Fountain Report Excerpts September 6, 2022

Fountain Report Excerpts
  1. The United Veterinary Services Association has created a set of recommended best practices to help the animal health industry prevent cyberattacks. The recommendations are meant to prevent data breeches and financial loss for distributors, manufacturers and suppliers of animal care products. They follow a ransomware attack that affected more than 700 animal health networks around the world. Recommendations include end user license agreements and multi-factor authentication. The full list of best practices is available in the announcement from UVSA.
  1. Chewy’s stock fell after the online pet supplies retailer cut its revenue outlook and said customer growth has slowed, Bloomberg reports. Sales in the current fiscal year will total no more than $10 billion as pet owners pull back on discretionary goods such as toys and treats, Chewy said in a letter to shareholders. That’s down from a previous forecast of as much as $10.4 billion. Demand for pet food is still strong, but sales in discretionary categories “reflect the impact of inflation on consumer spending patterns,” Chewy said. Customer growth slowed again in the second quarter, with active customers rising only 2.1%; that number has fallen consistently in each of the four most recent quarters.
  1. Dechra Pharmaceuticals has acquired California-based veterinary pharmaceutical maker Med-Pharmex. Total consideration paid was $260 million on a debt-free and cash-free basis. The transaction will be funded from existing debt resources. This acquisition was referred to with few details in a July fundraising announcement related to Dechra’s acquisition of Piedmont Animal Health. About three-fourths of Med-Pharmex’s revenue is in the companion animal and equine sectors, with the remaining in food-producing animals, according to the announcement in NewsnReleases.

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