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Animal Health News & Notes for June 27, 2008 6/27/2008

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Brakke Consulting's
Animal Health News & Notes for June 27, 2008

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
other news
Digital Angel
Lienert Australia
Lilly Companion Animal (Reconcile)
Lilly Companion Animal (Comfortis)
Tyson Foods
XL Foods
Market Research Services
Throughout the year, Brakke Consulting, Inc., performs marketing surveys and studies for client companies.  If your firm needs help assessing the feasibility of a new product or technology, identifying the opinions and trends of product consumers, or determining the current market for products, Brakke Consulting, Inc. can build a market study to meet your needs.  We also produce syndicated studies in specific animal health market areas. Further information can be found at our website  www.brakkeconsulting.com or by calling our Dallas office at 972.243.4033.
> Bioject Medical Technologies Inc. announced that it has signed a new long-term exclusive license, development and supply agreement with Merial for a next-generation companion animal device which allows for the delivery of injectables. This new device will allow Merial to deliver certain of their companion animal vaccines with a single device. Merial’s feline leukemia vaccine and canine melanoma vaccine are currently being delivered using two unique Bioject developed needle-free injection therapy systems, the VETJET and VITAJET 3 devices. (Business Wire)
> Lilly Companion Animal announced the European approval for Reconcile (fluoxetine) chewable tablets for the treatment of canine separation anxiety.  In addition, Lilly announced the appointment of Dr St├ęphane Villemin as the director for the European market. Dr Villemin joins Lilly's companion animal health business from Virbac, where he spent 15 years in several different roles. (Animal Pharm) 
> The FDA Center for Veterinary Medicine (CVM)  announced that it has received reports of adverse reactions in dogs receiving the drug Comfortis (spinosad) concurrently with high, extra-label doses of the drug ivermectin. The clinical signs of these adverse reactions are consistent with ivermectin toxicity. CVM and Lilly are advising veterinarians that dogs receiving extra-label doses of ivermectin should not receive concurrent treatment with Comfortis. (CVM) 
> MWI Veterinary Supply, Inc. announced that it has entered into a non-binding letter of intent to purchase substantially all of the assets of AAHA Services Corporation, operating as AAHA MARKETLink, for a cash purchase price of $10 million, and to simultaneously enter into a long-term sponsorship and licensing agreement between MWI and American Animal Hospital Association ("AAHA"). The Company currently expects to commence logistics on behalf of AAHA MARKETLink on July 1, 2008 and to enter into a definitive agreement and close the transaction by July 15, 2008. (CNN Money)
> Digital Angel announced that its Destron Fearing unit has received approval from the USDA for Premises Identification Number (PIN) tags for identification of swine entering harvest channels. According to the company, this is the first instance of a visual livestock identification tag to gain USDA approval. (company website) 
> Odyssey Veterinary Software (OVS), in cooperation with Kansas State University College of Veterinary Medicine, has begun developing a student version of the Diagnostic Imaging Atlas (DIA) software. DIA was successfully released in January of 2008; the student version will be called DIA Academic and will have a focused approach to veterinary student curriculum. The program is sponsored by Hill’s Pet Nutrition.  (company press release) 
> MetaMorphix announced the release of its new Canine Heritage XL Breed Test.  The new test can detect over 100 breeds, nearly three times more than the original product released last year. (Business Wire)
> Tyson Foods Inc. announced preliminary agreement to sell its Canadian beef packing operation, Lakeside Farm Industries, to XL Foods Inc. for C$107 million. The company stated that the operation no longer fits Tyson's long-term strategy as the current international strategy is focused primarily in Asia, Mexico and South America. (Meating Place)
> AUSTRALIA  Lienert Australia announced it will acquire Provimi's Australian subsidiary. Lienert  manufactures feed premixes, and distributes feed ingredients, feed supplements and technical advice to other feed manufacturers and direct to livestock farmers in Australia and New Zealand. Financial terms were not disclosed. (Animal Pharm)  
> CANADA - BSE   The Canadian Food Inspection Agency confirmed a new case of BSE in British Columbia. The agency said the infected animal was discovered as part of the nation's continuing surveillance program and emphasized that the new case did not pose a human health threat and no part of the animal entered the food chain. (Meating Place)
> US - TUBERCULOSIS   The California Department of Food & Agriculture (CDFA) and the USDA confirmed the detection of bovine tuberculosis (TB) in two more dairy herds in Fresno County, California. A single cow in each of these two additional herds was confirmed positive, bringing the current total number of affected herds in the state to three. USDA will downgrade California’s bovine TB status from “Accredited Free” to “Modified Accredited Advanced." (Feedstuffs)
> US - HSUS   The Humane Society of the United States (HSUS) released a new undercover video that portrays apparent animal abuse of a dairy animal at an auction market facility in New Mexico. The Livestock Marketing Association posted information on its Web site letting its members know about the situation. According to the statement, "LMA does not and has never condoned mishandling of livestock, and will continue to work with the markets to see that these isolated incidents do not reoccur.” (Drovers Alert)
It was great to spend another week in the field interfacing with senior management of several companies.  There appears to be a consensus building that the 2nd quarter of 2008 numbers will reflect softness in the marketplace.  The biggest concern, however, is the rapidly escalating costs of raw materials.  We are clearly in an inflationary period and it will take some quick juggling to protect gross profits for the balance of the year. 
Price increases are occurring across the board at alarming rates. Will producers and consumers accept these price increases?  Or is it just part of doing business during this period?  Will companies be able to correctly read and adjust to the attitudes of their customers appropriately during this challenging time? We encourage you to react to the market conditions in an organized process, based on solid data and not allow emotions create unhealthy actions.
Have a great weekend and start inventorying the fireworks!!  

Ron Brakke
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