Given the last year and a half, it’s understandable that much of the biotech spotlight has been hogged by vaccine manufacturers. Investors have been seeking out the pharma plays who stand to best deliver a product in the fight against the novel coronavirus pandemic. What’s taken a backseat since then has been the industry of animal healthcare. Zomedica (NYSE:ZOM) is bringing veterinary medicine back into the public eye with its newest acquisition. ZOM stock is benefiting from the upside.
Zomedica is a Michigan-based veterinary medicine company founded just eight years ago. The company places emphasis on diagnostics, helping veterinarians more easily and less invasively diagnose animal patients. Its flagship product is Truforma, a diagnostic machine that helps vets diagnose a number of feline and canine diseases.
ZOM Stock Booms Upward With PulseVet Acquisition
ZOM stock is making waves on Wall Street today. This is due in large part to its acquisition of PulseVet, another manufacturer of veterinary technology. The company announced the acquisition this morning in a press release, providing some details of the transaction. The acquisition is an all-cash one worth nearly $71 million. Not much is known around the details of the deal outside of this.
What we do know, though, is that this is a great step for Zomedica in advancing its business model. CEO Robert Cohen says the deal accomplishes the company’s goal to “complement our Truforma product platform.”
The deal does this by putting PulseVet’s “trode” technology under the Zomedica umbrella. The X-Trode, PulseVet’s newest product, is showing great promise as a method of shock wave therapy for both indoor pets and farm animals. Additionally, the trodes are disposable and ready to use without sedation. According to the press release, the company has already employed the devices across 1,500 veterinary clinics worldwide.
This transaction will do great to beef up Zomedica’s roster of technology ready to deploy to customers around the globe. Investors quite obviously agree, judging by ZOM stock’s movement this morning. The stock is up nearly 13% on the announcement. Additionally, over 62 million shares of ZOM are trading hands already against a daily average volume of just 27 million.
On the date of publication, Brenden Rearick did not have (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.