People love their pets – sometimes as much (or more) as family. Zomedica Corp. (NYSEAMERICAN:ZOM) stock is a bet on that kind of devotion to our furry friends.
Zomedica is a Michigan-based veterinary testing and pharmaceutical company that’s been on the move as of late. Just three months ago, ZOM stock was trading for about 6 cents per share. Now it’s around $1.
The company has a new CEO, a new distribution deal and a product that is getting a lot of attention.
But can it move out of penny-stock status and continue its upward trajectory?
Let’s take a closer look.
ZOM Stock and the Carole Baskin Boost
For some investors, Zomedica entered public consciousness thanks to a star of a Netflix (NASDAQ:NFLX) documentary.
A few weeks ago, someone paid $299 to Carole Baskin, one of the central figures of Tiger King: Murder Mayhem and Madness, to mention Zomedica in a video that was posted to YouTube.
Baskin said in the video that “they help our veterinarians and our furry friends.” She goes on to say that “they think it’s going to be a really big seller” and tells people they should look into the company.
“It’s going to be a good one,” she said. “I just feel it in my cat bones.”
Baskin later acknowledged that the mention was part of a Cameo video she was paid to record. She even said she doesn’t make stock recommendations. But the stock market didn’t care – ZOM stock rallied by 230% in a single day, with 1 billion shares traded.
Truforma
A couple of weeks later, ZOM stock got a more traditional boost. It announced a deal with Miller Veterinary Supply. The deal covers Zomedica’s first product, Truforma, that will go on sale at the end of March.
Truforma is covered by more than 70 patents and is a diagnostic platform that will be able to diagnose thyroid and adrenal problems in dogs and cats.
That’s a big deal, because sometimes people know that their dogs and cats are sick. But they have no idea why since their furry buddies can’t talk.
Truforma allows veterinarians to get a blood sample from an ill pet into a disposable cartridge and load it into the Truforma device, which is about the size of a shoebox. Truforma gives veterinarians a diagnosis in 20 minutes, rather than waiting for expensive and lengthy laboratory tests.
Miller Veterinary Supply will sell the Truforma devices to veterinarians from Maine to Texas to be sold from Texas. Miller is the oldest wholesale veterinary distributor in the U.S.
A Permanent Leader
Zomedica has been a public company since 2016, but it hasn’t turned a profit yet. That may change under its new (but not-so-new) chief executive, Robert Cohen.
Last summer, Cohen was named interim CEO and a member of the board of directors. Zomedica obviously likes what he’s been doing there, because in January board chairman Jeffrey Rowe announced the company was stripping the “interim” designation from Cohen’s title.
Over the past six months we have enjoyed collaborating with Rob and have been thoroughly impressed with his business acumen and the professional leadership skills he has brought to Zomedica at such a crucial time. The Board is excited that Rob has agreed to accept the CEO position as we near our most pivotal milestone. Rob’s successful track record in launching medical devices is perfectly aligned for Zomedica’s needs as we complete the development of our TRUFORMA™ platform and achieve its commercial launch. The Board and our employees remain excited about the near-term launch, our commercialization strategy, and Zomedica’s longer-term growth opportunity.
The Bottom Line
Having a stable leader is critical as Zomedica rolls out its Truforma product. The next few months will be telling as the company tries to move out of penny-stock status.
There are millions of pet owners who will do anything to make sure Fido and Fluffy are well-cared for. The market for pet diagnostic testing was at $2.1 billion in 2018. It’s projected to grow by more than 8% per year through 2016.
That gives Zomedica a solid opportunity for growth, particularly as it takes Truforma from coast to coast.
ZOM stock has a an “A” grade and a strong buy recommendation in my Portfolio Grader right now.
On the date of publication, Louis Navellier did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, the InvestorPlace Research Staff member primarily responsible for this article recently initiated a long position in ZOM. The InvestorPlace Research Staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system —with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
