Tangible catalyst behind surge is due to the upcoming launch of Truforma, Zomedica’s point-of-care (POC) diagnostic device for the detection of thyroid disease in dogs and cats and adrenal disease in dogs.
The platform will hit the market on March 30, and ahead of the product’s debut, the company has also just nabbed a vital distribution deal.
Last week, Zomedica announced an agreement with Miller Veterinary Supply who will distribute Truforma.
Miller is the U.S.’s oldest wholesale veterinary distributor and one of the veterinary industry’s fastest growing businesses. The company will be Zomedica’s representative in the eastern and mid-eastern states. Its sales and customer service efforts will be bolstered by sales representatives assigned by Zomedica, which the company is currently recruiting as it prepares for the launch.
The pet market has been a prime beneficiary of the pandemic’s stay-at-home mandates and according to the American Pet Products Association, spending in the segment reached a record $99 billion in the U.S. last year. Outlay on diagnostic care in this market is expected to grow to $2.8 billion in 2024 from $1.7 billion in 2019.
H.C. Wainwright analyst Swayampakula Ramakanth says that ahead of Truforma’s debut, the agreement “strengthens the commercial machinery.”
“We are encouraged by the progress in commercial preparation for the upcoming launch, and accordingly we are raising the probability of launch to 90%, up from 75% previously,” the 5-star analyst said. “Additionally, due to the lower yield of the long-term Treasury note that has resulted in a lower risk-free rate and a lower market risk premium, we have adjusted the discount rate to 6% from 12%.”
To this end, Ramakanth boosted his price target on ZOM from $0.3 to $1.2, suggesting upside of an additional 20% from current levels. Needless to say, Ramakanth’s rating stays a Buy.
finance.yahoo.com/ne...month-180326451.html
The platform will hit the market on March 30, and ahead of the product’s debut, the company has also just nabbed a vital distribution deal.
Last week, Zomedica announced an agreement with Miller Veterinary Supply who will distribute Truforma.
Miller is the U.S.’s oldest wholesale veterinary distributor and one of the veterinary industry’s fastest growing businesses. The company will be Zomedica’s representative in the eastern and mid-eastern states. Its sales and customer service efforts will be bolstered by sales representatives assigned by Zomedica, which the company is currently recruiting as it prepares for the launch.
The pet market has been a prime beneficiary of the pandemic’s stay-at-home mandates and according to the American Pet Products Association, spending in the segment reached a record $99 billion in the U.S. last year. Outlay on diagnostic care in this market is expected to grow to $2.8 billion in 2024 from $1.7 billion in 2019.
H.C. Wainwright analyst Swayampakula Ramakanth says that ahead of Truforma’s debut, the agreement “strengthens the commercial machinery.”
“We are encouraged by the progress in commercial preparation for the upcoming launch, and accordingly we are raising the probability of launch to 90%, up from 75% previously,” the 5-star analyst said. “Additionally, due to the lower yield of the long-term Treasury note that has resulted in a lower risk-free rate and a lower market risk premium, we have adjusted the discount rate to 6% from 12%.”
To this end, Ramakanth boosted his price target on ZOM from $0.3 to $1.2, suggesting upside of an additional 20% from current levels. Needless to say, Ramakanth’s rating stays a Buy.
finance.yahoo.com/ne...month-180326451.html