US in 1988. The horses were all housed on a farm in Manatee County, FL. With the exception of the quarantined premises, there are no equine movement restrictions in Florida or between Florida and other states. (TheHorse.com)
 
> US - ADUFA   President Bush signed into law the Animal Drug User Fee Amendments of 2008, which among other things, authorizes a new user fee program for animal generic drugs. In addition, the law reauthorizes the Animal Drug User Fee Act through fiscal year 2013. (Dog Channel)
 
> US - VET INITIATIVE   The Pennsylvania Veterinary Medical Association has launched "Project Pennsylvania," a legislative and educational initiative designed to combat the growing shortage of veterinarians in certain geographic regions and practice areas in the state. The initiative would increase the number of veterinary students who go into and stay in underserved areas of the veterinary profession through the establishment of a targeted loan forgiveness program, targeted recruitment of students interested in these areas and on-the-job mentoring for new graduates. (Feedstuffs)
 
>  US - ASSOCIATION NAME CHANGE   The American Pet Products Manufacturers Association (APPMA) announced a name change to the American Pet Products Association. (Pet Product News)
 
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BRAKKE CONSULTING VIEWPOINT
 
It was great seeing so many of you at the Banfield Pet Health Care Industry Summit this past week.  The Summit was well-attended and a number of important industry issues were discussed by the group.  John Payne and the staff at Banfield have once again done an outstanding job in hosting this meeting and raising industry issues of importance.
 
The other news for the week indicates a number of mergers in the animal health and pet distribution channels.  We believe there will be continued consolidation in the distribution companies serving the veterinary, animal health and pet channel over the coming months.  The distinct differences in the various distribution channels are starting to fracture.  The cost of distributing products to small outlets, producers, and pet owners will continue to drive acquisitions in distribution because of a need for efficiencies and volume.
 
We hope to see many of you in Kansas City at the CVC and the KC Animal Health Corridor Homecoming Event next Monday night.  It looks like a great program that everyone will enjoy.
 
Have a great weekend!!
 
Ron Brakke
 
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Dallas, TX  75234    USA