Zomedica Pharmaceuticals Corp (NYSEAMERICAN: ZOM) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a new development and supply agreement with Qorvo, exciting investors who are sending the stock on a run for the top. Today, we’ll talk about:
- The agreement;
- what we’re seeing from ZOM stock as a result; and
- what we’ll be watching for ahead.
ZOM Announces Agreement With Qorvo
As mentioned above Zomedica Pharmaceuticals is having a great start to the trading session this morning after the company announced that it has entered into a new development and supply agreement. The agreement was signed with Qorvo Biotechnologies, a subsidiary of Qorvo, Inc. The agreement is focused on bringing Qorvo’s piezo-electric Bulk Acoustic Wave (BAW) seonsor to the veterinary health sector.
Under the terms of the agreement, ZOM has exclusive, global rights to develop and market this investigational point-of-care diagnostic platform for veterinary use. The two companies will collaborate and develop veterinary diagnostic assays with the goal of delivering reference-lab performance at the point of care.
In the beginning, the two companies will target five assay cartridge candidates that are designed to detect thyroid and adrenal disorders in dogs and cats that currently require reference lab immunoassay testing for diagnostic and treatment management.
The market potential here is absolutely massive. In fact, the immunodiagnostics segment is expected to account for the largest share of the veterinary diagnostic market in the year 2018, a market that is expected to reach a value of $4 billion by 2023. In a statement, Gerald Solensky, Jr., Chairman and CEO at ZOM, had the following to offer:
We believe Qorvo’s patented diagnostic technology has the potential to significantly expand the capability of our point-of-care diagnostic portfolio to deliver reference lab precision to the veterinary clinic on a cost-effective basis… We believe our collaboration with Qorvo, a pioneer and leader in BAW sensor technology and advanced manufacturing, will be a major step forward in our efforts to bring reference lab testing capabilities to clinical veterinarians, which we expect will improve the standard of care for companion animals while increasing practice productivity. We are excited to collaborate with a company the size of Qorvo in developing a product for the clinical veterinarian.
The above statement was followed up by David Lacinski, Senior Director of Strategy and Business Development at Qorvo. Here’s what he had to say:
We believe that Zomedica’s drive to bring novel and innovative diagnostic tools to the companion animal market makes it the right partner to bring our technology to the animal health space.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Zomedica Pharmaceuticals, the news proved to be overwhelmingly positive. Through this agreement, the company has exclusive development and commercialization rights to a product that could quickly become an industry leader in a $4 billion industry. So, investor excitement is likely to hit today, following up on yesterday’s impressive gains. Currently (5:19), ZOM is trading at $1.72 per share after climbing nearly 12% in the market yesterday.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on ZOM. In particular, we’re interested in following this new agreement and the progress with regard to defining assays and turning the agreement into a revenue generator. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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