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.
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.
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.
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