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Animal Health News & Notes for February 1, 2008 2/1/2008

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Brakke Consulting's
Animal Health News & Notes for February 1, 2008

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon, DVM, MBA
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IN THE NEWS:
 
earnings news
Abaxis
Elanco
Fort Dodge
Hill's
Merial
MWI
Pilgrim's Pride
TW Medical
Tyson Foods
 
 
other news
Animal Health Int'l
BrightHeart Veterinary Centers
Chimerix
Diamond V
Merial
Oculus Innovative Sciences
Pfizer
 
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COMPANY EARNINGS RELEASES
 
> Merck reported financial results for the full year 2007.  Animal health joint venture Merial reported sales of $2,229 million, an increase of 11.6% compared to 2006.  Worldwide sales of Frontline increased 16% to reach $1.03 billion. (company press release) 
 
> Wyeth reported results for the full year ended December 31, 2007. Revenues for animal health division Fort Dodge were $1.042 billion, an increase of 11% compared to the prior year. Sales growth was primarily due to higher sales of companion animal products, which included sales of our recently launched ProMeris flea and tick products, as well as higher sales of livestock, equine and poultry products. Excluding the favorable impact of foreign exchange, worldwide Animal Health net revenue increased 7% for the 2007 full year. (company website)
 
> Eli Lilly and Company announced financial results for the full year 2007. Worldwide revenues of animal health division Elanco increased 14% to $996 million. (company website) 
 
> Abaxis, Inc. reported financial results for its third fiscal quarter ended December 31, 2007.The company reported revenues of $25.7 million, up 17% over last year's comparable quarter.  Veterinary market sales were $18.1 million, an increase of 11% compared to the comparable period in the prior year. (company website) 
 
> Colgate-Palmolive Company announced results for 2007. Hill's Pet Nutrition sales grew 11% to $1.86 billion for the year.  (company press release) 
 
> MWI Veterinary Supply, Inc. announced financial results for its first quarter ended December 31, 2007 of fiscal year 2008. Revenues were $203.4 million for the quarter ended December 31, 2007, approximately 26% higher than revenues for the same period in fiscal year 2007. Net income increased approximately 2% to $4.7 million. (company website)
 
> TW Medical reported revenues of $22 million for the year ended December 31, 2007, an increase of 19% compared to 2006. (Animal Pharm) 
 
> Tyson Foods Inc. reported earnings of $34 million for the three months ended Dec. 29, down from $57 million in the year-earlier period. Total sales were $6.8 billion in the first quarter, up from $6.6 billion last year. (Meating Place)
 
> Pilgrim's Pride Corp. reported results for the first fiscal quarter, ended Dec. 29. The company reported a loss of ($32.3 million), compared with a loss of ($8.7 million) in the year-earlier period. Quarterly sales were $2.1 billion, up from $1.3 billion a year ago. (Meating Place) 
 
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2008 U.S. Animal Health Industry Overview
 
As we've done for a number of years, Brakke Consulting will be presenting our 2008 Animal Health Industry Overview at the Western Veterinary Conference.
 
WVC:
Tuesday, February 19, 2008
2:00 - 4:00 pm
 
The Overview will contain industry highlights and the 2008 outlook, industry statistics in key product markets, recent financial/acquisition activity, observation of leading companies, veterinary practice trends update, summary data from Brakke multi-client studies, and more.  To register, go to www.Brakkeconsulting.com and follow the link to register for the Overview at the WVC.
 
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COMPANY NEWS RELEASES
 
> Pfizer announced the launch of a new poultry health division at the International Poultry Exposition.  The move follows Pfizer's acquisition of Embrex in 2007. The Poultry Health Division will aim to improve their current products while developing new and integrated poultry health solutions. (thePoultrySite.com) 
 
> Merial Limited and Chimerix, Inc. announced that they have signed an agreement under which Merial will screen a Chimerix chemical library for animal health drug leads. Under the terms of this agreement, Merial has an option to negotiate a license with Chimerix for leads identified for possible animal health use. (PRNewswire) 
 
> Oculus Innovative Sciences, Inc. announced that it has entered into an exclusive North American distribution agreement with Animal Health International, Inc. for the Oculus' Microcyn-based Vetericyn Wound Spray for animals. (Business Wire) 
 
> Diamond V announced plans to build a new $12 million manufacturing facility in Cedar Rapids, Iowa. Construction on the new 28,000-square-foot facility will begin this summer and it will become operational in 2009. (company press release)  
 
> LLR Partners Inc. announced the completion of its $25 million equity investment in BrightHeart Veterinary Centers. Caltius Mezzanine, BrightHeart’s existing lender, also made a $3.5 million equity investment as part of the $28.5 million total financing. Previous investors in BrightHeart include founding investor Unified Growth Partners. (Business Wire) 
 
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ANIMAL HEALTH NEWS
 
> SPAIN - MEAT TRACEBACK   A joint research project of Hypor's Pork Quality Concept with the University of Barcelona has developed a new DNA test that can confirm the breed and origin of meat from farm animals. The aim of the study was to select and test a panel of 46 SNPs (Single Nucleotide Polymorphisms) in different pig populations to determine the potential utility of these markers in individual pig identification and parentage testing. The full article on this study was published in the most recent issue of Animal Genetics. (ThePigSite.com)
 
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BRAKKE CONSULTING VIEWPOINT
 
Congratulations to all of the companies reporting excellent growth in 2007. Most of you are hitting the numbers we projected for you. 
 
A special congratulations to the Merial organization, who has managed Frontline into the first billion dollar companion animal product in the small package goods area.  Who will have the next one and what will it be?  Can the industry support a couple more products of this size?  We’d like to think so, and look forward to assisting those that have the technology to do it.  It’s clear from various studies that the current pet owner attitudes will allow companies to maximize their research returns in the companion animal area. 
 
We hope you have a great Super Bowl Weekend!! 
 
Ron Brakke
 
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and appropriately attributed to Brakke Consulting, Inc.
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Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA