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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Workforce data outdated, conflicting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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Entest to use veterinary practices as revenue driver, research venue
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August 23, 2011
By: David DeKok
For The VIN News Service
A small biotechnology firm headquartered near San Diego plans to acquire 10 veterinary practices to generate research revenue as well as patients for clinical trials testing a canine cancer drug in its pipeline.
This novel approach to drug research comes from Entest BioMedical, a start-up that's created ImenVax, an immuno-therapeutic cancer treatment for canines that's in testing and development phases. According to the company's website, the treatment consists of a vaccine composed of tumor samples, which are then encapsulated and implanted back into the tumor with the intent of inducing an immune response to kill it.
Right now, Pfizer's Palladia is the only drug approved by federal regulators to treat canine cancer, specifically mast cell tumors.
If Entest has its way, that soon won't be the case. Entest scientists are conducting target safety studies on two dogs, both suffering from oral melanoma, and hope to expand that number to 10 by year’s end. The U.S. Food and Drug Administration (FDA) has several requirements for drug approvals, such as field trials, toxicity studies, research and experimental trials, dose refinement studies and efficacy studies.
However, because Entest is developing a vaccine, its regulation falls under the Center for Veterinary Biologics within the United States Department of Agriculture's Animal and Plant Health Inspection Service (USDA APHIS). The FDA could get involved, especially if the treatment becomes available beyond Entest-owned clinics.
With either agency, vetting a drug's safety and efficacy for regulators can be an onerous expense. According to the Animal Health Institute, costs tied to bringing a veterinary drug or biologic through regulatory approval processes can reach upwards of $50 million.
To ease that burden, Entest is taking a unique route to testing the efficacy of ImenVax. Within the practices Entest buys, the company plans to use ImenVax to treat and assess the medical outcomes of canine cancer patients.
David Koos, Entest chairman and CEO, believes that a loophole exists within USDA's Code of Federal Regulations that will allow ImenVax, if proven effective, to be used in the animal hospitals acquired by the company but not sold market-wide. Koos explained if a veterinary biologic is manufactured by veterinarians and intended solely for use with their clients' animals via a veterinary-client-patient relationship (VCPR), it can be administered conditionally, without the USDA's formal go-ahead.
The USDA APHIS confirmed with the VIN News Service that the regulatory exemption Koos refers to exists and covers tumor-derived vaccines. The code "provides an exemption for products produced under a VCPR to become licensed. It doesn't exempt them from compliance with the regulations," spokeswoman Lyndsay Cole said. "It's a subtle difference, but a fairly significant one."
Entest is not the first company to administer an unlicensed veterinary biologic to its own patients under a VCPR, Koos said. He added: "Of course, Entest eventually plans to market ImenVax outside the veterinary exemption, and to do so would require us to obtain a U.S. Veterinary Biologics Product License and U.S. Veterinary Biologic Establishment License. Entest plans to obtain these required licenses and has no intention of marketing or administering ImenVax in any unlawful manner."
He noted that so far, there's been no notable adverse effects tied to the implantation device or the treatment. "We have not detailed the efficacy of the treatment itself because what we’ve got now is anecdotal evidence. ...If you have two dogs and you want to extrapolate to the entire canine population, that’s a difficult thing to do,” Koos said.
But some practitioners expressing their views on the Veterinary Information Network (VIN), an online community for the profession, question whether Entest's avenue for attaining more test cases crosses ethical boundaries. The company's plan involves clients paying for its research, a setup that could breed bias. "In human medicine self-referral (referring your patient to another facility in which you also have a financial stake) is considered a serious conflict of interest and is actionable by medical boards. This sounds a lot like that to me," wrote Dr. Cynthia Harre, of Camp Springs, Md., in a VIN discussion.
Last December, Entest acquired McDonald Animal Hospital in Santa Barbara, Calif., and the company has letters of intent out to three other practices. These deals typically involve Entest purchasing a practice and paying the former owner to remain on staff. In return, Entest reaps the practice's profits and facilitates the use of ImenVax.
Koos acknowledged that the second and third generations of ImenVax likely will require formal FDA approval. And if Entest seeks to gain approval for use of ImenVax on human cancer patients, as Koos hopes will happen, research and development costs for the company will skyrocket.
“Our approach has always been to focus on the veterinary market first, and then at some point, to joint-venture with a large pharma company that would have the wherewithal to absorb the financial burden of going to the human market,” he said. “I think we would probably either license the technology or joint-venture it with another entity.”
Entest's hospital acquisitions are paid for mostly with the company's stock, which recently traded at 39 cents a share, down more than 88 percent from its February high. The stock trades on the OTCQB Market Tier, which is home to almost 4,000 small and emerging companies that are current in their reporting obligations to the U.S. Securities and Exchange Commission (SEC). Practice owners who sell to Entest buy into the company’s market success or failure in a big way.
That’s how Koos wants it. The veterinarians he buys practices from are expected to stay on for a period of time to manage the medical side of the business. Koos said in a news release a year ago that he wants to ensure that their interests are “aligned with those of our shareholders.” To the VIN News Service, he admitted that this type of relationship isn’t for every veterinarian.
“The reason you come to Entest is because you want to build something, you want to be a part of something,” Koos said.
Dr. Gregory McDonald is all in. Last December, he became the first and only veterinarian, so far, to complete the sale of his hospital to Entest. In exchange, Entest agreed to pay McDonald $70,000 in cash and $210,000 in Entest stock, which appears to be about 100,000 shares based on its price at the time of the sale. Entest also agreed to pay the hospital's debts totaling about $100,000. Another $50,000 in cash was paid to McDonald after three months, and another $70,000 in stock goes to the veterinarian after one year, provided hospital revenues exceed $700,000.
Still on staff, McDonald speaks highly of Entest and describes Koos, his new boss, as "an interesting guy."
“It came along at a great time for me,” McDonald said of the Entest deal. “I just turned 66, and he hired another vet to work here and opened the practice up seven days a week. So I’m working less hours but the practice is busier.”
He added: “They’re new at running hospitals, but I’ve been an integral part in teaching them how to do it. It’s been good for us and kind of a fun thing to be involved in. I’m on their board for their vaccine that they’re developing for cancer, so it’s kind of fun.”
McDonald has assisted Koos in finding and evaluating other veterinary practices to purchase. Entest has issued letters of intent to buy three practices in Orange County, Calif., and Titterington Veterinary Services in Eugene, Ore. On Aug. 8, Entest announced it also seeks to purchase Rainbow Veterinary Hospital in Los Angeles. None of those other deals is finalized.
Koos said Entest is working diligently to meet a Sept. 1 deadline for acquiring the clinic in Eugene, owned by Dr. Ron Titterington and his wife, Dr. Kathy Snell. Titterington told the VIN News Service that he was concerned that the deadline might not be met, even though he has submitted all requested paperwork. They are supposed to receive $700,000, but it is not clear from the disclosure form filed by the company with the SEC whether it is all cash or all stock. The deposit by Entest was 700,000 shares of its stock at a time — July 19 — when the price of the stock was about a dollar per share. The stock closed Tuesday at 44 cents per share.
“We’re watching and waiting and seeing how it plays out,” Titterington said. “The deal seems intriguing, but we’re cautious, as anyone would be.”
When it comes to consumer demand for canine cancer treatments, Dr. Greg Ogilvie, a veterinary oncologist based in Carlsbad, Calif., acknowledges that there are no definitive, contemporary studies in print defining the prevalence of canine cancer. At the same time, "almost every major pharmaceutical company has decided that the size of the market warrants the investment of millions of dollars. The company you mention (Entest) is one of dozens trying to make it in the field," he said.
Behind Entest's scientific endeavors is Steven Josephs, a molecular virologist who once worked at the National Cancer Institute in the laboratory of famed AIDS researcher Robert Gallo, MD. Josephs came to Entest in 2009. Dr. Brenda Phillips, a boarded veterinary oncologist at Veterinary Specialty Hospital in San Diego, is another lead Entest researcher.
The company has limped along on stock sales, loans from Koos and a little bit of venture capital. It had about $55,000 in cash on hand as of May 31, according to its most recent quarterly disclosure form. On Aug. 8, Tammy L. Reynolds, Entest’s chief financial officer, resigned for what Koos said were personal reasons. Reynolds could not be reached for comment.
There is a “Going Concern” warning in the company’s 10Q, in which auditors state that there is reason to believe Entest will not financially survive. Koos explained that the warning is routine for developmental-stage companies like Entest and only can be removed when the company reaches a certain level of net income.
Then there is the matter of Koos’ salary. He originally took a $300,000 salary as chairman and CEO, high for a start-up. He insists he has actually taken no more than $1,500 a month from the company, which he used to pay for his insurance.
“I’m not lining my pockets with cash,” Koos said. “I guess my justification for the salary originally was I was not getting paid to do what I do, so I may as well be accumulating IOUs that could be exchanged at some point in the future for stock. It was pointed out to me by several people that maybe that wasn’t the most publicly desirable thing to do, either. So I said, look, I'm sacrificing to make this company work, and if that means I take a pay cut, I take a pay cut.”
On April 1, Koos did just that by agreeing to reduce his annual salary to $120,000, of which half was payable in restricted stock, according to the company's most recent quarterly disclosure statement to the SEC. He also canceled $259,058 in back salary the company owed him.
Koos blames the volatility of Entest stock on its low float, meaning the number of shares available for trading on a given day. That number is a little more than four million shares.
“There is a volatility factor in our stock,” he said. “If a person is uncomfortable with that they shouldn’t be a shareholder. ...I think as we get through our ten-dog safety study and we have our data, I think you’ll see that adds a certain level of stability.”
Jennifer Fiala contributed to this report.
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