ANIMAL HEALTH NEWS & NOTES FOR NOVEMBER 15, 2019

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Brakke Consulting’s
Animal Health News & Notes for November 15, 2019
Copyright © Brakke Consulting

Editor: Lynn Fondon DVM MBA
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IN THE NEWS:

Brakke Consulting News

Flea, Tick and Heartworm Markets report – last week for early order discount

Earnings News

Covetrus
Hester Biosciences
ImmuCell
Kindred Biosciences
PetIQ
Spectrum Brands Holdings
Zomedica Pharmaceuticals

Other News

Allflex Livestock Intelligence
Anivive Lifesciences
Antelliq
Basepaws
Boehringer Ingelheim
Butterfly Network
Jinyubaoling Bio-Pharmaceutical
Jinyu Kyoritsu Animal Health
Kyoritsu Seiyaku
Merck
MYOS RENS
Phibro Animal Health
QBiotics
Rangen
VetPartners
Virbac
Wilbur-Ellis Nutrition

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BRAKKE CONSULTING

2019 US FLEA CONTROL AND HEARTWORM MARKETS REPORT
LAST WEEK FOR EARLY-BIRD DISCOUNT

Are you on top of the trends in the largest market segment in companion animal health?  Brakke Consulting will soon be publishing our 2018 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 (veterinarian cost and online pricing), and sales for the leading veterinary flea, tick and heartworm products
– an overview of the veterinary and OTC flea control markets
– discussion of new heartworm products, including CORAXIS, MILBEGUARD, and PROHEART 12
– 2019 survey of 300+ veterinarians
– 2019 survey of 500 pet owners

The report on the US Flea Control & Heartworm Markets will be available for a purchase price of $7,250 if ordered by MONDAY, NOVEMBER 25, and $7,750 after that date.

Please contact Dr. Lynn Fondon at 336-396-3916 or lfondon@brakkeconsulting.com to pre-order the report, or for more information visit our website.
www.BrakkeConsulting.com

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COMPANY EARNINGS RELEASES

• Covetrus announced financial results for the third quarter of 2019. Net sales for the third quarter of 2019 were $1.0 billion, an increase of 10% compared to the third quarter of 2018. On a pro forma basis, which includes Vets First Choice in the prior year period, net sales increased 4%. Net loss in the third quarter of 2019 was $(906) million compared to net income of $16 million in the third quarter of 2018. Non-GAAP adjusted net income was $19 million for the three months ended September 30, 2019, compared to $21 million in the prior year period on a pro forma basis. (Globenewswire)
• ImmuCell Corporation announced unaudited financial results for the third quarter of 2019. Total product sales were $3 million, an increase of 38% compared to the same period in 2018. Net loss was $(503,000) in comparison to a net loss of $(250,000) during the third quarter of 2018. (company press release)
• PetIQ, Inc. reported financial results for the third quarter of 2019. Net sales were $186 million, an increase of 42% over the prior-year quarter. Excluding contribution from Perrigo Animal Health, net sales increased 29%. Product segment net sales were $161.5 million; services segment net revenues were $24.5 million. Net loss was $(8.8) million, compared to net income of $3.9 million. (company press release)
• Hester Biosciences reported results for the second quarter of its fiscal 2019. Sales were INR413.69 million ($5.8 million), a decline of 3% from the prior-year quarter. (Animal Pharm)
• Kindred Biosciences, Inc. announced financial results for the third quarter of 2019. The company recorded Mirataz net product revenues of $1.1 million compared to revenues of $0.6 million in the prior-year quarter; Mirataz became commercially available in July 2018. The net loss was $(15.3) million compared to a net loss of $(13.0) million for the same period in 2018. (PRnewswire)
• Zomedica Pharmaceuticals reported consolidated financial results for the third quarter of 2019. The company recorded net loss of $(2.8) million, compared to a loss of $(1.9) million in the prior-year quarter. Zomedica had cash and cash equivalents of $2.49 million as of September 30, 2019, compared to $1.94 million as of December 31, 2018. (finance.Yahoo.com)
• Spectrum Brands Holdings, Inc. reported results from continuing operations for the fourth quarter of fiscal 2019 ended September 30. Global Pet Care net sales were $229 million, an increase of 8% compared to the prior-year quarter (+9% excluding foreign exchange impact). (company website)

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COMPANY NEWS RELEASES

• Boehringer Ingelheim announced a nearly $50 million expansion of its manufacturing site in Puerto Rico. The expansion will allow the site, which manufactures Heartgard, to also begin manufacturing NexGard. (Pharmaceuticalonline.com)
• Phibro Animal Health has started to trial its pHi-Tech vaccine injection device with major US poultry integrators. The technology, which ensures injection accuracy, enables real-time oversight and offers cloud-based data analytics to optimize process management, will be rolled out in five additional major poultry-producing countries over the next few months. (Animal Pharm)
• MYOS RENS Technology announced the launch of Veterinarian Strength Myos Canine Muscle Formula, which combines the company’s Fortetropin product with several amino acids to boost the beneficial effects of muscle protein synthesis to improve canine muscle health. (Vet Advantage)
• Butterfly Network announced the launch of Butterfly iQ Vet, an all-new handheld ultrasound device with ultrasound-on-a-chip technology. (Pet Age)
• Anivive Lifesciences announced a collaboration with Basepaws to study feline genetics and diabetes. Eligible participants in the trial (veterinarians and cat owners) will be mailed a DNA collection kit, which will be mailed back to the companies for analysis at no cost to the participant. (Animal Pharm)
• Wilbur-Ellis Nutrition LLC announced the acquisition of the assets of Rangen , a privately held, aquaculture and general feed production company with production facilities in Idaho and Texas. Financial terms were not disclosed. (Feedstuffs)
• EU QBiotics announced that the European Medicine Agency’s Committee for Medicinal Products for Veterinary Use (CVMP) adopted a positive opinion for Stelfonta (tigilanol tiglate), and has recommended its marketing approval for the treatment of canine mast cell tumors. The product will be marketed by Virbac. (Animal Pharm)
• CHINA Kyoritsu Seiyaku announced a joint venture with Jinyubaoling Bio-Pharmaceutical, a subsidiary of China’s biggest animal vaccines maker Jinyu Bio-technology. The joint venture, Jinyu Kyoritsu Animal Health, will focus on developing vaccines for China’s pet market. The two partners have committed CNY160 million ($22.8 million) in capital to the venture. (Animal Pharm)
• INDIA Allflex Livestock Intelligence, a subsidiary of Antelliq (acquired by Merck at the end of 2018), announced it has added a new manufacturing, packaging and warehousing facility in India. The site will manufacture animal identification ear tags for the Indian market, as well as export to other countries in Asia Pacific. (Animal Pharm)
• ITALY VetPartners announced the acquisition of three Italian small animal veterinary practices. The acquisitions mark UK-based VetPartners’ first venture into Europe and it is set for further expansion in Italy as three more practices will join by the end of the year. Financial terms were not disclosed. (Yorkpress.co.uk)

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ANIMAL HEALTH STOCK PRICE TRACKER

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ANIMAL HEALTH NEWS

• VIETNAM – ASF Vietnam has sent an update of the African Swine Fever (ASF) situation in the country. The total death toll due to the virus and subsequent culling is up to 5.8 million, with 8,429 reported outbreaks. (Pig Progress)

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BRAKKE CONSULTING VIEWPOINT

We have been thinking a lot about how the distribution channels for pet medications are changing.  To determine the significance and impact of these changes, we are conducting a pet owner and veterinarian study that will be completed by the end of the year, which I hope you’ve read about here previously.  As we gather data on this topic, I am learning from the challenges other businesses face from online competitors.

An article written late last month by Jen McFarland Flint from the Harvard Business School titled “Brick-and-Mortar Stores are Making a Comeback” caught my attention.  I thought big retail was getting clobbered – we all see empty Sears or K-Mart stores and read about fast-growing Amazon and Chewy.  Maybe I missed the comeback?  Maybe some stores have figured it out?

Here is a quote from the article:

“How do you compete against Amazon? You make something happen in physical stores that can’t happen online. If you think about the history of the department store in America, they were the circus when the circus wasn’t in town. There was always something going on, with free ice cream and performers and a pleasant place to gather. Legacy brick-and-mortar retailers have amazing assets, but they need to think about what’s unique about having a physical space to convene with consumers and how that can be leveraged to do something that can’t happen in the digital world.”

The phrase “the circus when the circus wasn’t in town,” caught my attention too because I remember how excited my brothers and I were growing up in rural California to go to a big retail store, like Sears.  Going there back then was an experience for us and in the article, Flint frequently mentions “experience.”

The comeback for brick-and-motor stores will involve merging the ways customers experience a company’s products with the different ways they can purchase them, online or at the store.  Seems like a good strategy for veterinary clinics, too.

Bob Jones