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Animal Health News & Notes for January 4, 2008 1/4/2008

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Brakke Consulting's
Animal Health News & Notes for January 4, 2008

Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon, DVM, MBA
earnings news
other news
Digital Angel
Ethical Products
Fort Dodge
Mars Petcare
Nestle Purina PetCare
Odyssey Veterinary Software
Pet Owner Channel Use Study
Now Available
The Pet Owner Channel Use Study, a national survey of 1,000 dog and cat owners, examined brand usage and shopping preferences for several categories of products typically sold in the veterinary channel.
The categories included heartworm preventives, flea and tick control, pain management, joint health supplements, dental products and both therapeutic and wellness pet food. In addition, the research explored usage of pet health insurance, as well as boarding and daycare services.
The topics investigated included reasons for sales “leakage” from the veterinary channel into other channels, alternative channel growth, vulnerability of veterinary brands to OTC generic copies, and the role of the veterinarian as an influencer in brand choice.
The study provides valuable insights for refining distribution strategies or defending entrenched positions. The 166-page research report is now available for $12,500.  For more information, or to purchase the report, contact John Volk at jvolk@brakkeconsulting.com , or (773) 327-4941.
> Neogen Corporation announced financial results for the second quarter of its fiscal year 2008 ended November 30.  Net income for the quarter was $3.3 million, an increase of 34% and another quarterly record for the 25-year-old company. Second quarter revenues increased 23% to $27.2 million, also a quarterly record, compared to the prior year’s revenues.  Neogen’s Animal Safety Division second quarter revenues increased 21% to $12.7 million. (company press release)
> Fort Dodge announced that it acquired three poultry vaccines from Schering-Plough and Intervet: F Vax-MG, Avimune IB98, and Chlervac-PM-2.  The acquisitions were the result of conditions the FTC set on Schering-Plough's acquisition of Intervet late last year. (Feedstuffs)
>  IDEXX Laboratories announced the launch of the IDEXX Coag Dx Analyzer.  This newest member of the IDEXX VetLab Suite enables veterinarians to conduct comprehensive coagulation testing in-clinic, and delivers results in seconds for fresh and citrated whole blood prothrombin time (PT) and activated partial thromboplastin time (aPTT).  (company website)  
> Nestle Purina PetCare announced a deal with Ethical Products Inc. to launch a line of pet accessories, including leashes, collars, toys and feeding accessories, under the Purina name.  The deal represents the launch of Nestle Purina's licensing program. (Pet Age)  
> Mars Petcare US announced plans to launch a new single-piece meal for dogs under the brand name WholeMeals for Dogs.  The concept provides a nutritionally complete diet as a single piece of food with a chewy outside and meaty inside, designed to engage a dog's natural chewing behavior and increase feeding enjoyment.  In addition, feeding WholeMeals is shown to reduce plaque accumulation by 43% and tartar buildup by 83%.  The foods will be available at pet specialty retailers. (Veterinary Practice News)  
> Digital Angel announced that it completed the merger between Applied Digital Solutions, Inc. and Digital Angel Corporation. The newly combined company will do business as Digital Angel. (company website)  
> ProLabs Ltd. introduces new Flexile Rx (flavox) tablets for dogs with osteoarthritis (OA). Flexile Rx is a nutritional supplement that contains active ingredients evaluated for safety and derived from natural sources that are increasingly prescribed by physicians for human patients with OA.  Flexile Rx is available only through veterinarians. (company press release)
> Odyssey Veterinary Software announced the release of DIA, a new pet owner communication tool. The software allows veterinarians to give quick, concise clinical overviews to pet owners on hundreds of conditions using over 1500 3D Animations, Surgical Animations, Virtual Anatomy illustrations, an interactive dog and cat, and other materials combined. Veterinarians can access content through a live search platform and pull up both normal anatomical examples and examples of illnesses. (PRNewswire)
> JAPAN - BSE   A cow in northern Japan tested positive for BSE, marking Japan's 34th case of BSE.  The 15-year-old cow was born in western Japan's Shimane Prefecture and raised in Hokkaido.  (AnimalNet - Xinhua News Agency)
>  US - COOL   The Senate's version of the 2007 Farm Bill added chicken to the country-of-origin labeling provision,  although domestic production accounts for virtually all chicken consumed in the US.  The National Chicken Council did not oppose the amendment. (Pork Alert)
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.
It appears that most everyone closed out 2007 in a positive fashion.  Revenue growth at the manufacturer, distributor, and retail levels will approach those in 2006.  Now we'll all start performing against the 2008 targets.  We believe that the outlook for 2008 is a bit weaker than it was a year ago.
On January 2nd, crude oil hit $100.00 a barrel and it's unclear how the continued high cost of energy will filter through the economy.  Some experts believe that there will be some long-term shifts in how and where business is conducted because of energy costs.  Ethanol production remains a black box regarding its future impact on the cost of producing animal protein. 
In the past, the companion animal area has not been impacted by soft consumer economic conditions. Will it be different in 2008?  We don't believe so. 
We hope to see all of you at our 2008 Animal Health Industry Overview in Orlando in a couple of weeks.
Happy New Year!
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