Animal Health News & Notes for January 4, 2019

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Brakke Consulting’s
Animal Health News & Notes for January 4, 2019
Copyright © Brakke Consulting, Inc.

Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting news
Animal Health Industry Overview – register now
Recruiting

earnings news
Neogen
Sanderson Farms

other news
American Regent Animal Health
Boehringer Ingelheim
CareCredit
Covetrus
Delta Genomics Centre
Elanco
Henry Schein (Covetrus)
Henry Schein (CareCredit)
LifeLearn
Luitpold Animal Health
Merck
Merrick’s
Neogen
Oxyfresh
Pestell Group
Pet Supplies Plus
PharmaForce
PortaCheck
Sentinel Capital Partners
Sport Endurance
Targeted Pet Treats
TruPet
VetBiotek
Vets First Choice
Vetsource
Vets Plus
Wind Point Partners
Zhejiang ZhengliAntoo Biotech

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BRAKKE CONSULTING, INC.
INDUSTRY OVERVIEWS AT VMX AND WVC
REGISTRATION IS NOW OPEN

Brakke Consulting is pleased to announce the 2019 Industry Overview. The 2019 Animal Health Industry Overview will be presented twice this winter – once at the VMX in Orlando, Florida and once at the Western Veterinary Conference in Las Vegas, Nevada. These dates are:

• VMX: Tuesday, January 22, 2019, 2:00 – 4:00 pm, Rosen Plaza Hotel
• WVC: Tuesday, February 19, 2019, 2:00 – 4:00 pm, Four Seasons.

Registration for the VMX & WVC Industry Overviews is now open. Seating is limited this year, so register early!

To register, go to www.brakkeconsulting.com and scroll down to the “What’s New” box. The price is $400 per person for online registration; late registration is $450. Discounts are available for multiple attendees from the same company; visit our website or call 972-243-4033 for more information.

www.BrakkeConsulting.com

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COMPANY EARNINGS RELEASES

• Neogen Corporation announced results for the second quarter of its 2019 fiscal year ended Nov. 30. Neogen’s Animal Safety segment reported revenues of $53.3 million, an increase of 4%. (company press release)

• Sanderson Farms Inc. reported results for the fiscal year ended Oct. 31, 2018. Net sales were $3.236 billion, compared with $3.342 billion for fiscal 2017. Net income for the year totaled $61.4 million compared with net income of $279.7 million for last fiscal year. (Feedstuffs)

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COMPANY NEWS RELEASES

• Boehringer Ingelheim announced it has developed ASF COMBAT (ASF Comprehensive Online Management and Biosecurity Assessment Tool). This tool enables pig producers to evaluate areas for biosecurity improvement on their farms by completing a short questionnaire based on ASF virus scientific literature and practical experience, intended to help reducing the ASF introduction risk level. (Vet Advantage)

• In a Dec. 19 “Dear Veterinarian” letter, the FDA clarified the Center for Veterinary Medicine’s (CVM) position on complying with the conditions of use of Elanco’s Tylan 40 or Tylan 100 Type A medicated feed article (tylosin phosphate) in beef cattle. Due to changes in cattle size since it was approved, veterinarians say it is practically difficult to comply with both the approved feed concentration level and drug intake rate. CVM is currently working with Elanco to revise the product labeling to address the issue. (Feedstuffs)

• Henry Schein, Inc. and Vets First Choice announced that the new standalone public company that will result from the planned spin-off of the Henry Schein Animal Health business and the subsequent merger with Vets First Choice will be named Covetrus. Henry Schein has filed a registration statement on Form S-4/S-1 with the U.S. Securities and Exchange Commission (“SEC”) relating to the planned spinoff; investors may find an electronic copy of the registration statement (under HS Spinco, Inc.) at www.sec.gov. The transaction is expected to be completed in the first quarter of 2019. (company press release)

• Luitpold Animal Health, a division of Luitpold Pharmaceuticals, Inc., announced it has become American Regent Animal Health, effective Jan. 1, 2019. Luitpold Pharmaceuticals, Inc. will streamline its operations by absorbing its wholly-owned subsidiaries, American Regent, Inc. and PharmaForce, Inc., into one corporate entity as of Dec. 31, 2018. Although Luitpold will be the surviving entity, its name will be changed to “American Regent, Inc.” following the merger. (company press release)

• Vets Plus, Inc. announced that it has acquired Merrick’s Inc., maker of boluses, tablets, powders and electrolytes serving the production animal industry. The new entity, known as Merrick’s Animal Health, LLC, will be a wholly-owned subsidiary of Vets Plus, Inc. Financial terms were not disclosed. (company press release)

• Oxyfresh announced the launch of its new Pet Dental Spray. Safe for both dogs and cats, this unique unflavored, alcohol-free formula features a patented blend of Oxygene and zinc that work together to neutralize organic compounds that cause pet bad breath. (Vet Advantage)

• PortaCheck announced that it is now distributing an on-farm glucose test for dairy cattle that has been incorporated into their BHBCheck Plus ketone monitoring system. (company press release)

• VetBiotek, Inc. announced that UltraOtic Concentrate, for the management of otic conditions in dogs and cats, is now available in easy to use 6 ml dropper bottles. (company press release)

• Private equity firm Sentinel Capital Partners has purchased US-based pet specialty retail chain Pet Supplies Plus. Pet Supplies Plus currently operates 448 franchised and corporate stores across 33 states in the US. Financial terms were not disclosed. (GlobalPets)

• Wind Point Partners and portfolio company Pestell Group announced they have acquired Targeted Pet Treats (TPT) through its Pestell Pet Products. TPT is a co-manufacturer of dental treats and long-lasting chews for pets. Financial terms were not disclosed. (Pet Business)

• Sport Endurance, Inc has made a $2.2 million investment in TruPet, the parent company of TruDog, a family-owned pet food company. The $2.2 million investment by Sport Endurance is made in conjunction with a large investment from Cambridge Companies SPG as part of TruPet’s $5.2 million oversubscribed Series A round. (Pet Product News)

• Henry Schein, Inc. and CareCredit announced the integration of CareCredit’s financing tool into Henry Schein’s dental and veterinary practice management software solutions. (Vet Advantage)

• Vetsource announced it has partnered with LifeLearn Animal Health to offer a seamless integration between Vetsource’s Home Delivery e-commerce platform and LifeLearn’s WebDVM custom veterinary websites. (PRweb)

• CHINA Merck announced it has acquired Zhejiang ZhengliAntoo Biotech, a privately owned veterinary vaccine specialist based in China. This site is MSD’s first fully-owned animal health manufacturing site in China. Financial terms were not disclosed. (Animal Pharm)

• CANADA Neogen Corporation announced that it has acquired the assets of Delta Genomics Centre, an animal genomics laboratory in Canada. Delta is a major supplier of genetic testing to Canada’s purebred beef associations, commercial beef cattle producers, and national genomics research community. With the acquisition, Delta’s laboratory operations will be renamed Neogen Canada. Financial terms were not disclosed. (company press release)

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ANIMAL HEALTH NEWS

• US – NEWCASTLE DISEASE The USDA’s Animal & Plant Health Inspection Service (APHIS) confirmed the presence of virulent Newcastle disease in a commercial chicken flock in Riverside County, California. APHIS said this finding is part of an outbreak in southern California that began in May 2018 in backyard birds but this is the first case in commercial poultry since 2003. (Feedstuffs)

• CHINA – ASF China has detected the African swine fever virus in some protein powders made using pork blood and manufactured by a Tianjin-based company. The raw material for the 73.93 tonnes of contaminated protein products, mainly used in animal feed, came from 12 slaughter houses in Tianjin. (Vet Advantage – Reuters)

• US – ANTIMICROBIAL USE The FDA announced that domestic sales and distribution of all medically important antimicrobials intended for use in food-producing animals decreased by 33% between years 2016 and 2017. The complete report can be read at https://www.fda.gov/downloads/ForIndustry/UserFees/AnimalDrugUserFeeActADUFA/UCM628538.pdf. (FDA)

• UK – PET SALES Britain has banned third-party sales of puppies and kittens. The decision follows a public consultation that found overwhelming support for banning third-party sales. Under the new measure, people wishing to adopt a puppy or kitten would have to deal directly with a breeder or a re-homing center, rather than pet shops or other commercial dealers. (AVMA SmartBrief – PBS)

• US – PET SALES A California bill banning the sale of mill-bred dogs, cats, and rabbits in pet stores officially went into effect on Jan. 1. In addition to the ban, AB 485 (the Pet Rescue and Adoption Act) will require that stores offer dogs, cats, and rabbits from shelters and rescue groups. California is the first state in the country to enact a policy of this kind. (Pet Product News)

• CHINA – CSF Researchers from Jilin University in China have genetically modified pigs to be resistant to classical swine fever virus, and these disease-resistant traits were passed down to at least the first generation of the edited pigs’ offspring. The researchers combined the CRISPR-Cas9 gene-editing tool with a technique known as RNA interference (RNAi). The new research was published in the journal PLOS Pathogens. (NewAtlas.com)

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BRAKKE CONSULTING, INC.
RECRUITING THROUGH MANAGED SERENDIPITY

Option 1: Post a job. Pray for a response. Plow through resumes.

Option 2: Partner with Brakke Consulting, someone who is looking out for you, working for you 24/7/52 to assess talent, find potential. We will work with you to plan your needs, continuously scout who is available, who is ready for a move up (not just someone who has done the job before), and recruit the most promising candidates to your company.

To learn more about how we can help you find the right person for your position, contact John Mannhaupt at jackintx@aol.com or 972-243-4033.

www.BrakkeConsulting.com

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BRAKKE CONSULTING VIEWPOINT

Happy New Year to all our subscribers! We hope each and every one of you have a very successful 2019.

As it relates to industry news this first week in the New Year it appears that financial firms continue to their interest in the animal health markets. There are several stories of private equity firms investing in companies and another company having a public offering. The interest level seems to be focused a bit towards the companion animal segment but there are some transactions in the food animal area.

An area that has caught our eye over the holidays and referred to here in a couple of the stories is the technology that is developing in the genetics area as a new approach to disease prevention in some species. Genetic modifications of animals for disease prevention has been in the laboratories for many years but now appears to be moving into the commercial phase. How could genetically resistant animals impact the animal health products business?

Have a great weekend!

Ron Brakke

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