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Brakke Consulting’s
Animal Health News & Notes for November 6, 2015
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
Flea Control and Heartworm Markets report
Transaction assistance
earnings news
Anika Therapeutics
Balchem
Henry Schein
Hill’s
Nexvet Biopharma
Zenoaq
Zoetis
other news
Henry Schein
Merial
Patterson
Pharmaq
Regeneus
Vetstreet
Voyce Pro
Zoetis
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BRAKKE CONSULTING, INC.
US FLEA CONTROL AND HEARTWORM MARKETS
COMING IN DECEMBER
Brakke Consulting will soon be publishing our 2015 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 new oral flea and tick products
– 2015survey of 300 veterinarians
– 2015 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 SUNDAY, NOVEMBER 22, 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
> Zoetis Inc. reported its financial results for the third quarter of 2015. The company reported revenue of $1.2 billion for the third quarter of 2015, which was flat compared to the third quarter of 2014. Revenue reflected an operational increase of 9%, excluding the impact of foreign exchange. Net income for the third quarter of 2015 was $189 million, an increase of 14%. (Business wire)
> Nippon Zenyaku Kogyo (Zenoaq) reported results for the six months ended September 30, 2015. The company posted sales of Y 12.9 billion ($106.8 million), a year-on-year 16% increase in first-half revenues. (Animal Pharm)
> Colgate-Palmolive Company reported results for the third quarter of 2015. Hill’s Pet Nutrition net sales decreased 3.5% to $546 million; unit volume increased 2.5% with 3% higher pricing, while foreign exchange was negative 9%. (company press release)
> Henry Schein reported third quarter 2015 financial results. Animal Health sales of $733 million declined 3%, consisting of 5% growth in local currencies (organic growth of 0.5% and acquisition growth of 4.0%) and an 8% decline related to foreign currency exchange. The 0.5%% internal growth in local currencies included a 1.9% decline in North America and 2.7% growth internationally. (PRNewswire)
> Anika Therapeutics, Inc. reported financial results for the third quarter ended September 30, 2015. Veterinary revenues for the quarter were $1.0 million, a 22% increase compared to the third quarter of the prior year. (FierceAnimalHealth – company press release)
> Nexvet Biopharma announced financial results for the three month period ended September 30, 2015. Nexvet reported a net loss of ($4.0 million), compared to ($2.3 million) for the three months ended September 30, 2014. The company reported no revenue for the quarter. (Money.cnn.com)
> Balchem Corporation reported unaudited results for the period ended September 30, 2015. For the quarter ended September 30, 2015, the Animal Nutrition & Health segment reported sales of $40 million, a decrease of 13% compared to the prior year comparable quarter, or an 8% decrease when adjusting for foreign currency. (Money.cnn.com)
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COMPANY NEWS RELEASES
> Zoetis announced it is acquiring Pharmaq, a top provider of vaccines and pharmaceuticals for farmed fish, for $765 million. Zoetis is purchasing PHARMAQ from a company owned by Permira IV, a fund managed by the global investment firm Permira, which has been the majority owner of the company since 2013. Pharmaq, based in Norway, reported 2014 revenue of $80 million. (Business wire)
> Sanofi SA announced that it is considering selling its animal health business, Merial, and European generic drug business as part of a new strategy to refocus the company on fewer markets. CEO Olivier Brandicourt said that both of these businesses have “limited synergies” with the rest of the group. (Nasdaq.com)
> Henry Schein, Inc. announced that it will acquire a majority interest in Vetstreet, Inc. Vetstreet had sales in 2014 of approximately $43 million. Upon the closing of the transaction, which is expected early in 2016, Henry Schein Animal Health will own 80.1% of Vetstreet, and the remaining minority interest will continue to be owned by VCA Inc. Financial terms were not disclosed. (PRNewswire)
> Patterson Veterinary announced that it is now representing Voyce Pro, a remote monitoring service for dogs that enables veterinary professionals to monitor key vital signs. (company press release)
> AUSTRALIA Regeneus announced that it had entered into an agreement with one of the world’s top 5 animal health companies to partner the development and commercialization of CryoShot Canine. CryoShot is a proprietary “off-the-shelf” allogeneic stem cell therapy for dogs with osteoarthritis (OA) and other musculoskeletal conditions. Under the terms of the agreement, the animal health partner will jointly fund a pre-pivotal study assessing CryoShot as a treatment for canine osteoarthritis in consideration for an exclusive option to develop and commercialize CryoShot Canine. (ABNNewswire.net)
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ANIMAL HEALTH NEWS
> US – PIGLET TREMORS A team of veterinary researchers at Iowa State University has pinpointed a virus that has caused mysterious tremors in piglets dating back decades. The virus, which comes from a family known as ‘pestiviruses,’ infects young pigs and can cause them to shake involuntarily. Afflicted piglets are sometimes referred to as “shaker pigs” or “dancing pigs,” and, in severe cases, the tremors prevent pigs from nursing and can lead to starvation. The team of researchers, in collaboration with Boehringer Ingelheim Vetmedica, utilized next-generation DNA sequencing techniques to detect the virus in samples from affected pigs. The team then used those results to experimentally reproduce the tremors in newborn pigs. (National Hog Farmer)
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BRAKKE CONSULTING, INC.
TRANSACTION ASSISTANCE
Let Brakke Consulting provide assistance for all your transactions.
Brakke Consulting has been the finder of record, agent of record or consultant for a number of successfully completed projects. We assist with valuations and provide due diligence on confidential transactions as well as offering executive counsel on a number of potential transactions.
Brakke Consulting has the experience, insight, ability and contacts to provide clients with the highest quality services in the animal health, pet, veterinary and specialty chemicals markets. Please contact any of our offices for a confidential consultation.
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BRAKKE CONSULTING VIEWPOINT
Those companies reporting this week had mixed results, which reflects the different product markets or species that each participates in with their product line. The acquisition of Pharmaq by Zoetis demonstrates the company’s commitment to participate in the growing aquaculture market. The Schein acquisition of VetStreet shows a growing value in owning and managing databases that can benefit the veterinarians, pet owners and manufacturers of products. Good information and the ability to understand the data has a growing value in a competitive and changing marketplace.
Now that we are approaching the middle of the fourth quarter and the holidays, 2016 will start coming into focus more and more for most companies. There is not a lot one can do at this point to enhance or make changes that will impact 2015.
Have a great weekend!
Ron Brakke
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