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Animal Health News & Notes for November 14, 2014 11/14/2014

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Brakke Consulting's
Animal Health News & Notes for November 14, 2014

Copyright © Brakke Consulting, Inc.
 
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
 
Brakke Consulting news
2014 US Flea Control & Heartworm Markets Report
Strategic planning
 
earnings news
Aratana
ImmuCell
Kindred Biosciences
Land O'Lakes
Phibro
Smithfield Foods
 
other news
Boehringer Ingelheim Vetmedica
Cargill
Freshpet
Lallemand
Nutreco
Perdue
PRN Pharmacal
Simcro
Zoetis 
 
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BRAKKE CONSULTING, INC.
COMING IN DECEMBER:
US FLEA CONTROL & HEARTWORM MARKETS
2014 UPDATE

Brakke Consulting will soon be publishing our 2014 report on the US Flea Control and Heartworm Markets. The report includes valuable information on the US market for small animal parasiticides including:
- Product descriptions, prices, and sales for the leading veterinary flea and heartworm products
- an overview of the veterinary and OTC flea control markets
- discussion of the impact of generic fipronil products
- 2014 survey of 350 veterinarians
- 2014 survey of 500 pet owners

The report on the US Flea Control & Heartworm Markets will be available for a purchase price of $6,995 if ordered by TUESDAY, NOVEMBER 25, and $7,500 after that date.

Please contact Dr. Lynn Fondon at (972) 243-4033 or lfondon@brakkeconsulting.com to pre-order the report, or for more information visit our website at

www.BrakkeConsulting.com 
 
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COMPANY EARNINGS RELEASES
 
> Phibro Animal Health Corporation announced financial results for its first quarter ended September 30, 2014. Net sales were $187 million, an increase of 16% compared to the comparable quarter in the prior year. Adjusted EBITDA was $30 million, an increase of 41%. Animal Health net sales of $117 million grew 16%. (money.cnn.com)
 
> ImmuCell Corporation announced financial results for its third quarter ended September 30, 2014. Product sales increased 43% to $1.77 million versus the same period of the prior year. Net operating income was $41,000 in comparison to a net operating (loss) of ($159,000) during the third quarter of 2013. (company press release) 
 
> Aratana Therapeutics reported results for the third quarter of 2014. The company recorded a net loss of ($10.1 million) during the third quarter of 2014, compared to a net loss of ($4.7 million) for the same period in 2013. Sales for the quarter were $0.04 million, primarily related to license, collaboration and manufacturing fees related to the firm's B-cell monoclonal antibody for lymphoma. (Animal Pharm) 
 
> Kindred Biosciences, Inc. announced financial results for the quarter ended September 30, 2014. The Company incurred a net loss of ($6.1 million) compared to a net loss for the three months ended September 30, 2013, of ($1.2 million). The Company had cash, cash equivalents and short-term investments of $106.4 million at September 30, 2014. (PRNewswire) 
 
> Land O'Lakes reported results for the third quarter of 2014. Third quarter net sales were $3.1 billion compared with $2.9 billion in 2013; net earnings were $227.9 million, up 15% from the same period last year. Animal Nutrition, including the Purina brand, benefited from lower input costs for livestock and lifestyle products plus strong volumes in both livestock and lifestyle feeds. (WattAgNet.com)
 
> Smithfield Foods, Inc., a wholly owned subsidiary of WH Group Limited, reported 2014 third quarter results. Sales for the quarter were $3.7 billion, up 11% from last year in the same quarter. Net income was $155.3 million, compared to net income of $35.4 million in 2013. Hog production operating margins were record high at 17%, or $42 per head. (Feedstuffs)
 
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COMPANY NEWS RELEASES
 
> The Wall Street Journal reported that activist investor William Ackman's Pershing Square has taken a roughly $2 billion stake in Zoetis Inc. and could push the animal-health company to sell itself to a large drug maker such as Valeant Pharmaceuticals International Inc. Zoetis declined to comment on the story. (Wall Street Journal) 
 
> Boehringer Ingelheim announced the launch of Equisolon, an oral prednisolone product for the alleviation of inflammation associated with recurrent airway obstruction (RAO) in horses. This is the first licensed oral prednisolone of equines and is designed to be used in combination with environmental measures to treat RAO, a condition more commonly known as heaves. (Vet Advantage) 
 
> PRN Pharmacal has introduced PetVisionPro for dogs, a patented eye drop formulation that helps dogs with poor vision see their world clearly again by reducing lens opacity. The formulation is comprised of amino acids and antioxidants in a preserved, sterile solution and works to dissolve glycated proteins. (company press release)
 
> Freshpet Inc. announced it has closed its initial public offering and has raised about $156 million in its initial public offering after its IPO was priced at $15 per share, above the expected price range of $12–$14. The company sold 10.4 million shares. Freshpet is expected to debut on the Nasdaq on Friday. (PetFoodIndustry.com) 
 
> The Perdue brand is now the first brand of chicken with USDA Process Verified Programs assuring consumers that all of its products, and not just those covered by Country of Origin labeling regulations, are made exclusively with US-raised chicken. This includes a new “Raised Cage-Free in the USA” verification appearing on PERDUE further-processed items. (Feedstuffs)  
> CANADA   Lallemand Animal Nutrition introduced Revelate to Canadian swine producers. This microbial product, Saccharomyces cerevisiae boulardii CNCM I-1079, is a unique, naturally occurring viable yeast scientifically selected and fed to help support a balanced digestive system in swine. (Vet Advantage) 
 
> NETHERLANDS   SHV increased its cash offer to acquire Nutreco from EUR 40 to EUR 44.50 per share. The new offer came as a result of Cargill offering EUR 43.20 in cash per share to Nutreco as part of a "structured transaction" with Permira, a private equity firm. (Animal Pharm) 
 
> NEW ZEALAND  Simcro announced that Dr. Roger Wakelin has been appointed as its new CEO. On December 1, Wakelin will assume responsibility for all of the day to day operations, with current CEO Will Rouse assuming the role of Executive Chairman, while continuing to be a director and significant shareholder. (company press release) 
 
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ANIMAL HEALTH NEWS
 
> US - UNAPPROVED DRUGS   The FDA has sent warning letters to several companies, stating that the companies are marketing their products as drugs without first receiving approval from federal regulators. Several companies received warnings about marketing unapproved omeprazole; a warning letter was also sent to a company regarding its products being promoted as companion animal cancer treatments.  (AVMA SmartBrief - RAPS.org; Animal Pharm) 
 
> AUSTRALIA - AVIAN INFLUENZA TEST  Australian researchers have developed a new diagnostic test that can distinguish between birds vaccinated against the H5N1 strain of avian influenza virus and those that have been naturally infected. The new DIVA (differentiation of infected from vaccinated animals) test uses a particular viral protein called Matrix protein 2 that reacts differently with blood serum from vaccinated or infected animals. Since the first outbreak of H5N1 avian influenza virus in 2004, the development of a reliable DIVA test has been global priority. (Animal Pharm)
 
> US - ANTIBIOTIC TASK FORCE  The Association of Public and Land-grant Universities (APLU) and the Association of American Veterinary Medical Colleges (AAVMC) have announced the creation of the Task Force on Antibiotic Resistance in Production Agriculture. The goal of the task force is to help advise the federal government on a research agenda and also help publicly disseminate information on the use of antibiotics in production agriculture. (Vet Advantage)
 
> US - ANTIBIOTIC USE DATA COLLECTION  Four Democratic senators have urged the FDA to issue a rule to increase data collection on the use of medically important antibiotics in agriculture and to work with veterinarians and industry to develop a plan to collect data on how antibiotics are used on farms. According to the senators, the FDA currently does not have a complete picture of antibiotic use in agriculture. (Feedstuffs)
 
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BRAKKE CONSULTING, INC.
STRATEGIC PLANNING SERVICES

Brakke Consulting is an excellent resource for your company’s strategic planning. Some of the services we offer include:
- Reviewing revenue estimates and success probability of your product pipeline.
- Reviewing the timing of various new product introductions and estimate the impact of various scenarios.
- Benchmarking various functions against company competitors in the larger markets, which might include sales force size, technical services and/or R&D spending vs. sales.

Through strategic planning, Brakke Consulting can help improve the likelihood of success for your company’s future endeavors.

Contact us for professional assistance in any of these areas.

www.BrakkeConsulting.com
 
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BRAKKE CONSULTING VIEWPOINT

This week’s news again reports positive financial results for many animal health companies. There are also stories that reflect the continued strong financial interests in the animal health and pet industry. We have another successful IPO for a pet food company and increasing offers continue to appear for the Nutreco.

Also during the week it was announced that a major Wall Street hedge fund has purchased a significant number of shares in Zoetis, the industry’s largest animal health company. We continue to believe that the increased level of interest by the financial community in the animal health industry is positive for all the parties involved. This interest level has increased the value of all the companies participating in the industry and is providing new capital for innovation in early stage technology companies. It is a dynamic time in the animal health industry and we believe there will continue to be additional company consolidations and financial investments in 2015.

Have a great weekend and stay warm!! Winter has arrived in many parts of the US.

Ron Brakke
 
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