Would Zomedica (ZOM) Stock Fulfil What It Promises?

Zomedica (NYSEAMERICAN:ZOM), a veterinary health company creating products for companion animalsby focusing on the unmet needs of clinical veterinarians, seems to be stagnating. The commercial success of its flagship product Truforma still remains unclear. Though the potential of Truforma which is intended to have five initial assays to test for adrenal and thyroid disorders, followed by many more assays to address other disease states is clear but there is a lot of uncertainty in its sales platform which makes the investors dubious.

 Coming directly from the Management desk of the company that changes to its sales force will lead to a “later adoption curve than anticipated” is a discouraging sign indeed. Much of the responsibility now rests on the shoulder of the sales team which would thereby decide the course that the company would take in the coming months. However, one could not overlook the fact that Zomedica is exactly where it was three or four months ago on its most important fronts. The company at that time was relying on Miller Veterinary Supply to sell Truforma under a distributor model.

Even the business updates released by the company recently does not throw enough light on the current efforts to ramp up sales. The update simply stated that the company might have as many as 15 direct sales reps by the end of 2021. That tells investors something, but nothing substantial which would catalyse investment in an investor’s opinion.

Though, there is no two-ways about the potential that the flagship product of the company, Truforma holds has a ton of potential but the stagnation which the company is currently in is a bit alarming. There is no doubt that veterinary medicine is a profitable niche to be in but only when it is successful in commercializing its product Truforma.