Butler Schein Animal Health, a division of worldwide healthcare products and services distributor Henry Schein ( HSIC ), recently entered into a distribution agreement with OncoPet Diagnostics, a wholly owned subsidiary of BioCurex Inc. As per the agreement, Butler Schein will distribute OncoPet Sample Collection Kit for the diagnosis of canine cancer to its huge network of veterinary professionals in the US.
Presently, Butler Schein is working in association with more than 400 animal health manufacturers across the world. In US, this division is distributing a wide range of veterinary products and strategic business solutions to over 26,000 veterinary professionals. For the past one year, Henry Schein is constantly focusing on Butler Schein and deploying its several new initiatives to drive sales growth by expanding its product portfolio and strengthening customer relations.
The company is currently emphasizing on the companion animal segment of animal health market. Henry Schein is continuously driving sales by enhancing its product offering and strengthening customer relations. During the third quarter of fiscal 2011, the company's animal health segment witnessed a revenue growth of 9.4% primarily attributable to the growth in companion animal and equine space and improved customer relationships.
Consistent growth has been a hallmark of Henry Schein over the past, and is likely to remain so in the future, despite the prevailing uncertain economic environment. Multiple growth drivers and margin expansion capability ensure sustained earnings growth and cash flow performance for the company. Solid North American Animal Health results during the last reported quarter reflected the success of the Butler-Schein integration and the impact of Henry Schein's core competencies on the Animal Health business in the US.
However, competition in this space remains tough. Henry Schein's primary competitors in the Veterinary market are Patterson Companies Inc. ( PDCO ) and MWI Veterinary Supply ( MWIV ). Currently, Henry Schein retains a short-term Zacks#3 Rank (Hold), which also corresponds to our long-term 'Neutral' recommendation on the stock.