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» Animal Health News & Notes for March 1, 2019

February 28, 2019
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Brakke Consulting’s
Animal Health News & Notes for March 1, 2019
Copyright © Brakke Consulting

Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting news
Market research reports
Field Sales Census report

earnings news
Apiam Animal Health
Bayer
Dechra
Heska
J. M. Smucker
Panion Animal Health
Patterson
Zomedica

other news
AnimalBiome
Animal Supply Company
Boehringer Ingelheim
Compassion-First Pet Hospitals
GNA Biosolutions
Goldman Sachs
Hampshire Pet Products
JAB
Loop Genomics
Merck
Neogen
Nutramax Laboratories
Personalized Stem Cells
PetMedix
Quad-C Management
Red Collar Pet Foods
Summit Partners
VetStem Biopharma

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REGULATORY SEMINAR
CRO-Sponsor Relationships: Best practices to improve efficiency and regulatory process outcomes
PRESENTED BY KANSAS STATE UNIVERSITY OLATHE
MARCH 5, 2019
FOUR DAYS LEFT TO REGISTER!

Kansas State University Olathe is hosting a seminar series designed to provide the latest information about regulatory affairs in animal health. “CRO-Sponsor Relationships- Best practices to improve efficiency and regulatory process outcomes” — the sixth seminar in the series — is on Tuesday, March 5, at K-State Olathe from 1 to 5 pm.

The seminar also will be live streamed for remote viewing and recorded for post-event viewing.

Registration is $100 per person. For more information or to register, go to https://olathe.k-state.edu/professional-dev/workshops/regulatory-affairs/index.html.

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COMPANY EARNINGS RELEASES

• Bayer reported results for the full year 2018. Sales of Animal Health were EUR 1.501 billion ($1.717 billion), a decline of 0.4% year-over-year (Fx & portfolio adj.: +0.5%). Sales of the Seresto flea and tick collar increased by 28.5%, while the Advantage family of flea, tick and worm control products was down by 9.3% year on year. EBITDA before special items declined by 6% to EUR 358 million ($409 million). (company website)

• Dechra Pharmaceuticals reported results for the six months ended December 31, 2018. Revenue for the period was GBP 231.4 million ($294 million), an increase of 19% compared to the prior-year period. North American Pharmaceuticals revenue was GBP 88.6 million ($112 million), an increase of 23%. (company website)

• Heska Corporation reported financial results for its full year ended December 31, 2018. Consolidated revenue for the year was $127 million, a decline of 1.5% compared to the prior year. Core Companion Animal segment revenue increased 3.6% to $109 million. Net income attributable to Heska for the year was $5.85 million compared to net income of $9.95 million in 2017. (company website)

• Patterson Companies, Inc. reported consolidated results for its fiscal third quarter ended January 26, 2019. Reported net sales in the Animal Health segment were $808 million, an increase of 1.6% compared to the same quarter last year. Internal sales for the segment increased 2.8% from the fiscal 2018 third quarter. (Business Wire)

• The J. M. Smucker Company announced results for its fiscal third quarter ended January 31, 2019. Segment net sales were $759 million, an increase of 35% over the prior-year quarter, reflecting the $199 million contribution from the Ainsworth acquisition. Excluding Ainsworth, net sales declined $1.2 million, reflecting the exit of certain private label businesses and the discontinuation of Gravy Train wet dog food products. Segment profit was $148 million, an increase of 26%. (company website)

• Zomedica Pharmaceuticals Corp. reported consolidated financial results for the year ended December 31, 2018. Zomedica, which is in the development stage, recorded no revenues in 2018. Zomedica recorded net loss of $(16.6) million, compared to a loss of $(8.1) million for the year ended December 31, 2017. Zomedica had cash and cash equivalents of $1.9 million as of December 31, 2018, compared to $3.4 million as of December 31, 2017. (company website)

• Panion Animal Health announced results for the full year 2018. Panion’s net loss totaled SEK 5.055 million ($593,000), up 15% from the firm’s net loss over the whole of 2017. The clinical stage company has yet to record any revenues. As of December 31, 2018, Panion had total financial assets of SEK 2.7 million compared to SEK3 million at the same point last year. (Animal Pharm)

• Apiam Animal Health reported results for the first half of its fiscal year 2019. Apiam reported revenue of A$56 million (US$39 million), a 10% increase compared to the first half of fiscal 2018. The group recorded a gross profit of A$28.5 million (US$20 million), up 16% from the first half of fiscal 2018. (BendigoAdvertiser.com.au)

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BRAKKE CONSULTING
FIELD SALES FORCE CENSUS REPORT

Size Matters: Field Team Report Now Available

Now you can benchmark your sales and professional services teams against leading competitors. A new Brakke report, Field Sales and Veterinary Teams provides a comprehensive census of the field organizations for 11 leading animal health and diagnostic companies. Which ones have expanded? Scaled back? How many regions and districts to they have?

The report covers the companion animal, food animal and equine markets, and includes territory reps, inside sales reps, sales management, professional service veterinarians and management, and other field specialists, by species focus. Pharma and Diagnostic teams reported separately.

Companies included in the report include:

Bayer
Boehringer Ingelheim
Ceva
Dechra
Elanco
Heska
IDEXX
Merck
Virbac
Vetoquinol
Zoetis Diagnostics
Zoetis Animal Health

Complete report is $5,000. Companion animal and equine only is $4,000.

Order yours today by contacting John Volk at john@volkonline.com or 773.327.4941.

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COMPANY NEWS RELEASES

• Boehringer Ingelheim and GNA Biosolutions announce that they have entered into a research collaboration focused on the development of a rapid African swine fever (ASF) diagnostic test. The test would be used in combination with GNA’s portable molecular diagnostic platform. (FLTimes.com)

• Nutramax Laboratories Veterinary Sciences Inc. announced the launch of Imuquin Cat, an immune health supplement for cats 6 weeks or older. Imuquin Cat contains NMX580, a combination of beta-glucan and omega-3 fatty acids, along with vitamins and minerals that support immune health. (Todays Veterinary Business)

• VetStem Biopharma announced it has spun out Personalized Stem Cells (PSC), a company focused on the human autologous stem cell market. VetStem holds a 75% ownership in the new company, which will begin human clinical trials – beginning with an orthopedics focus – using adipose stem cell technology patented by VetStem. (Animal Pharm)

• Red Collar Pet Foods announced the acquisition of Hampshire Pet Products, a leading provider of baked and cold-formed pet products and is a co-manufacturer of several of the nation’s leading branded pet treats. Financial terms of the transaction were not disclosed. (Feedstuffs)

• Summit Partners and certain funds managed by Goldman Sachs Asset Management, L.P. announced they have acquired a majority stake in Animal Supply Company (ASC). In addition, Goldman Sachs and Summit have provided significant operating and growth capital investment to support the execution of ASC’s strategic plan. Financial terms were not disclosed. (Pet Product News)

• Quad-C Management, Inc. and JAB announced that they have signed a definitive agreement in which Quad-C will sell its stake in Compassion-First Pet Hospitals to JAB, based on a total enterprise valuation of $1.215 billion. Compassion-First operates a network of 41 hospitals and treatment facilities across 13 states. Veterinary service providers who are currently investors in the company will maintain a significant stake going forward, and Compassion-First’s management team will also continue to be significant investors and lead the company in the next phase of its development. (company press release)

• AnimalBiome announced it has selected Loop Genomics long-read 16S Microbiome kits to help it expand its microbiome testing capabilities to provide veterinarians with practical, clinically-actionable insights regarding the gut health of dogs and cats. (PRNewswire)

• UK Merck announced the launch of PORCILISEry+Parvo+Lepto swine vaccine, which offers protection against erysipelas, porcine parvovirus and leptospirosis for up to 12 months. (PigWorld)

• SCOTLAND Neogen Corporation announced the Scottish Government has formally extended its partnership with Neogen in Ayr, Scotland, to perform genomics testing as part of the government’s program to improve the country’s beef herd. The genomic testing partnership was initiated in October 2016, and now has been extended through September 2021. (company press release)

• UK PetMedix announced it has secured GBP 8 million ($10.4 million) in a series A funding round. The Cambridge-based biotechnology firm is building platforms that will allow it to harness the potential of species-specific antibody therapeutics for a wide range of companion animal diseases. PetMedix’s platforms insert the antibody genes of dogs or cats into the mouse genome in place of mouse antibody genes; the mouse then expresses antibodies that fully match the companion animal. (Animal Pharm)

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ANIMAL HEALTH NEWS

• US – CARDIAC TREATMENT The Medical Center, Navicent Health (MCNH) and University of Georgia’s College of Veterinary Medicine (UGA) have teamed up to provide dogs with cardiac issues with pacemakers. Patients at MCNH having an old pacemaker upgraded, exchanged or removed, now have the option to donate the equipment to a canine heart patient at UGA. (Vet Advantage – People)

• US – VETERINARY SCHOOL A new partnership with the University of Minnesota aims to lower tuition costs for South Dakota State University’s veterinary medicine students and allow them to stay closer to home the first two years of graduate work. Students accepted into the rural veterinary program would complete their first two years of graduate courses in SDSU’s department of veterinary and biomedical services before heading to the University of Minnesota’s College of Veterinary Medicine. (Vet Advantage – AP)

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BRAKKE CONSULTING
MARKET RESEARCH REPORTS

Got questions? We have answers!

Brakke Consulting is an industry leader in timely market research on topics of high interest to stakeholders in the animal health, pet and veterinary markets. Reports published in the past two years include:

• Field Sales and Veterinary Teams (January 2019)
• US Flea Control and Heartworm Markets (December 2018)
• Manufacturer Sales Force Effectiveness Study (December 2018)
• The Companion Animal Veterinary Telehealth Landscape (October 2018)
• Veterinary Practice Home Delivery (May 2018)
• Pain Management Products for Dogs and Cats (April 2018)
• Veterinary Technical Services Study (March 2018)
• Equine Mega Study IV (January 2018)
• Distributor Effectiveness Study (December 2017)
• Cancer in Dogs and Cats (October 2017)
• New Strategies for Health & Performance in US Livestock & Poultry Production (Jan 2017)

Prices for reports vary. For more information about these or other reports, visit our website at https://www.brakkeconsulting.com/our-services/information/multi-client-studies/ or contact us at info@BrakkeConsulting.com .

www.BrakkeConsulting.com

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BRAKKE CONSULTING VIEWPOINT

In today’s newsletter, we mentioned the growth of Dechra’s animal health business, which is primarily based on a portfolio of generic products. Over the six-month period ending December 31, 2018, the North American business grew 19.3%, while the European business, excluding the impact of acquisitions and planned reductions, grew 4.4%. Dechra made three acquisitions during this period but there seems to be growth in North America, which was not impacted by the acquisitions. With the acquisitions, the European business grew 18.9% and overall, the company grew 19.1%.

What was very interesting for me in their financial report was the reason for the North American growth: people. Compared to the previous financial year, their investment in a direct sales force has “resulted in increased penetration and market share across all our therapeutic sectors as we are able to make more one-to-one contact with veterinarians in practice.”

Every year Brakke Consulting conducts a benchmarking study that evaluates salesforces of companies that call on veterinarians. The data from these studies has helped companies improve their sales teams and the Dechra report provides confirmation of the importance of highly effective sales teams and how they can drive performance, even of non-branded products.

And speaking of people like I did a few weeks ago in this Viewpoint, we have a great team here at Brakke Consulting. I’d like you to hear more from them – their views, their opinions and their expertise on topics impacting the animal health business. So, starting next week, you’ll hear from them in this column and I hope you learn from and enjoy their Viewpoints.

Thanks,

Bob Jones

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