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Animal Health News & Notes for January 11, 2008 1/11/2008

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Brakke Consulting's
Animal Health News & Notes for January 11, 2008

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
TW Medical
other news
Echo Healthcare Acquisition
Pet DRx
TekVet Technologies
VGX Animal Health
XLNT Veterinary Care
The 2007 Distributor Effectiveness Study is a follow-up to the original 2003 study.  The study utilizes a quantitative survey of over 1,000 companion animal veterinarians to identify what they view to be the most important traits of a distributor, and to have them rate the performance of distributors that serve their practices on approximately 40 business activities and measures.
The 2007 DES provides insight about some of the major changes in the marketplace since 2003 that have affected veterinarians’ relationships with their distributors such as:
  - Mergers and Acquisitions: At least half of the top 10 distributors in 2003 have either been acquired or merged with other companies.
  - Geographical Expansion: Several strong regional distributors have expanded to new market areas or grown to become national companies.
  - National and Regional Market Shares have changed dramatically for some companies and regions.
The report is now complete and available for purchase. For details, contact Project Manager Jay Lockhart at (314) 821-3368 or jlockhart@brakkeconsulting.com 
> TW Medical reported results for the 12-month period ending December 31, 2007.  Total sales jumped 19% to $22.2 million. (company press release) 
> Butler Animal Health Supply announced that the company achieved $1 billion in sales, including agency sales, in 2007.  According to the company, Butler is the first animal health distributor to attain this milestone. (company press release)  
> Teva Pharmaceutical Industries announced that it is seeking a buyer for its veterinary arm, Abic Biological Laboratories Teva Ltd, as well as IVX Animal Health, the veterinary business of Ivax Corp., acquired in 2006. (Globes Online) 
> TekVet Technologies announced that Kansas State University trialing an electronic ear tag developed by the company. The tag, TekSensor, consists of an electronic thermometer that fits inside the animal's ear canal and measures the animal's temperature every hour. (Animal Pharm) 
>  Echo Healthcare Acquisition Corp. announced that its stockholders approved Echo's merger transaction with XLNT Veterinary Care, Inc.  In connection with the merger, Echo changed its name to Pet DRx Corporation. (Fox News)
> AUSTRALIA   VGX Animal Health, Inc. announced the approval by the Australian Pesticides and Veterinary Medicines Authority (APVMA) of LifeTide SW 5, the Company's leading Growth Hormone Releasing Hormone (GHRH) product for swine therapy. LifeTide SW 5 is an injectable DNA plasmid encoding for porcine GHRH, and is administered as a once in a lifetime treatment for use in sows of breeding age to increase the number of piglets weaned.  (Business Wire India)
> US - NEW FDA-CVM DIRECTOR   The FDA announced that Stephen F. Sundlof will move from director of the FDA's Center for Veterinary Medicine to director of the FDA's Center for Food Safety and Applied Nutrition. Bernadette Dunham, deputy director of the Center for Veterinary Medicine, succeeds Mr. Sundlof as division director.  (Wall Street Journal)
> UK - BSE TEST   ProMetic Life Sciences reported that its new technology could improve the sensitivity of tests for BSE by as much as 80-fold. ProMetic's first device uses a concentration technology and will take the form of a filter that will amplify the infectious prion signal by concentrating bovine prions from brain tissue. This stronger signal allows for a more sensitive detection of BSE in cattle and at a younger age, according to ProMetic.  The concentration technology is added to commercially available post mortem diagnostic tests for BSE. (AnimalNet - Business Weekly)
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 both the North American Veterinary Conference and the Western Veterinary Conference.
Monday, January 21, 2008
2:00 - 4:00 pm
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 of your choice.
We hope everyone had a wonderful and safe Holiday Season and that you’re off to a strong start on the New Year. 
The activity level is stepping up for most everyone in preparation for the NAVC meeting in Orlando. A number of companies are holding their sales meetings this week so that the sales group will be ready achieve new heights in 2008.  Remember that there are a number of economic issues that could impact the growth in the market place in 2008, so let’s have some reasonable sales increases for the reps and distributors.  Even though costs are increasing this might not be a good year to push excessive price increases. We believe that the industry revenue could grow approximately 10% in 2008 of which at least 50% of the increase could be inflationary.  Let’s hope that the increased cost of energy does not start taking away from veterinary services and products. 
We’re particularly pleased with this year’s response to our Annual Industry Overview Session. We have larger room this year for the presentation so there is still space if you’ve not yet registered.  We look forward to seeing many of you in Orlando.
Have a Great Weekend!! 
Ron Brakke
This electronic newsletter is the sole property of Brakke Consulting, Inc.
Any use of the contents herein should be approved by and appropriately attributed to Brakke Consulting, Inc.
For more information about Brakke Consulting's services and syndicated studies, visit our website at www.brakkeconsulting.com.
Brakke Consulting, Inc.
2735 Villa Creek, Suite 140
Dallas, TX  75234    USA