Deals, Products, Initiatives and Other News in Animal Health
This section of the website is not intended as a comprehensive review of what’s happening in animal health. Rather, we highlight some of the activities we feel illustrate trends or advances in the industry. There are several newsletters that track industry activity on a regular basis available from other sources, including AnimalPharm.
Peptech and Virbac
Healionics Corporation and BioMimetic Tissue Sciences
Cambria Biosciences LLC and Pfizer Animal Health
VCA Antech and Healthy Pet Corporation
Velcera Inc. and Novartis Animal Health
Schering Plough and Organon BioSciences NV (Intervet)
Biolex Therapeutics and Merial Limited
Crucell NV and Pfizer Animal Health
Vivalis and Ft. Dodge Animal Health
Nestle Purina PetCare and Accera
Heska Corp. and Allergopharma Joachim GanzerInitiatives
Products
Animal Health Industry MBA Program
Center for the Human-Animal Bond
Dryden-Merial Tick Research Center
Food Animal Veterinarian Incentive
Home Again Network
Kansas City Animal Health Corridor
Morris Animal Foundation Canine Cancer Campaign
Pfizer
Merial
Ft. Dodge
Peptech
Eli LillyPeptech and Virbac
In September 2007, Australian company Peptech Animal Health Pty Limited, a subsidiary of Peptech Limited, entered an exclusive agreement with Virbac SA to distribute Peptech’s contraceptive implant for male dogs, Suprelorin®, throughout Europe. Virbac will be responsible for sales, marketing and distribution of the product with the launch expected to occur in early 2008. The contraceptive implant sterilizes male dogs for six-month periods by inhibiting the production of testosterone and sperm and inducing temporary infertility. A 12-month version is approved in Australia. Back to topHealionics Corporation and BioMimetic Tissue Sciences
In July 2007, Healionics Corporation announced a partnership deal with BioMimetic Tissue Sciences, a company focused on using biomaterials for veterinary purposes. The partnership will initially focus on ophthalmic devices in canine glaucoma, which the companies call the leading cause of blindness in dogs. BioMimetic Tissue Sciences is a veterinary biomedical development company based in Arizona. Healionics, based in Washington state, is a medical device company. Back to topCambria Biosciences LLC and Pfizer Animal Health
In June 2007, Cambria Biosciences and Pfizer Animal Health entered a collaborative agreement targeting the discovery and development of new classes of antiparasitic drugs. According to a press release, Cambria’s chemical genetics platform will be used to elucidate the molecular targets that have responded to candidate compounds. Back to topVCA Antech and Healthy Pet Corporation
In June 2007, VCA Antech, Inc. completed its acquisition of Healthy Pet Corporation for $152.9 million in cash, less assumed debt, excluding capital leases, and subject to adjustment for working capital items). Healthy Pet operated 44 animal hospitals with pro forma annual revenue of approximately $80.0 million. The combined company resulting from the acquisition operates for than 430 animal hospitals in 38 states.See information regarding National Veterinary Associates in the Financing section, below, for more news on acquisition of animal hospitals. Back to top
Velcera Inc. and Novartis Animal Health
In June 2007, Velcera Inc. entered into a global licensing agreement with Novartis Animal Health. Under the terms of the agreement, Novartis will develop, register and commercialize a novel canine product utilizing Velcera's patented oral mucosal drug delivery technology branded Promist™. Terms of the Velcera-Novartis agreement are confidential, but involve upfront payments, milestone payments, and sales-based royalties. In August 2007, Velcera announced the initiation pivotal studies to evaluate the safety and efficacy of VEL-504, a treatment candidate for canine pain management. Back to topSchering Plough and Organon BioSciences NV (Intervet)
In March 2007, Schering Plough Corporation announced its intention to acquire Organon BioSciences NV, which is the human and animal health business of Akzo Nobel NV. At the time of the announcement, the deal was expected to be concluded by the end of 2007. Intervet is the animal health business of Akzo Nobel. A combination of Schering Plough Animal Health and Intervet would have generated almost $2.4 billion in sales in 2006, so the deal could place Schering Plough Animal Health in the same sales strata with Pfizer Animal Health and Merial Limited. Back to topBiolex Therapeutics and Merial Limited
In May 2007, Biolex Therapeutics announced a collaboration with Merial Limited. Initially, the collaboration will involve conducting studies to evaluate different animal vaccines using recombinant proteins produced in the Biolex LEX System(sm). Terms include research and development support and development milestones during the initial phase of the collaboration. Following the conclusion of the studies, Merial may exercise an option regarding a worldwide license covering the use of the LEX System for the field of animal health. Back to topCrucell NV and Pfizer Animal Health
In March 2007, Crucell and Pfizer Animal Health entered an agreement under which Pfizer licensed Crucell’s PER.C6 cell technology for use in producing a veterinary vaccine. The type of vaccine and the financial details were not released but the announcement noted that Pfizer has the option to convert the license into a commercial agreement. Back to topVivalis and Ft. Dodge Animal Health
In March 2007, Vivalis granted Fort Dodge Animal Health rights to the embryonic stem cell derived ebx® cell lines to evaluate ebx®cells for the production of viral vaccines. Vivalis noted that the agreement is intended to help support Fort Dodge's animal vaccine research and development efforts and stated that the company’s chicken and duck ebx® cell lines may prove to be an attractive alternative to embryonated eggs for the industrial production of viral vaccines. Terms were not disclosed. Back to topNestle Purina PetCare and Accera
In January 2007, Nestle Purina PetCare announced an agreement with Accera, a private biotechnology company engaged in discovering and developing therapeutic treatments for neurodegenerative diseases, to develop an Accera molecule for use in companion animals. Accera's preclinical studies on AC-1203, the veterinary version of one of the company’s human health molecules, have shown therapeutic effects on certain neurological conditions, like canine cognitive dysfunction, as well as certain behavior and metabolism associated with aging. Under the terms of the agreement, Purina will be responsible for future development, manufacturing, and commercialization costs for both the companion animal market. Purina will make an upfront payment and additional milestone payments to Accera based on defined development and commercialization achievements. Terms were not disclosed. Back to topHeska Corp. and Allergopharma Joachim Ganzer
In January 2007, Heska Corp. sold the rights to its patent portfolio that covers technology pertaining to major allergens and the genes that encode them to German pharmaceutical company Allergopharma Joachim Ganzer. Financial terms were not disclosed. Heska retained the exclusive rights to the portfolio for veterinary products. Back to topInitiatives
Animal Health Industry MBA Program
Bayer Animal Health and the University of Kansas School of Business have developed an animal-health-industry-focused MBA program. Students in the program have the opportunity to work at Bayer Animal Health in a rotational executive-development. Back to topCenter for the Human-Animal Bond
In January 2007, Eli Lilly and Company provided the Center for the Human-Animal Bond at the Purdue University School of Veterinary Medicine with a $250,000 endowment to support an annual lecture series related to veterinarians’ understanding of physiological, psychological, and sociological aspects of the human-pet bond. Back to topDryden-Merial Tick Research Center
Kansas State University's College of Veterinary Medicine has received an $815,000 sponsorship from Merial to fund research on ticks that infest dogs and cats. The research, to be conducted by Michael Dryden, professor of veterinary parasitology, will help veterinarians and pharmaceutical companies understand more about the biology of ticks and how to prevent them from infesting domestic animals.
research will allow his company to develop better products to control ticks. Dryden's research will focus on the four species that are indigenous to North America: the Lone Star; American Dog; Black Legged, which is a Lyme disease carrier; and Brown Dog ticks. Back to topFood Animal Veterinarian Incentive
A Wisconsin state representative and state senator have jointly introduced a bill to provide loan forgiveness to students who attend an accredited school of veterinary medicine in Wisconsin, graduate, and agree to practice no less than six consecutive years in Wisconsin, full time, and devote 75% of their practice to food animal related responsibilities. This program would forgive 10% of their loan principal a year for the first four years, then 20% the fifth year and sixth year, with the total not to exceed $50,000 over the six years. Back to top
Home Again Network
In January 2007, Schering Plough launched a national program called HomeAgain Proactive Pet Recovery Network. The system leverages the notification principles developed to help locate missing children. The program also involves volunteer HomeAgain Pet Rescuers who will receive email updates on pets whose last known location is near the location of a given rescuer. Back to topKansas City Animal Health Corridor
In 2006, Bayer Animal Health, whose US headquarters are in Kansas City, contributed $300,000 to fund the Kansas City Animal Health Corridor, an initiative to attract more animal health related businesses, institutions, and investment to the greater Kansas City Area. Already the area is home to a number of animal health companies and veterinary colleges – a report by Ron Brakke’s organization noted more than 120 area companies specializing in animal health and nutrition or related supplies and services. Several companies are reported to have located or relocated in the area because of the initiative, which is backed by the local Chamber of Commerce, Area Development Council, and Life Sciences Institute. Back to top
Morris Animal Foundation Canine Cancer Campaign
In April 2007, the Morris Animal Foundation announced the formation of a $30 million global canine cancer initiative. Forty-four corporate sponsorships, including a $1.1 million donation from Pfizer Animal Health, are supporting the project, and fundraising is expected to continue through August 2012. The goals of the initiative include: Clinical trials to test new innovative therapies to help save dogs and alleviate dog suffering now; prevention studies related to genetics and canine genome, incorporating lifetime risk assessment studies; funding a tumor tissue bank; and establishing an endowment to guarantee continued research efforts. Back to top
Pfizer
So far in 2007, Pfizer Animal Health has launched several new products for dogs. Cerenia™ (maropitant citrate) has been approved in the US and EU for preventing and treating canine vomiting from several causes, including motion sickness. It was launched in the US at the end of July 2007. Slentrol™ (dirlotapide), also approved in the US and EU, is a canine obesity drug intended for dogs that are at least 20% over their ideal weight. It is estimated that approximately 5% of dogs in the United States are obese, and another 20% to 30% are overweight. Slentrol works by blocking the assembly and release of lipoproteins into the bloodstream. Back to topMerial
In June 2007, Merial Limited announced the US launch of Equioxx® (firocoxib), a coxib nonsteroidal anti-inflammatory for use in relieving pain and inflammation associated with osteoarthritis in horses. Back to topIn March 2007, Merial Limited announced that the USDA has granted conditional approval for a vaccine to treat canine melanoma, marking the first time the US government has approved any therapeutic cancer vaccine – in humans or in animals. The vaccine was developed through a partnership between Merial and Memorial Sloan Kettering Cancer Center, and the Animal Medical Center of NY. The vaccine is delivered via a needle-free device. Back to top
Ft. Dodge
In June 2007, Fort Dodge Animal Health received EPA approval for ProMeris™ for controlling fleas and preventing flea infestation in cats. Back to topPeptech
In March 2007, Peptech Ltd. announced an EU recommendation for its 6-month veterinary contraceptive, Suprelorin®. The company expects the product to be available commercially in Europe sometime in the 3rd or 4th quarter of 2007. Previously, Peptech announced its intention to pursue approval of 6-month Suprelorin in the US. Suprelorin is a nonpermanent sterilant for use in male dogs. The 6-month version of Suprelorin has been available in Australia for several years; a 12-month version for the Australian market was approved in 2007. Back to topEli Lilly
In March 2007, Eli Lilly and Company received FDA approval for its canine antidepressant Reconcile™ (fluoxetine hydrochloride). Reconcile is a selective serotonin re-uptake inhibitor and is indicated for treating canine separation anxiety in conjunction with a program of behavior modification. Back to top
Financing
In July 2007, the Brazilian company Grupo Ouro Fino received investment funding from BNDESPar, a group within the country’s National Economic and Social Development Bank. In exchange for $55 million to invest in potential business opportunities, BNDESPar received a 20% share of Grupo Ouro Fino. Back to topIn April 2007, National Veterinary Associates, a privately held owner of US companion animal hospitals, received a $128 million investment from the private equity and venture capital firm Summit Partners. Since its founding in 1996, National Veterinary Associates has acquired 96 animal hospitals in 29 states. Back to top