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Frontline decline offset by NexGard as Merial scores solid Q4

BY JOSEPH HARVEY

Merial was able to overcome a decline in sales from its leading Frontline antiparasitics family to deliver healthy fourth-quarter revenues.

The firm’s Q4 sales increased 6% to €559 million ($625 million) with its NexGard canine flea and tick product a major driving factor.

In the US, Merial’s Q4 sales grew 13% to €219m, while revenues from the firm’s rest of the world segment climbed 15% to €54m.

Fourth-quarter sales of companion animal products improved by 9% to €321m as NexGard’s performance offset the Frontline decline.

In the same period, sales of food animal products increased by around 3% to €238m. Growth was aided by Merial’s LongRange extended-release cattle dewormer, which boosted the performance of the US ruminant business.

However, the firm’s avian business was only able to display 1% growth after it recorded a particularly strong performance in the fourth quarter of 2014.

Double-digit full yearWhile the company’s Q4 was solid, it was in fact its weakest quarter. Merial’s third quarter showed 9% growth, while the first half of fiscal 2015 was a double-digit growth period.

Nevertheless, in full-year 2015, Merial’s revenues were up 11% to €2.515 billion. Again, this success was largely driven by NexGard. Over the course of last year, NexGard became the third-largest product in the Merial portfolio.

Sales from the company’s companion animals segment grew 13% to €1.629bn in 2015, while the production animal business saw 7% growth to €886m.

Best growth since 2007Last year represented Merial’s best period of growth since 2007. The firm has struggled with generic competition for its fipronil-based family of products.

The company has introduced several additions to its fipronil portfolio to stem this decline. It also introduced NexGard (afoxolaner) to the US market in 2013 and in Europe the following year. At the time of the launch, afoxolaner was a new ectoparasiticide designed to kill fleas and ticks on the skin of dogs before they lay eggs.

The Lyon-headquartered firm has since commercialized NexGard Spectra (afoxolaner and milbemycin oxime), which provides broad spectrum internal and external parasite control in monthly dose. Milbemycin oxime acts as an endoparasiticide, killing parasites like heartworms, roundworms, hookworms and whipworms.

Merial’s good performance in 2015 could the company’s last full year in its current guise before it merges with Boehringer Ingelheim’s animal health division.

Merial sales 2007-2015Year Sales Growth (%)2007 $2,449 +11.6

2008 $2,643 +7.9

2009 $2,554 -3.4

2010 €1,983* +3.2

2011 €2,030 +2.4

2012 €2,179 +7.3

2013 €1,985 -8.9

2014 €2,076 +4.6

2015 €2,515 +10.8

*Begins reporting in Euros. Source: Merial

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Chinese owners for Syngenta and Smithfield… Could animal health be next?

BY DR ALAN BULLION & JOSEPH HARVEY

The answer is almost definitely ‘yes’. It may only a matter of time before a Chinese company purchases a leading animal health firm says Informa Agribusiness’ head of reports Dr Alan Bullion and Animal Pharm editor Joseph Harvey.

China’s state-owned ChemChina has made a $43 billion cash bid for Swiss seeds and pesticides group Syngenta, which would be the largest ever foreign acquisition by a Chinese firm.

This transaction will follow International Holdings’ 2013 acquisition of Smithfield Foods, the largest integrated swine production and meat packing business in the world.

Both these deals are a sure sign China has the spending power to make major moves in any industry, especially agriculture.

China is the leading agricultural producer in the world, and the number one producer of pork, rice, wheat, potatoes, sweet potatoes and apples. It has around 480 million farmers, the vast majority of whom are small producers with an average farm size of 0.5-0.6 hectares. This poses a huge challenge when it comes to distributing agricultural inputs, such as crop protection products and fertilizers.

China is also increasingly environmentally conscious about the amount of inputs it is using in farming, hence its growing interest in specialty fertilizers, biopesticides and veterinary medicines.

Whilst there have not been any large deals made by Chinese firms in the animal health space as of yet, it will not be long before this happens.

China has an animal health sector that is experiencing considerable growth. However, the nation’s network of veterinary product manufacturers is fragmented – leaving the country exposed when trying to deal with persistent diseases such as avian influenza.

In November 2015, China’s deputy ministry of agriculture Dr Yu Kangzhen stressed the importance of livestock production and food security to the country.

Some of the firms in China’s domestic animal health rankings are displaying healthy growth – there are restrictions on importing veterinary products. Nevertheless, there is a need for high-quality, long-lasting vaccines and pharmaceuticals. This may force Chinese firms to look abroad for acquisitions to quickly bolster their portfolios.

Animal health represents manageable targetNot only is the entry of Chinese firms into the international stage of animal health M&A inevitable but it could also target the top businesses.

While the volatile Chinese economy is likely to put a dampener on the country’s spending power, this should not be a problem concerning potential animal health deals which could be a lot smaller than the Syngenta deal.

In fact, Syngenta has annual sales equal to that of the top four global animal health companies combined.

It is highly improbable specialized Chinese animal health companies will be entering the M&A scene on a global scale due to their current size compared with international players. It is more likely cash-rich diversified holdings companies, chemicals specialists or wider agriculture groups will be the acquirers in China.

Of the Fortune 500 companies, there are just under 100 China-headquartered businesses. These firms tend to be in the banking, energy and fuel industries.

Orion aims for success in pet noise anxiety market

BY SIAN LAZELL

Orion Animal Health is targeting success in the companion animal market with its Sileo noise anxiety treatment for dogs. Animal Pharm analyst Sian Lazell explores the opportunity for the firm’s latest product to capitalize on a currently unmet need.

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Finland-based Orion claims its oromucosal gel Sileo (dexmedetomidine hydrochloride) is the first and only medicinal product licensed for acute anxiety and fear associated with noise in dogs in the EU and the treatment of noise aversion in dogs in the US.

Sileo is a prescription medicine and is only available through veterinarians. The product was launched in Orion’s own markets, including Nordic and some Eastern European countries, in late 2015.

Sileo is non-sedative and has an onset action of 15-60 minutes. Dexmedetomidine hydrochloride is commonly used as a sedative and analgesic agent for dogs, cats and humans but a significantly lower dose induces anxiolysis without clinical sedation. Sileo therefore enables dogs to remain fully functional whilst reducing anxiety related to noises.

Current treatments for noise anxiety include products such as pheromones, feed additives, feed supplements, specialized diets and noise anxiety wearables such as ear muffs. In some cases, these products are used in conjunction with behavioral therapy. Orion claims clinical studies have proven Sileo to be effective at tackling noise anxiety when used alone.

A randomized, double-blind, placebo-controlled, multicenter (multinational) clinical field study of 187 dogs suffering from acute anxiety of fear associated with noise, found Sileo had a targeted excellent or good treatment effect in over 70% of animals treated with the product. Treatment with a placebo had no effect or was worse in over 40% of the cases.

Sileo was also tested in 74 dogs with acute situational fear and anxiety with veterinarians as assessors as a supportive safety study. No clinically relevant safety concerns were found in any of the studies.

Research backs need for SileoOrion said dog owners are actively seeking solutions to noise anxiety in their pets and developed Sileo to tackle the unmet need. The firm said this was evidenced by enrolment for its clinical study of the product – the study exceeded its recruitment target and enrolment had to be actively stopped.

UK research by the University of Bristol has shown 49% of owners in the country reported their dog showed at least one behavioral sign typical of fear when exposed to noises.

The research also found 29% of dog owners reported seeking help for the problem, of which 45% reported seeking help from a veterinarian, an opportunity which Orion is looking to capitalize on – the firm said Sileo has particular client potential for veterinary clinics. Until now, only over-the-counter noise anxiety products have been available.

According to joint research from North Carolina State University, US, and the University of Lincoln, UK, around 80% of dog owners report a distressed reaction from their pets to certain noises.

A recent study from the Norwegian University of Lifesciences which was published in the journal Science Direct, also investigated noise sensitivity in 17 dog breeds in Norway. The results of a web-based survey of owners showed approximately 23% of the 5,257 dogs involved were reported to be fearful of noises.

In order, the noise situations that had the highest reaction were fireworks, situations involving loud noises/gunshots, thunderstorms and heavy traffic. The research also showed a significant trend of fear increasing with older age.

Animal Pharm asked Orion if it plans to develop Sileo for other species in the future. A spokesperson for the firm said: “It is clear there is an unmet need in this area. We have already received several proposals for other species from the users but this remains to be seen in the future.”

While Sileo is a non-sedative treatment, Orion has previously benefitted from its portfolio of sedatives. The Orion group said sedatives were among its top 10-selling pharmaceuticals of 2015 as full-year animal sedative revenues came to €27 million ($30 million) – a 10% increase year-on-year.

TyraTech’s ‘nature-derived’ products to challenge in insecticides, antiparasitics space

BY JOSEPH HARVEY

Even though the insecticides and antiparasitics space is the most competitive area of the animal health industry, North Carolina-based firm TyraTech believes it can carve out a significant market share. Animal Pharm Editor Joseph Harvey met the company’s chief executive Dr Bruno Jactel to get the lowdown on the growing demand for non-toxic insecticides.

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While TyraTech previously focused on the human health market since its inception in 2004, the company is now starting to enter the animal health sector.

Last month, the firm signed an agreement with leading US animal health distribution firm MWI Animal Health for its nature-derived PureScience insecticides range in the US.

The PureScience product line is designed to provide non-toxic, highly effective and safe insect control in livestock and food production animals. It is effective and fast-acting against all life stages of insects.

Crucially, the products kill insect eggs and do not require repeat usage due to their mode of action, thus saving farm labor costs.

Dr Bruno Jactel told Animal Pharm it took 10 years for TyraTech to develop its technology and prove its efficacy. However, the company achieved a landmark in 2014 when it launched pesticide-free head lice solutions for children in the US and the UK.

The Vamousse range has gained good sales traction via marketing deals with major retailers such as Walmart, CVS and Walgreens in the US, and Boots, Tesco and Sainsbury’s in the UK.

“We hope this success will translate to other markets,” explained Dr Jactel. “We have demonstrated the technology works and we think this will be a growth platform, specifically for food animals.”

Dr Jactel said TyraTech’s portfolio will be the “next frontier” of insecticides for food animals. He said the PureScience range is being developed to meet unmet insecticide needs – such as northern fowl mites and red mite control in chickens – as well as to capitalize on a consumer trend to environmentally-friendly animal treatments.

The Morrisville-headquartered firm has made its first PureScience sales in the US via the MWI partnership. Dr Jactel said TyraTech is aiming to secure similar distribution deals in Europe, Asia and Latin America.

To support its expansion into animal health, TyraTech secured around £3.2 million ($4.6 million) funding in November 2015.

Change of tacticsWhen he joined the company in 2013 from Merial, the TyraTech board made the decision to transform TyraTech from a company which was looking to out-license its products into a fully-integrated entity.

“We wanted to focus more on customer needs with our own production, testing and regulatory team,” he explained. “There is more value in having your business closer to the customers. It is a way to validate our technology and generate margin, which helps us invest in R&D and helps us innovate.”

While TyraTech’s Vamousse line bagged the firm’s first revenues, Dr Jactel insists the animal health sector will be its next business focus as it has the biggest sales potential.

Initially, the firm will focus on the global livestock external parasite market (valued at around $0.6 billion at retail level) and the livestock dewormer segment ($4.5bn).

“Existing products do the job but there are safety issues with many pesticides,” he said, also highlighting a buildup of resistance in insects to heavily-used antiparasitics and pesticides.

The company also hopes to bring its OutSmart Spray – a non-toxic equine fly spray – to market in the near future. The product will be distributed by SmartPak, the largest on-line retailer of equestrian products in the US. TyraTech is currently working on the product’s design and formulation.

Nature vs nature-derivedDr Jactel was keen to point out to Animal Pharm that the company’s products are not natural per se but ‘nature-derived’. The firm has a patented cell-based technology platform that allows for the screening of new active ingredients and serves as the basis for its plant-based formulations.

However, the ‘nature’ label or associations with organic products can be hard to shake.

“At the beginning, it was very hard to explain – no-one believed we had products that were from nature that worked,” Dr Jactel explained. “But the head lice product was proof we could do it.”

“Farmers are agnostics. They want to see a product work, that it is safe for the animals, the people and the food chain, know how much it costs and how many times they need to use it.”

Pirbright claims breakthrough in avian flu research

BY MALCOLM FLANAGAN

UK researchers say their research into the long-standing avian influenza virus H9N2, which is the genesis of many other avian flu viruses, could provide new and much improved vaccines for the disease.

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The Pirbright Institute said its study of H9N2 will help guide surveillance efforts and ensure vaccines are more effective.

Surrey-based Pirbright said the H9N2 virus leads to significant losses in poultry production across Asia, but also has the potential for creating new viruses which can infect humans. Recently, H9N2 infections were reported across China, Bangladesh and Egypt. The disease was originally discovered in China in 1994.

The virus can also act as a donor of genes to other zoonotic avian influenza viruses such as the 1997 Hong Kong H5N1 outbreak, and the recent Chinese H7N9 and H10N8 outbreaks. The use of avian vaccines is widespread in China and Asia but because avian influenza viruses are constantly changing, the effectiveness of vaccines is often compromised.

The H9N2 research at Pirbright was led by Dr Munir Iqbal, head of Pirbright’s avian influenza virus group in the avian viral diseases program, and was recently published in the UK online journal Scientific Reports. His team sought to gain a better understanding of the antigenic sites of the virus, particularly the major antigen haemagglutinin.

Haemagglutinin is a glycoprotein on the surface of all influenza viruses which enables the virus to enter host cells. There are at least 18 different types of haemagglutinin (H1-H18) that avian influenza viruses may possess.

Antigenic sitesThe analysis and structural mapping of the virus revealed two novel, antigenic sites H9-A and H9-B. Additionally, a second subset of escape mutant genes contained amino acid deletions within the haemagglutinin receptor binding site. This constitutes a novel method of escape for this group of haemagglutinins and could represent an alternative means for H9N2 viruses to overcome vaccine induced immunity.

Dr Iqbal said: “During circulation in birds, the virus acquires genetic changes in the haemagglutinin gene that greatly influence its antigenic properties; resulting in viruses with the ability to escape natural or vaccine-induced immunity. This means that vaccines can fail in the field and lead to viruses circulating and spreading unhindered in vaccinated animals.

“To increase the effectiveness of vaccines we needed to understand more about the molecular factors that allow these viruses to escape from vaccine-induced immunity, as well as a better awareness of how a more potent, cross-protective immune response may be induced.

“This research gives us a better understanding of the basis of antigenicity of these viruses and will enable more accurate vaccine matching with circulating field strains, with veterinary or human pandemic potential. It will also help virus surveillance efforts determine if antigenic variants are emerging or prevalent in a population. “

H9N2 history explainedThe importance of the H9N2 virus was explained to global poultry science experts at a London avian disease conference in July last year.

The H9N2 strain started out as a “mild to inapparent virus” in domestic poultry, especially chickens. However, it later became endemic in most of the poultry in Eurasia.

Dr Robert Webster of the Division of Virology at St Jude’s Children’s Research Hospital, Memphis, Tennessee, told delegates to the GARAD 2015 conference that H9N2 has evolved into over 20 distinguishable virus clades and has a high re-assortment potential.

Genesis of H9N2 influenza viruses contributed six internal genes to the later deadly H7N9 strain in China. In 1998, H9N2 spread widely in chickens in China and caused significant economic loss.

Merck leads January patent registrations

BY SIAN LAZELL

US firm Merck Animal Health registered a total of 12 patents under the Intervet name in January according to the Animal Pharm Patent Archive.

Two patents related to the use of anthelmintic agents against heartworm and one was for a topical parasiticide. Four of the Merck patents were for vaccines. These included: an analytical method to monitor vaccine stability and potency; liquid stable bovine virus vaccines; a vaccine against mycoplasma hyopneumoniae; and a vaccine to protect ruminants against pneumonia.

One of Merck’s patents was for immunostimulating saponins for use in in situ tumor destruction therapy. The firm also registered one patent comprising an antibiotic and corticosteroid.

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Zoetis followed closely behind Merck with 11 patent registrations in January. Six of these were for vaccines, including a porcine circovirus, mycoplasma hyopneumoniae, porcine reproductive and respiratory syndrome combination vaccine.

Out of the six patents for vaccines, three related specifically to swine. One was for cross protection of cattle against B trehalosi infection and one was for canine respiratory coronavirus for protection against B bronchiseptica infections.

One of Zoetis’ registered patents was for its Selamectin sea lice infestation treatment. In December, the firm made a number of aquaculture-focused registrations following its purchase of Pharmaq.

French firm Merial made nine patent registrations in the first month of 2016, four of which directly related to livestock and one to companion animals.

Patents for livestock included one for antimicrobial polyamide compositions and mastitis treatment and one for recombinant gallid herpesvirus 3.

Merial’s patent relating to companion animals was for an insecticidal combination effective against fleas on mammals, particularly cats and dogs. Animal Pharm recently reported how companion animal approvals over the course of 2015 – including those for Merial’s NexGard portfolio and pet cancer product candidates – are now beginning to aid companies’ topline progress.

Other firms that added patents in January 2016 include Bayer Animal Health, Boehringer Ingelheim Vetmedica and Virbac which registered seven, four and three patents, respectively.

Japanese firm Nippon Zenyaku (Zenoaq) – which signed a joint venture deal with French firm Vétoquinol in December – UK company Norbrook Laboratories and Brazilian business Ouro Fino Saúde Animal, all registered two patents each in January.

Bimeda, Ceva Santé Animale, Purina Animal Nutrition and Sergeant’s Pet Care Products submitted just one patent each during the same time.

Virbac pet vaccines driving success in Colombia

BY SIAN LAZELL

Virbac has revealed its Canigen vaccine line for dogs is excelling in Colombia and the firm now holds a 26% share in the country’s canine and feline vaccines market.

The French firm said the Canigen range – which protects against diseases such as canine distemper virus, infectious canine hepatitis and canine parvovirus amongst others – first became the market-leading line of dog vaccines in Colombia in 2011. At this time, Virbac held a 22% share of the market segment.

Explaining the growth, the Carros-headquartered company said: “Firstly, there are the characteristics of Canigen, whose effectiveness against the major dog diseases including parvovirus and canine distemper was demonstrated. Veterinary practitioners have a full range of vaccines available in a single brand, reducing interaction risks with other products.

“Finally, there’s a great deal of interest amongst practitioners in the services Virbac offer, such as vaccination notebook and customized technical support.”

Following its success in the canine vaccines market, Virbac expanded its range of cat vaccines by launching Feligen CRP/R in 2013 and Leucogen in 2014.

Feligen is for active immunization against feline panleukopenia virus, prevention of feline respiratory complex caused by infectious bovine rhinotracheitis and calicivirus, and protection against feline rabies. Leucogen is indicated for stimulating immunity against feline leukemia virus.

Virbac stated: “Feligen was well received by veterinary practitioners. With a single dose they can, in effect, vaccinate cats against four diseases. Thanks to its characteristics, Leucogen has also been favorably received by vets. These good results were expressed in sales for 2014 which exceeded forecasts and market shares of over 50% for the two products.”

In December, Animal Pharm interviewed Virbac about its focus on the food animal market in the southern hemisphere. The firm explained it is specifically interested in food animal growth areas in developing markets, including Latin America’s cattle industry.

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However, the success so far of Virbac’s dog and cat vaccines in Colombia shows its pet portfolio also has a strong foothold in the southern hemisphere. The firm said its current market share is evidence of the success that its Colombian subsidiary has met with in this fast-growing sector.

Avivagen conducting Philippines poultry trial

BY JOSEPH HARVEY

Canadian firm Avivagen has begun a poultry feed additive trial with Filipino firm Univet Nutrition & Animal Health Company (UNAHCO).

The two firms are conducting the trial to measure the benefits of Avivagen’s OxC-beta Livestock at the University of the Philippines Los Baños near Manila.

The trial will measure the impact of OxC-beta on the performance and welfare of broiler poultry raised under typical local commercial production conditions for their full growth cycle.

Avivagen aims to introduce OxC-beta to prepared animal feeds, as a cost-effective alternative to prophylactic use of antibiotics. The company claims OxC-beta can help an animal to maintain and enhance health by supporting immune function and calming excess inflammation.

The Ottawa, Ontario-based firm said: “Response to the addition of OxC-beta into feed will be recorded via a series of health and commercial measures including, but not limited to, final body weight, average daily weight gain, feed conversion ratios and tissue/gut morphology. Testing will include six study arms, including un-medicated and medicated control groups and OxC-beta alone or in combination with medications.”

The University of the Philippines Los Baños has a focus on Asian agriculture and biotechnology. The university will support the trial at its own farm facilities.

UNAHCO is a wholly-owned feed and veterinary subsidiary of Unilab, which is the biggest pharmaceutical business in the Philippines. It specializes in selling pig and poultry feed through a distribution network that serves more than 3,000 outlets domestically as well as internationally.

Agriculture is vital to the Philippines’ national economy with its annual livestock feed consumption estimated at 12 million metric tons. The country’s largest feed market segment is swine followed by broiler poultry.

Last year, Avivagen secured another Asian pact when it signed an agreement with the National Institute of Animal Sciences for Vietnam to carry out an additional trial of OxC-beta Livestock as a feed additive for swine.

Avivagen has already commercialized OxC-beta in the US as a pet supplement for advancing immune function. Now the firm hopes OxC-beta will become an alternative to antibiotics in livestock feed.

The company told Animal Pharm last year how it has been eyeing alternatives to antibiotics for more than a decade.

Pet food sector growing in JapanBY DR ATSUO HATA

The Japanese pet food industry has seen a growth in sales for both 2013 and 2014.

The Japanese Pet Food Association (JPFA) reported sales figures of pet food for fiscal 2014 ended March 31, 2015. Sales rose by 2% and 4% respectively compared to the previous year due to increase the selling price and the launch of higher quality companion animal nutrition products.

However, sales in volume weight decreased in 2014 due to the smaller size and older age of dogs in Japanese households.

For many years, 52% of the Japanese pet food market was derived from imported products. However, in 2014, domestically-produced products represented 52% of the market and imports 48%.

Dog food has gradually decreased its share for last several years, while cat food has increased during the same time period. This reflects the changing dog and cat population in Japan.

The main import countries for pet food into Japan are Thailand, the US, France, Australia and China.

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Annual sales of pet food in Japan2010 2011 2012 2013 2014

Yen million 268,308 264,367 262,806 268,132 278,984

% change -0.8 -1.5 -0.6 +2.0 +4.0

Weight tons 685,806 667,302 644,219 655,082 596,870

% change -2.0 -2.7 -3.5 +1.7 -8.9

Source: JPFA

Annual sales of pet food, supply source (tons)2010 2011 2012 2013 2014

Domestic products 331,955 322,262 311,819 312,742 307,665

% of total 48 48 48 48 52

Imported products 353,851 345,040 332,400 342,340 289,205

% of total 52 52 52 52 48

Total sales 685,806 667,302 644,219 655,082 596,870

% of total 100 100 100 100 100

Source: JPFA

Annual sales of pet food by species (tons)2010 2011 2012 2013 2014

Dog food 396,056 372,423 355,355 351,725 307,150

% of total 58 56 55 54 51

Cat food 251,279 256,250 256,571 271,928 260,436

% of total 37 38 40 42 44

Other pet foods 38,471 38,629 32,293 31,429 29,429

% of total 5 6 5 5 5

Total, tons 685,806 667,302 644,219 655,082 596,870

% 100 100 100 100 100

Source: JPFA

Main import countries into Japan in fiscal 2014 (tons)Country Volume % of totalThailand 96,757 33.5

US 74,629 25.8

France 55,836 19.3

Australia 25,157 8.7

China 17,406 6.0

Others 19,421 6.7

Total 289,205 100.0

Source: JPFA

Australian cattle need more genetic progress

BY MALCOLM FLANAGAN

Huge cattle herds in northern Australia would benefit greatly from improved genetics and wider use of artificial insemination (AI), according to a new study.

The report undertaken and sponsored by the country’s industry body Meat and Livestock Australia (MLA) said improved genetics has the potential to improve profitability and create opportunities for Australian breeders in the global genetics market. It would also help keep cattle free of disease.

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The research found well-managed Australian herds that have practices in place to manage body condition, nutrition, disease and mating intervals are well situated to progress to assisted reproductive technology.

These were the key findings by MLA-sponsored beef expert Kara Knudsen, whose report ‘Accelerating Genetic Progress in North Australian Beef Herds’ has recently been released. The study was based on Queensland cattle farming.

Slow progressSlow genetic progress in the majority of northern cattle herds and the need to increase profitability prompted Ms Knudsen to study fixed time artificial insemination (FTAI), embryo transfer and ultrasound techniques plus services that can be replicated in large herds.

FTAI involves manipulating hormones so all females in the herd ovulate at the same time to enable insemination within a set window of time. Ms Knudsen found FTAI is economically viable under certain circumstances for most commercial producers, and the benefits can accrue quickly over time.

However, producers in northern Australia need support to adopt the technology, and skills and expertise in the field need to be built. Australia has a cattle herd of 29 million and is a leading exporter beef products and live cattle.

Northern Australia subject to climatic conditions similar to many beef producing regions including South America, parts of Africa and temperate areas of North America and Europe. Speaking to Animal Pharm from Queensland Ms Knudsen said there was huge potential to increase exports of beef cattle genetics.

“The sale of genetics through semen and embryos, both domestically and for export, has been largely overlooked by Australian seedstock producers. Embryos in particular have potential to be exported as they are much easier to transport disease free,” said Ms Knudson.

“The genetics market in Australia is fragmented and for the most part, seedstock producers are left to fend for themselves in relation to navigating the many pitfalls associated with exporting genetics. A concerted effort must be made to gain access to a growing demand for beef genetics by creating overseas demand for Australian genetics and secondly by assisting exporters to gain access to these markets.”

Genetic exportsIn August 2014, Australian bovine genetic material exporters were told they would pay less to certify against the health requirements of the US following a new agreement that removes the need for cumbersome and costly bovine tuberculosis testing.

The US has also said it is not necessary for Australia to test for the Bluetongue virus in bovine embryos before exporting bovine genetic material to the US. Australian farm minister Barnaby Joyce said this was supportive news for cattle stud farms in northern Queensland which could increase their exports.

In September 2015, Australian genome producers were informed they could export a wider range of animal genetic material to Chile, Colombia and Mexico after the Australian Government successfully negotiated new animal health protocols with each nation.

Australian exporters are able to send sheep and goat semen as well as embryos to Colombia, and bovine semen to Chile and Mexico. This means Australian genome producers can now export major commercial categories of ruminant genetics to these markets.

Nutriad warns of mycotoxins in Spanish grain

BY MALCOLM FLANAGAN

Belgian feed additive company Nutriad said its most recent Spanish feed survey indicated the quality of last season’s maize crop in Spain was poor and it should not be considered safe for inclusion in animal feed.

The Hoogveld-headquartered company said a number of mycotoxins were found to be present in the 2015 Spanish maize crop harvest.

Mycotoxins, especially aflatoxins, are a constant concern for European agriculture. Some weather patterns, such as were seen in Europe last summer, have put the EU farm industry on high alert for mycotoxins. Weather influences the average aflatoxin-producing potential of fungi and contamination can occur both during crop development and after crop maturation in silos.

Nutriad said Spanish maize, as the most important feed ingredient in the Spanish feed industry, will likely be contaminated with a mixture of deoxynivalenol, aflatoxins and fumonisins. The maize crop will present a feed challenge mainly for dairy producers and production of aflatoxin-free milk. Fumonisins are also very toxic for swine and horses.

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The Spanish Nutriad mycotoxin survey, executed in in the final quarter of 2015, covered 60 locally-produced maize samples from across Spain. More than 400 analyses were conducted to test for the occurrence of the seven mycotoxins most frequently found in agricultural commodities that are intended for animal feed production. Spain produced about 18.5 million tons of grain in 2015.

Radka Borutova, business development manager at Nutriad, said: “The heat wave in Europe in late June and early July broke several records. Hot and dry weather conditions are associated with increased aflatoxin and fumonisin production by the toxic fungi from the aspergillus and fusarium species.

“Weather is therefore the most important factor in determining whether aflatoxin and fumonisin contamination will be a problem or not in animal feed.”

Animal Pharm recently interviewed the chief executive of Nutriad Erik Visser who said his company produced a mixture of feed additives for both livestock and aqua feed and he expected significant growth in both sectors in the future. An independent report suggests the feed additive sector could be worth $19.5 billion by 2020.

AB Agri enters feed segment with Danish buy

BY MAX GREEN

UK company AB Agri is expanding its capabilities in the fast-developing field of alternative proteins with the acquisition of Danish feed maker AgroKorn.

The deal includes AgroKorn’s flagship animal nutrition operations – including premix, milk replacers and new generation proteins – but excludes its mink business.

The two businesses said they see great potential developing new markets for AgroKorn’s Alphasoy products across Southeast Asia, Latin America and key European regions.

Peterborough-headquartered AB Agri said it will also develop the sales potential of the acquired company’s premix and milk replacer ranges and invest in its Danish production site.

AgroKorn sales and R&D director, Dennis Jørgensen, who will now lead the business commercially, said the acquired business had already established strong commercial relationships within Denmark, and had increasingly been seeking markets outside of the country.

“Alternative Proteins have excellent potential in the livestock industry, and we look forward to combining the commercial capabilities of AgroKorn and AB Agri to expand into new international markets with our product portfolio,” he noted.

AB Agri chief executive, David Yiend said he was “confident the group’s new generation proteins platform has the potential to benefit the worldwide industry”.

Max Green is Meat and Livestock Editor for Agra Europe, a sister publication of Animal Pharm.

Hester, GALVmed in Indian partnership

BY MALCOLM FLANAGAN

Indian animal health company Hester Biosciences and Scottish veterinary charity GALVmed are collaborating in remote areas of Jharkhand, India.

The two partners are aiming to extend poultry and small ruminant vaccination in the region plus provide additional health care services. The third member of tripartite cooperation agreement will be the Jharkhand State Livelihood Promotion Society (JSLPS).

The vaccine delivery collaboration is a first of its kind for a public-private partnership in India. Under this agreement, Hester will search for opportunities to establish an innovative business model of customized livestock health products for poor livestock keepers. In December 2015, GALVmed indicated it was looking for partners for its Indian poultry program.

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JSLPS will provide vaccinators who will use Hester’s thermo-tolerant Newcastle disease vaccination for backyard poultry, the peste des petits ruminants (PPR) vaccine for small ruminants and other animal health care products. GALVmed will assist JSLPS in the training of vaccinators and will pass on its experience of establishing a supply chain of the Newcastle disease vaccine in Jharkhand.

This project began in early January this year and will continue to June 30, 2017. JSLPS is an independent and autonomous society of the Rural Development Department, Government of Jharkhand, which implements poverty reduction strategies, pro-poor schemes and programs. Hester Biosciences produces the LaSota thermo-tolerant Newcastle disease vaccine.

An opportunity for HesterRaj K Gera, Hester’s project head for backyard livestock, spoke to Animal Pharm from the company’s headquarters in Ahmedabad, Gujarat. He said: “Hester and GALVmed are currently involved in Newcastle disease vaccination in backyard poultry of three Indian states. These are Odisha, Chhattisgarh and now Jharkhand.

“In order to develop and deliver suitable products to poor livestock keepers, GALVmed has assisted Hester for development of thermo-tolerant Newcastle disease vaccine specifically for backyard poultry. Currently, Hester and GALVmed are working in 16 districts of Jharkhand.

“Considering the similarities in the workings of JSLPS and the GALVmed-Hester initiative, this partnership is envisaged to allow the sharing of core competencies between them. JSLPS has a strong manpower network and infrastructure in Jharkhand. Hester is a commercial organization producing and providing thermo-tolerant Newcastle disease vaccine, PPR vaccine and other animal healthcare products.

“It is envisaged GALVmed will assist JSLPS in providing the training know-how for vaccinators and establishment of supply chain of Newcastle disease vaccine in project area. Hester will get reach and penetration in the unexplored parts of the India to create a new business model for Indian animal health,” concluded Mr Gera.

Innovative partnershipPeter Jeffries, chief executive for GALVmed, said: “GALVmed is delighted to begin its partnership with Hester Biosciences and Jharkhand State Livelihood Promotion Society to promote the thermo-tolerant Newcastle Disease vaccination in Jharkhand.

“Thanks to innovative partnerships such as this, our work can continue providing livestock vaccines, medicines and diagnostics are accessible and affordable to the millions of livestock keepers who rely on livestock for their livelihood.”

Mr Paritosh Upadhyay, chief executive of JSLPS, added: “This partnership with GALVmed, Hester and Jharkhand State Livelihood Promotion Society (JSLPS) would ensure that vaccinators (Aajeevika Pasu Sakhi) in Jharkhand are trained to use the thermo-tolerant Newcastle disease vaccine so that local backyard poultry keeper’s chickens are vaccinated from deadly disease, supporting additional livelihood options to generate income.”

China, Italy agree animal health accord

BY MALCOLM FLANAGAN

China and Italy have signed an animal health agreement which will include joint initiatives on veterinary research and animal health cooperation.

China’s deputy agriculture minister Dr Yu Kangzhen and the Italian minister of health Beatrice Lorenzini met in Beijing on January 29 for talks and a signing ceremony.

Dr Kangzhen said there is “a broad prospect for extensive cooperation in animal health and food safety”. China specifically suggested a five-point plan to speed up the veterinary cooperation agreement.

Ms Lorenzini noted: “Italy is ready to work together with China to strive for further progress in bilateral animal health and veterinary cooperation”.

Direct communicationThe two countries will set up a direct communication mechanism between each nation’s veterinary authorities as soon as possible and intensify information exchanges on animal disease prevention and control, and animal vaccine research and development.

Secondly, the two countries will deepen collaboration and ensure mutual understanding within multilateral bodies such as: the Food and Agriculture Organisation of the United Nations; the World Organisation for Animal Health; and the Codex Alimentarius Commission.

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The cooperation would enhance the constructive role of Italy as an important member country of the EU in promoting related cooperation between China and Europe. In addition, the accord would, support cooperation and exchanges between veterinary research and education institutes, enterprises and technical staff.

Finally, the agreement would help facilitate China’s animal product exports to Italy and the EU on the principle of mutual benefits, and jointly promote the two-way animal product trade.

China agrees UK projectIn October 2015, China signed an animal health agreement with the UK on how the two countries might cooperate more closely on animal health projects.

China’s chief veterinary officer Dr Zhang Zhongqiu met Nigel Gibbens, the UK’s chief veterinarian for the country’s department for environment, food and rural affairs.

Dr Zhongqiu said the priority of bilateral animal health collaboration between the two countries is to build a stable and permanent cooperation mechanism.

He proposed that the two sides should set up a subcommittee or working group on animal health under the China-UK joint committee on agricultural cooperation.

KindredBio submits drug technical section to FDA

BY JOSEPH HARVEY

US pet therapeutics specialist Kindred Biosciences has submitted the effectiveness technical section of a new animal drug application (NADA) for Zimeta (dipyrone injection).

The product (formerly known as KIND-012) is for the control of pyrexia in horses. KindredBio said the chemistry, manufacturing and controls technical section for Zimeta was submitted in December 2015 and “all remaining technical sections of the NADA are planned for submission by the end of the first quarter of 2016”.

The Californian firm recently gained positive topline results from the pivotal field study of Zimeta.

Dipyrone is a nonsteroidal agent that has never been approved in the US due to a rare side effect in humans. However, it was widely used in the US for the control of fever and pain in people before it was withdrawn from the market in 1995. Dipyrone does not cause this side effect in animals, KindredBio told Animal Pharm.

Animalcare achieves first-half 3% growth

BY SIAN LAZELL

Veterinary medicines firm Animalcare has reported sales of £7.11 million ($10.28 million) for the first half of its fiscal 2016 ended December 31, 2015.

The figure represents a 2.7% increase from £6.93m recorded during the first half of 2015. The firm’s performance is in line with preliminary result predictions posted in January.

The UK firm is focused on three product groups: licensed veterinary medicines, companion animal identification and animal welfare products. Licensed veterinary medicines represent 64% of Animalcare’s total revenue.

In H1 2016, licensed veterinary medicines were up 4.2% to £4.58m, after a £0.2m non-recurring benefit from sales of Buprecare – a post-operative analgesia product for cats and dogs – as a result of competitor supply issues.

Chairman of Animalcare James Lambert said: “The sales of our older licensed veterinary products held up well and we increased our export sales during the period.”

Animal welfare products grew 5% to £1.33m, largely due to increased sales of the company’s veterinary infusion accessories which represent 55% of the product group’s revenue.

Animalcare explained: “We continue to see benefit from the synergies between our IV Fluid range and these associated products. During the period, we upgraded our range of disinfectants in preparation for the upcoming implementation of the new EU Biocidal Product Regulations which will offer an opportunity to grow market share as the new regulations are implemented.”

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However, revenue from the firm’s companion animal identification portfolio fell by 5.2% to £1.2m. The firm said this was mainly due to phasing of commercial marketing activity during H1 and increased competition in the pet microchipping market ahead of compulsory microchipping in England, Wales and Scotland in April 2016.

The company said: “This imminent change in the law has prompted a modest uptake of microchipping however price competition amongst suppliers has increased. During the last six months, the market has seen a rapid movement towards smaller microchips. We have taken active measures to address this market change with the introduction of our own mini microchip.

“The decline was partly offset by an increase in sales of export equine chips; we noted phasing of orders adversely impacted FY15. In addition, revenues from our follow on services, in particular insurance, performed well increasing by 7.2%.”

The company’s sales growth in H1 was not far off full-year 2015, which saw an increase in revenues of 5%.

Product launches expected in 2016In addition to its financial results, Animalcare also highlighted the progress of its pipeline compared the same time last year.

At present, the firm has seven projects under development, seven at the regulatory stage and expects one product launch in the second half of 2016 which it said will deliver significant commercial benefit.

Three other in-house product development projects are expected to receive regulatory approval during H2, followed by commercialization soon after. The firm added that it is seeking distribution opportunities for its pipeline.

In H1 2015, Animalcare had seven projects under development, three at the regulatory stage and had no listed product launch dates.

Large MERS outbreak in western Saudi Arabia

BY MALCOLM FLANAGAN

There has been a large outbreak of the deadly Middle East respiratory syndrome (MERS) coronavirus in camels in western Saudi Arabia, according to the World Organisation for Animal Health (OIE).

The Paris-based OIE said the outbreak took place at a farm near the city of Jeddah with 11 cases of MERS confirmed out of a total herd of 465 camels. Local animal health officials are investigating and it is likely all camels will be destroyed.

A quarantine order has been imposed and farm premises disinfected. A vaccination strategy has not been employed. The cause is unknown and blood samples have been sent to the Veterinary Diagnostic Laboratory in the Saudi capital Riyadh.

In February 2015, United Nations animal health and medical experts flew to Saudi Arabia to investigate a surge in cases of MERS. Some 50 people had been infected by MERS at that time. It was one of the highest monthly rates since MERS first emerged in humans in Saudi Arabia in 2012.

In August 2015, Saudi Arabia banned the slaughter of camels as part of religious Hajj rituals, in an attempt to prevent the spread of MERS.

During the same month, US researchers said they had made progress in developing a vaccine to combat MERS. Scientists at the US Vaccine Research Center in Bethesda, Maryland, said they had managed to provoke an immune response to MERS in animals.

The veterinary laboratory of the Abu Dhabi Food Control Authority said in July 2015 it had become the first to be laboratory approved as a globally accredited OIE center to detect MERS in camels. The World Health Organization has been notified of 1,633 laboratory-confirmed MERS cases and 587 human deaths globally since September 2012.

In addition, a US company Inovio Pharmaceuticals has said it is recruiting guinea pigs to test a MERS vaccine. It is partnering with GeneOne Life Science and the Walter Reed Army Institute of Research in Maryland, where the trial is to be conducted.

The primary and secondary goals of this first-in-man phase I trial are to obtain safety and immunogenicity data. This trial represents the first MERS vaccine to be tested in humans for this disease that has no approved vaccines or treatments. It may be used as basis for a camel vaccine.

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Scientists eye increasing tilapia feed values

BY MALCOLM FLANAGAN

The WorldFish Center in Malaysia is to research new ways to add nutritional value to one of the planet’s most farmed freshwater fish tilapia.

The Penang, Malaysia-based WorldFish Center, which is funded by the United Nations, said scientists will begin to experiment with feed ingredients that can increase the nutritional value of tilapia as part of a new project. The German Federal Ministry for Economic Cooperation and Development is also funding the program.

The project aims to increase supplies of fish that are more affordable and have a higher nutritional content for consumers particularly in Egypt and Bangladesh.

Researchers will use feed additives to increase the Omega 3 and micronutrient content of farmed tilapia fish. This will have significant benefits for all consumers, especially for resource poor individuals who are more likely to be undernourished.

Recent WorldFish research in Egypt and Bangladesh suggests poor consumers typically prefer purchasing less expensive, smaller fish while aquaculture production systems in both countries are increasingly geared towards producing larger fish.

The three-year project will build on current research on the nutrition and health benefits of fish. It will also add to the research on increasing the affordability of fish for poor consumers and a growing body of work on the environmental impact of farmed fish production.

Nigel Preston, director general WorldFish, said: “We are committed to innovations that will promote pro-poor fish value chains. Increased consumption of fish in nutritionally insecure parts of the world will improve food and nutrition security.”

Tilapia feed increasingIn November 2015, Dutch aqua feed producer Nutreco said it had substantially expanded its aquafeed production capacity in Egypt.

The Amersfoort-based company, which produces and trades in aquafeed through its subsidiary Skretting, said it had opened an extra manufacturing line in its existing Egyptian production complex in the eastern part of the Nile Delta near Cairo.

The investment enables Skretting to triple its tilapia fish feed capacity in Egypt to 150,000 tons yearly and extend its market leadership in that region.

In April 2014, A Malaysian animal nutrition expert said the use of organic acids in aquaculture feed has the potential to enhance shrimp and fish disease immunity in addition to promoting growth.

WVA appoints new councilor for Latin America

BY MALCOLM FLANAGAN

The World Veterinary Association (WVA) has appointed a new regional councilor for Latin America.

The Brussels-based WVA said Dr Josephine Alejandra Vargas Blanco has replaced Dr Guilherme Costa as the WVA councilor for Latin America.

Dr Costa decided to resign from the position of WVA councilor due to a busy schedule as vice-chairperson of the Rome-based Codex Alimentarius Executive Committee.

As a result, the WVA offered the position to Dr Blanco from the Colegio de Médicos Veterinarios de Costa Rica.

The WVA unites and represents the global veterinary profession. It is the umbrella organization for national veterinary associations and international associations of veterinarians working in different areas of veterinary medicine.

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The Paris-based World Organisation for Animal Health and the WVA recently renewed an existing partnership between the two bodies. A key area of the agreement focuses on One Health. Under the terms of the partnership, the two organizations will encourage and assist the veterinary profession to communicate and collaborate with the medical profession as part of a One Health alliance.

The WVA has also recently identified rabies control as one of its five areas of prioritized activity that will be targeted by the organization over the next two years.

US to create national bee gene bankBY MALCOLM FLANAGAN

The US Agricultural Research Service (ARS) is creating a national bee gene bank as part of the agency’s response to ongoing problems facing the country’s beekeepers.

Average losses of managed bee colonies have increased to more than 30% year due to pathogens, pests, parasites and other pressures, including deficient nutrition and sub-lethal impacts of pesticides. These stresses have threatened the continued business sustainability of commercial beekeepers.

The gene bank, which will be located in Fort Collins, Colorado, will help preserve the genetic diversity of US honeybees, especially for traits such as resistance to pests or diseases and pollination efficiency. It will also provide ARS and other scientific organizations access to resources from which to breed better bees.

Dr Robert Danka, an entomologist with the ARS Honey Bee Breeding, Genetics, and Physiology Research Unit in Baton Rouge, Louisiana, said the Russian honey bee and Varroa sensitive hygiene lines will be among those conserved first.

“To help make the gene bank a practical reality, ARS researchers are developing better long-term storage techniques for honey bees, including improving cryopreservation of bee sperm and embryos. Their work will include creating a way to reliably revive frozen embryos and grow them into reproductively viable adults after storage,” said Dr Danka.

Another component needed to create the new gene bank is a germplasm species committee, which will decide which species and subspecies to collect and preserve. Washington State University is also working with ARS on the project.

Disease threats are year-roundIn February 2015, US researchers said the disease threats to US bees are year-round problems not just in growing seasons as was previously thought.

ARS scientists in Maryland found two species of bacteria, Spiroplasma melliferum and S apis, are more common year round and infect honey bees in places as diverse as Brazil and Beltsville, Maryland.

Both pathogens were discovered more than 30 years ago but US scientists are still unsure if they are factors in colony collapse disorder or major causes of other bee mortalities.

German animal health company Bayer said in 2013 the battle against destructive Varroa mites in honeybee hives is more difficult than previously thought because the pest can re-infest a bee colony quickly after a successful control treatment.

According to Cornell University research in 2012 crops pollinated by honeybees and other insects contributed $29 billion to US farm incomes.

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