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Brakke Consulting’s
Animal Health News & Notes for July 24, 2015
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
Market research
earnings news
Abaxis
Ceva
Elanco
Neogen
PetMed Express
other news
Brief Media
H J Baker
IDEXX
Merrick
National Vet Care
The Natural Dog Co.
Rapamycin Holdings
Scynexis
Virbac
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BRAKKE CONSULTING, INC.
MARKET RESEARCH
Look Before You Leap
Depend on Brakke Consulting to build a market study to meet your company’s needs, whether it is:
• Assessing the feasibility of a new product or technology
• Identifying the opinions and trends of veterinarians, pet owners or producers
• Determining the current market for products
With our in-house database of veterinarians and the ability to custom-tailor surveys of a wide variety of target audiences, we provide reliable insights into this unique industry. We also produce multi-client reports in a number of high-interest animal health market areas. For more information, see our website or call our Dallas office at 972-243-4033 or email Lynn Fondon at LFondon@brakkeconsulting.com .
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COMPANY EARNINGS RELEASES
> Elanco revenue in the latest quarter grew 40% from the prior year to $840.8 million because of the inclusion of revenue from Novartis Animal Health. U.S. animal health sales increased 24 percent to $410.0 million, and animal health sales outside the U.S. increased 60 percent to $430.8 million. (company press release)
> Abaxis reported financial results for the first fiscal quarter ended June 30, 2015. Veterinary market revenues were $43.6 million, up 21% over last year’s comparable quarter. (company press release)
> PetMed Express, Inc. announced its financial results for the quarter ended June 30, 2015. Net income was $5.8 million, or $0.29 diluted per share, for the quarter ended June 30, 2015, compared to net income of $5.0 million, or $0.25 diluted per share, for the quarter ended June 30, 2014, a 16% increase to net income. Net sales for the quarter ended June 30, 2015 were $71.6 million, compared to $72.5 million for the quarter ended June 30, 2014, a decrease of 1.3%. The Company’s online sales for the quarter ended June 30, 2015 were approximately 81% of all sales, compared to 80% for the same quarter the prior year. (company press release)
> Neogen Corporation reported net income for the fourth quarter of its 2015 fiscal year, which ended May 31, increased 25% to $9,384,000, or $0.25 per fully diluted share, from $7,537,000, $0.20 per share, in fiscal 2014. Neogen’s fourth quarter revenues were $78,611,000, a 17% increase over revenues from 2014’s final quarter. Neogen’s revenues for its 2015 fiscal year increased 14% to $283,074,000, up from $247,405,000 in the company’s previous fiscal year. Net income for the 2015 fiscal year increased 19% from the previous year to $33,526,000, or $0.90 per share, compared to the prior year’s $0.76 per share. Revenues and net income for the fourth quarter, and the 2015 fiscal year, established new all-time highs for the 33-year-old company. (company press release)
> Consolidated sales of the Ceva Group reached €424m at the end of June 2015, representing growth of 16% and +12% at constant exchange rates. (company press release)
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2015 KC Animal Health Investment Forum
Tuesday, September 1, 2015
Kansas City Convention Center
The seventh annual KC Animal Health Investment Forum will feature more than a dozen presenting companies seeking business partnerships and opportunities. Hear about the latest up-and-coming pharmaceutical, biological and diagnostic innovations, with applications serving the companion animal, livestock, and equine markets as well as the overall animal health industry.
The event will be held Tuesday, September 1st from 7:30 a.m. to 5 p.m. at the Kansas City Convention Center Grand Ballroom.
Visit http://www.eventbrite.com/e/kc-animal-health-corridor-investment-forum-2015-tickets-16992760805 to register.
Visit http://kcanimalhealth.thinkkc.com/events/investment-forum for full event details.
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COMPANY NEWS RELEASES
> IDEXX Laboratories, Inc. introduced a point-of-care SNAP Lepto Test for dogs suspected of having leptospirosis. (PRNewswire)
> Merrick Pet Care has signed an agreement for Nestle Purina PetCare Co. to purchase the company from its private equity owner, Swander Pace Capital. Terms were not disclosed. (company press release)
> National Veterinary Care Ltd (Australia) is raising up to $30 million through a fully underwritten initial public offering priced at $1.00 to acquire the initial portfolio of 35 veterinary clinics. This includes 32 general practice veterinary clinics and three associated veterinary service businesses. (Proactive Investors)
> H.J. Baker announced the expansion of its Animal Health & Nutrition division with the ground breaking of a new multi-million dollar facility in Emporia, Kan. H.J. Baker’s new encapsulation facility will be built on 15 acres and will begin production as early as March 2016. The 13,000 sq. ft. facility will include offices, warehouse and processing floor. (Feedstuffs)
> Brief Media, publisher of Clinician’s Brief, announced its educational partnership with the Canadian Veterinary Medical Association (CVMA). Within the partnership, Brief Media will produce a monthly global edition of Clinician’s Brief to be distributed as a courtesy, without cost, to all members in good standing of the CVMA. (company press release)
> Rapamycin Holdings, Inc. has applied for an investigational new animal drug application to use its eRapa-NP2g compound to alleviate symptoms of feline chronic gingivostomatitis. (San Antonio Express-News)
> Virbac (UK) launched Nutribound, a complementary feed which helps to stimulate eating and drinking in inappetent cats and dogs. (company press release)
> Scynexis has completed an asset purchase agreement with Avista Pharma Solutions for the sale of its contract research and development services business. (company press release)
> The Natural Dog Company, Inc. of Windsor, CO, is recalling its 12oz bags of 12″ Tremenda Sticks pet chews because they have the potential to be contaminated with Salmonella. (FDA Web Site)
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ANIMAL HEALTH NEWS
> TAIWAN – PET FOOD The Council of Agriculture (COA) said that suppliers of substandard pet foods will face fines soon if their products are found to be potentially harmful to pets, as the government tries to protect a growing number of cats and dogs raised by households in Taiwan. (CNA)
> US – VESICULAR STOMATITIS Colorado State University (CSU) has been authorized to test for vesicular stomatitis (VS) in horses after the state recently detected its first cases of the disease in 2015. (Animal Pharm)
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BRAKKE CONSULTING VIEWPOINT
This week’s news shows the continuing financial health of the industry with good second quarter results from several companies. With financial success come continued consolidation and access to public financing. To some extent, animal health and nutrition have become a financial game. In that arena, several companies (Abaxis, Neogen) have been successful for several years, decades in fact. It might be useful to study the strategies of these companies. It is never easy, and often unwise, to try to imitate another company’s strategy, but it does proved an example, a model if you will, of what to and not to do.
Have a cool weekend!
John Mannhaupt, substitute editor
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