Business & Economics
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Does hot job market mean there's a veterinarian shortage?
12/5/2019
Profession grapples with responding to swings in demand
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Zoetis buys veterinary diagnostics company ZNLabs
11/22/2019
Independent laboratory sees deal as a way to compete with Antech, Idexx
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British veterinary practice chain CVS shuffles management
11/12/2019
Innes reign ends as consolidator slows pace of acquisitions
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Buyouts alter veterinary laboratory landscape
10/31/2019
Phoenix sells to Zoetis; Marshfield sells to Idexx
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Petco veterinary clinic expansion speeds up
10/8/2019
Retailer partners with three more clinic operators, bringing alliances to five
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Pet insurance for all: Sweden's experience
10/2/2019
Penetration rates 'still growing' in market where 90% of dogs have coverage
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Veterinarians resist pressure to advocate for pet insurance
9/30/2019
AVMA policy asks practitioners to discuss third-party payers with clients
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Mars expands its international veterinary practice ownership
9/27/2019
Pet-care giant makes forays in Japan, Brazil; adds to holdings in UK
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Phoenix veterinary lab for sale following Idexx takeover bid
9/6/2019
Shareholders vote to solicit offers; sale could top $29 million
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Telemedicine proves a headache for Britain's Royal College
9/3/2019
Veterinarians challenge regulator over easing of online prescribing rules
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Trupanion fined $100,000 in Washington over sales tactics
6/26/2019
Pet insurer rewarded veterinary clinics for referrals
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Walk-in veterinary care proliferates inside Walmart Superstores
6/7/2019
Essentials PetCare, Vet IQ team with retail giant to open 100 clinics
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Idexx contract spurs lawsuit after veterinary clinic sale
5/21/2019
When VCA bought it, practice switched laboratory service providers
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Idexx drops suit against Vets First Choice
4/25/2019
Allegations of stolen trade secrets resolved in settlement talks
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Consolidation comes to veterinary group purchasing
4/22/2019
GPOs reflect new reality: bigger, broader, more diversified
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Veterinarians sue over noncompete clause
3/19/2019
Case draws attention to common provision in practice sales and acquisitions
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Petco closing Drs. Foster and Smith within days
2/7/2019
Veterinarian-founded mail-order, internet pharmacy to shutter after 36 years
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Schein Animal Health, Vets First Choice to complete merger
2/4/2019
New company claims a large footprint
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Veterinary student business group seeks former members
12/26/2018
Veterinary Business Management Association establishes alumni branch
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Ex-Banfield execs spin off from 'impersonal behemoth'
12/13/2018
Leaders say new veterinary company is 'completely different'; reviews mixed
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Pace of UK veterinary consolidation stutters
11/29/2018
Pets at Home hospital closures anticipated
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A controversial model of pet insurance lives on in Britain
11/14/2018
Three years in, insurer's 'preferred' network of specialists has grown
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Trupanion relationships with veterinarians under scrutiny
11/1/2018
Washington insurance regulators examine rewards program
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Veterinary technicians get boost from major employer
10/26/2018
Banfield, world's largest clinic chain, commits to elevating licensed support staff
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The dwindling supply of academic radiologists
9/6/2018
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Idexx sues Vets First Choice, alleging trade-secret theft
8/8/2018
Ex-employees accused of taking data just before leaving
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Startups seek to remodel veterinary house calls
7/25/2018
Latest Uber-style service recalibrates to attract veterinarians
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New veterinary school in Japan stirs debate
6/25/2018
Question of workforce demand echoes long-standing issue in U.S.
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Support staff unionize at two veterinary hospitals
6/21/2018
Pro-union votes are a first for Mars-owned VCA and BluePearl
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Mars buys another European veterinary-practice group
6/12/2018
Conglomerate to acquire AniCura as well as Linnaeus Group
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Mars Inc. buys British veterinary-hospital chain
6/8/2018
Linnaeus Group adds 87 sites to Mars' spreading ownership
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British veterinary practices undergo rapid consolidation
5/1/2018
Trend similar to that in US
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Henry Schein, Vets First Choice to form new company
4/23/2018
Ongoing consolidations remake veterinary landscape
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Product rebates to veterinarians spur tax questions
4/9/2018
For honesty's sake, report the money, accountant advises
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How revised tax code treats veterinary practices
3/13/2018
VIN's general counsel demystifies new rules on pass-through deductions
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PetSmart looks beyond Banfield for veterinary-clinic operators
3/8/2018
Retailer lists 188 vacant clinic spaces available
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UK veterinarians cautious on plan for new school
2/16/2018
Low wages, long hours in profession a concern
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Attempt fails to change Washington law on nonprofit veterinary clinics
2/12/2018
Bill would have let humane societies, animal-control agencies broaden services
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Veterinarians form group dedicated to independent practice
2/1/2018
New association aims to help small businesses thrive
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Second veterinary business allies with Petco to run in-store clinics
1/18/2018
The Pet Vet plans operations in Texas, Oklahoma, Arkansas
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Petco stores now house veterinary clinics
1/10/2018
Texas, California and Colorado are first
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In Britain, a shortage of veterinarians brews
12/12/2017
Brexit fallout already evident
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Banfield joins employer trend with offer to defray student debt
12/1/2017
Well-intentioned programs might be ill-advised for some borrowers, experts caution
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Mars antitrust remedy 'not even a drop in the bucket'?
9/26/2017
Deal puts 2,000 practices under one owner
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Publisher Time Inc. enters veterinary-discount realm
9/11/2017
Club gives pet owners 25 percent off medical services
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FTC to Mars: Divest 12 clinics in order to buy VCA
8/30/2017
Mars agrees to proposed antitrust settlement
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Burglar to veterinarians: Don’t display lavish stock of flea-tick products
7/13/2017
Prisoner shares his views in letter
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The dark side of modern X-ray equipment
6/8/2017
Veterinarians find digital radiography expensive, maddening
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‘Smart’ collars for animals proliferate
5/5/2017
Claims of health benefits as yet unproven
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Suspect admits to burglarizing veterinary clinics
4/18/2017
Lured by value of flea-and-tick products
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USDE seeks input on Public Service Loan Forgiveness
2/10/2017
Veterinarians asked to submit ideas to improve program
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Banfield CEO Vincent Bradley resigns
1/31/2017
Departure follows news of Mars-VCA deal; Brian Garish named successor
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Mars to buy VCA
1/9/2017
Largest veterinary hospital-chain merger in history under way
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Big gets bigger in 2016
12/29/2016
Year-end snapshot of noteworthy business deals in animal-health market
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Veterinary-drugs seller Sean Gerson arrested
12/16/2016
FDA agent tracked supplier for five years
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Ex-Banfield leaders buy practices as ‘LegacyVet’
10/18/2016
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Veterinary clinic opens at a Florida Wal-Mart
10/17/2016
Practice owners are first to lease space from retail giant
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Hemopet ‘1,000 percent going to stay in business’
9/21/2016
Failure of tax-exemption quest doesn’t doom canine blood bank
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Canine blood bank seeks sales-tax relief
8/12/2016
Proposed California law would exempt only nonprofits
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GL Advisor founder sentenced to nine years in prison
6/17/2016
Daniel Thibeault tearfully admits fault
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Make price paramount when choosing veterinary school, many advise
5/10/2016
Other considerations include campus culture, location, program emphases
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Veterinary prescription practices reviewed by House panel
4/29/2016
Lawmakers profess affection for pets, appreciation of veterinarians
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House subcommittee to consider pet-prescription rules
4/28/2016
Proposed ‘Fairness to Pet Owners Act’ a subtext of hearing Friday
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Zeuterin marketer falters two years after U.S. debut
4/22/2016
Sales of injectable sterilant for dogs come up short
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Pet insurer renounces controversial rate factor
3/24/2016
Trupanion cites poor execution after veterinarians object
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Jobs forecast for veterinarians better than average
12/22/2015
Labor economists predict 9 percent growth
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Report rekindles debate on rural veterinary workforce
12/21/2015
Methodology questioned in provocative study on Appalachia
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Educational debt debated in veterinary economic summit
11/5/2015
Growth in schools drives applicant-to-seat ratio to 1.6-to-1
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Mars Petcare wooed fast-growing BluePearl
10/29/2015
Veterinary company co-founder answers questions about sale
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Coming soon: credit-card security changes
9/18/2015
Merchants using outdated equipment may be on hook in fraud cases
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Veterinary generics squeezed by blocking agreements
9/8/2015
Zoetis, Merial bar big distributors from selling competing generic drugs
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New entrants to pet microchip market draw critics
7/29/2015
Are chips with ‘900’ codes unreliable or unfairly targeted?
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Entrepreneur finds pet microchip problem unsolvable
7/16/2015
Owner apathy, tangled industry leads Check the Chip to give up
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Idaho veterinarians make tentative peace
5/28/2015
Humane Society agrees to limit some services
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FTC: Pet-medications market could be more competitive
5/27/2015
Consumers would benefit from broader prescription portability, report says
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Washington law on veterinary nonprofits: model or muddle?
5/26/2015
Requiring income qualification not same as means testing
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Nonprofit veterinary care: for whom and how?
5/21/2015
Profession spars over income eligibility, means testing
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Facial-recognition apps scout lost pets
4/15/2015
Tool supplements tags, chips
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MWI sale reflects trend in pet-related industries
1/27/2015
Veterinarians wonder how service, prices will fare
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Sale of pet-supply company sign of changing times
12/17/2014
Petco purchase of Drs. Foster and Smith one of several industry shifts
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Web address extension .vet among hundreds rolling out
12/9/2014
Domain names first come, first served
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Ownership of Sentinel antiparasitic line poised to change
10/31/2014
Virbac seeks Novartis veterinary drugs in transaction with Eli Lilly
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New veterinary degrees may not pay off, economists find
10/29/2014
AVMA conference highlights debt, salary issues
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Veterinarians, schools emphasize yearly pet checkups
8/15/2014
Survey finds more pet owners concerned about cost of care
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Most veterinarians reduce prices so animals can get care, survey finds
7/16/2014
Few practices track discounts systematically
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VCA Inc.: Gentle giant or takeover threat?
7/11/2014
Views of chain veterinary hospital owner span the spectrum
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Fate of Novartis portfolio in question after sale to Eli Lilly
6/27/2014
Deal creates world's second-largest animal health business
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Pet treats: Does 'Made in USA' mean safe?
6/10/2014
Illness linked to Chinese-made jerky spurs label changes
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Pet store chains to drop China-made treats — eventually
5/21/2014
Petco, PetSmart bow to customer concerns
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Veterinary private-practice sector makes modest rebound
5/13/2014
Revenues rise, mostly through price increases
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Blue Buffalo advertising draws long history of complaints
5/9/2014
In latest, Nestlé Purina sues for false advertising
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VCA Antech prevails in breach-of-contract suits
5/1/2014
Laboratory services provider continues suing veterinarians
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Surveys yield conflicting trends in U.S. pet ownership
3/31/2014
Counts of dogs and cats differ by millions
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Equine hospital by New York racetrack revived
2/27/2014
Cornell University signs lease-buy agreement
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Veterinarians receiving loan repayment awards say program makes a difference
2/13/2014
But states have difficulty evaluating its effect on shortage areas
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Navigating student debt, income-based loan repayment
2/4/2014
Veterinarian shares experience, advice about dealing with government programs
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Demise of Partners in Wellness leaves some veterinarians in bind
10/14/2013
Program failed to catch on, Nestle PurinaCare says
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Veterinary clinics scrutinize CareCredit in wake of investigation
7/12/2013
Merchant expense, new rules, reputation questioned
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When dental schools closed: lessons for veterinary profession?
6/10/2013
Student applications, not practice economics, drove decisions
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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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Insiders lift veil off veterinary drug distribution practices
9/25/2012
Upcoming FTC meeting prompts disclosures
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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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FTC eyes distribution of pet medications
7/11/2012
Workshop discussion could encompass diversion
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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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VNN unveils online advice site for pet owners
3/17/2009
Project to generate financial support for media network
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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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Gray-market sales veiled by deception, intrigue
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May 8, 2012
By Edie Lau
Editor's note: This is the first in a three-part series detailing the experience of one practitioner in the shadowy world of veterinary product diversion.
In the short period that Dr. Peggy Guy ordered more than $130,000 of the popular flea and tick killer Frontline Plus, she stepped way beyond her normal role as a veterinarian. She became a double agent.
Acting on behalf of the Veterinary Information Network (VIN), a professional membership organization of veterinarians, Guy spent 13 months exploring the gray market where dog and cat parasiticides are purchased and sold repeatedly on their way to consumers’ hands. Her participation in secretive sales channels entailed chicanery, the movement of sizable sums of money and a waggish tracking scheme employing golden tickets.
Until the sting, Guy was a bit player in the flea and tick market. She lives in an arid region where fleas are scarce. In nearly 20 years of practice, she’s spent very little money on flea treatments. But in late 2010, a company in Florida with the unforgettable name WTF Wholesale Supply Corp. asked Guy to purchase on its behalf mass orders of Frontline Plus, which it would, in turn, sell to retail outlets.
WTF solicited Guy and veterinarians like her because Merial, the company that makes the Frontline brand, has a policy of selling product only to licensed practitioners who directly treat pets. Merial and most other veterinary pharmaceutical companies say they do not sell veterinary therapeutics to retail merchants.
Yet Frontline and similar types of “spot-on” flea treatments for dogs and cats are available from the largest general retailers in the country, including Wal-Mart, Costco, Target, Amazon.com and Kroger, as well as from pet stores, feed stores and online pharmacies. How they obtain their supplies is an industry secret but at least part of the answer is that they buy from brokers like WTF that buy from veterinarians.
Most of those veterinarians sell to pet-products brokers for one simple reason: to make money. The brokers request tens of thousands of dollars of product at a time and pay commissions based on order size.
WTF’s proposition attracted Guy, but not because of the money. Guy saw an opportunity to collect information on how flea-product brokers operate, what retailers they supply and whether Merial would figure out that she was circumventing its sales policy and take steps to stop her. The profits she earned from the sales she would donate to charity.
With support from Dr. Paul Pion, president and co-founder of VIN, and VIN attorney Raphael Moore, and in consultation with the VIN News Service, Guy decided to take up WTF’s offer to join its “purchasing program.”
Guy was careful to make sure that everything she did was legal, but she worried that her actions were risky, all the same. That’s because the veterinary profession disapproves of veterinarians reselling pet therapeutics, an activity known as gray-market diversion.
If she publicly acknowledged diverting Frontline, Guy thought she might be criticized as harshly as other veterinarians who have owned up to what the profession considers unethical behavior.
“I know for a fact that people do not read carefully and they will see WTF, diversion and (my name) in the same sentence and I will be branded forever,” she said.
To avoid the chance of being ostracized by the veterinary community, she asked to use a pseudonym for this article. Peggy Guy is not her real name.
Lifting the veil
In agreeing to resell pet flea and tick treatments, Guy entered a clandestine realm of contradictions and deception. Here, in a nutshell, is what she learned in 13 months of diverting Frontline Plus:
- Merial did not question her dramatic uptick in purchases. Company officials have stated repeatedly that they monitor clinic buying patterns in order to identify and discourage diversion but Merial did not investigate the basis for Guy’s orders, even though her purchases in one year exceeded by a factor of six that of her purchases the entire seven years before.
- WTF misstated the product’s destination. An information sheet describing the business said the company mainly supplied stores in central Florida. A representative assured Guy that WTF sold primarily to farm and feed stores. But by tracking some product, Guy and VIN determined that Frontline Plus brokered by WTF landed all over the country, including at pharmacies owned by Kroger, one of the nation’s largest grocery chains.
- Diversion is made more attractive by Merial’s generous payment terms. Guy’s final net was about $6,500, making for an average commission of 5 percent. But more worthwhile than the profit, Guy found, was the flow of cash generated by the transactions.
Here’s why: Once she received a shipment from Merial, Guy would send a copy of the packing slip to WTF, which paid her before she forwarded the shipment to them. Her payments from WTF ranged between $10,000 and $40,000. Guy had the use of that cash for months before her debt to Merial was due. Merial routinely gives extended payment terms to clinics that order in bulk. Whereas Guy got 30 days to pay when she was a small customer, she was given 180 days as a big customer.
“It’s an interest-free loan for six months,” Guy said. “If you’re short a month ... and you’ve got $30,000 sitting there, you’ve got time to make money to pay off a Merial bill. And once you’re in, you’re sucked in: ‘OK, we don’t quite have enough this month, let’s make another purchase.’ ‘We don’t have them paid off yet, guess we’d better make another purchase.’ ”
It can become, in short, something of an addiction.
The VIN News Service has been for years researching how diversion works and who participates. Key aspects that remained elusive were how product brokers coax veterinarians to participate; what manufacturers such as Merial do to detect and curb the activity; and the path products travel from clinics to retail outlets.
After reading articles on the subject, Guy was aware of the lingering questions. One day late in 2010, her clinic received a fax from WTF offering a “lucrative opportunity.” Veterinarians periodically receive such solicitations from pet-products brokers, but this was the first time Guy remembered getting one. Her immediate reaction was to discard the offer.
Then she recognized a chance to find answers to questions her colleagues have long wondered.
Guy picked up the telephone and called the toll-free number. An effusive representative emailed Guy a “welcome packet” that included a statement signed by general manager Nancy Ben-Hamo describing WTF as a “sales and distribution firm providing retail outlets hard-to-find veterinary products.”
 Click here for larger view It reads in part: “Our customer base of thousands consist primarily of retail pet stores, groomers and farm and feed stores in the Central Florida area. ... Our veterinary network spans the country and includes hundreds of professionals of all types: active, relief, mobile and retired.”
The letter alluded to the surreptitious nature of pet-product diversion this way: “A major factor of consideration for our veterinary partners is confidentiality. We understand our partners’ concern about privacy, and we are committed to protecting their privacy in each and every way possible.”
Guy was struck by WTF’s hush-hush culture. “They were so into the cloak-and-dagger routine,” she said, “wanting to call me on my cell phone (and) have Merial ship product to my home so my staff would not know what was going on.” But Guy didn’t choose to keep her business secret from her staff, nor was she obliged to. None of the paperwork WTF provided required the veterinarian to keep the transactions confidential.
Guy was willing, as well, to be caught by Merial. Part of her purpose was to see whether Merial would notice a spike in purchases. She asked a WTF solicitor on the phone what would happen if the company flagged her as a diverter. The agent replied to the effect of:
“Merial knows this is going on. They turn a blind eye to it, as long as no one is getting greedy. In other words, do not place huge orders.”
What would be a huge order? The representative told Guy that some veterinarians place single orders in the range of $40,000 to $80,000. Orders of greater than $100,000, she said, would attract unwanted attention.
As Guy’s contact at WTF predicted, Merial didn’t seem to notice — at least not at the outset. Guy placed five orders over the course of 13 months. She started with a $10,000 order, proceeded to $20,000, then $30,000, then nearly $40,000, then back to $30,000.
After the fourth order, someone at Merial called the clinic wanting to let Guy know about a “cash back” promotion underway. In other words, rather than questioning what prompted the clinic to order so much Frontline Plus in a short period, the company wanted to sell her more. The more she bought, it seemed, the easier Merial made it for her to buy — and divert — still more.
A Merial salesman followed up a few weeks later.
“He noticed that we had made quite a few purchases this last year and he wanted to be sure that we noticed the most recent promo,” Guy recounted. “He was very specific: He wanted me to place the order with him only ... so that he gets credit for the order.”
Guy’s experience is similar to that related by other veterinarians who have diverted Frontline Plus. The veterinarians, interviewed last fall by the VIN News Service, described how Merial employees implicitly and explicitly encouraged the activity, presumably to reap the sales commissions.
Merial: Veterinarians given benefit of the doubt
Merial officials acknowledged at the time that the company might have some rogue sales representatives who cooperate with diverters in order to boost their own commissions, but fervently denied that the company as a whole approves of or knowingly facilitates diversion.
Regarding Guy’s experience, Donald Schwartz, Merial’s executive director for business services and business development, said the company should have noticed her purchase spike. “The system should have picked this up,” he said. “It should have been picked up by the fact that at a certain month, she exceeded a certain purchase level. ... The system is not perfect in the way we work things.”
Schwartz noted that because Guy did not have an assigned sales representative and placed orders through Merial’s “customer care center,” the change in her purchasing pattern was less likely to set off alarms.
“(In) Customer Care, where the representatives tend not to have specific customer knowledge, it’s more of an arm’s-length, anonymous kind of relationship, but still, it probably should have been flagged,” he conceded.
In any case, the fact that a solo practitioner in an arid climate with a history of minimal purchases of flea and tick treatment suddenly places large orders for parasiticides is not, by itself, immediate cause for suspicion, Schwartz said.
“No one is guilty at a $10,000 order,” he said. “Nor do you want us to say, ‘Where are you (located)? How many vets in your clinic? How many dogs, how many cats, how many cows?’ She may be buying for a buying group. Even in a place that’s dry and doesn’t have much of a flea problem, there still can be reasons to buy that are not nefarious, including the fact that there may be ticks.”
Schwartz said sometimes clinics decide to switch from a competitor’s brand of parasiticide to Frontline Plus. That would plausibly explain a surge in orders, he said.
“We don’t look into vets’ business, and I don’t think they want us looking into their business and assuming they’re guilty before selling them anything,” he said. “... Do veterinarians really want us policing them a priori?”
For most of the period that she placed large orders of Frontline Plus, Schwartz said, Guy could be plausibly recognized as nothing more than a good customer. “As a good customer, she gets special offers and treatment,” he said.
Addressing Guy’s observation that free financing provided by Merial makes diverting all the more financially rewarding, Schwartz said, “A lot of veterinarians run businesses on very tight margins. We don’t (give generous payment terms) in order to facilitate diversion. We do that to facilitate the health and growth of veterinarians’ businesses.”
Eliminating extended payment terms would take away from legitimate clients, he added, and do nothing to stop diversion. “It would happen regardless,” Schwartz said.
Distressed by condemnations
In the middle of Guy’s sales to WTF, the company coincidentally landed in the news.
A number of veterinarians hadn’t been paid by WTF and sued the company. Those veterinarians, unlike Guy, had shipped product to WTF before receiving payment. A lawyer for WTF admitted the company had not paid some suppliers, owing to financial problems. She cited the poor economy and shifts in the market for flea and tick products.
Hoping for power in numbers, the unpaid veterinarians posted their plight on a variety of websites, hoping to connect with others in the same situation to coordinate their legal cases. One of the websites where a posting appeared was VIN.
Almost immediately, the veterinarian who authored the post, Dr. Lisa Costello, drew scathing criticism for her role in making Frontline Plus available on the open market. Some equated it to stealing from colleagues and said she deserved her misfortune.
Costello gamely tried to explain what motivated her to divert: She needed the money to make up for income lost while she was out for medical treatment; and after seeing a huge display of Frontline in a PetSmart store, she believed that trying to keep Frontline exclusively in veterinary clinics was futile.
A few colleagues responded with sympathy and called her courageous for speaking up but many were unmoved.
Comments ran along the lines of: “I understand that you needed money but so do I, and what you did hurt me and every other vet out there.”
Watching from the sidelines, Guy was horrified.
“I was very sad to see the pure acrimony and hate leveled at the diverter ... ” she said. “I was surprised to see that many people treat her so poorly and with no respect.”
Guy also began to worry about how her own role in diversion would be received. “I am starting to wonder if I am going to be eviscerated when this article comes out,” she said. She decided she would have to keep her name out of the story.
WTF morphs into True Lines
On Aug. 19, a Friday, WTF went out of business.
The previous week, WTF had paid Guy for a new order of Frontline Plus. The day WTF closed its doors, she had 132 cartons of flea and tick killer housed inside 11 cardboard boxes stacked conspicuously in her clinic.
On Monday, Aug. 22, Guy told the VIN News Service:
“Got a call just now from a Kay Carpenter who called to say that they are no longer WTF Wholesale. They have a new phone number and email and everything.”
Their new name: True Lines Distributing Co. As explained to Guy, the only things to have changed were the name and contact information. Employees Guy had worked with under the auspices of WTF were still there, working for True Lines. Although the mailing address had changed, Guy was told the shipping address was the same, and she should continue with the transaction as planned.
Guy wasn’t so sure about that. On the advice of a lawyer, Guy told Carpenter a few days later that she was concerned about sending to True Lines product requested by WTF, since True Lines did not pay for the product.
The line went silent. After a long pause, Guy asked Carpenter if she was still there.
“She finally said, ‘Oh, no problem, we are the same company,’ ”Guy recounted. “... she said that True Line is the same company with a new name and a new owner. “I told her I was still very concerned about sending WTF product to a company that had not paid me. She asked if I had old shipping labels. I said I had a couple. She asked me to please use them as the stuff was all going to the same place. I asked her how that could be? The addresses on the labels are different. “I asked her twice to put this in writing, that I cannot be in trouble for sending the WTF product to True Lines, and she ignored me. Did not answer, other than to reiterate that I would not be in trouble.”
The VIN News Service sought comment from Carpenter, Ben-Hamo and Kelly Parsons Kwiatek, an attorney for WTF. A man identifying himself only as True Lines responded to a voice message left for Carpenter. He was angry. “Stop calling us,” he fumed. “Please stop calling and harassing our customers, asking about WTF. We are not WTF Wholesale.” He said True Lines did not wish to take part in the article.
Parsons Kwiatek and Ben-Hamo did not answer messages left by telephone and email.
After WTF closed and True Lines took over Guy’s transaction, Guy asked Carpenter for a new resale certificate that would enable her to resell the product to True Lines without having to collect sales tax. Sorting out the paperwork and the shipping question took months. Guy held onto some of the product until the issues were resolved, much to True Lines’ chagrin.
Guy didn’t mind causing the people at True Lines to fret a bit, considering what veterinarians who hadn’t been paid by WTF were enduring. “I thought it was poetic justice that True Lines really had to sweat to get (this) shipment, considering the stories I heard of how unethically and illegally they had treated many veterinarians,” she said.
Guy herself always insisted on and received payment upfront, but her commissions dropped steadily over time — from 10 percent at the outset to 2 percent by the end. In fact, when she placed a fifth order, True Lines offered the 2 percent, then tried to renege, saying that Guy would be compensated by a promotional rebate Merial was offering at the time.
“No way,” Guy replied. She threatened to cancel the order. The broker backed off and restored the commission.
“They have never done a bait-and-switch before,” Guy mused afterward. “They are starting to show their true colors.”
VIN News Service commentaries are opinion pieces presenting insights, personal experiences and/or perspectives on topical issues by members of the veterinary community. To submit a commentary for consideration, email news@vin.com.
Information and opinions expressed in letters to the editor are those of the author and are independent of the VIN News Service. Letters may be edited for style. We do not verify their content for accuracy.
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