VIRBAC CORP

VIRBAC CORP

Previous company name
AGRI NUTRITION GROUP LTD
Name change date
3/1/1996
Company Overview
Virbac Corp is an American-based, publicly traded company engaged in the development, manufacture and distribution of animal health and pet-care products. The company was established in 1987 and has its registered corporate office in Fort Worth, Texas.
Virbac Corp offers animal pharmaceutical products for the heartworm, tick and flea, dermatology, antibiotics, endocrinology and oral hygiene applications. It provides a wide variety of health care products to animals under various brand and product names including Iverhart MAXT; IVERHART PLUSr; C.E.T.r Home Dental Care, Soloxiner Tablets; Clintabsr; KetochlorT Shampoo; Pyobenr Shampoo; Epi-Oticr Advanced; Preventicr Tick Collars; Petromalt; Clintabs; and Zema. The company also produces Mardel water conditioners and tropical fish products.
Virbac Corp distributes its products to retailers and veterinarians primarily in the United States.
Business Summary
Virbac Corporation (Virbac) develops, manufactures, markets, distributes and sells a variety of pet and companion animal health products that focuses on dermatological, parasiticidal, dental and certain pharmaceutical products, as well as products intended for use by livestock. It has three segments: the Veterinary segment, which provides animal health products to veterinary clinics throughout North America; the Consumer Brand segment, which sells over-the-counter products for companion animal health to national accounts, distributors and wholesalers, and the Contract Manufacturing segment, which offers a range of services and specialized expertise in the manufacture of highly regulated animal health products. On November 13, 2006, Virbac S.A. and Virbac announced the completion of the merger of Labogroup Holding, Inc., an indirect wholly owned subsidiary of Virbac S.A., into Virbac. As a result of the merger, the Company became an indirect wholly owned subsidiary of Virbac S.A.
Description and history
Virbac Corporation (Virbac) develops, manufactures, markets, distributes and sells a variety of pet and companion animal health products that focuses on dermatological, parasiticidal, dental and certain pharmaceutical products, as well as products intended for use by livestock. The Company has three reportable segments: the Veterinary segment, which provides animal health products to veterinary clinics throughout North America; the Consumer Brand segment, which sells over-the-counter (OTC) products for companion animal health to national accounts, distributors and wholesalers, and the Contract Manufacturing segment, which offers a range of services and specialized expertise in the manufacture of highly regulated animal health products. Virbac’s products are used to promote the health and hygiene of companion animals, primarily, dogs, cats, fish and certain livestock. On November 13, 2006, Virbac S.A. and Virbac announced the completion of the merger of Labogroup Holding, Inc. (Labogroup), an indirect wholly owned subsidiary of Virbac S.A., into Virbac. Prior to the effectiveness of the merger, Labogroup held approximately 97.3% interest in Virbac. As a result of the merger, the Company became an indirect wholly owned subsidiary of Virbac S.A.

The Company distributes and sells its products throughout the United States and Canada, and through its distribution agreement with Virbac S.A., a French corporation engaged in the veterinary pharmaceutical manufacturing business (VBSA), in other foreign markets. The principal products manufactured by the Company include dermatological products for dogs and cats, including anti-itch, anti-microbial, and anti-inflammatory lotions and shampoos; oral hygiene products for dogs and cats, including toothpaste and toothbrushes, sprays, oral rinses, enzymatic rawhide chews and chlorhexidine rawhide chews; flea and tick products, including collars, shampoos and dip concentrates; canine heartworm preventives; ear cleaners; endocrinology treatments, including canine thyroid replacements; humane euthanasia drugs, for veterinary purposes only; aquarium water conditioners, medications and test strips; pest control products, including rodenticides; nutritional supplements to promote healthy coat and skin; gastrointestinal products for dogs and cats, including hairball remedies; specialty chemicals, and equine anti-parasitics.

Veterinary Segment

Virbac manufactures an amount of its pharmaceutical products that are sold in the veterinary channel and also purchases finished product directly from outside third-party manufacturers. The Company’s principal veterinary line labels are ALLERDERM dermatological products, C.E.T. dental products, IVERHART PLUS canine heartworm preventive, SOLOXINE endocrinology products and PREVENTIC tick collars. This segment generated 57% of revenues during the year ended December 31, 2005.

Members of a veterinary distributor consortium, named Vedco, Inc. (Vedco), represent the Company’s largest group of customers and accounted for approximately 21% of revenues in 2005. Before formation of the Vedco consortium, individual members of the Vedco group purchased products directly from Virbac, rather than through the consortium.

Consumer Brand Segment

The Consumer Brand segment offers more than 300 products for sale to pet specialty retail stores, superstores, mass merchandisers and farm and fleet stores. Under Virbac’s principal consumer brand labels of Petrodex, Mardel, Petromalt, Francodexa, Zema, Healthy Companion and Pet Relief, the Company sells health care products for dogs, cats, horses, tropical fish, birds and various other animals. Some of these products are manufactured by Virbac, while others are contract manufactured by third parties or purchased. In addition, this segment distributes animal health and pest control products under the Earth City Resources label to retailers and the farm market, as well as rural, and urban feed retailers.

The Consumer Brand segment also distributes private-label products, principally pest control products, whereby Virbac produces the product and then labels it with the customer’s label for distribution in the retail channel. The Consumer Brand segment generated 27% of its revenues in 2005. The Company also markets and sells its Veterinary and Consumer Brand segment products in Canada and markets outside the United States. Virbac sells its products directly to its Canadian customers.

Contract Manufacturing Segment

This segment’s services include a range of formulation, development, manufacturing, packaging and distribution activities related to products that are generally highly regulated pharmaceuticals and pesticides for animal health and specialty chemical customers. The Contract Manufacturing segment operates as PM Resources, Inc. (PMR), which is a wholly owned subsidiary of the Company. PMR formulates products under private-label and provides third-party contract manufacturing services of products for use in the animal health and specialty chemical industries, including products for over 20 international, national and regional veterinary pharmaceutical companies. This segment generated 16% of Virbac’s revenues in 2005.

Business Line
Engaged in the development, manufacture and distribution of animal health and pet-care products
Subsidiary
DELMARVA LABORATORIES, INC
Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
7/1/1994
US SIC Code
2834
Company Address
3200, Meacham Boulevard

City province or state postal code
76137, FORT WORTH, TX
Phone: +1 817 831 5030
Fax: +1 817 831 8327
Country address: UNITED STATES OF AMERICA
Website url: www.virbaccorp.com