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Animal Health News & Notes for March 28, 2008 3/28/2008

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Brakke Consulting's
Animal Health News & Notes for March 28, 2008

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
LAST DAY for early order pricing on the 2008 Pain Management Products for Dogs and Cats report
see below for details
earnings news
DSM Animal Nutrition
other news
Associated Medical Supply
Malta Cleyton
Nord Palatabilzantes do Brasil
Pain Management Products for Dogs and Cats - 2008
Coming in April!
Pain management is one of the leading topics in veterinary medicine today.  While pain management products for dogs and cats represented a minor part of the pharmaceuticals market a decade ago, they now represent a substantial market segment with potential still to be tapped. 
Brakke Consulting's annual report on Pain Management Products for Dogs and Cats includes such valuable information as:
  - overview of acute and chronic pain in small animals
  - review of products currently used to treat pain in dogs and cats
  - estimates of US sales and prices of leading pain management products
  - pain management products in development
  - new pain management products
  - review of nutritional supplements used for chronic pain
  - review of therapeutic diets for joint care
  - 2008 survey of over 200 small animal veterinarians regarding use of pain management products
Pain Management Products for Dogs and Cats 2008 can be purchased for $4,995 if ordered by March 31, 2008.  The report will be completed in April.  Questions about the study can be answered by project manager Lynn Fondon, DVM, MBA at 972-243-4033, or email Lfondon@brakkeconsulting.com
> Ceva Sante Animale reported financial results for its 2007 financial year.  Consolidated turnover was EUR 339 million ($500 million), compared to EUR 301 million in 2006.  On the same consolidation basis and exchange rate, the overall turnover improvement reached 11.5%.  Results were boosted by the 2007 acquisitions of Vetbrands (Brazil) and Butler Sales Associates (USA).  The operational profit rose by 17.5% to EUR 45.6 million ($67 million) compared to EUR 38.8 million in 2006. (company website) 
> Neogen Corporation announced that its net income for the third quarter of FY 2008, which ended Feb. 29, increased 34% from the previous year’s third quarter to $2.7 million. Third quarter revenues increased 20% to $25.2 million, a record third quarter for the 25-year-old company. Neogen’s Animal Safety Division’s third quarter revenues were $11.3 million, a 20% increase from the prior year. (company press release)
> DSM reported financial results for its full year 2007.  Animal Nutrition and Health sale were EUR 1.2 billion ($1.76 billion), an increase of 9% compared to 2006.  Growth was attributable to both price and volume increases. (company website) 
> Webster Veterinary announced the acquisition of Associated Medical Supply, a regional veterinary supply distributor in Phoenix, Ariz.  The acquisition strengthens and expands Webster’s presence in the western US.  President Mike Shumsky will join Webster as manager of the Webster Phoenix Branch. Financial terms were not disclosed. (company press release) 
> Quadraspec Inc. announced that it will launch its first licensed product, the Canine Heartworm Antigen Test Kit, after receiving a key regulatory approval earlier this year from the USDA. The immunoassay test for heartworms is performed on a Quadraspec disc containing about 260 patient wells. (Business Wire)  
> BRAZIL   Kemin Industries Inc. announced that it has acquired a controlling interest in Nord Palatabilzantes do Brasil, in order to expand their global pet food palatant business into Central and South America. The legal name of the company will be Kemin Nord Palatabilizantes do Brasil SA.  Financial terms were not disclosed. (Feedstuffs) 
> MEXICO   Evialis announced an agreement with Malta Cleyton, one of the leading animal feed and pet food manufacturers in Mexico, by which Evialis will purchase 70% of the shares of Malta Cleyton. The 30% remaining will stay with the present shareholders: US cooperative Growmark, and the management team. Financial terms were not disclosed. (Feedstuffs) 
> SWITZERLAND - AVIAN INFLUENZA   Switzerland reported the first case of H5N1 avian influenza in two years in a duck on Sempachersee lake. The duck, the 33rd case of avian influenza in Switzerland, showed no signs of illness. (AnimalNet - Reuters)
> US - rBST-FREE MILK   Wal-Mart announced that its Great Value milk is now being sourced exclusively from cows that have not been treated with artificial growth hormones like recombinant bovine somatotropin (rbST). Sam's Club is also exclusively offering milk selections from suppliers that have pledged not to treat cows with rbST. As an "editor's note" on its press release, Wal-Mart stated the following: "According to the FDA, no significant difference has been shown between milk derived from rbST treated and non-rbST treated cows." (Feedstuffs Foodlink)

>  The World Organization for Animal Health, the OIE, will donate $1,000 to a national veterinary association that has helped to improve animal health, food safety, or veterinary services in controlling disease.  This is part of the World Veterinary Day Award (WVD), which will be presented at the 29th World Veterinary World Congress.  The Award recognizes the work of national associations alone or in cooperation with any other selected veterinary body. (Animal Pharm)

> US - WSU DONATION   Washington State University announced a record $25 million donation  from the Bill and Melinda Gates Foundation to help create The School for Global Animal Health.  The School will expand on WSU’s research on animal diseases, with a focus on research and treatment of zoonotic diseases.  (Spokesman Review)

>  US - MEXICO BEEF CATTLE TRADE   Protocols that will harmonize the export of breeding cattle from the US and Canada to Mexico will become effective on March 28, according to a USDA announcement. The new protocols will apply to breeding cattle born after Jan. 1, 1999. The announcement came at the conclusion of a two-day meeting between high-ranking officials of the US, Canada and Mexico. (Feedstuffs)

The first quarter of 2008 is rapidly coming to a close.  It will be interesting to observe the sales and profit results from the leading firms in a couple of weeks.  The general economic news the past few weeks has not been encouraging. 
How will the negative economic news impact sales of products and services to the companion and food animal sectors?  We’re of the opinion that there will be a negative impact.  How will the impact be measured and reported? We continue to believe that there will be unit and dollar growth in the animal health industry in 2008. The growth will be less than what was achieved in 2006 and 2007.  To think that there will not be a reduction in the growth rate based on the general economic trends is being overoptimistic.
Have a great weekend!!
Ron Brakke
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Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA