1. Chewy reported fourth quarter net sales of $2.83 billion, up 4.2%. Adjusted EBITDA of $86.5 million was down 11%. Net income was $31.9 million, up from $6.8 million last year. For the year, net sales of $11.1 billion was up 10%. Adjusted EBITDA of $368.1 million was up 20%. Net income of $39.6 million was down 21%. “In 2023, we gained market share while simultaneously expanding margins and accelerating free cash flow generation,” said CEO Sumit Singh.
  1. Leptospirosis continues to be prevalent in dogs, including in small-breed dogs from urban areas, puppies as young as 11 weeks of age, geriatric dogs, dogs in rural areas and dogs that have been inadequately vaccinated, according to the American College of Veterinary Internal Medicine’s revised consensus statement on leptospirosis. As such, ACVIM has updated its guidance and now recommends that all dogs be vaccinated for leptospirosis annually rather than every three years. The ACVIM statement touches on clinical and laboratory criteria to confirm leptospirosis in a dog; treatment options, including antimicrobial and extracorporeal kidney support therapies; supportive care; and prognosis. There is also guidance on vaccine protocols and public health implications, such as protecting veterinary staff from Leptospira infection, the AVMA reports.
  1. The finalization of a rule aligning the voluntary “Product of USA” label claim will prohibit misleading labeling and help ensure the information consumers receive about where their food comes from is truthful, the Ag Information Network reports. The USDA’s rule allows the voluntary “Product of USA” or “Made in the USA” label claim to be used on meat, poultry and egg products only when they’re derived from animals born, raised, slaughtered and processed in the United States.

Click HERE to subscribe to the full Fountain Report content.

  1. The FDA is proposing new regulations to provide animal drug sponsors with predictable requirements for the labeling of prescription and over-the-counter new animal drugs, as well as new animal drugs for use in animal feeds. The proposed content and format of labeling would benefit veterinarians, animal owners and animal producers by providing a more consistent presentation of information on the safe and effective use of these new animal drugs, according to the announcement. The FDA has long followed certain practices for reviewing animal drug labeling, but these have not been codified in regulation. If finalized, the rule would create a comprehensive set of regulations establishing requirements for content and format of the labeling for approved and conditionally approved new animal drugs and would also help animal drug sponsors more efficiently prepare labeling for review, according to the FDA.
  1. While some sectors of the pet care market thrived during the pandemic, others, like veterinary and non-medical services, suffered and continue to feel stress. Economic uncertainty and high inflation continue to take a toll, with most areas of the market seeing increased revenue mainly (or only) due to higher prices, writes David Lummis, senior pet market analyst at Packaged Facts. While some may hope the market returns to pre-pandemic standards, COVID set in motion trends that industry members should take into account, presenting opportunities for the industry. Budget consciousness, DIY pet care, a changing pet population and the rise of franchisors are several of the trends Lummis highlights in Pet Product News.
  1. Texas firefighters were gaining control over the remaining wildfires in the Panhandle more than two weeks after they broke out. As of March 11, the Smokehouse Creek fire, the largest in Texas’ history, was 89% contained, The Texas Tribune reports. The fire had burned nearly 1.1 million acres since it started near Stinnett in Hutchison County, about 60 miles northeast of Amarillo. CBS News reported that as of March 8, more than 7,000 cattle had died, according to Texas Agriculture Commissioner Sid Miller, who said he believed the final toll could include thousands more.

Click HERE to subscribe to the full Fountain Report content.

  1. Florida lawmakers unanimously passed a veterinary telemedicine bill, joining California in allowing pet owners to seek virtual veterinary care without an initial in-person visit. There are now 108 million Americans—nearly a third of the country’s population—who live in jurisdictions where a pet owner can launch a relationship with a licensed veterinarian through virtual technologies, writes policy expert Mark Cushing.
  1. The Veterinary Virtual Care Association announced the release of its inaugural “State of the Veterinary Virtual Care Industry Report.” The report focuses on the impact and utilization of veterinary virtual care in the United States, Canada and the United Kingdom, analyzing more than 2 million data points derived from over half a million virtual care interactions globally, according to the VVCA. Among other things, it includes findings on how virtual care closes certain barriers to getting veterinary care, the future of veterinary practices amid these new innovations, and the legislative landscape.
  1. Patterson Companies reported third quarter net sales of $1.62 billion, up 1%. Earnings per diluted share of 52 cents were down from 55 cents last year. Reported net sales in the animal health segment of $967.3 million were down 1.5% as positive growth in the production animal business was more than offset by reduced sales in the companion animal business. Within the animal health segment, internal sales of consumables decreased 2%, internal sales of equipment decreased 5.9%, and internal sales of value-added services increased 44.2%.

Click HERE to subscribe to the full Fountain Report content.

  1. Elanco reported fourth quarter revenue of $1.04 billion, up 5%. Pet health sales for the quarter of $416 million were down 1%. Farm animal sales of $610 million were up 10%. Reported net loss for the quarter was $141 million, compared to a net loss last year of $55 million. Adjusted EBITDA of $165 million was down 4%. For the year, revenue of $4.42 billion was flat compared with last year. Pet health sales of $2.10 billion were down 2%, and farm animal sales of $2.27 billion were up 2%. Reported net loss was $1.23 billion, compared to a net loss last year of $78 million. Adjusted EBITDA of $979 million was down 4%.
  1. PetIQ reported 2023 net sales of $1.10 billion, up 19.6% and above the company’s most recent guidance of $1.06 billion to $1.08 billion. Product segment net sales of $968.2 million were up 21%. Services segment net revenue of $133.8 million was up 10.4%. Net income was $2.1 million, or 7 cents per share. Adjusted net income of $36.6 million, or $1.24 per share, was up 103.3%. “We made significant strategic investments in marketing during the year to support the growth and development of PetIQ’s portfolio of pet health and wellness brands as evidenced by our higher rate of consumption and market share gains,” said founder and CEO Cord Christensen.
  1. Catastrophic wildfires ripping across the Texas Panhandle killed at least two people and threatened to destroy more homes, cattle and livelihoods in the biggest fire in state history, CNN reports. As of February 29, the Smokehouse Creek Fire had hit more than 1 million acres in Texas alone, making it the largest fire on record in the state. The blaze had also charred more than 31,500 acres in Oklahoma, according to the Oklahoma forestry service.

Click HERE to subscribe to the full Fountain Report content.

  1. The University of Maryland Eastern Shore hopes to become the second historically Black university to have a veterinary school in the United States, with classes to start by 2026. Puerto Rico’s first veterinary college, the Ana G. Mendez University School of Veterinary Medicine, is accepting student applications for its inaugural class, planned to start in August. The school received a letter of reasonable assurance of accreditation from the AVMA’s Council on Education. Recently, the Kentucky House of Representatives passed a bill that would allow Murray State University to offer doctoral degrees required to become licensed in veterinary medicine.
  1. The USDA anticipates identifying a vaccine for the current strain of bird flu in “18 months or so” and is developing a process to distribute it, Reuters reports, citing Agriculture Secretary Tom Vilsack. The agency has found bird flu in eight commercial flocks and 14 backyard flocks so far this year, affecting 530,000 poultry, according to agency data. More than 81 million U.S. poultry and aquatic birds have been killed by avian flu across 47 states since January 2022, according to the Centers for Disease Control and Prevention. The USDA plans to discuss poultry vaccinations with trading partners, amid concerns that other countries could restrict imports of vaccinated U.S. poultry, Vilsack said.
  1. According to Agriculture Secretary Tom Vilsack, there will be “chaos” in the U.S. meat marketplace without congressional action on California’s Proposition 12 law that tightened animal welfare requirements for pork products sold in the state, Reuters reports. Proposition 12, which requires pig confinements to be large enough for animals to turn around, was passed by ballot initiative in 2018 and upheld by the U.S. Supreme Court in 2023. The pork industry has said the law burdens pork producers and would not improve animal welfare. It has called on Congress to repeal Prop 12 through federal action. The Biden administration supported the industry’s position before the Supreme Court.

Click HERE to subscribe to the full Fountain Report content.