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Brakke Consulting’s
Animal Health News & Notes for August 24, 2018
Copyright © Brakke Consulting, Inc.
Editor: Lynn Fondon DVM MBA
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IN THE NEWS:
Brakke Consulting news
The Companion Animal Veterinary Telehealth Landscape
Transaction assistance
earnings news
J.M. Smucker
Kane Biotech
Sanderson Farms
other news
AABEX Animal Health
Agrident
Antelliq
Bayer
Covenant Animal Health Partners
GlobalVetLINK
Henry Schein Animal Health
Heska
Hitachi Healthcare Americas
IDEXX
Innovetive Petcare
Keystone Foods
Marfrig Global Foods
MBio Diagnostics
NovaVive
Premier Vet Alliance
QBiotics Group Limited
Recombinetics
Reliance Animal Health Partners
scil animal care
TechAccel
Tyson Foods
Virbac
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BRAKKE CONSULTING
NEW REPORT: THE COMPANION ANIMAL VETERINARY TELEHEALTH LANDSCAPE
PRE-ORDER NOW
Telehealth and telemedicine are one of the hottest topics in human medicine. Over half of all human hospitals use some form of telehealth, and the leading telehealth provider boasts over 20 million subscribers. In the past few years, veterinary medicine has also seen the launch of telehealth providers aimed at connecting pet owners and veterinarians using new technologies.
What exactly is veterinary telehealth? Is it legal? Who are the companies offering telehealth services? How many veterinarians are already integrating telehealth into their practices, and how many are thinking about it? How many pet owners are aware of these healthcare options, and are using them?
Brakke Consulting’s new report, The Companion Animal Veterinary Telehealth Landscape, answers these questions and more. In addition to a review of the regulations governing veterinary telehealth and an overview of the existing telehealth market, the report includes a survey of companion animal veterinarians and a survey of pet owners probing their awareness and use of telehealth for veterinary medicine.
The Companion Animal Veterinary Telehealth Landscape report can be purchased for $4,750 if ordered by September 24, 2018, and $5,500 thereafter. The report will be completed in early October. Questions about the study can be answered by project manager Lynn Fondon, DVM, MBA at 972-243-4033, or email Lfondon@brakkeconsulting.com.
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COMPANY EARNINGS RELEASES
• The J. M. Smucker Company announced results for the first quarter of its 2019 fiscal year ended July 31, 2018. The U.S. Net sales for the Retail Pet Foods segment were $671 million, an increase of 29% over the comparable prior-year period. The $151 million increase in net sales reflects the $163 million contribution from Ainsworth. Excluding Ainsworth, net sales declined $12.3 million, or 2%. (company website)
• Kane Biotech Inc. announced its second quarter 2018 financial results. Revenues were $95,810, a decrease of 10% compared to $106,006 for the quarter ended June 30, 2017. Net loss for the quarter was ($701,714), a decrease of 11% compared to the quarter ended June 30, 2017. (company press release)
• Sanderson Farms Inc. reported results for the fiscal third quarter ended July 31, 2018. Net sales were $852 million, a decline of 8.6% compared with the same period a year ago. Net income was $11.5 million compared with net income of $115.8 million for the third quarter of fiscal 2017. (Feedstuffs)
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SOUTHWEST VETERINARY SYMPOSIUM
San Antonio, Texas at the Henry B. Gonzalez Convention Center
September 20-23, 2018
Folks are flocking to reserve a spot at the 2018 Southwest Veterinary Symposium — a partnership of the Arkansas, Louisiana, New Mexico, Oklahoma and Texas Veterinary Medicine Associations which provides continuing education for veterinary professionals. Join us this September in San Antonio, Texas where you can learn about the latest innovations and products, network with other veterinary professionals, explore design and renovation ideas and choose from more than 375 hours of quality courses.
www.swvs.org
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COMPANY NEWS RELEASES
• QBiotics Group Limited announced it has signed an agreement with Virbac to market and distribute QBiotics’ canine anticancer pharmaceutical, tigilanol tiglate, in the USA, Switzerland, Norway, UK and EU on receipt of marketing authorization. There is the potential of future expansion to other focus territories including Australia, New Zealand and Canada. (Vet Practice Magazine)
• IDEXX Laboratories, Inc. announced that its US reference laboratory division is expanding its rapid overnight service, known as IDEXX-Direct service, through the addition of a new, state-of-the-art reference laboratory in Louisville, Kentucky. The laboratory is slated to open in September. (company website)
• Heska announced it has participated in the $6 million series B financing round of MBio Diagnostics. The two companies have collaborated before Heska’s investment, when they partnered in May to bring new point-of-care multiplex testing technology to the animal health sector. (Animal Pharm)
• GlobalVetLINK and the University of California, Davis Center for Animal Disease Modeling and Surveillance (CADMS) announced the integration of their software solutions, LabLINK HIMS and Disease BioPortal, for veterinarians and livestock production personnel to manage diagnostic lab results and improve the speed of health-based decision making. (company press release)
• Hitachi Healthcare Americas announced an expansion of the partnership with scil animal care, a division of Henry Schein Animal Health. The agreement builds upon their existing relationship and expands the scil territory to now be nationwide coverage and distribution of Hitachi’s ultrasound solutions focused on the veterinary market. (Dotmed.com)
• Premier Veterinary Group announced that its wholly-owned subsidiary, Premier Vet Alliance, has signed a contract with a major US corporate veterinary consolidator with over 100 companion animal hospitals. The contract aims to introduce Premier Vet Alliance’s preventative healthcare program for pets – branded ‘Premier Pet Care Plan’ – to 15 of the consolidator’s companion animal hospitals. (Vet Advantage – Pet Gazette)
• TechAccel announced a partnership with Reliance Animal Health Partners to focus exclusively on bringing animal health innovations to market under the name of Covenant Animal Health Partners. Covenant is dedicated to the development and registration of “revenue-ready” animal health products. (company press release)
• Recombinetics has secured $34 million through a series A funding round. The company will use the funding to accelerate the commercialization process for its genetic products, add scientists, enhance intellectual property, expand its laboratory, grow its management team and hunt down licensing and co-development opportunities. (Animal Pharm)
• Tyson Foods announced it has agreed to purchase Keystone Foods from Brazilian meatpacker Marfrig Global Foods SA for $2.5 billion. Keystone Foods is a leading supplier of protein products to more than 36,000 quick-service restaurants, major food service and industrial companies as well as retail outlets around the world with approximate sales of $2.7 billion worldwide. (Veterinary Advantage – Reuters)
• NovaVive Inc. announced that it has signed a marketing services agreement with AABEX Animal Health, a new animal health sales and marketing company, for the US. (company press release)
• Innovetive Petcare announced the acquisition of a new practice, Animal Medical Center of Austin. This is the fourteenth practice to join the Innovetive Petcare family, and the eighth in Texas. (company press release)
• EU Bayer Animal Health announced that Seresto flea and tick collar has been licensed in several European countries to reduce the risk of canine leishmaniasis via transmission by sand flies for up to eight months. (Animal Pharm)
• GERMANY Antelliq announced it has acquired Agrident, a German radio-frequency identification data (RFID) capture specialist. Agrident will become part of Antelliq’s Allflex division. Financial terms were not disclosed. (Animal Pharm)
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ANIMAL HEALTH NEWS
• CHINA – ASF China has confirmed a case of African swine fever (ASF) at a slaughterhouse owned by WH Group, the world’s largest pork company. The virus was detected in 30 pigs transported around 2,000 km from Heilongjiang province in northeastern China. The Chinese company has been ordered to close the unit for six weeks as part of efforts to contain the disease. China reported its first-ever case of ASF in early August. (Animal Pharm)
• EU – AVIAN INFLUENZA The European Commission has adopted new rules that will seek to prevent poultry flocks being infected with avian influenza by migratory wild birds. Specifically, to prevent contacts and virus transmission between infected wild birds and poultry, member states are required to prohibit certain activities in “high risk areas”. EU states will have to identify these areas in their territories based on the assessment of risk factors for virus introduction and spread. (Animal Pharm)
• US – VETERINARY SCHOOLS The Texas Tech University System board of regents moved forward with Texas Tech University’s plans to establish a new School of Veterinary Medicine in Amarillo, Texas, by approving the new school, its degree plan and funding for preliminary designs for the school. The plan approved by the regents would enroll 60 students per year for a desired enrollment of 240 students for the four-year program. (Feedstuffs)
• US – DRUG REGULATIONS On August 14, 2018, the Animal Drug and Animal Generic Drug User Fee Amendments of 2018 was signed into law to reauthorize the Animal Drug User Fee Act (ADUFA) and the Animal Generic Drug User Fee Act (AGDUFA) programs administered by the FDA. The bipartisan legislation includes several additional provisions, including a limited expansion of the conditional approval pathway for certain new animal drugs, a requirement to post on the agency’s website the number of pending petitions for food additives intended for use in animal food, and a requirement to report on the FDA’s progress in bringing all approved antimicrobial animal drugs that are medically important under veterinary oversight. (FDA)
• US – HEARTWORM DRUG REGULATION The FDA is extending the comment period for the request for comments on the design of studies intended to generate data to support substantial evidence of effectiveness for investigational new animal drugs intended for the prevention of heartworm disease in dogs. The FDA is taking this action in response to requests for additional time to submit comments. The comment period will now close on November 20, 2018. Additional information, including directions for filing comments, is available in the Federal Register Notice at https://www.federalregister.gov/documents/2018/08/20/2018-17858/evaluation-of-approaches-to-demonstrate-effectiveness-of-heartworm-preventatives-for-dogs-extension (FDA)
• US Scientists funded by the National Eye Institute (NEI) have developed and shown proof-of-concept for a gene therapy in a canine model of autosomal dominant retinitis pigmentosa (adRP). Researchers at the University of Pennsylvania School of Veterinary Medicine collaborated in the research. The team hopes to start pre-clinical safety studies within the next year or two, with the goal of eventual human trials. (MDLinx.com)
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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
This week’s news is dominated by the announcement of a number of marketing and cooperative agreements between parties that believe leveraging the expertise or organization of another company to commercialize their technology, services or products is the most efficient way for market entry. The animal health industry is clearly in a time of transition from traditional approaches for commercialization to an often mixed approach. I recently visited with a medium size company that indicated that their business was now split into four go-to-market approaches: product sales through distributors; direct to veterinary clinics; direct to large OTC retailers; and internet sales to pet owners. If a company had taken this approach to marketing a few years ago, they would have been chastised or seen as disloyal to one channel or another. Now, they are considered by some to be the wave of the future.
This observation brings me to my final point for this newsletter. Hopefully you read the announcement that we are producing a new report on companion animal veterinary telemedicine. Like the change in marketing of products discussed above, we believe that telemedicine will have an impact on how companion animal medicine is practiced in the future. We believe our insights into this new area of veterinary medicine will provide thoughts and information that will be useful to the purchasers of “The Companion Animal Veterinary Telehealth Landscape.”
Have a great weekend!
Ron Brakke
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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.
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