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Business & Economics
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Rise of veterinary chain ownership begets Canadian group purchasing
4/10/2013
Uniform pricing tradition gives way
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Banfield expansion brings new stand-alone clinics
3/28/2013
Eight in Portland, Ore.; other cities possible
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Group purchasing activity on upswing in veterinary medicine
2/28/2013
Organizations proffer bulk discounts to independent practices
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Is the doctor in?
12/5/2012
Veterinarians grapple with demand for extended hours
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Ultrasound machine salesman pleads guilty to theft
11/8/2012
Plea follows indictment of Patrick Jackson
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Satellite practices: academic evolution or unfair competition?
10/26/2012
OSU to open emergency, specialty practice in Columbus suburb
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Veterinarians recount ordeals with major lender
9/6/2012
Wells Fargo strives to 'serve as a trusted advisor to veterinarians'
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Hospital chain headhunts for talent among veterinary practice staff
7/3/2012
Veterinarians debate ethics of Banfield's recruiting methods
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No simple answers on supply and demand in veterinary profession
5/29/2012
Workforce data outdated, conflicting
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Veterinarian opens up about going undercover
5/22/2012
Flea-product diversion adventure twisted, turned
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Veterinarian investigates illicit diversion of flea products
5/8/2012
Gray-market sales veiled by deception, intrigue
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‘Why are vets so expensive?’
4/13/2012
Practitioner tackles sensitive question
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Veterinary diagnostics giant sues multiple practitioners
3/9/2012
VCA Antech alleges breach of extended lab service contracts
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VCA Antech buys largest Canadian veterinary chain
1/26/2012
Associate Veterinary Clinics operates 44 clinics in three provinces
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Veterinarians confront Internet pharmacy PetMed Express
1/16/2012
Company acknowledges: ‘Some mistakes were made’
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Veterinary practices inch back to growth
1/1/2012
Surveys of third-quarter results show some improvement
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PetMed Express stumbles
12/8/2011
Competitive pressure up in veterinary-drug sales
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Credit card processors pass costs of IRS rule to merchants
12/2/2011
Negotiate to have fees waived, expert advises
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Loan broker accused of bilking veterinarians now sells wellness plans
11/10/2011
Ron Paterson draws more complaints
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Bid to bring veterinary education to Alaska stirs debate
11/9/2011
Fears of oversaturation weigh on need for more veterinarians
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Merial knows, diverting veterinarians assert
11/4/2011
Maker of Frontline denies the company condones, encourages diversion
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More veterinarians sue flea products broker WTF Wholesale
11/4/2011
Claims collectively top a half-million dollars
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Equipment dealer deludes some, aids others
11/2/2011
Ron Sassetti earns mixed reviews from veterinarians
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‘Free’ Hill’s cat food samples not exactly free
10/24/2011
Veterinary clinics report accepting samples triggers orders for more
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Subterfuge, confusion surround new credit, debit card rules
9/30/2011
Merchant savings on fees not automatic
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VCA's buy of Vetstreet raises worries about control of clinic data
9/1/2011
New owner says it will not inspect clinic information
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Complaints mount against gray-market broker WTF Wholesale
8/29/2011
Problems open view into world of flea product diversion
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Entest to use veterinary practices as revenue driver, research venue
8/23/2011
Concerns about setup point to potential conflicts of interest
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Amerisource Medical under investigation by police in two states
8/3/2011
Ultrasound-equipment vendor accused of cheating customers
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Out of the frying pan, veterinarians mix economic uptick with uncertainty
7/28/2011
Increased competition likely to blunt recovery for veterinary clinics
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New poll finds many clinics in flagging health
7/18/2011
Study: Advertising, communication, consistency key to boosting veterinary visits
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Pfizer seeks to unload animal health division
7/8/2011
Sale or spin-off expected
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Tight job market squeezes large-animal veterinarians
6/27/2011
Some say shortage of food-supply practitioners is over
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Gilded Lilly? Bayer challenges Elanco claims
6/24/2011
Bayer challenges Elanco claims about diversion, loyalty to veterinarians
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Veterinary technicians: Opportunities, but at what cost?
6/9/2011
Support staff cite low wages, spotty professional respect
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Tough job market compels dogged hunt by new veterinarians
5/19/2011
Fewer grads enjoy luxury of multiple offers
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Proposal for new Banfield hospital prevails over objections
5/6/2011
Veterinarians in California city seek to resist ‘Wal-Martization’
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ISU wins first round in litigation against veterinarians
5/3/2011
Specialists barred from competing with ISU hospitals fight back
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PLIT rolls back workers' comp advice for relief veterinarians
3/29/2011
Broker Hub International issues clarification
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Thrift commerce meets veterinary medicine in GroupDVM
2/10/2011
Company uses 'power in numbers' to leverage deals for veterinarians
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Study: Veterinarians can reverse decline in visits
1/27/2011
Report identifies contributing factors and ways to counter the trend
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Price soars on popular antibiotic metronidazole
1/13/2011
Limited competition among manufacturers behind increase
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Target tests market for pet medications
12/22/2010
Trend in retail sales of veterinary drugs accelerating
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Veterinarian struggles to protect her online reputation
12/8/2010
Practitioner suspects Internet extortion is at play
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Canine Health Institute closing its doors
11/18/2010
Veterinary center for pain, rehab, imaging, neurosurgery was unique
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Clinic owner struggles with ultrasound-equipment vendor
11/17/2010
Amerisource Medical blames veterinarian’s location for shipment delay
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Veterinary Medicine Loan Repayment Program gets off ground
11/9/2010
First USDA awards go to 62 recipients
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Frontline, ProMeris not going OTC, manufacturers say
11/8/2010
Veterinary market research survey gives confusing message
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NAS veterinary workforce study nears release
10/28/2010
Stakeholders expect report to shed light on supply and demand in America
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Navigating credit card security requirements
10/21/2010
Compliance isn't cheap or easy
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PetMed Express reports slip in sales
10/19/2010
Ad costs rise as consumer spending falls with the online pharmacy
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Lawsuit raises questions about sale of drugs to non-veterinarian
10/13/2010
Case brought by Bayer against shelter rescheduled for Dec. 2 hearing
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Health credit programs: safety net or predatory lending?
10/4/2010
NY state investigation puts veterinarians on the defensive
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CEVA buys Summit VetPharm
9/2/2010
Plans to market Vectra parasiticides globally
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Just say 'no' to telephone solicitors
8/23/2010
Clinic owners describe latest scheme involving Discover, Legal Club of America
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PVP, subsidiaries seek bankruptcy protection
8/23/2010
Veterinarians dismayed by state of company
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PVP faces bankruptcy; veterinarian investors stand to lose
8/12/2010
SEC filings reveal distributor entered into forbearance with lender
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Economic recovery still bumpy for veterinarians
6/8/2010
After first-quarter gains, California veterinary practice revenues slip in April
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Bayer wins some, loses some
4/28/2010
New sales policy continues to reverberate
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Veterinary publishers mixed on future of print journals
4/23/2010
Amid advertising decline, MediMedia bets on online services; others say print runs far from over
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Veterinarians bear brunt of software shortfalls, vendor growing pains
4/12/2010
VIA asks for patience as company updates practice management software
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Businesses join veterinarian in Yelp class action lawsuit
4/1/2010
DVMs need guidance for dealing with online reviews
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PetSmart first retailer to carry Advantage under new Bayer policy
3/17/2010
Banfield and other clinics turn away
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Merial details company stance on product diversion
2/26/2010
Executives speak out after veterinarians question company loyalty
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Bayer opens flea product sales to retail outlets
2/10/2010
Citing diversion, company ends policy of selling only through veterinarians
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PM software maker ImproMed buys VETECH
1/16/2010
Second acquisition for ImproMed within six months
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2009 brought huge consolidations in animal health industry
12/21/2009
Butler and Schein merger latest in a series
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Assets of a slow economy
12/7/2009
Putting life back into the work-life balance equation
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Merial reports Immiticide, Heartgard shortages
12/5/2009
Rationing of Immiticide leaves some veterinarians in a lurch
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Regulatory fee increases raise veterinarians' hackles
10/29/2009
California board readies to impose stiff price increases
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Sidewiki hijacks sites, puts reputations at risk, critics say
10/2/2009
Dangers of Google review tool spark concerns from veterinarians
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Online directory earns mixed reviews from veterinarians
9/16/2009
VINners air grievances about LocalVets.com, now known as YextVets
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Survey suggests recession spares many veterinary practices
9/3/2009
Reports show specialty, emergency practices bear brunt of downturn
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Activists go after stores selling dogs from puppy mills
7/27/2009
Movement to stamp out large commercial breeders gains traction
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California tax officials target breeders via Internet
6/29/2009
Officials search for those who skirt tax obligations
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Funding woes kill Fresno lab, haunt DVM program
6/26/2009
Calif. budget crisis wreaks havoc on veterinary medical education
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Advanta Bank to close all credit accounts this week
5/27/2009
Card issuer catered to small businesses
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Veterinarians must comply with Red Flags Rule by May 1
4/22/2009
Most practice owners already meet requirements, AVMA official says
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Veterinary charity highlighted by economic woes
3/30/2009
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Economic downturn hits veterinary practices
3/11/2009
New VIN survey results anticipated
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COBRA subsidy puts more onus on employers
3/3/2009
New rules likely burdensome, experts say
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Calif. veterinary service tax proposal dies
2/25/2009
Issue could re-emerge in future budgets
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Off the table?
2/12/2009
Calif. sales tax on veterinary services loses steam
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Tax experts stress the economy this year
2/3/2009
Pay attention to practice management, they say
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New center aspires to help dogs that might otherwise be euthanized
2/2/2009
Rehab, pain management and imaging under one roof in Houston
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Reports show veterinary practices hurting
12/24/2008
Veterinarians feeling nation's longest recession in a quarter century
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Fed adopts consumer credit-card protections
12/19/2008
VIN members wary of other finance deals
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Fuel prices drop, yet surcharges remain for diagnostic services
12/18/2008
DVMs push back; Antech drafts letter to explain fees
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Survey Finds Economy Eroding Revenues
12/5/2008
The present depression in the economy is starting to be felt now, according to a survey of Veterinary Information Network members.
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Dr. Tice's interest rates reversed and refunded
11/26/2008
In a classic case of oil going to the squeaky wheel, a veterinarian whose soaring credit card interest fees roused indignation has gotten a refund on excessive interest charges.
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Henry Schein Executive Says Privacy Rules Impede Inquiry Into Credit Card Rate Hikes
11/20/2008
Company says most cardholders are unaffected
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Soaring credit card rates raise eyebrows, hackles
11/14/2008
Dr. Tice warns colleagues to watch their credit card interest rate; Henry Schein offers to advocate on behalf of customers using their affinity card.
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Sales Tax on Veterinary Services
11/11/2008
California may impose a sales tax of as much as 10.25 percent on veterinary services if a proposed economic plan from Gov. Arnold Schwarzenegger is passed.
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Brokers say Economy Not Hindering Capital
10/28/2008
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Pet food prices squeeze owners, veterinarians
10/27/2008
Prescription diets costs skyrocket, setting off consumers
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Brakke to release economic downturn report
10/10/2008
Study to publish in mid-December
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AVMA to release economic data
9/9/2008
Biennial economic survey, starting salaries report set for publication
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Handshakes are history; read the fine print, consultant says
8/26/2008
Product purchase gone wrong burns veterinarian
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CPA accused of stealing $2.7 million from VPI
7/23/2008
Stephen Anthony Friekin faces 103 felony counts of money laundering
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Feeling the economic pinch? Stop giving away services, consultant says
7/22/2008
Dr. Thomas Catanzaro suggests ways to earn more income
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Landscape for business refinancing wide open, bankers say
Go local for low rates, veterinarian suggests
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On the record
The VIN News Service recently conducted a Q&A session with the American Veterinary Medical Association and its indemnity arm, the Group Health and Life Insurance Trust (AVMA-GHLIT). The discussion explores the controversial partnership that’s emerged between GHLIT and Pets Best Insurance, a private entity.
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PVP faces bankruptcy; veterinarian investors stand to lose
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August 12, 2010
By: Michael Johnson; Jennifer Fiala
For The VIN News Service
Nearly 1,900 veterinarians with shares in Professional Veterinary Products (PVP) could lose their investments as company officials weigh the prospect of filing bankruptcy or selling assets to a competitor.
According to reports, Oct. 13 marks the final workday for PVP’s staff, which at one time numbered 360 employees. This final act culminates months of layoffs for workers of the animal health products distributor, based in Omaha, Neb. A website that reviews employers reports that 36 PVP staffers were let go in February.
Requests for comment from the VIN News Service of PVP’s top officials, including CEO Steve Price, were not immediately returned.
Yet as PVP treads water financially, many of its shareholders and veterinarians who rely on its services have no idea that the company is floundering, let alone insight as to what’s causing its demise. Among the shocked and dismayed is former CEO and founder, Dr. Lionel Reilly.
Reilly, who retired from PVP in January 2009, after 26 years with the company, spoke yesterday to the VIN News Service from his home in Elkhorn, Neb.
“For every year I was there, this company was profitable,” he contends. “I would have never suspected this. Apparently, some investments were made in a certain business segment that went wrong. Now either someone’s going to buy the company or it’s going into bankruptcy. By next week, we’ll know a lot more.”
Reilly was purposefully vague and declined to give further details considering he has a vested interest in any bankruptcy proceedings — his retirement funds are at risk with the company. According to filings with the U.S. Securities and Exchange Commission (SEC), PVP entered into forbearance on July 12 with Wells Fargo, its lender. The agreement ends on Aug. 31.
PVP was founded in 1982 by a group of veterinarians who created a model whereby the company would be jumpstarted by the investments of practitioners using its services. The company wholesales and distributes pharmaceuticals and health care supplies to licensed veterinarians, carrying roughly 20,000 products with distribution centers in four states. At the height of its success, 2,000 veterinarians had each purchased one $3,000 share, creating $6 million in capital for PVP. In return, shareholders received discounted goods from the distributor and annual rebates.
Though PVP is a private company, it is obligated to provide financial statements to the SEC because it has more than 500 owners.
The company’s most recent quarterly report filed June 1 shows net sales and other revenues increased by $13.5 million as of April 30, 2010, while the cost of sales increased by $13.4 million, resulting in gross profits of 0.8 percent. Further details reveal that the company's operating loss for the nine-month period ending April 30, 2010, increased to $9.1 million compared to a loss of $4 million for the same time the previous year, while interest expenses increased and interest income decreased.
Net loss increased by $4.4 million to $7.3 million compared to a $2.9-million loss for the same period the previous year. The net loss increase was primarily due to a surge in the cost of sales and decrease in gross profit.
The report cites litigation expenses and costs totaling $2.6 million as adding to the deficits.
It appears that the expense relates to litigation brought by IVESCO LLC, a competing distributor in the animal health arena.
An SEC report shows that PVP recently settled a lawsuit filed by IVESCO in April 2009 in United States District Court for the Northern District of Iowa. IVESCO alleged that PVP conspired with departing IVESCO employees to “take over or steal” the company’s swine business. IVESCO accused PVP of conspiring to unfairly compete, tortuous interference with business expectations between IVESCO and its customers and employee relationships, aiding and abetting an alleged breach of duty by former IVESCO employees, in addition to other allegations.
PVP attempted to enter the swine health arena just before last year’s swine flu pandemic set in.
Additional SEC reports show that PVP terminated its vice president of operations Jaime Meadows on June 30 after six months on the job, but that he recently signed a parachute clause with the company that hinges on its sale. According to the filing, Meadows will stay on with PVP until June 1, 2011, or when the company is sold, whichever comes first. PVP also has agreed to pay Meadows a severance package and his medical insurance for a year.
PVP’s Chief Financial Officer Tara Chicatelli left the company on May 10. The details of her departure were not reported, and the VIN News Service has been unable to reach her.
Despite the public nature of the SEC statements, it appears that many with a stake in PVP have not seen them. Last Friday, a message board discussion surfaced on the Veterinary Information Network (VIN), an online community for the profession.
The gist of the query: Does “anyone know anything” about the state of PVP?
A dozen responding comments, some relaying information from PVP board members, have VIN members increasingly incensed and worried, with an apparent lack of formal correspondence from company officials adding to their anxiety.
PVP spokeswoman Cindy Christensen reported to the VIN News Service that communications were sent directly to shareholders concerning PVP’s financial difficulties. She declined to elaborate about the company’s financial woes due to its private status.
But Dr. John Tomlinson Jr. and others on VIN stated that they’ve received nothing in terms of direct communication from PVP. For his lack of knowledge, Tomlinson blames himself for not keeping a closer eye on his investment.
“I wouldn’t manage my clinics like this,” he acknowledges.
The practitioner from West Virginia purchased his share of PVP in 2001. Tomlinson reports he contacted the company on Monday and was told he could not sell it.
“I made some calls to my neighboring clinics that I know are shareholders as well to let them in on the financial circumstances (of PVP),” he says. “We feel like that over the course of last year, there has been no transparency. It’s ludicrous that there’s been such a lack of information to the shareholders.”
Former CEO Reilly expressed sadness concerning the financial state of the company.
His voice solemn, he spoke of the employees: “To see people who counted on us for a good, safe work environment with fair salaries and good benefits treated like this is awful. All of my good friends will probably lose their jobs.”
The prospect of closing shop appears in sharp contrast to where PVP stood earlier this decade. In 2005, the Society of Human Resource Management named PVP as one of the top small- to medium-sized companies to work for in America.
“When you work for 26 years to build a successful company and see it turn out this way, it’s just terrible,” Reilly says, acknowledging that distributors positioned to buy PVP likely will wait until it clears bankruptcy in order to rid the purchase of lingering debt.
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