The pork industry is always changing. Here’s a look at the newest products, aquisitions and expansions in the U.S. pork industry.
NutriQuest Enters into Licensing Agreement for Enhanz Feed Additive
NutriQuest, a leader in innovative animal health and nutrition technology development, has entered into a new licensing agreement with Eastman. Under the exclusive licensing agreement, NutriQuest is bringing Enhanz, a high-impact feed additive, across swine and poultry feed markets worldwide, through its innovative business development and R&D footprint, the company says in a release.
NutriQuest has researched the product extensively in its development of swine applications and identified significant performance benefits in lactating sows and late finishing pigs and believes Enhanz has blockbuster potential for improving profitability for swine and poultry producers globally.
“We are excited to introduce Enhanz to the market as part of our new business model,” Kim Friesen, president of NutriQuest, says in a release. “This agreement aligns with our mission to provide innovative, science-based solutions that drive efficiency and profitability for animal production.”
NutriQuest will implement a unique business model for Enhanz by sublicensing the technology to animal health and nutrition companies. Any sublicense(s) will be awarded through a competitive selection process, ensuring that the most committed and capable partners can lead sales and marketing efforts for Enhanz, the company says.
“Enhanz may be the most significant technology NutriQuest has developed in its 18-year history,” Steve Weiss, CEO of NutriQuest says in a release. “It addresses key feed cost and animal performance challenges.”
To learn more, visit www.nutriquest.com.
Novonesis Acquires dsm-firmenichs’s Share of Feed Enzyme Alliance
Novonesis has completed the acquisition of dsm-firmenich’s share of the Feed Enzyme Alliance following the satisfaction of all closing conditions. The acquisition was initially announced on February 11.
“With the closing of this strategic acquisition we have now an expanded presence across the animal biosolutions value chain, and it positions us to create more value for customers with sustainable value-adding biosolutions. Focus is now on integration of the business, and we are excited to welcome the full team to Novonesis,” Ester Baiget, CEO of Novonesis says in a release.
The company says the acquired sales will not impact organic sales growth; however, it will impact the sales performance in Europe. The outlook for the adjusted EBITDA margin of 37-38% is maintained as the contribution from the acquisition is only around a quarter of a percentage-point.
“For modeling purposes, Novonesis previously communicated that sales in Europe are expected to be around 2 percentage points lower than the organic sales growth,” the release says. “This is now expected to be between 0-1pp as the acquisition is impacting reported sales positively by around 1.5 percentage points. Net financial costs are indicated to be around EUR 70 million (previously around EUR 50 million) following higher interest expenses, and the leverage (NIBD/EBITDA) is now expected to be around 2x (previously around 1x) by the end of the year. Additionally, special items are now indicated to be around EUR 60 million (previously around EUR 30 million) following the inclusion of transaction and integration cost related to this acquisition.”
Novonesis is vertically integrating the complete value chain of the Alliance, adding dsm-firmenich’s sales and distribution activities alongside its existing product innovation and production capabilities,the release adds.
“The fully integrated business will be better equipped to serve existing and new customers with strong insights into core markets and product technologies enhancing R&D and unleashing further innovation,” the release says.
Novonesis, through the successful combination of Novozymes and Chr. Hansen, is now an industry leader in animal biosolutions with one consolidated go-to-market model and leading technological know-how, the company explains.
“With this transaction Novonesis will have a greater customer reach and a broader offering of market leading biosolutions, combining enzymes and probiotics, for both animal nutrition and health,” the company says.
Novonesis says it will continue the long-term supply relationship with dsm-firmenich for their premix business.
Veterinary Pharmaceutical Solutions Unveils Innovative Pharmacy Expansion
Veterinary Pharmaceutical Solutions (VPS) announced two extraordinary milestones in the company’s history: The completion of a pharmacy expansion in St. Peter, Minn., and the company’s 30th anniversary.
The pharmacy expansion nearly doubles the size of the existing facility and is designed to be the highest quality compounding pharmacy in the industry, the company says in a release. It features multiple state-of-the-art compounding suites to advance current solutions and develop new products, space to expand R&D, a microbiology lab and warehouse space. All of these features enable VPS to elevate its operations and more quickly create innovative solutions for veterinarian and producer customers.
“We’re proud to be part of the growth and expansion of VPS and to support this significant expansion,” James Clark, partner at Granite Creek Capital Partners, the investment firm that backed the project, says in a release. “We recognize the value and innovation that VPS brings to the marketplace and are eager to be a partner in those efforts.”
With this expansion, the company plans to grow its capability in animal drug compounding. The expansions, with FDA oversight, adhere to further national standards and align with state Boards of Pharmacy in their respective areas of operation.
VPS broke ground on the pharmacy expansion on August 1, 2024, and received occupancy approval from the Minnesota Board of Pharmacy for the new space on April 1.
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