Zomedica Corp (NYSE: ZOM) stock disappointed the investors, and now it trades at $.97 on June 3, 2021. It is on a steady decline after reaching a high of $2.70 on February 8, 2021.
The medical device company – Zomedica focuses on offering a diagnostic tool for use in the veterinary industry. Its main target is to provide an opportunity to veterinarians to improve productivity and boost revenues through providing a better service to the animals.
The market for veterinary services
The demand for veterinary services in 2019 is $29 billion and expects to reach $30.8 billion in 2021 and $50.8 billion in 2028.
Posts a loss
Zomedica reported a loss of $4 million in Q1 2021. Its TRUFORMA products posted revenues of $14,124 in Q1 2021 in just two weeks of launch.
Zomedica commenced the sale of TRUFORMA products on March 16, 2021.
The company expects to post improved revenues of TRUFORMA® products in the subsequent quarters with increased marketing activities.
Its R&D spending in Q1 2021 is dropped by $0.2 million to $0.4 million mainly due to reduced development costs associated with TRUFORMA® products and curtailing some research activities.
Zomedica’s G&A expenses are increased by 105% YoY to $3.5 million in Q1 2021. The company holds CE (Cash Equivalents) and cash holdings of $276.6 million at the end of Q1 2021.
Zomedica’s CEO, Robert Cohen, said it is a momentous day for the company, veterinarians, and shareholders. He admired the people who made significant efforts in the past two years to achieve this important milestone.
The company developed an innovative diagnostic tool with the help of its partner – Qorvo Biotechnologies LLC.
Qorvo’s president, James Klein, said the company leverages its BAW (Bulk Acoustic Wave) RF (Radio Frequency) technology to develop several products like veterinary diagnostics, 5G cellular infrastructure, mobile phones, and WiFi routers.
James further stated the introduction of the TRUFORMA platform is a disruptive and exciting achievement for veterinary diagnostics.
Zomedica sold its first TRUFORMA product to New York based Guardian Veterinary Specialists’ president, Jason Berg.