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Animal Health News & Notes for May 9, 2008 5/9/2008

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Brakke Consulting's
Animal Health News & Notes for May 9, 2008

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Alpharma
Animal Health International
Bayer
Bioniche
Central Garden & Pet
ImmuCell
Pilgrim's Pride
Provimi
Spectrum Brands
Vetoquinol
 
 
other news
Pancosma
Schering-Plough
VPL
 
 
 
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COMPANY EARNINGS RELEASES
 
> Bayer reported results for the first quarter of 2008.  Sales of the Animal Health division grew by 2% to EUR 235 million ($371 million), and by 9% when adjusted for the effects of currency translation.  The principal growth driver was the Advantage product line. (company website)
 
> Alpharma Inc. announced results for the first quarter 2008. First quarter Animal Health revenues increased 9% to $91.5 million, compared to $83.8 million in the first quarter of 2007, reflecting revenue growth in most regions and market segments. Excluding the year-over-year effects of currency, revenues increased 6% over the first quarter of 2007. (Marketwire)
 
> Vetoquinol reported results for the first quarter of 2008.  Revenue for the quarter reached EUR 54.7 million ($86.4 million), an increase of 3% compared to the first quarter of 2007.  On a constant exchange rate and scope basis, revenue increased 5%. (company website) 
 
> ImmuCell Corporation announced the results of its operations for the three-month period ended March 31, 2008.  Product sales increased by 8% to $1.6 million in comparison to the same period in 2007. Net income was $78,000 during the three-month period, in comparison to $297,000 during the same period in 2007. (company press release)
 
> Bioniche Life Sciences Inc. announced financial results for the third quarter of its 2008 fiscal year, ending March 31, 2008.  For the quarter, consolidated revenues totalled C$7.2 million (US$7.0 million) compared to C$6.4 million  for the corresponding periods in Fiscal 2007. The increase in sales in the current quarter reflects increased sales of animal health products in the US and export markets (FoxBusiness.com)
 
> Animal Health International, Inc. announced that net sales increased 11% to $171 million for the three months ended March 31, 2008. Acquisitions accounted for $16.4 million of the increase in sales. Organic sales increased 0.2% from the same period last year. Net income was $1.9 million compared to net income of $0.1 million for the third quarter of the prior year. (Prime Newswire) 
 
> Central Garden & Pet Company announced results for its fiscal second quarter ended March 29, 2008. Net sales for the Pet Products segment were $231 million, relatively unchanged from $230 million in the comparable fiscal 2007 period. (Business Wire)
 
> Spectrum Brands, Inc. announced results  for the fiscal second quarter ended March 30, 2008. Global Pet Supplies net sales were $148 million, a 4% increase compared with the prior year. (company website)
 
> Provimi reported results for the first quarter of 2008.  Revenues were EUR 533 million ($828 million), an increase of 20% compared to the first quarter of 2007.  The sales increase was largely due to higher selling prices caused by increased raw material costs. (company press release)
 
> Pilgrim's Pride Corp. reported that, for the three months ended March 29, the company had a net loss of ($111.4 million), compared with a net loss of ($40 million) in the year-earlier period.  Quarterly sales reached $2.1 billion, slightly above last year's $1.99 billion.  The company attributed its loss to increased feed costs that they are unable to pass along all price increases to their customers. (Meating Place) 
 
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COMPANY NEWS RELEASES
 
> Schering-Plough appointed the Executive Team members of the company’s global animal health unit: Intervet / Schering- Plough Animal Health. These appointments define the major steps in the design process of the animal health unit. The executive team is chaired by Ruurd Stolp, Senior Vice President and President Animal Health, who reports to Fred Hassan, chairman and CEO, Schering-Plough.  Raul Kohan, Senior Vice President, Corporate Excellence and Deputy Head Animal Health, is also a member of the executive team. (company press release)
 
> Veterinary Products Laboratories (VPL) announced it will be expanding the Vet-Kem line of products with the introduction of a new flea and tick collar for dogs.  The Vet-Kem PowerBand Flea & Tick Collar for Dogs provides complete protection against all stages of the flea life cycle; adult fleas, immature fleas and flea eggs for up to five months.  It also kills ticks for up to five months including those that may transmit Lyme disease.  The active ingredients in this collar are Propoxur and (s)-Methoprene. (company press release)
 
> SWITZERLAND    Pancosma announced the expansion of its Xtract range of plant-based feed additives with the launch of Xtract 7065 for beef cattle, which the company claims can improve feed conversion efficiency by more than 10%. Xtract 7065 contains the active ingredients capsaicin, eugenol and cinnamaldehyde.  The supplement's active ingredients are microencapsulated in hydrogenated vegetable oil to extend the duration of activity in the rumen. (Animal Pharm)
 
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ANIMAL HEALTH NEWS
 
> CANADA - BOVINE TB   Canada has confirmed a rare case of bovine tuberculosis in a five-year-old beef cow from a herd in Manitoba.  The Canadian Food Inspection Agency (CFIA) said no part of the infected cow entered the human or animal food chain and that there is no public health risk associated with the case. CFIA, which is working with the operator of the affected farm, said all the animals that could have been exposed to the disease will be destroyed to prevent an outbreak. (AnimalNet - Reuters)
 
> US - NATIONAL PET WEEK  May 4-10 is National Pet Week, celebrating America's more than 172 million companion animals, and the remarkable role they play in improving the quality of our lives. All across the nation, veterinarians, veterinary technicians and others will use this opportunity to educate the public on how pets improve human health, and how pet owners can return the favor.  National Pet Week was established in 1981 by the AVMA and its auxiliary to promote responsible pet ownership and awareness of veterinary medicine, and celebrate the human-animal bond. This year, the theme is "Pets Jazz up Our Lives" in recognition of the AVMA convention in New Orleans July 19-22. (Medical News Today)
 
> US - FARM ANIMAL WELFARE   The PEW Commission on Industrial Farm Animal Production report came out last week. The report was 2.5 years in the making, and the commission's conclusion is that "industrial farms" raising animals for food require "a far-reaching overhaul." Among the areas that the commission focused on include: Environmental and waste issues, animal well-being, antibiotic usage, disease spread between people and animals and impact on the rural community.   The study was a project of the Pew Charitable Trusts and the Johns Hopkins Bloomberg School of Public Health. To view the report, got to http://www.ncifap.org/_images/PCIFAP%20FINAL%20REPORT.pdf
 
> EU - POULTRY BAN   The European Union is likely to lift its 11-year ban on US poultry imports, according to the EU's Enterprise and Industry Commissioner quoted by Reuters. The EU banned imports of US poultry on account of US processors' use of chlorine in processing. The renewed focus on the EU's ban comes as the Transatlantic Economic Council prepares to meet in Brussels next week to discuss a variety of trade issues. (Meating Place)
 
> US - FLORIDA PHARMACY LAW   Owners of Florida veterinary medical practices will have to buy pharmacy permits by Jan. 1, 2009, to be in compliance with a new state law that requires practitioners of human and veterinary medicine to obtain permits in order to prescribe drugs. It reflects state Department of Environmental Protection (DEP) concerns regarding drug diversion. The final bill reflects a compromise between health care professions and DEP officials who originally called for each practitioner to hold a permit in order to prescribe drugs. (DVM Newsmagazine)
 
> US - PSEUDORABIES   The Michigan Department of Agriculture confirmed pseudorabies virus (PRV) infection in 19 sport swine on a privately owned cervid facility in Saginaw County. All swine on the Saginaw County cervid facility will be captured and destroyed. Feral swine in the vicinity of the facility are being trapped and euthanized by the U.S. Department of Agriculture's Wildlife Services for disease testing. Michigan's PRV-free status for the commercial swine industry should remain intact as long as commercial operations remain PRV-free. (Feedstuffs)
 
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BRAKKE CONSULTING, INC.
Perception is Reality to Clients and Customers
 
Brakke Consulting can help companies evaluate and improve their marketing communications programs.  Senior Consultant John Volk has more than 25 years of experience in animal health advertising and public relations, and pioneered direct-to-consumer advertising for companion animal products. 
 
If you are interested in improving the return on your A&P investment, contact John Volk in the Chicago office of Brakke Consulting, (773) 327-4941, email: jvolk@brakkeocnsulting.com.
 
Learn more about the many ways that Brakke Consulting, Inc. assists client companies at www.brakkeconsulting.com.
 
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BRAKKE CONSULTING VIEWPOINT
 
The revenue increases for the first quarter of 2008 are reflecting softness in the market place.  We believe this trend will continue for the balance of the year.  The high energy costs are impacting animal product sales and are likely to do so in future quarters.  Both production and companion animal sector product usage will be scrutinized closer under the current economic pressures. It appears there will be erosion of some of the planned growth in the market in 2008.  How will consumers shift and manage discretionary spending remains an important unanswered question.  Pet owners and producers will be voting with their available dollars over the coming months and every organization needs to be alert to the impact of these shifts on their product line. 
 Have a great weekend!!
 
Ron Brakke
 
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