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

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Brakke Consulting's
Animal Health News & Notes for August 8, 2008

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Boehringer Ingelheim Vetmedica
Central Garden & Pet
ImmuCell
Nestle
Seaboard Foods
Tangerine Group
 
other news
Biofaktory
Monsanto
Nutreco
S&M Nutec
 
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BRAKKE CONSULTING, INC.
EXECUTIVE AND SALES FORCE RECRUITING
 
Since 1986 Brakke Consulting, Inc. has successfully assisted many clients in acquiring exceptional employees at all levels, in the many departments of animal health, pet, veterinary and specialty chemical companies.   We pre-qualify candidates, allowing clients to choose from a few of the best applicants for a position.  Our approach increases the efficiency and effectiveness of the Human Resources Departments of client companies. For more information, visit our website or call 972-243-4033.
 
www.BrakkeConsulting.com
 
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COMPANY EARNINGS RELEASES
 
> Boehringer Ingelheim reported results for the first half of 2008.  Animal Health sales were EUR 216 million ($341 million), an increase of 11% compared to the first half of 2007.  On a currency-adjusted basis, sales increased 17%. A key growth driver was the product launch and sales of the Ingelvac Circoflex swine vaccine. (company website) 
 
> Nestle reported results for the first six months of 2008. PetCare reported sales of CHF 5.9 billion ($5.8 billion), 11% organic growth and 5% real internal growth. Organic growth continued to be driven by new product launches and increasing focus on premium and super-premium segments. (company press release) 
 
> ImmuCell Corporation announced results for the three month period ended June 30, 2008. Product sales increased by 4% to $826,000 in comparison to the same period in 2007. The net loss was ($238,000) during the three-month period ended June 30, 2008 in comparison to a net loss of ($60,000) during the same period in 2007. (company press release) 
 
> Tangerine Group reported sales of GBP 12.1 million ($24.3 million) for 2007-2008, a 10% increase over the previous year's result. Over the last 12 months, the company has opened a new South African subsidiary, in addition to its existing operations in the UK, Spain and Ireland. (Animal Pharm)
 
> Central Garden & Pet Company announced preliminary results for its fiscal third quarter ended June 28, 2008. Net sales for the Pet Products segment in the quarter were $239 million, unchanged compared to the year ago period. (company website)  
 
> Seaboard Foods reported pork segment sales in the second quarter ended June 28 totaled $288 million, up $27 million from the same quarter last year. The company reported an operating loss of ($26.4 million) from its pork segment in the second quarter, compared to earnings of $13 million in the second quarter last year.  The company said the operating loss resulted due to higher feed costs and the impact of using the LIFO (last in, first out) method of determining inventory cost. (Meating Place)
 
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COMPANY NEWS RELEASES
 
> Monsanto Co. announced that it will divest its Posilac recombinant bovine somatotropin (rbST) business in the upcoming months to allow Monsanto to focus on its core seeds and traits business. No additional details of the sale were provided. (Feedstuffs)
 
> S&M NuTec announced the launch of a new formulation of its Greenies canine dental chews with fiber, antioxidant and palatability improvements. The new Greenies contain apple pomace, dried tomato and whole dried sweet potato for a healthy immune system, and cranberry fiber for digestibility. Further, two independent palatability studies revealed a statistically significant preference among canines for the new formulation. (company press release)
 
> Nutreco announced the acquisition of Biofaktory, a feed maker with facilities in the Czech Republic and Slovakia and annual turnover of around EUR 40 million ($62 million). Nutreco is paying approximately EUR 10 million ($15.6 million) for the company, which is the leader in premix and specialty feed in its national markets. It exports to several other countries in the region. The business will be incorporated into Nutreco's premix arm, Trouw Nutrition International. (Animal Pharm)  
 
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ANIMAL HEALTH NEWS
 
>  US - ANIMAL DRUG USER FEES APPROVED   The US Senate approved the Animal Drug User Fee Act (ADUFA) and the Animal Generic Drug User Fee Act (AGDUFA) by unanimous consent. ADUFA allows the FDA to collect fees from the animal health industry for the review and approval of animal health products. AGDUFA will do the same for generic animal drugs. (Pork Alert) 
 
> US - COOL   USDA’s Agricultural Marketing Service (AMS) published an interim final rule regarding mandatory country-of-origin labeling of meat products. The new requirements take effect September 30, 2008.  The rule covers meat products including muscle cuts of beef, veal, lamb, chicken, goat and pork, as well as ground beef, ground pork, ground lamb, ground chicken and ground goat. Processed meat and poultry products like lunch meat, meatballs or marinated pork loin, as well as meat and poultry sold at foodservice, are exempt from labeling. When labeling ground beef, ground pork, ground lamb, ground goat and ground chicken, the rule allows labels to declare the countries from which the meat may reasonably have originated. (ThePigSite.com)
 
> US - NEW PET WEBSITE   WebVet, a new online platform for pet care and information, was launched this week. WebVet  is a neutral resource providing news, information and fact-based education from credible expert sources and partners. All content on the site, both medical and general interest, is rigorously reviewed and updated by a veterinary member of WebVet's Editorial Review Board at least once a year, and then granted a "seal of approval" from the WebVet Veterinary Advisory Council. WebVet is supported by diverse partnerships, with the American Animal Hospital Association (AAHA), Cat Fanciers Association (CFA), Sittercity, the Zoological Education Network, the Winn Foundation and Pfizer Animal Health, among others. (AnimalNet – Prime Newswire)
 
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BRAKKE CONSULTING VIEWPOINT
 
Based on the limited amount of news, it appears that the heat and other weather factors are having an impact on company activity, or else everyone is taking an early August vacation before school starts. 
 
One story that I found particularly interesting was the decision by Monsanto to look for a buyer for Posilac.  I don't believe they'll have much trouble finding a number of interested parties.  We still remain impressed with the excellent results Monsanto has achieved with this product in the face of continued, mostly erroneous, negative publicity generated by those not wanting to accept advances in science from the biotechnology area.  How many children’s diets around the world have benefited from having access to an ample supply of quality milk?  Knowing what we know today, one has to wonder how many management teams would be willing to take the risks that the Monsanto management teams took in the late 60's and early 70's to develop Posilac. 
 
Hopefully, there are a number of companies with the same forward-thinking vision, and we'll keep hearing about new technologies for the animal health marketplace.  With higher energy prices we're going to continue to need more efficient food production systems, including the use of vaccines, pharmaceuticals and other additives.  
 
Have a great weekend and keep cool!!
 
Ron Brakke
 
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