U.S. markets closed

IDEXX Launches Cytology Service to Upgrade Veterinary Care

Zacks Equity Research

IDEXX Laboratories, Inc. IDXX launched a rapid digital cytology service namely IDEXX Digital Cytology, powered by its VetConnect PLUS software. The cytology service will digitally connect veterinarians to a large network of more than 100 veterinary clinical pathologists, enabling them to receive cytology interpretations within two hours.

Notably, the cytology service will be available to IDEXX customers in North America by mid-February. Once launched, the service will be available round the clock.  

With the launch, the company aims to fortify its position in Companion Animal Group (“CAG”) globally.


Significance of the Launch

IDEXX believes the launch to be a stepping stone for veterinarians toward rapid clinical decision-making, faster case management and providing an improved client experience. With the launch, veterinarians will be able to speed up healthcare delivery, in turn, easing anxiety for pet owners in cases of critical situations. This will likely enable client continuity.

The launch will enable veterinarians to incorporate requisitions for cytology reports into the same workflows used for in-house diagnostics and other IDEXX Reference Laboratories services. Veterinarians, who use IDEXX Reference Laboratories for digital cytology, can also use existing workflows for specimen submission.

Industry Prospects

Per a report by MarketsAndMarkets, the global companion animal diagnostics market is expected to reach $2.7 billion by 2024 from $1.7 billion in 2019, witnessing a CAGR of 9.8%. Factors like growing companion animal population and high demand for efficient monitoring along with awareness about pet health are expected to drive the market.

Given the market potential, the launch is well-timed.

Recent Developments in CAG

IDEXX, in January 2020, announced the latest updates to its SediVue Dx Urine Sediment Analyzer, Catalyst Dx and Catalyst One chemistry analyzers, and Web PACS cloud-based diagnostic imaging software. These updates enabled the capabilities of each platform to expand.

In October 2019, IDEXX announced that SDMA-based chronic kidney disease (CKD) staging guidelines were generated and approved by the International Renal Interest Society (IRIS). Per the recognition, the company will partner IRIS to support veterinarians in understanding the medical efficacy of the SDMA test, and in generating tools that will help form the basis of future veterinary medicine and patient care.

Price Performance

Shares of IDEXX have gained 42.3% in the past year compared with the industry’s 14.5% growth.

Zacks Rank & Key Picks

Currently, the company carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the broader medical space are Haemonetics Corporation HAE, Hill-Rom Holdings, Inc. HRC and Medtronic plc MDT.

Haemonetics currently has a Zacks Rank #1 (Strong Buy) and a projected long-term earnings growth rate of 13.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hill-Rom’s long-term earnings growth rate is estimated at 11.7%. The company currently carries a Zacks Rank of 2 (Buy).

Medtronic’s long-term earnings growth rate is expected at 7.4%. It currently has a Zacks Rank #2.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

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
IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Hill-Rom Holdings, Inc. (HRC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research