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Animal Health News & Notes for August 1, 2008 8/1/2008

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Brakke Consulting's
Animal Health News & Notes for August 1, 2008

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Alpharma
Bayer
Ceva
Eco Animal Health
Evialis
Hill's
JBS SA
MWI
Nutreco
Pilgrim's Pride
Tyson Foods
 
other news
Hill's
IDEXX
Intervet/Schering-Plough (Panacur Plus)
Intervet/Schering-Plough (Onset 5 IN)
Intervet/Schering-Plough (Nuflor Gold)
Lloyd
Minrad
Pfizer
Phyterra Bio
Schering-Plough
 
 
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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
 
> Bayer reported financial results for the second quarter of 2008. Sales of the animal health division slipped by 2.3% to EUR 260 million ($411 million).  On a currency-adjusted basis, sales expanded by 6%. Growth rates were particularly high in the Asia-Pacific region. (company website) 
 
> Ceva Sante Animale reported results for the first half of 2008.  Revenues totaled EUR 177 million ($279 million) for the 6 months ended June 30, 2008, an increase of 12% compared to the first half of 2007. (Animal Pharm)
 
> Alpharma Inc. reported results for the second quarter of 2008. Animal Health revenues decreased 5% to $85.6 million, compared to $90.5 million in the second quarter of 2007. (company press release)  
 
> Colgate-Palmolive Company announced results for second quarter 2008. Hill's Pet Nutrition sales grew 19.5% during the quarter to $548 million, as unit volume increased 6.0%, pricing increased 8.0% and foreign exchange added 5.5%.  (company press release) 
 
> Eco Animal Health Group Plc. results for the fiscal year ended June 30, 2008. The company reported a pretax loss of (GBP 1.0 million) ($2 million) for the year compared with a pretax profit of GBP 3.4 million last year. Revenues during the period grew marginally to GBP 14.8 million ($30 million) from GBP 14.7 million. (Hemscott.com) 
 
> MWI Veterinary Supply, Inc. announced financial results today for its third quarter ended June 30, 2008 of fiscal year 2008. Revenues were $208 million for the quarter, 13% higher than revenues for the same period in fiscal year 2007. Net income for the quarter was $5.4 million, 27% higher than net income for the same period in fiscal year 2007. (Money.cnn.com)
 
> Evialis reported results for the second quarter ended June 30, 2008.  Evialis Group achieved revenue of EUR 275 million ($434 million), an increase of 60% compared with the second quarter of 2007, mainly as a results of acquisitions. (company website)  
 
> Nutreco reported results for the first half of 2008.  Operating income rose 70% to EUR 80 million ($125 million) on revenues of EUR 2.3 billion ($3.6 billion).   (Animal Pharm)  
 
> Tyson Foods reported earnings of $9 million in the three months ended June 28, compared with earnings of $111 million in the same quarter a year ago. Revenue in the third quarter rose to $6.8 billion, from $6.6 billion in the same quarter last year. (Meating Place)
 
> Pilgrim's Pride Corp. reported a net loss from continuing operations of ($48.3 million) on net sales of $2.2 billion for the quarter ended June 28, compared to a net profit of $63.3 million on total sales of $2.1 billion during the same quarter last year. Total feed ingredient costs in the quarter rose $266 million, or 41%, when compared to the same period in 2007. (Meating Place) 
 
> JBS S.A. reported a net loss of ($233 million) for its second fiscal quarter, ended June 30, on expenses related to US acquisitions and currency losses. The loss compares with net income of $24.8 million for the same quarter a year ago. Sales for the quarter, meanwhile, increased more than six-fold, to $4.57 billion, mostly due to the acquisition of Swift & Co. in July 2007. (Meating Place) 
 
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COMPANY NEWS RELEASES
 
> Intervet/Schering-Plough announced the FDA has approved a new animal drug application (NADA) for Panacur Plus (ivermectin, fenbendazole, and praziquantel) Soft Chews for veterinary prescription use for the treatment and control of various internal parasites and for the treatment of canine heartworm disease in adult dogs. (FDA Veterinarian)
 
> Intervet/Schering-Plough announced the FDA has approved a new animal drug application (NADA) for Nuflor Gold for subcutaneous injection in beef and non-lactating dairy cattle for the treatment of bovine respiratory disease. (FDA Veterinarian) 
 
> Intervet/Schering-Plough announced the availability of Onset 5 IN, the first intranasally administered, five-way modified-live virus (MLV) vaccine for healthy cattle 3 to 8 days and older. Onset 5 IN is designed to stimulate at the site of infection an immune response to Bovine Virus Diarrhea (BVD) Type 1 and Type 2, Infectious Bovine Rhinotracheitis (IBR), Parainfluenza3 (PI3) and Bovine Respiratory Syncytial Virus (BRSV). (CattleNetwork.com)
 
> IDEXX Reference Laboratories announced the launch of a new blood test to help veterinarians diagnose heart disease in dogs and cats. The Cardiopet proBNP test is minimally invasive and accurately evaluates the cardiovascular condition of patients during the initial workup. The test measures levels of NTproBNP, a peptide that is released as the chambers of the heart are stretched. (Animal Pharm)
 
> Hill's Pet Nutrition announced the donation of its feline genome database to the Morris Animal Foundation for the advancement of feline research, along with a $1 million commitment to MAF.  A portion of the funds will be used to establish a Coalition for Feline Genomic Research. (AVMA Convention Daily News) 
 
> The European Commission announced it has changed the status of its inquiry into Pfizer Inc.'s animal health division's proposed acquisition of some of Schering-Plough Corp.'s animal health products. The status is now that of a full 'first phase' inquiry, with the deadline for the inquiry unchanged for Aug. 27. The inquiry was previously earmarked to be reviewed under the EU's 'simplified' merger review procedure for cases, which the commission believes do not pose competition concerns. (Forbes.com)  
 
> Lloyd, Inc. announced that the FDA has approved an abbreviated new animal drug application (ANADA) for Butorphic (butorphanol tartrate) Injection. The ANADA provides for the veterinary prescription use of Butorphic Injection in horses for the relief of pain associated with colic and postpartum pain. (FDA Veterinarian) 
 
> Minrad, Inc. announced that the FDA has approved an abbreviated new animal drug application (ANADA) for Petrem (sevoflurane). The ANADA provides for the use of Petrem inhalant anesthetic in dogs. (FDA Veterinarian) 
 
> Functional Technologies Corp announced the launch of its new Phyterra Bio Inc. subsidiary.  Phyterra Bio will develop a portfolio of novel healthcare products derived from the microalgae Chlamydomonas reinhardtii.  The initial target markets will be pet oral healthcare and aquaculture vaccines. (company press release)  
 
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ANIMAL HEALTH NEWS
 
> US - PRRS FUNDING   The USDA will renew its funding for the porcine reproductive and respiratory syndrome Coordinated Agricultural Project, allocating $4.8 million over the next four years. Kansas State University researchers will lead Phase II of the PRRS CAP. Efforts will focus on PRRS prevention and control tools. Other objectives will be to increase the knowledge needed to support scientists, apply existing and new technologies in regional disease eradication efforts and to develop educational and outreach programs. (Pork Alert)
 
>  EU - CLONING OPINION   The European Food Safety Authority released its final opinion regarding animal cloning.  The agency concluded that there are no food safety issues with milk and meat derived from cloned animals; however, it said there is evidence of animal health and welfare problems, although the technology is still in its infancy and the sample size available for study was very small. Only cattle and pigs were examined for the report. (Animal Pharm) 
 
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BRAKKE CONSULTING VIEWPOINT
 
You can see the impact of high feed grain prices in the profits of the companies producing animal protein for the marketplace.  Having just spent 10 days in the Midwest, it's our reading that these prices are not likely to soften in the short term.  While there is shifting in feeding methods and rations to assist in the reduction of costs, there is insufficient quality and quantity of these options to produce the desired finished product. We do not see this changing for the balance of 2008; those selling products to the food animal sector are going to continue to be under pressure for the next few quarters. 
 
As it relates to the companion animal side, we believe that in most categories unit volume is flat to down, and that price increases have been responsible for much of the sales revenue growth.  Will the pet owner continue to support higher pricing over the long term?  Probably, but there could be some shifts in where they purchase their products.
 
During the past few days there has been some relief in the energy costs that is starting to filter down at the gas pump and hopefully in other petroleum-related products.  We need some good news during this period of record heat in several parts of the country. 
 
Have a great weekend and stay cool!!
 
Ron Brakke
 
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2735 Villa Creek, Suite 140
Dallas, TX  75234    USA