Ann Arbor, Michigan-based Zomedica (NYSEAMERICAN:ZOM) specializes in veterinary testing and pharmaceutical products. Yet, rather than focus on what the company does, some folks have pigeonholed ZOM stock as a meme stock.
As we’ll see, the stock did exhibit some meme-worthiness earlier this year. However, serious investors should consider Zomedica’s business model first and foremost. They should also consider who’s running the company.
At the executive level, Zomedia is undergoing a major change-over. That’s not a bad thing at all, though. The incoming executive has a wealth of experience and expertise to offer.
Meanwhile, Zomedica is becoming a bigger and, perhaps, a more interesting company through a notable acquisition. When the dust clears, these changes could revitalize Zomedica and bring more investors into the fold.
ZOM Stock at a Glance
You may recall that early 2021 was a time of meme-stock frenzy. Seemingly, mobs of Reddit users were orchestrating short squeezes on certain stocks.
Was ZOM stock among them? I’ll let you decide for yourself. Suffice it to say that the stock cost less than 10 cents for much of 2020, but then shot up to a 52-week high of $2.91 on February 8, 2021.
There was no company-specific news catalyst to justify a rally of that magnitude. Therefore, it’s entirely possible that social-media traders were involved. Looking back now, we can find a lesson in the wild price action of ZOM stock: Chasing after vertical share-price moves can result in capital loss.
Starting in the middle of March, the Zomedica share price tumbled back below $1, and then down to 50 cents. As of Oct. 5, the stock had settled at 51 cents.
The $1 level should be viewed as an important objective for the remainder of the year. If ZOM stock clears that hurdle with heavy trading volume, then $1.45 and $1.70 will be reasonable targets.
Big Changes Afoot
Just to review, Zomedica’s main product is a pet diagnostics platform known as Truforma.
This product provides immunoassays, or diagnostic tests for various diseases. With that, veterinarians can make clinical decisions faster and more accurately.
Zomedica is still a small company, but it’s developing well. On March 15, Zomedica commenced commercialization of Truforma.
Additionally, Zomedica has an action plan to get the Truforma platform into veterinary clinics. It’s called the Customer Appreciation Program, and it involves a written agreement in which customers agree to purchase assay cartridges for use on a Truforma Instrument.
So, there’s a lot going on at Zomedica — and now, we can add a major C-Suite change.
According to the company, CEO Robert Cohen is retiring. Larry Heaton, who had already been appointed president effective Oct. 1, will succeed him.
It’s reasonable to say that Zomedica will continue to be in good hands. As an inventor on several U.S. patents, Heaton brings more than 35 years of executive leadership and operations experience from the medical device and biotechnology industries.
Throughout his lengthy career so far, Heaton has focused extensively on commercialization and business development in both large-cap and early-stage medical-device companies.
In other words, he’s an excellent fit for Zomedica right now.
From Diagnostics to Healing
In the accompanying press release, Heaton mentioned a recent acquisition, which he said “reflects the opportunity to utilize available capital to expand our offerings to our combined customer base.”
He was referring to Zomedica’s acquisition of PulseVet, also known as Pulse Veterinary Technologies.
Simply put, PulseVet specializes in electro-hydraulic shock-wave technology for pets in a veterinary setting. Whereas Truforma focuses on diagnostics, PulseVet’s technology is geared toward healing, including tendon and ligament healing, bone healing, osteoarthritis, chronic pain and wound healing.
It uses high-energy sound waves to stimulate cells and release healing growth factors in the body that reduce inflammation, increase blood flow and accelerate bone and soft-tissue development, according to the press release.
With 1,500 systems actively in use globally, PulseVet could be considered a leader in this niche market.
It will be interesting to see how the PulseVet acquisition modifies and augments Zomedica’s diagnostics-focused business model.
At the same time, the stakeholders should gladly anticipate Zomedica having Heaton at the helm.
It’s a whole lot of change in a short period of time. Yet, change isn’t necessarily a bad thing — and with it, ZOM stock could turn around and reclaim some lost levels.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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