Dear Veterinary Student,
While understanding that the clinical and scientific education you are receiving now is your primary focus, this weekly publication is designed to supplement your education by providing information that helps you learn about the business of veterinary medicine, the emerging technologies that will shape the future of veterinary practice, the ever-changing regulatory environment and more. It features commentary from Terry Sheehan, an industry consultant with a keen eye for trends affecting the animal health industry. We hope this newsletter helps you prepare for your career in veterinary medicine.
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TERRY'S TAKES
Vetoquinol reports Q2 and first-half financial results
Vetoquinol reported second quarter sales of 136 million euros, up 6.7% on a reported basis. For the first half of the year, sales of 271 million euros were up 6.1%. Sales of the company’s “Essential” products in the first half of the year increased 9.8% to 154 million euros. “In a global animal health market that is normalizing after two years of exceptional growth, our laboratory is continuing to expand, driven by our strategy of focusing on our Essential products and on the most promising territories,” said CEO Matthieu Frechin. “Our recent launches, combined with a large-scale marketing plan, offer us solid prospects. As a result, we expect to continue to grow at a sustained pace, outpacing the market in Essentials, while remaining opportunistic in terms of external growth.”
Commentary from Terry Sheehan: The second of the global top ten animal health companies to report is also showing increased sales in H1/2021. Hopefully, the news remains positive as Zoetis and Elanco announce this week. The strength of the dollar versus the euro will influence the year-on-year performance of all companies.
> Read more of this article here.
Walmart cuts profit outlook as inflation forces shoppers to change spending behavior
Walmart last week lowered its profit outlook for the second quarter and the full year, saying rising prices on food and gas are forcing shoppers to cut back on discretionary items, particularly clothing, that carry higher profit margins, the Associated Press reports. That behavior is pushing the company to step up discounts on general merchandise items like home furnishings and electronics to move inventory. Walmart’s decision to lower its profit outlook in the middle of the quarter is rare and raised worries about how inflation, which is the highest it’s been in four decades, is affecting the entire consumer sector. The stocks of many major retailers fell after Walmart’s announcement.
TS: This earnings warning from Walmart caused by reduced discretionary spending will be something to watch very carefully in animal health as inflation is likely to test the elasticity of demand for all products and services.
> Read more of this article here.
Florida animal shelter sees uptick in pet surrenders as economy forces owners to move
A southwest Florida animal shelter has seen a rise in the number of people having to give up their pets in the last six months as tightening budgets force owners to move. “I think that we’ve seen that it’s the worst that it’s ever been,” Liz McCauley, executive director at Cape Coral Animal Shelter, told Fox 4. “You have the bad economy; you have people having to move to places where they aren’t allowed to have pets, or they aren’t allowed to have a certain breed or a certain weight. So, they’re having to give up animals that they’ve had for a long time.”
TS: Much-discussed pet population growth fueled by COVID confinement may be challenged by the current economic environment. This is reported by a shelter in Florida but needs to be continually assessed to determine if it is occurring in more places.
> Read more of this article here.
Dechra agrees to buy Piedmont Animal Health for $210 million
U.K.-based Dechra Pharmaceuticals has agreed to pay 175 million pounds in cash, or $210 million, to acquire Piedmont Animal Health. Greensboro, North Carolina-based Piedmont makes products for the companion animal market. To fund the acquisition, Dechra plans to raise 180 million pounds via the issue of 5.2 million shares at 3,430 pence each. The capital fundraise will allow Dechra to move forward on the Piedmont acquisition as well as another “near-term opportunity which the company is in exclusive discussions to acquire with an acquisition price similar to Piedmont,” Dechra said. If completed, the acquisition of Piedmont and the potential other acquisition will become accretive to earnings per share from fiscal year 2025, and “materially accretive thereafter,” the company said.
TS: Dechra continues to aggressively invest in the animal health space.
> Read more of this article here.
Heartland Veterinary Partners acquires Family Vet Group
Heartland Veterinary Partners, which purchases and operates practices, has acquired Family Vet Group. Illinois-based Family Vet Group has practices in metropolitan areas of Florida, Texas, Tennessee, North Carolina and Indiana. Each practice offers full-service general veterinary care including surgery, dental and radiology, as well as in-house and reference lab capabilities. FVG was co-founded in 2019 by President Chase Michalek, who will be staying with the business. “This acquisition significantly expands Heartland’s network of locations and adds to Heartland’s expertise in the development of new practices and expansion of existing locations, both of which will help address unmet demand in the industry,” said Luke Schroeder, deal partner and head of the health care group at Gryphon Investors, which backs Heartland.
TS: Family Vet Group adds 16 new locations to Heartland Veterinary Partners as veterinary clinics continue to attract investor money.
> Read more of this article here.
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PERSONAL DEVELOPMENT
22 extraordinary women
Today’s Veterinary Business shares the stories of 22 outstanding female veterinarians and how they became driving forces in their areas of expertise. The roster features doctors from across the profession, selected for their determination and commitment to innovate, open doors and elevate those around them.
The list was in last week’s Fountain Report. For their stories, read the article by Robin Brogdon and Linda Kaplan in Today’s Veterinary Business.
> Read more of this article here.
West Virginia universities say a bachelor’s degree program could help increase the number of veterinary technicians in the state
As West Virginia faces a shortage of registered veterinary technicians, two universities want to establish a bachelor’s degree to train future technicians.
West Virginia University and West Virginia State University have most of the curriculum in place to offer a veterinary technician bachelor’s degree with accreditation by the AVMA, said Matthew Wilson, a dean at WVU.
The state has 235 registered veterinary technicians to support its 704 licensed veterinarians, the West Virginia Register-Herald reports.
> Read more of this article here.
Dairy industry job board available for young professionals, in-person networking event to take place at World Dairy Expo
World Dairy Expo this fall will feature Career Connections, a job board and networking event that aims to connect students and young professionals with job and internship opportunities in the dairy industry.
The networking event will take place Friday, October 7 at the Expo exhibition hall. Career Connections is a free resource and event.
Trade show participants and sponsors of Expo, in addition to dairy farms globally, can participate by applying online. Job and internship seekers can also view a current list of openings and register for the in-person event.
> Read more of this article here.
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REGULATORY
New York may ban pet store puppy sales as governor considers bill
New York lawmakers last month passed a bill that would ban the sale of dogs, cats and rabbits in the state’s pet stores.
Now, amid intense competing lobbying efforts from animal welfare groups and the pet store industry, Gov. Kathy Hochul has to decide whether to sign the bill and make New York the latest in a growing group of states that are outlawing sales.
The bill aims to stop irresponsible practices by commercial breeding facilities. Pet stores say it would put them out of business and potentially lead to an underground market of pet sales.
Hochul, a Democrat running for her first full term in November, hasn’t publicly shared her thoughts on the bill and her office said it was still reviewing the legislation, according to The New York Times.
> Read more of this article here.
Poultry processors reach $84 million settlement with Justice Department over antitrust claims
Cargill, Sanderson Farms and Wayne Farms have agreed to pay more than $84 million to settle antitrust claims by the Justice Department, Reuters reports.
The department alleged that the companies shared information about workers in order to drive down compensation. Under the agreement, Cargill Meat Solutions will pay $15 million, Sanderson will pay $38.3 million, and Wayne will pay $31.5 million.
The department also said it had reached a settlement with Cargill and Continental Grain, which have finalized their deal to buy Sanderson Farms and combine it with Continental subsidiary Wayne Farms.
> Read more of this article here.
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TECHNOLOGY
Basepaws launches genomic screening tools for veterinary teams
Basepaws (recently acquired by Zoetis) has launched genetic and oral microbiome screening tools for use by veterinary teams. The tools are meant to help doctors identify health risks early and improve health outcomes for cats and dogs.
The company says information gleaned from the tests can help veterinarians and pet owners select annual wellness programs, routine diagnostic tests and lifestyle changes based on the individual pet’s genetics. The company is launching exclusively with distributor MWI Animal Health.
> Read more of this article here.
Butterfly Network’s portable ultrasound will be used in Purdue University’s veterinary program
Purdue University’s College of Veterinary Medicine will begin integrating the Butterfly iQ+ Vet portable ultrasound device into its DVM and veterinary nursing programs.
“Incorporating this technology early in the curriculum is especially significant because ultrasound is rapidly becoming an integral diagnostic tool for veterinary and human medicine, on par with the stethoscope,” said Susan Mendrysa, an associate professor of basic medical sciences at Purdue who coordinated a grant proposal for the program with the university provost’s office.
> Read more of this article here.
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Terry Sheehan is currently the CEO of Aniconsilia, LLC an animal health industry only consulting firm he founded in 2009. Prior to the founding of Aniconsilia, Terry had a 30+ year career in the animal health industry with a strong record of achievement in sales, marketing, and commercial operations. Terry held positions of increasing responsibility and leadership in all segments of Animal Health Sales, Marketing, Business Development and Commercial Operations.
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