Little-known Zomedica (NYSEMKT:ZOM) has absolutely been on fire in recent weeks, posting gains of more than 1,000% since November. In fact, ZOM stock is once again rallying, with shares up nearly 100% on Monday. So what do you need to know about the pet care play? And what is behind the massive move in ZOM stock?
Essentially, Michigan-based Zomedica focuses on revolutionizing pet care. As the company tells it, to improve vet care, we need more successful vets. To have more successful vets, we need better diagnostic tools and better support services. Zomedica wants to help provide those diagnostic tools and fil unmet veterinary needs.
With that in mind, here is what you need to know about Zomedica and ZOM stock now:
- Zomedica has only been around since 2015, but it is ready to tackle the challenges in companion pet health.
- Specifically, the company works to develop and commercialize pharmaceuticals for pets like dogs and cats.
- In its pipeline, Truforma is one of its key focuses.
- This point-of-care platform works to detect certain thyroid and adrenal issues in dogs and cats.
- Importantly, Zomedica works with Qorvo Biotechnologies to develop and commercialize this platform.
- And although Truforma is only approved for investigational use, it is already turning heads on Wall Street.
- Many experts appreciate that it speeds up the diagnostic process and helps veterinarians make better and quicker decisions.
- Investors should note that Zomedica has two other candidates in its pipeline.
- The first is ZM-020, a point-of-care platform for urine and fecal testing.
- The second is ZM-017, a canine cancer liquid biopsy platform.
- Investors should also note that ZM-017 is in the validation stage, and focuses on liquid biopsies for hemangiosarcoma and osteosarcoma.
- Zomedica also has generated headlines recently for appointing medtech specialist Robert Cohen as CEO.
ZOM Stock: Why Zomedica Shares Are on Fire
Beyond 1,000%-plus returns from ZOM stock, there is a lot for investors to like. To start, Zomedica plans to start commercializing its Truforma platform sometime in March 2021. Ahead of that business update, many investors are trying to get in on the so-called ground floor of this pet care play. But where does all of this interest in the pet care space even come from?
Well, it turns out that InvestorPlace analyst Luke Lango knows a thing or two about Zomedica and the catalysts behind it. As Lango tells it, consumers value their pets more than ever. That makes a lot of sense. The novel coronavirus pandemic brought Americans home in record numbers, and a huge part of the population remains at home most days. That means companionship is in high demand. As consumers adopt dogs and cats and increasingly value their companionship, the market for pet care continues to grow. Enter in Zomedica, which promises to take care of Fluffy and Fido.
The booming pet care market, which Zomedica estimates is worth as much as $10 billion, means there is a real opportunity for Truforma and the other pipeline products. In fact, Lango sees as much as 200% more upside from current prices.
But what about the rally today? It looks like Tiger King star Carole Baskin feels similarly about Zomedica… or at least one of her fans on the platform Cameo does. In a new YouTube video, Baskin thanked Zomedica for helping her take care of her tigers. As Chris Katje wrote for Benzinga, however, it appears a fan paid $299 for that video to be made.
Whether or not the endorsement from Baskin is legitimate, ZOM stock is in the spotlight. Keep a close eye on the pet care play and brace yourself for more gains ahead.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.