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Brakke Consulting’s
Animal Health News & Notes for November 1, 2013
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
strategic planning
earnings news
Bayer
Hester Biosciences
Merck
Merial
other news
Abaxis
AlphaVax
Alstoe
Aurora Pharmaceutical
Harrisvaccines
LamdaGen
Neogen
Nexvet
Petco
Prima Tech
Sogeval
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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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COMPANY EARNINGS RELEASES
> Merck announced financial results for the third quarter of 2013. Animal Health sales totaled $800 million for the third quarter of 2013, a 2% decline compared with the third quarter of 2012, including a 2% negative impact due to foreign exchange. The quarter was negatively affected by the previously announced voluntary suspension of sales of Zilmax. (company press release)
> Sanofi reported financial results for the third quarter of 2013. Sales for Merial were EUR 458 million ($619 million), down 6% due to increased competition to Frontline. (company website)
> Bayer reported financial results for the third quarter of 2013. Sales of the Animal Health Division were EUR 321 million ($434 million), down 6% compared to the third quarter of 2012 (up 1.5% currency & portfolio adjusted). (company website)
> Hester Biosciences results for the first half of its financial year ended September 30, 2013.
First half turnover was Rs313 million ($5.1 million) an increase of 7% compared to the same period in 2012. Net profit after tax dropped 18% to Rs36.29 million ($591,000) in the half. (Animal Pharm)
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COMPANY NEWS RELEASES
> Neogen Corporation announced that it has acquired the assets of Prima Tech Incorporated, a veterinary instrument company based in North Carolina. Financial terms were not disclosed. (company press release)
> Aurora Pharmaceutical announced that Balance Stress & Dehydration Aid, a nutritional/metabolic supplement for livestock, is now available. Balance is formulated using electrolytes and buffering agents and does not use sugar as filler. (company press release)
> Abaxis, Inc. and LamdaGen Corporation announced an R&D agreement to integrate LamdaGen’s high-sensitivity Plasmonic ELISA technology on the Abaxis Piccolo and VetScan rotors. (Wall Street Journal)
> Harrisvaccines announced it has expanded its exclusive license agreement with AlphaVax, Inc. to include all companion animals diseases, in addition to all livestock animal diseases. Harrisvaccines’ RNA Particle (RP) Platform technology utilizes a genetic sequence of specific viruses, which can be submitted electronically, to create a strain-specific vaccine in a matter of weeks. Harrisvaccines will begin its work in the companion animal realm by developing vaccines for a variety of respiratory diseases in dogs. (PRNewswire)
> AUSTRALIA Nexvet Biopharma announced it raised AUD$7 million through an oversubscribed capital raise. The purchasing syndicate included a range of new US investors, high net-worth individuals and Australian life sciences investment firm, BioScience Managers, which cornerstoned the capital raising round with an investment of $3 million. (DigitalJournal.com)
> UK Following the acquisition of Alstoe Ltd by Sogeval SA in January 2013, the company has decided to change its trading name and, from November 1, 2013, the business will be called Sogeval UK Ltd. (company press release)
> MEXICO Petco announced it has opened its first store in Mexico and announced plans for continued expansion in Mexico and Latin America through a previously announced joint venture with Grupo Gigante of Mexico. Together, the companies plan to open as many as 50 Petco stores in Mexico and Latin America by 2020. (APPA e-update – Retailing Today)
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ANIMAL HEALTH NEWS
> JAPAN – AVIAN INFLUENZA TEST Scientists in Japan have developed a new rapid diagnostic technology to detect highly pathogenic avian influenza H7N9 virus. The new technology determines the binding reaction between the virus in a humoral sample from a bird and a human glyco-chain produced artificially in the diagnostic kit. The test is able to give a result within 30 minutes. The developers anticipate the test could be commercially available within three years. (Animal Pharm)
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BRAKKE CONSULTING VIEWPOINT
In this week’s newsletter, three of the top five animal health companies announced third quarter revenues that are less than planned. When these results are combined with the revenue increases reported last week by some of the other leading companies, the trends are a bit less optimistic than previously reported. When the remaining companies report their results we’ll have a clearer picture on what has occurred in the marketplace and where we are heading the last few months of the year. Will the trends of 2013 carry over to 2014? What new products and technologies will enter the market in 2014 to move the growth trends upwards?
Have a great weekend!!
Ron Brakke
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