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Animal Health News & Notes for July 22, 2011 7/22/2011

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Brakke Consulting's
Animal Health News & Notes for July 22, 2011

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM MBA
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IN THE NEWS:
 
Brakke news
practice management
 
earnings news
ECO Animal Health
Elanco
IDEXX
PetMed Express
Vétoquinol
Virbac
 
other news
BioPet Vet Lab
BioVeteria Life Sciences
DNA World Pet Registry
Merck
Merial (Certifect)
Merial (Sergeant's)
Neogen
Sergeant's
Zurex PharmAgra
 
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BRAKKE CONSULTING, INC.
KNOW YOUR CUSTOMER

 
A knowledgeable sales representative is a successful one. Brakke Consulting's practice management consultant can educate industry sales personnel on the issues currently being faced by veterinary practices, and suggest ideas for how they can gain a foothold in these practices by offering non-product recommendations and services.  For more information, contact Jessica Lee at jglee@brakkeconsulting.com or 919.444.3279.
 
 www.BrakkeConsulting.com

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COMPANY EARNINGS RELEASES
 
> Eli Lilly and Company announced financial results for the second quarter of 2011. Sales of animal health division Elanco were $390 million, an increase of 20% compared with the second quarter of 2010. (company press release)
 
> Virbac SA reported results for the second quarter of 2011.  Sales were EUR 155 million ($223 million), an increase of 4% compared to the comparable period in the prior year (7% at constant exchange rates). Growth was driven in particular by the double-digit growth recorded in Latin America and in Asia. (company website) 
 
> Vétoquinol reported financial results for the first half of 2011.  Sales rose to EUR 140 million ($201 million), a 1% increase over the same period in 2010. (company website)
 
> IDEXX Laboratories, Inc. reported results for the second quarter of 2011.  Revenues increased 13% to $318 million; net income increased 31% to $48.7 million. Companion Animal Group ("CAG") revenues for the quarter were $260 million, a 12% increase compared to the second quarter of 2010. (PRNewswire)
 
> ECO Animal Health reported results for the year ended March 31, 2011. Group turnover for the year advanced by 24% to GBP 27 million ($43 million). (Business Wire)
 
> PetMed Express, Inc. announced its financial results for the quarter ended June 30, 2011. Net sales were $74 million, a decrease of 1% compared to the quarter ended June 30, 2010. Net income was $4.8 million compared to net income of $7.2 million for the quarter ended June 30, 2010, a decline of 33%. (company website) 
 
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COMPANY NEWS RELEASES
 
> Merial announced the launch of Certifect, a new topical flea and tick control product for dogs. Certifect contains amitraz and fipronil, which act together against ticks’ nervous systems to kill more ticks and increase the speed of kill compared to equivalent concentrations of fipronil alone. Certifect, which is approved by the EPA, also contains (S)-methoprene. (company press release)
 
> Merck Animal Health announced that it has embarked on an $18 million expansion of a vaccine manufacturing unit at its Biosciences Center Boxmeer campus in the Netherlands. The new facility is scheduled to be fully operational by early 2013. (company press release) 
 
> Sergeant’s announced a return and exchange of all fipronil-methoprene products including those sold as Fiproguard Plus, Pronyl OTC Plus, EctoAdvance, Spectra Sure and Prefurred because they infringe Merial's US patent 6,096,329 entitled “Insecticidal combination to control mammal fleas, in particular fleas on cats and dogs.” (Business Wire) 
 
> Zurex announced the formation of a new animal health business unit.  Zurex PharmAgra's first product, ZuraLac, is a novel non-iodine-based sanitizer designed to protect the teats of dairy cows from mastitis-causing organisms. (Animal Pharm)
 
> Neogen Corporation announced the development of a breakthrough pathogen detection and identification technology that provides next day, DNA-specific test results for seven pathogenic E. coli strains. The NeoSEEK pathogen DNA detection method could be adapted to target almost any bacterium of concern in almost any food sample type. (company press release)
 
> BioVeteria Life Sciences announced it has exclusively licensed a patented, orally active cartilage and bone repair technology from the Canadian Arthritis Network (CAN).   BioVeteria plans on evaluating this new technology for a variety of orthopedic conditions.  (company press release)
 
>  BioPet Vet Lab and the DNA World Pet Registry announced the launch of a new dog DNA testing program. Using the Registry’s patent pending technology, BioPet can now deliver a DNA Proof of Parentage testing system that can be used and shared by dog breeders and kennel clubs anywhere in the world. (Business Wire) 
 
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ANIMAL HEALTH NEWS
 
> US - INDUSTRY PET INITIATIVE  The Partnership for Preventive Pet Healthcare was announced to the veterinary profession this week. This new Partnership has specifically been created to address the decline in pets’ health due to an increase in the prevalence of some preventable health conditions. The Partnership is chaired by AVMA CEO Dr. Ron DeHaven and managed through an Executive Committee, Board of Directors and supported by various advisory councils. (organization press release)
 
> US - HUMAN ANIMAL BOND   The Human Animal Bond Research Initiative Foundation (HABRI) was recently incorporated as a nonprofit organization dedicated to promoting the positive role animals play in the health and well being of people and communities. HABRI plans to identify and fund new research topics, establish an education center, foster government relations and create a support network. (Pet Product News)
 
> US - NCVEI   The American Veterinary Medical Association (AVMA) announced that pending final approvals, the National Commission on Veterinary Economic Issues (NCVEI) will cease to exist as an independent organization and become part of AVMA. (Veterinary Advantage)
 
> US - VETERINARY WORKFORCE   The American Veterinary Medical Association (AVMA) announced that it is in the preliminary stages of designing a study of workforce availability and needs across the veterinary profession. A formal, in-depth study of both supply and demand would provide hard data to support future decisions in areas such as education, economic viability and workforce sustainability. (Feedstuffs)
 
> THAILAND - AVIAN INFLUENZA   New Thai research has shown that the H5N1 virus has mutated and may live for longer in birds and poultry. However, the changes also resulted in lower human mortality than the original virus. (Animal Pharm)
 
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BRAKKE CONSULTING VIEWPOINT
 
Wow!  What a week of news in the flea and tick category.  Some companies announced new products, then initiated recalls within days – sometimes hours! – due to alleged patent infringements.  The flow of inventories going to and from warehouses and retail shelves must have been a nightmare for the stock boys.  What happens to the items already purchased and in the home, or even applied to the dog and cat?  Could there be so much confusion at the consumer level that some animals will go untreated? The lawyers are no doubt enthusiastically watching the events unfold, even if the dogs and cats aren’t.
 
Earlier this week we had the opportunity to attend the AVMA annual convention in St. Louis. There were several important announcements at the meeting and we’d particularly like to highlight the one about the “Partnership for Preventive Pet Healthcare”.  This new consortium has been created to address the decline in veterinary visits and pet health in the US.  The Bayer Veterinary Care Usage Study has provided significant insights into areas in which the profession needs to focus to increase veterinary visits. 
 
Had I realized in advance that U2 would be performing in St. Louis during the AVMA meeting I might have attended the concert on Sunday night.  However, since my hotel room was just a few hundred yards from the stage, I was still able to appreciate it in my room until midnight!
 
Have a good weekend and stay cool!! 
 
Ron Brakke
 
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