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MWI Veterinary Supply Inc. Reports Operating Results (10-Q)

July 29, 2010 | About:
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10qk

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MWI Veterinary Supply Inc. (MWIV) filed Quarterly Report for the period ended 2010-06-30.

Mwi Veterinary Supply Inc. has a market cap of $587.8 million; its shares were traded at around $47.88 with a P/E ratio of 20.6 and P/S ratio of 0.7. Mwi Veterinary Supply Inc. had an annual average earning growth of 20.5% over the past 5 years.MWIV is in the portfolios of Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

On October 15, 2009, Pfizer completed its acquisition of Wyeth. Prior to this acquisition, Pfizer and Fort Dodge, a division of Wyeth, were our two largest vendors as measured by our revenues. In connection with this acquisition, Pfizer divested certain animal health products to Boehringer Ingelheim. Fort Dodge supplied products that accounted for approximately 11% of our revenues for fiscal year 2009. Of this amount, based on information received from the Federal Trade Commission, Pfizer and Boehringer Ingelheim, we estimate that approximately 43% of such revenues were attributable to products now owned by Pfizer and approximately 57% of such revenues were attributable to products now owned by Boehringer Ingelheim. We have received contracts for calendar year 2010 from these vendors. Based on these contracts, we do not believe that these changes described will have a material impact on our results for fiscal year 2010.

Our top ten vendors supplied products that accounted for approximately 68% and 74% of our revenues for the nine months ended June 30, 2010 and 2009, respectively, and 74% of our revenues for the fiscal year ended September 30, 2009. Pfizer supplied products that accounted for approximately 25% and 24% of our revenues during the nine months ended June 30,

2010 and 2009, respectively, and 24% of our revenues for our fiscal year ended September 30, 2009. Of the Pfizer supplied products, production animal products under a livestock agreement accounted for approximately 11% and 14% of our revenues during the nine months ended June 30, 2010 and 2009, respectively, and approximately 14% of our revenues for our fiscal year ended September 30, 2009. Fort Dodge supplied products that accounted for 11% of our revenues during the nine months ended June 30, 2009, and 11% of our revenues for our fiscal year ended September 30, 2009. Intervet-Schering, a subsidiary of Schering Plough, supplied products that accounted for approximately 10% and 11% of our revenues during the nine months ended June 30, 2010 and 2009, respectively, and 11% of our revenues for our fiscal year ended September 30, 2009. Boehringer Ingelheim supplied products that accounted for approximately 10% and 4% of our revenues during the nine months ended June 30, 2010 and 2009, respectively, and 4% of our revenues for our fiscal year ended September 30, 2009. Merial, a subsidiary of Sanofi-Aventis, supplies the majority of their products to us under an agency relationship. Commission revenue generated from Merial products accounted for approximately 50% and 55% of total commission revenues for each of the nine months ended June 30, 2010 and 2009, and 56% of total commission revenues for our fiscal year ended September 30, 2009.

Read the The complete Report

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