Shares of Zomedica ( ZOM 1.33% ) soared on Monday, extending the veterinary health company's torrid gains in recent days. As of 1:30 p.m. EST, Zomedica's stock price was up 103%.
Investors appear to be buying in ahead of Zomedica's upcoming launch of its Truforma point-of-care diagnostic platform for cats and dogs on March 30. Truforma's patent-protected system uses bulk acoustic wave (BAW) technology, which is said to be precise and reliable.
"It certainly is a pleasure to be able to deliver such good news for our shareholders, employees, partners, and, especially, the veterinarians whom we serve," CEO Robert Cohen said in November in a press release announcing the launch. "It is a credit to all of our employees and their laser focus on advancing Truforma over the last many months that we are able to move into this final phase as we approach the commercial availability of our first product."
The pet market is surging during the pandemic, as work-from-home arrangements allow more people to adopt cats and dogs. Spending on pets, including food and veterinary care, reached a new high of $99 billion in the U.S. alone in 2020, according to the American Pet Products Association. Within this massive market, spending on diagnostic care is forecasted to rise from $1.7 billion in 2019 to $2.8 billion in 2024.
To meet the expected strong demand for its new diagnostic platform, Zomedica is ramping up its sales capabilities ahead of Truforma's upcoming commercial launch. Notably, Zomedica has made Truforma capable of being installed remotely, which should help to boost sales, by making installations easier and safer during the COVID-19 crisis.