Zomedica Pharmaceuticals (NYSEMKT:ZOM) is on the move this morning after the under-the-radar play in the pet care space named a new CEO to lead the startup diagnostics firm. ZOM stock surged as much as 30% in pre-market activity.
Picked to lead the Ann Arbor, Michigan-based company is Robert Cohen, a med-tech veteran who has previously served as Zomedica’s interim CEO and as a board member. The appointment will put the executive at the helm of the point-of-care diagnostics provider just weeks ahead of its planned start of commercialization of its Truforma platform in March.
Truforma uses bulk acoustic wave (BAW) technology to help detect thyroid and adrenal diseases in dogs and cats. Importantly, Zomedica says that this BAW tech helps improve accuracy, precision and timeliness. Instead of waiting for results, the Truforma platform can give patients insight during an initial appointment.
Pandemic Pet Adoptions Fuel ZOM Stock
If you’ve tried to adopt a pet from a shelter lately, you probably already know that folks have looked to dogs and cats for companionship during the pandemic and resulting lockdowns. Those domestic beasts need caring, which has provided a catalyst for ZOM stock and other names in the pet health and care space.
One of the top online retailers of pet food and supplies, Chewy (NYSE:CHWY) enjoyed an obvious catalyst due to Covid-19. Insurance fintech Lemonade (NYSE:LMND) is in on the action with its pet insurance offering, which the company said drew a significant number of new customers to the platform.
Americans Love Their Pets
As InvestorPlace analyst Neil George noted last month, that FactSet Research Systems (NYSE:FDS) Pet Care Index had returned more than 47% through Dec. 3 — dwarfing the S&P 500’s then return of 15.34%.
That greater number of pet-populated households makes for pet-related spending that is rivaling that of childcare. According to the American Pet Products Association (APPA), pet spending for 2020 was projected to come in at $99 billion, up from $95.7 billion in 2019 and $90.5 billion in 2018. That represents a climb of 9.39% in just two years alone.
All that adds up to a strong case for pet stocks. Look for dip-buying entry points into this big-growth sector that continues to show resiliency and strength.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.