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Animal Health News & Notes for July 25, 2008 7/25/2008

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Brakke Consulting's
Animal Health News & Notes for July 25, 2008

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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JUMP TO:
 
earnings news
Abaxis
Elanco
Fort Dodge
IDEXX
Intervet/Schering-Plough
Maple Leaf Foods
Merial
Neogen
PetMed Express
Pfizer
VCA Antech
Vetoquinol
Virbac
 
other news
Amlan International
Dainippon Sumitomo Pharma
IDEXX
Intervet/Schering-Plough
Novartis
Oil-Dri
Sun Seed
Vitakraft
 
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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
 
> Schering-Plough reported results for the second quarter of 2008.  Sales for Intervet/Schering-Plough Animal Health were $818 million in the 2008 second quarter. (company website)
 
> Merck reported results for the second quarter of 2008.  Sales for joint venture Merial were $732 million, an increase of 15% compared to the second quarter of 2007. (company website)
 
> Pfizer reported results for the second quarter of 2008. Animal Health revenues for the second-quarter 2008 were $715 million, an increase of 13% compared with the year-ago quarter. The increase was driven by the favorable impact of foreign exchange, in addition to strong global livestock and companion animal product performance. (company website)
 
> Wyeth reported results for the 2008 second quarter. Net revenue for animal health division Fort Dodge increased 12% for the 2008 second quarter to $313 million. Excluding the favorable impact of foreign exchange, worldwide Animal Health net revenue increased 7% for the 2008 second quarter. (company website)
 
> Eli Lilly and Company announced financial results for the second quarter of 2008. Worldwide sales of animal health division Elanco were $255 million, an increase of 19% compared with the second quarter of 2007.  US sales grew 22%, driven by increased demand, the 2007 launch of Comfortis, and the acquisition of Ivy Animal Health, Inc. (company website)
 
> Virbac SA reported results for the second quarter of 2008. Net sales were EUR 109 million ($171 million), a decline of 2% compared to the second quarter of 2007.  Excluding the effects of currency translation, the sales of Virbac's OTC range in the US, and an acquisition in Denmark, sales increased 5.5%. (company website)
 
> Vetoquinol reported revenues of EUR 58 million ($92 million) for the second quarter of 2008, an increase of 7% compared to the second quarter of 2007. (company website)
 
> Neogen Corporation announced results for its 2008 fiscal year ended May 31. Neogen’s revenues surpassed $100 million for the first time in its history, coming in at $102 million. Revenues from the company’s Animal Safety segment grew 14% to $44.7 million in the 2008 fiscal year. (company press release)
 
> IDEXX Laboratories, Inc. reported that revenue for the second quarter of 2008 increased 18% to $281 million from $237 million for the second quarter of 2007. Companion Animal Group (“CAG”) revenue for the second quarter of 2008 increased 19% to $231 million from $194 million for the second quarter of 2007. (company website)
 
> Abaxis, Inc. reported financial results for the first fiscal quarter ended June 30, 2008. Veterinary market revenues were $16.6 million, substantially the same as in the comparable period last year. Veterinary reagent disc sales for the first quarter of fiscal 2009 were $10.4 million, a decrease of 6% compared to the same period last year. (company website)
 
> VCA Antech, Inc. reported financial results for the second quarter ended June 30, 2008.  Revenue increased 11% to a second quarter record of $334 million; net income increased 13% to $40.3 million.  Laboratory revenue in the second quarter increased 3% to $82 million, driven primarily by internal revenue growth of 2.5%. Animal hospital revenue in the second quarter increased 15% to $251 million, driven by acquisitions. (company press release) 
 
> PetMed Express, Inc. announced financial results for the company's first fiscal quarter ended June 30, 2008. Net sales for the quarter ended June 30, 2008 were $68 million, compared to $59 million for the quarter ended June 30, 2007, an increase of 16%. Net income was $6.6 million, compared to net income of $6.2 million for the quarter ended June 30, 2007. (Business Wire)
 
> Maple Leaf Foods reported results for the three months ended June 30. The company reported a net loss of (C$9.3 million) (US$9.2 million) on total sales of C$1.4 billion for the period. A year ago, the company had a net loss of (C$1.7 million) on sales of C$1.3 billion for its second quarter. (Meating Place)
 
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COMPANY NEWS RELEASES
 
> Intervet/Schering-Plough announced that Vetsulin (insulin) is now FDA approved for use in cats with diabetes mellitus. (company literature)
 
> Novartis Animal Health announced a donation of $625,000 to North Carolina State University’s College of Veterinary Medicine. The money will support the clinical trials program at the center for comparative medicine and translational research (CCMTR). (Animal Pharm) 
 
> IDEXX Reference Laboratories introduced two new equine diagnostic products: the IDEXX Equine Herpesvirus Type 4 (EHV-4) RealPCR Test and the IDEXX Equine Neurologic Disease Panel. (company press release)
 
> Oil-Dri Corporation of America announced it has formed Amlan International, a new business division focused exclusively on the global animal health and nutrition market. Amlan's products include ConditionAde 200 HPC feed prep, which combines the qualities of a toxin binder and a pelleting aid; and Bentonine animal feed fillers. (Market Wire)
 
> Vitakraft Pet Products announced it has acquired Sun Seed Co., and will combine the businesses to form the Vitakraft Sun Seed Co.  Financial terms were not disclosed. (Pet Product News) 
 
> JAPAN   Dainippon Sumitomo Pharma announced the Shinichi Okada as Director of Animal Health Products. He moves from his role as Director of Administration for clinical investigations at its R & D headquarters. (company news) 
 
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ANIMAL HEALTH NEWS
 
> EU - BLUETONGUE   Farmers in Europe are vaccinating livestock in a race against the biting midges that carry the bluetongue virus. The first cases of the disease surfaced this month, with France so far reporting 260 cases. Most are located along the front line of last year's outbreaks, suggesting that the epidemic is spreading into new territory despite France's compulsory vaccination policy. In England, voluntary vaccination has been rolled out across the country from the south-east, where bluetongue arrived last year. (AnimalNet - New Scientist)
 
> US - DOWNER COW BAN   California's governor signed legislation that bans the purchase, sale and processing of meat from non-ambulatory livestock including cattle and swine.  The bill imposes fines and jail time for processors that sell meat from downer animals. The USDA has also proposed to ban slaughter of downer cows at federally inspected slaughterhouses. (Meating Place)  
 
> US - NEW ASSOCIATION HEADQUARTERS  The Kansas City Animal Health Corridor announced that the North American Pet Health Insurance Association (NAPHIA) will locate its headquarters in Kansas City, Missouri. The newly formed association is presently comprised of major pet insurance providers located throughout North America. The founding members are Hartville Group, Pets Best, Petsecure, Trupanion and Vetinsurance. The association will be seeking additional member pet insurers, allied industry and association members. (association press release)
 
> WORLD RABIES DAY   World Rabies Day will be observed Sept. 28 to mobilize awareness and resources in support of human rabies prevention and animal rabies control. Seventy-four countries participated in last year’s inaugural World Rabies Day. In recognition of World Rabies Day, a variety of events are scheduled, including vaccination clinics, lectures and educational seminars, festivals and dog walks.  World Rabies Day Corporate Partners include Fort Dodge, Intervet/Schering-Plough, and Merial. (press release)
 
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AVMA ANNUAL CONVENTION
JULY 19-22, 2008
NEW ORLEANS
 
The American Veterinary Medical Association's 145th annual convention was held July 19 - 22, 2008 in New Orleans, Louisiana.  There were nearly 7,600 attendees, including 3,076 veterinarians and 1,346 exhibitors.
 
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BRAKKE CONSULTING VIEWPOINT
 
Wow!!  Some nice quarterly reports by a number of companies!!  One does need to read the footnotes or fine print to determine what really happened in some cases.  Currency exchange, acquisitions and price increases appear to have fueled a fair amount of the sales growth numbers.  Thus far only one firm has mentioned a new product as part of the reason for strong sales performance. 
 
The information that is crossing our desk in the US indicates that unit volume is flat to down in a number of product areas and that price increases are fueling much of the increase in revenue.  We continue to believe that the next 6 months will be an interesting time for a number of companies. 
 
I'm currently in the Midwest enjoying cooler temperatures.  The crops look wonderful along the Missouri River drive on I-29.  Not all of them got planted on time, but those that did should approach record levels of bushels per acre.  The early part of the week was spent at the AVMA convention in New Orleans.  Congratulations to the AVMA management and staff in putting on another great meeting. 
 
Have a great weekend!!
    
Ron Brakke
 
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