Yahoo Finance IDEXX (IDXX) Collaborates With PetDx for Canine Cancer Test
IDEXX Laboratories IDXX recently entered into a partnership deal with San Diego-based PetDx Inc. – The Liquid Biopsy Company for Pets. The collaboration is aimed to expand access to PetDx canine cancer liquid biopsy test, OncoK9 leveraging on IDEXX’s huge distribution network.
This latest development is expected to boost IDEXX’s Companion Animal Group (CAG) business. However, the financial terms of the deal were not disclosed.
More on the News
OncoK9 liquid biopsy test by PetDx is for the detection of cancer in dogs. It was launched in 2021 and has been recognized as the first and only liquid biopsy test for the detection of cancer-associated genomic alterations in dogs. This advanced test leverages next-generation sequencing (NGS) technology and proprietary bioinformatics algorithms to offer new cancer-detection capabilities for better care of canine patients.
Image Source: Zacks Investment Research
Per the partnership deal, this test will be available later in January to all veterinary customers of IDEXX in the United States and Canada.
Market Opportunities
Going by the company release,cancer is by far the leading cause of death in dogs, with an estimated six million new cancer diagnoses made each year in the United States, which has a population of approximately 90 million pet dogs.
Going by a Global Market Insights report, the pet cancer therapeutics market size exceeded $220 million in 2020 and is anticipated to witness a CAGR of over 10.1% between 2021 and 2027. Going by the report, apart from the growing incidence of pet cancers, the rising awareness among pet owners is driving market growth significantly.
In such a scenario, the latest development seems strategic for IDEXX.
IDEXX's CAG Update
IDEXX derives the lion’s share of its revenues from the CAG segment. In the third quarter of 2021, CAG revenues rose 11.5% year over year organically, driven by double-digit gains across the United States and international markets. More specifically, the year-over-year improvement was driven by 15% organic growth in veterinary software services and diagnostic imaging revenues in addition to benefits from the company’s recent ezyVet acquisition and 33% year-on-year growth in CAG Diagnostic instrument revenues. Once again, the company achieved very high levels of supply chain reliability across its business.
Continued strong U.S. CAG diagnostic recurring revenue growth was supported by year-on-year gains in U.S. clinical business. U.S. clinical visit growth was 2% in the third quarter on solid gains across wellness and non-wellness categories. On a two-year basis, U.S. same-store clinical visit growth increased at a 4.4% average annual rate, sustaining above annual clinic visit growth trends.
Share Price Performance
Over the past year, IDEXX has been outperforming its industry with respect to share price movement. The stock has gained 8.2% against the 3.9% fall of the industry.
Zacks Rank and Key Picks
IDEXX currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
A few better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Apollo Endosurgery, Inc. APEN and Laboratory Corporation of America Holdings LH.
AMN Healthcare, carrying a Zacks Rank #1, has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average.
AMN Healthcare has outperformed its industry over the past year. AMN has gained 66.1% versus the 54.9% industry decline.
Apollo Endosurgery, carrying a Zacks Rank #1, has a long-term earnings growth rate of 7%. The company‘s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 25.6%, on average.
Apollo Endosurgery has outperformed its industry in the past year. APEN has gained 125.6% compared with the industry’s 1.2% growth.
Laboratory Corporation surpassed earnings estimates in each of the trailing four quarters, the average surprise being 25.7%. The company currently sports a Zacks Rank #1.
Laboratory Corporation’s long-term earnings growth rate is estimated at 10.6%. The company’s earnings yield of 9.4% compares favorably with the industry’s 3.4%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report
AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
Apollo Endosurgery, Inc. (APEN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
