Initiating Coverage with a Price Target of US $3.24
NEW YORK, NY / ACCESSWIRE / December 1, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has initiated coverage on Zomedica Pharmaceuticals Corp. (NYSE American: ZOM) with a 12-month price target of US $3.24.
The report is available here: ZOM Initiation Report.
We initiate coverage on Zomedica Pharmaceuticals Corp. (TSXV: ZOM, NYSE American: ZOM, "Zomedica") with a price target of CAD $4.00 / USD $3.24. Based in Ann Arbor, MI, Zomedica is a veterinary healthcare solutions company developing pharmaceutical and diagnostic solutions for companion animals (dogs, cats, and horses). Zomedica has a strong management team comprised of veterinarians and scientists, as well as sales and marketing professionals. Zomedica is led by Chairman and CEO Gerald Solensky Jr., who is supported by an impressive team of executives with senior-level experience at a number of leading companies in the animal healthcare space, including IDEXX Laboratories and Pfizer Animal Health, among others. Zomedica's mission is to provide needs-driven solutions that give veterinarians the opportunity to lower costs, increase productivity and grow revenue while better serving the animals in their care. To achieve this mission, Zomedica established an extensive veterinarian engagement platform, Voice of The Vet™, and is developing a pipeline of diagnostics, instruments, therapeutics and drug delivery methods specifically designed to address unmet needs in healthcare for companion animals. Zomedica plans to bring its first commercial products - canine cancer diagnostics - to market in 2018, and is also currently developing a pharmaceutical pipeline designed for the companion animal market, which, pending regulatory approvals, we expect to launch commercially by 2021.
Highlights of the report include:
Zomedica to introduce first diagnostic in 2018
Zomedica's first commercial products are expected to target the large and growing market for canine cancer - approximately 6mn dogs in the US are diagnosed with cancer each year, and, according to the Veterinarian Cancer Society, one out of four dogs will develop cancer at some point in their lifetime. Leveraging a research collaboration agreement with strategic partner Celsee Diagnostics, Inc., Zomedica is developing cost-effective diagnostics that have the potential to be faster, non-invasive, and earlier to identify cancer than current solutions, which can cost up to $2,000 for an initial diagnosis and may include expensive imaging and invasive tissue biopsy. By contrast, Zomedica's solution is designed to indicate a cancer diagnosis at a fraction of the cost, with a blood test designed to detect circulating tumor cells ("CTC") - cells that have shed from a primary tumor into nearby circulating blood. We believe Zomedica is planning to commercialize its first line of CTC tests, which will likely focus on a subset of prevalent canine cancers, for market launch in 2018, with additional tests to follow thereafter. The CTC tests require neither Food and Drug Administration Center for Veterinary Medicine ("FDA-CVM") nor United States Department of Agriculture ("USDA") approval.
Pharmaceutical strategy offers compelling risk / reward tradeoff
Zomedica is also developing a portfolio of therapeutics and drug delivery methods targeting unmet needs of clinical veterinarians. Veterinarians often are forced to rely on human drugs that are expensive, off-label or compounded, and not proven safe and effective for pet patients. Zomedica is investigating the safety and efficacy of human approved drugs in companion animal species-specific doses, delivery methods, and formulations. The company is advancing this pipeline through the FDA-CVM approval process, which management believes positions the company to benefit from 3 - 7 years of exclusivity per product upon market arrival.
Initiate coverage with price target of CAD $4.00
We initiate coverage of Zomedica with a price target of CAD $4.00 / USD $3.24. In our view, Zomedica is pursuing a differentiated approach targeting unmet needs in diagnostics and therapeutics in the $10Bn companion animal market.
Please review important disclosures on our website at www.seethruequity.com.
About Zomedica Pharmaceuticals Corp.
With U.S. operations based in Ann Arbor, Michigan, Zomedica Pharmaceuticals Corp. is a veterinary pharmaceutical and health care solutions company creating products for companion animals (canine, feline and equine) by focusing on the unmet needs of clinical veterinarians. Zomedica is developing a diversified portfolio to include diagnostics, devices, innovative drugs, and drug-delivery technologies. With a team comprised of clinical veterinary professionals and industry experts, it is Zomedica's mission to give veterinarians the opportunity to lower costs, increase productivity, and grow revenue while better serving the animals in their care. For more information, visit www.ZOMEDICA.com.
About SeeThruEquity
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.
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For more information visit www.seethruequity.com.
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SOURCE: SeeThruEquity