Michigan-headquartered veterinary testing and pharmaceutical product specialist Zomedica (NYSEAMERICAN:ZOM) just disclosed that it has acquired the assets of Revo Squared. This could significantly add to Zomedica’s value to the shareholders, and ZOM stock is rising quickly today.
Just to provide some background info, Zomedica’s flagship product is a pet diagnostics platform known as Truforma. It appears that the company isn’t averse to enhancing its digital imaging technology through acquisitions, as Revo Squared is an innovative veterinary imaging company.
What will Zomedica get with its purchase of Revo’s assets? The company will have access to Revo’s MicroView digital cytology platform, which provides veterinarians with “best-in-class image quality while providing the first in-clinic automated slide preparation system.”
Unfortunately, slide-preparation errors are reportedly the number-one reason (as cited by pathologists) for being unable to read a slide. Revo’s (and now, Zomedica’s) MicroView platform can help to address this problem by “automating the process to assure a consistent smear and stain to produce a readable slide.”
What’s Happening With ZOM Stock?
Traders cheered this development, pushing ZOM stock 5% in the early morning and even lifting it 11% by 11 a.m. This bullish price move might just be a drop in the bucket, though, as the stock is still far below its 52-week high of 80 cents.
Still, practically any news is good news at this point for Zomedica’s downtrodden shareholders. Zomedica COO Tony Blair marked the occasion with optimism, saying: “We’re excited to bring the MicroView platform to our new facility.” Presumably, he’s referring to Zomedica’s new manufacturing and distribution center in Roswell, Georgia.
Blair added that Zomedica looks forward to developing the manufacturing site and the workforce currently operating there “further to bring MicroView to the veterinary market in 2023.” So, the market won’t likely see the results of Zomedica’s newly acquired digital imaging technology immediately. Nevertheless, ZOM stock traders are excited about the prospect of improved outcomes for furry patients — and for folks who’ve been holding Zomedica shares for the long term.
On the date of publication, David Moadel 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.