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Animal Health News & Notes for August 15, 2008 8/15/2008

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Brakke Consulting's
Animal Health News & Notes for August 15, 2008
Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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JUMP TO:
 
earnings news
Heska
Pet DRx
 
other news
ABV Gold
Advanstar
Aquience
Avid
Bramton
Elanco
Mars
Pacific Vet Group
PharmaCom BioVet
Sigrah-Zellet
Stirling
Veterinarian's Best
 
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Registration Now Open for KC Animal Health Corridor's 2008 Homecoming Event
Monday, August 25
Kansas City, Missouri
 
Each year animal health industry executives and stakeholders from across the country gather in Kansas City for the KC Animal Health Corridor Homecoming event. Held in conjunction with CVC Central, the 3rd Annual Homecoming event will feature Cesar Millan (known as the "Dog Whisperer") and Courtney Oliver, a 10-year-old veterinary assistant from the state of Washington. In addition, the Corridor's "Iron Paw" Award will be presented Tom Corcoran, former CEO of Fort Dodge Animal Health. You won't want to miss this event!
 
5:30 - 9:30 p.m.
Hyatt Regency Hotel
Kansas City, Missouri
 
Seating is limited. To purchase a ticket or a table go to
www.kcanimalhealth.com/homecoming . Questions should be directed to Lynn Parman, KC Animal Health Corridor, at parman@thinkkc.com or 816-374-5627.
 
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COMPANY EARNINGS RELEASES
 
> Heska reported results for the second quarter of 2008.  Revenues were $22.6 million, an increase of 13% from the second quarter of 2007.  Second quarter net income was $666,000, compared to net income of $1.0 million in the second quarter of 2007. (company press release) 
 
> Pet DRx Corporation announced financial results for the 2008 second quarter. Revenue in the second quarter of 2008 was $17.9 million, up 1% compared with the second quarter of 2007, primarily due to a price increase implemented in the first quarter of 2008. The net loss in the second quarter of 2008 was ($5.2 million) compared with a net loss in the second quarter of 2007 of ($3.3 million). (Business Wire) 
 
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COMPANY NEWS RELEASES
 
> Elanco announced it will move to new headquarters in Hancock County, Indiana. Lilly has sold its Greenfield Laboratory, currently Elanco’s headquarters and also toxicological testing and R&D center, to drug development company Covance. Lilly is to lease Elanco’s current space from Covance while its new site is under construction; Elanco expects to move into the new premises in late 2009 or early 2010. (Animal Pharm) 
 
> Avid Identification Systems, Inc. announced the release of its new ‘MiniTracker Pro’ microchip scanner capable of multi-mode functionality. The scanners read all 125 kHz and 134.2 kHz microchips whether encrypted or unencrypted.  (Business Wire)
 
> Mars Petcare US announced a voluntary recall of limited bags of PEDIGREE Complete Nutrition Small Crunchy Bites sold in Albertsons stores in Southern California and Las Vegas, Nevada. The pet food is being voluntarily recalled because of potential contamination with Salmonella. There have been no complaints or reports of injury resulting from consumption or handling of the recalled product. (AnimalNet - Earthtimes.org) 
 
> Pacific Vet Group announced it has acquired the product offerings and assets of Sigrah-Zellet, LLC. The new entity, named Pacific Vet Group-USA, will research, develop and commercialize innovative products intended for use in the poultry industry worldwide. Financial terms were not disclosed. (company press release) 
 
> The Bramton Company announced it has completed the acquisition of Veterinarian’s Best, Inc. Veterinarian’s Best develops, markets and distributes all-natural veterinarian-developed pet care products, including shampoos, topical sprays and foams, nutraceuticals, Pet Swabs, and dental products. The terms of the agreement were not disclosed. (Business Wire)
 
> Stirling Products announced that it has acquired worldwide licensing rights from Aquience Inc. for the product PetQuench. PetQuench, fortified water for dogs and cats, is already on the market in North America. (ABN Newswire) 
 
> ABV Gold, Inc. announced it name has changed to PharmaCom BioVet Inc. (PCBV). PCBV will introduce and further develop bone marrow transplantation and other cancer treatment procedures to benefit companion animals (canine and feline) that are diagnosed with lymphoma, other types of cancers, and other diseases. (CNN) 
 
> Advanstar Veterinary Healthcare Communications Inc. announced the launch of dvm360.com, a Web portal that provides veterinary professionals with free, one-stop access to essential information, education, and training in news, medicine, business, and interpersonal communication. (company press release)  
 
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ANIMAL HEALTH NEWS
 
> US - COMPOUNDED EQUINE DRUGS   The American Association of Equine Practitioners announced that veterinary pharmaceutical compounding companies will not be permitted to display or discuss compounded products at the AAEP annual convention in December.  According to Veterinary Practice News, It is the first time compounded products will be excluded from a veterinary conference.  (Veterinary Practice News)
 
> US - GENOME DATA DONATION   Morris Animal Foundation (MAF) has received a donation of $1 million from Hill's Pet Nutrition, accompanied by a donation of ground-breaking genetic research data developed by Hill's researchers. In November 2008, MAF will launch a global research effort on behalf of cats; part of Hill's donation will establish an international coalition for feline genomic research. (association press release)
 
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BRAKKE CONSULTING VIEWPOINT
 
In our travels everyone is asking us how the economy is impacting the animal health business. In our discussions with various executives, supported by various company public reports, it does not appear to be having a serious negative impact, although to say that it's not having some impact would not be accurate. 
 
Whether or not sales volumes and profits will hold up during the last 6 months is still to be determined.  We continue to believe that the impact of the economy will be 2% to 4% of the gross sales volume in comparison to last year. 
 
We're also hearing that unit volume is relative flat to down in most categories but that revenue remains up.  This is obvious because of price increases that appear to be holding.  If you'll recall our concern in January 08 regarding sales revenues in 2008, we had some concern that some of the very competitive market segments could see price erosion.  To date that has not been the case, which is good news.
 
Have a great weekend!! 
 
Ron Brakke
 
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Dallas, TX  75234    USA