Diagnostics 2019 · industry is comprised primarily of pharmaceuticals, feed additives, parasiticides and vaccines, with an overarching and larger addressable market being referred

Animal PharmAgribusiness intelligence

Diagnostics 2019:Trends, Forecasts and Analysis of the Veterinary Diagnostics Market

Animal Pharm Diagnostics 2019 Contents

Agribusiness Intelligence © 2019 IHS Markit www.agribusinessintelligence.informa.com 1

Contents

Executive Summary .................................................................................................................... 5

Chapter 1: The global animal health market ............................................................................. 7

1.1. Growth drivers and trends in the animal health and veterinary diagnostics market ............................. 10

1.1.1. The changing dynamics of animal health .................................................................................... 10

1.1.2. Increasing population and demand for meat .............................................................................. 11

1.1.3. Growing middle class and disposable income ............................................................................. 13

1.1.4. Government regulation on medically important antibiotics ....................................................... 13

1.1.5. Brexit and changes in boundary regulations ............................................................................... 14

1.1.6. Zoonotic transmissions................................................................................................................ 15

1.1.7. Disease epidemics and outbreaks ............................................................................................... 15

1.1.8. Digitalization, the internet of things (IoT), and the ‘connected cow’ .......................................... 16

1.1.9. Point-of-care (POC) diagnostics ................................................................................................... 17

1.1.10. Companion animals are living longer .......................................................................................... 17

1.1.11. The humanization of pets ............................................................................................................ 18

Chapter 2: The global veterinary diagnostics market ............................................................. 19

2.1. Geographical Differences in Veterinary Diagnostics ............................................................................... 21

2.2. Breakdown of diagnostic technologies ................................................................................................... 22

2.2.1. Immunodiagnostics ..................................................................................................................... 23

2.2.1.1. Lateral flow assays ........................................................................................................ 24

2.2.1.2. Enzyme-linked immunosorbent assay (ELISA) tests ..................................................... 25

2.2.1.3. Chemiluminescent immunoassays ............................................................................... 25

2.2.1.4. Fluorescent immunoassays .......................................................................................... 25

2.2.1.5. Colorimetric immunoassays ......................................................................................... 26

2.2.1.6. Agglutination immunoassays ....................................................................................... 26

2.2.2. Clinical Biochemistry ................................................................................................................... 26

2.2.2.1. Glucose monitoring ...................................................................................................... 28

2.2.2.2. Blood gas and electrolyte analysis ............................................................................... 28

2.2.3. Molecular Techniques ................................................................................................................. 29

2.2.3.1. Polymerase Chain Reaction (PCR) ................................................................................ 29

2.2.3.2. Microarrays .................................................................................................................. 30

2.2.3.3. Other molecular diagnostic methods ........................................................................... 30

2.2.4. Hematology ................................................................................................................................. 30

2.2.5. Urinalysis ..................................................................................................................................... 30

2.2.6. Other veterinary diagnostic techniques ...................................................................................... 31

2.2.6.1. Lab on a chip ................................................................................................................. 31

2.2.6.2. Micro and nano particles .............................................................................................. 31

2.2.6.3. Surface plasmon resonance.......................................................................................... 31

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Contents Animal Pharm Diagnostics 2019

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2.2.6.4. Biosensors .................................................................................................................... 32

2.3. Veterinary diagnostic products and diseases .......................................................................................... 32

Chapter 3: The top three veterinary diagnostics players ......................................................... 36

3.1. IDEXX Laboratories .................................................................................................................................. 38

3.1.1. Companion Animal Group (CAG) ................................................................................................. 43

3.1.2. Livestock, Poultry, and Dairy (LPD) .............................................................................................. 51

3.2. Abaxis ...................................................................................................................................................... 53

3.2.1. Veterinary market ....................................................................................................................... 57

3.3. Heska ....................................................................................................................................................... 62

3.3.1. Core Companion Animal Segment .............................................................................................. 63

3.3.2. Other Vaccines and Pharmaceutical Segment (OVP) .................................................................. 69

Chapter 4: Market analysis of veterinary diagnostics .............................................................. 71

4.1. Companion animals ................................................................................................................................. 72

4.2. Food production animals ........................................................................................................................ 74

Chapter 5: Veterinary diagnostics market interviews.............................................................. 79

Chapter 6: Notable events and future outlooks for the veterinary diagnostics market ......... 84

Chapter 7: References .............................................................................................................. 88

List of Tables

Table 1: Growth of the veterinary diagnostics and animal health markets ................................................. 19

Table 2: Total cat and dog populations and veterinary diagnostics market ................................................ 21

Table 3: Core panel of indicators used in diagnosing conditions in ruminants ............................................ 27

Table 4: Conditions associated with diagnosis from core biochemistry and hematology panel ................. 27

Table 5: Core panel of indicators used in diagnosing conditions in small animals ...................................... 28

Table 6: Overview of common veterinary diagnostics for infectious diseases ............................................ 33

Table 7: Overview of top 3 veterinary diagnostics companies split into companion and

livestock animal revenues .............................................................................................................. 71

List of Figures

Figure 1: North America companion animal health market size, by product, 2014-2026 ($ billion) .............. 7

Figure 2: Five-year projected growth of the animal care industry .................................................................. 8

Figure 3: Overview of the animal health industry ........................................................................................... 9

Figure 4: Animal health’s billion-dollar businesses 2007-2017 ($ billion) ..................................................... 10

Figure 5: Per capita meat consumption by country and region .................................................................... 12

Figure 6: Germany companion animal diagnostic market, by technology, 2013-2024 (USD million) ........... 20

Figure 7: Veterinary diagnostics market, by region, 2023 (USD million) ....................................................... 21

Figure 8: Lateral flow Immunoassay .............................................................................................................. 24

Figure 9: Five-year revenue overview of top three veterinary diagnostics companies ................................ 36

Figure 10: Estimated veterinary diagnostics market share ............................................................................. 37

Figure 11: Five-year history of company total revenues and growth.............................................................. 39


Animal Pharm Diagnostics 2019 Contents


Figure 12: Five-year IDEXX Total Revenues (US and Non-US) ......................................................................... 39

Figure 13: Five-year forecast for IDEXX total revenues ................................................................................... 40

Figure 14: IDEXX’s segments by revenues (2018) ............................................................................................ 41

Figure 15: IDEXX 2018 revenue breakdown by geography, US and non-US ................................................... 42

Figure 16: IDEXX percentage of geographical 2018 revenues, US and non-US ............................................... 42

Figure 17: Five-year history of IDEXX’s CAG revenues .................................................................................... 45

Figure 18: CAG revenues breakdown for 2018 ................................................................................................ 46

Figure 19: Five-year history of VetLab consumables revenues ....................................................................... 47

Figure 20: Five-year history of rapid assay revenues ...................................................................................... 47

Figure 21: Five-year history of reference lab diagnostics and consulting services revenues .......................... 48

Figure 22: Five-year history of CAG diagnostics services and accessories revenues ....................................... 49

Figure 23: Five-year history of CAG diagnostics capital-instruments revenues .............................................. 49

Figure 24: Five-year history of veterinary software, services and diagnostics imaging systems revenues ..... 50

Figure 25: Five-year Forecast Total CAG Revenue ........................................................................................... 51

Figure 26: Five-year history of LPD revenues .................................................................................................. 52

Figure 27: Five-year forecast total LPD revenues ............................................................................................ 53

Figure 28: Abaxis five-year total revenues ...................................................................................................... 54

Figure 29: Abaxis 2018 revenues by product category ................................................................................... 55

Figure 30: Abaxis 2018 revenues by market segment ..................................................................................... 56

Figure 31: 2018 revenues by geographic region ............................................................................................. 57

Figure 32: Five-year revenues of veterinary market ....................................................................................... 60

Figure 33: Two-year comparison of veterinary market for Abaxis .................................................................. 61

Figure 34: Five-year forecast for Abaxis veterinary market revenues ............................................................. 61

Figure 35: Five-year history of total company revenues ................................................................................. 62

Figure 36: Total revenues percentages for 2018 ............................................................................................. 63

Figure 37: Geographic breakdown of total Heska revenues ........................................................................... 65

Figure 38: 2018 CCA segment point of care laboratory breakdown of revenues ........................................... 66

Figure 39: CCA segment point of care laboratory revenues ............................................................................ 66

Figure 40: Five-year history of total Heska revenues ...................................................................................... 67

Figure 41: Three-year history of CCA segment breakdown of revenues ......................................................... 68

Figure 42: 2018 CCA segment percentages revenues ..................................................................................... 68

Figure 43: 2018 OVP segment percentages of revenues ................................................................................. 69

Figure 44: Five-year history of OVP segment revenues................................................................................... 70

Figure 45: Predicted growth for Heska and Abaxis ($ million) ........................................................................ 70

Figure 46: 2018 Total revenues for veterinary diagnostics market ................................................................. 72

Figure 47: Global companion animal diagnostics market ............................................................................... 73

Figure 48: Diagnostic market for cats and dogs .............................................................................................. 73

Figure 49: Global companion animal diagnostics revenue breakdown ........................................................... 74

Figure 50: Livestock animal diagnostic breakdown, 2018 ............................................................................... 75

Figure 51: Breakdown of diagnostics for livestock .......................................................................................... 75

Figure 52: Global costs of diagnosing major diseases in dairy and beef ......................................................... 77

Figure 53: Costs of reproductive diagnostics................................................................................................... 78

Figure 54: US costs of diagnosing major diseases in dairy and beef ............................................................... 78

Figure 55: IDEXX’s consistent investment in innovation creates a growing proprietary

competitive gap, drives growth ...................................................................................................... 86


Animal Pharm Diagnostics 2019 Executive Summary


Executive Summary

Dear Reader,

This report will examine the global market trends, patterns, revenues, players, technologies and products that

make up the vast majority of the veterinary diagnostics market. However, we cannot talk about veterinary

diagnostics without first zooming out and addressing the animal health industry at large.

Within the past 30 years, the animal health industry has evolved from a prescriptive to a preventive model, as

consumers demand high animal welfare and more sustainable food production. The core animal health

industry is comprised primarily of pharmaceuticals, feed additives, parasiticides and vaccines, with an

overarching and larger addressable market being referred to as 'animal care'. This developing market is a $60

billion industry that takes into account things like nutrition, diagnostics, genetics and microbiome health.

The widening of interest in the industry has seen large companies broadening their product portfolios to match

the awareness and demand correlated with animal healthcare. A prime example of this was one of the most

notable acquisitions in animal health in 2018, as Zoetis dished out $2 billion to acquire Abaxis, the second

largest veterinary diagnostic company in the world at the time. During the first section of the report, we will dig

deep into the animal health market and delve into the growth factors, which will affect all facets of the

industry, including diagnostics.

In the second section of the report, we will define and breakdown the $2.55 billion veterinary diagnostics

market to a cellular level. As is addressed in the report, veterinary diagnostics is a newer segment of animal

health and many tests used today were transitioned over from human health diagnostics or adapted to fit the

animal health market. With trends like the 'humanization of pets', owners are now more than ever demanding

that their pet’s wellness and healthcare mimic that of human health. This growth driver has enabled diagnostics

to unfold into an industry where preventative methods meet cost savings and animal welfare.

From the companion animal side of the table, companies like IDEXX Laboratories is flourishing with its rapid

tests for quick detection of the most prevalent pathogens in cats and dogs; enabling veterinarians to give

answers and make decisions at the point of care. Similarly, livestock animals are also benefiting from the

development of diagnostics as pressure from governments to identify, monitor, and manage zoonotic diseases,

as well as responsible use of antibiotics, are urging producers and veterinarians to utilize diagnostics

unapologetically.

Starting out with market numbers, we will highlight the categories that make up this industry and the historical

data which has been recorded to date. From there, we will look at the different technologies which are

segregated based on purpose of use and implementation. Diagnostics is a broad category that covers

everything from mobile devices, consumables, analyzers, imaging machines, quantitative instruments, assays

and complementary services.


Executive Summary Animal Pharm Diagnostics 2019


Next, we will jump into the meat of the report by breaking down the top three veterinary diagnostics players in

the world. These companies together make up over 90% of the overall veterinary diagnostics market. IDEXX,

Abaxis, and Heska are laid out from top to bottom with revenues, trends, species and product categories. We

will go through each one with a fine-tooth comb to examine their historical sales and predict future growth.

Then, we will progress to analyzing the industry as whole using the numbers gathered from the top three

players, public information, and private data. From here, we will study the breakdown of revenues and market

opportunities on select species, products and diseases.

Lastly, market interviews were done to get a real-time pulse on the veterinary diagnostics industry. Veterinary

diagnostic experts and veterinarians from Europe and the US were asked a set of questions which highlight the

use of diagnostics in practice, key challenges, and projected opportunities for growth.

We will conclude this report with notable recent events and future outlooks for the veterinary diagnostics

industry. By the end of this document, one should be able to fully grasp the drivers, technologies, main players,

and innovations that are advancing animal care into new dynamics of diagnostics. This is an industry projected

to outpace the animal health market and with the continual shift of proactive animal care from reactive animal

care, this segment is likely to continue to gain significant traction.

The figures, estimates, and numbers listed in this report are correct to the best of my knowledge and are

gathered from market interviews, public information, 10-Ks, private reports, and general perceptions of the

industry. Any references listed in the document can be found at the end of the report. Most figures listed in this

report are done so in thousands (000s), unless otherwise noted.


Chapter 2 Animal Pharm Diagnostics 2019


veterinary reference laboratories, such as IDEXX or academic institutes, play a major role in companion animal

diagnostics, almost all veterinary practices have some type of in-clinic diagnostics. This feature is an important

opportunity for the future progression of animal health diagnostics and is key indicator of the modernization of

veterinary practices.

The companion animal segment accounts for majority of the sales in veterinary diagnostics market as

compared to livestock animals. Below is a breakdown of the veterinary diagnostics for companion animals

in Germany with clinical biochemistry and immunodiagnostics making up ½ of the value of this market

segment (xlvi).

Figure 6: Germany companion animal diagnostic market, by technology, 2013-2024 (USD Million)

Source: Global Market Insights

The veterinary diagnostics market has experienced consistent growth over the past 20 years attributed largely

to the theory that translating objective data into health care decisions by veterinarians is pivotal in increasing

productivity in livestock animals and improving quality of care for companion animals. In addition, this market

is being shifted into automation, point-of-care, rapid response time and integration from sample collection to

patient reporting and diagnosis. It is estimated the clinical biochemistry animal diagnostic market was worth

over $553.3 million in 2017, using diagnostic tools on a daily basis to identify, diagnosis, and treat a variety of

different diseases (xlvi). Molecular diagnostics, which focuses on the detection, identification, and genotyping

of pathogens, is projected to witness significant growth at a CAGR of 8.4% from 2018 to 2024. The

immunodiagnostic market is predicted to reach $2.1 billion by 2022 with a CAGR of 9.6% (xlvii).

When looking by category, polymerase chain reaction (PCR) kits are projected to be the fastest growing of all of

the veterinary molecular diagnostic kits with a CAGR of 7.8% for the project period with revenues of $63.4

million globally. The lateral flow technology is expected to be worth $760 million in 2022 with a CAGR of 7.1%,

with pets and domesticated animals representing 69% of the rapid diagnostics market, as the rest of the sector

is made up of livestock diagnostics (xlviii). Additionally, some of the most prevalent tests which are related to

specific animal disease are bluetongue, classical swine fever (CSF), feline leukemia (FeLV) and the zoonotic

diseases mentioned earlier in the report.

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Animal Pharm Diagnostics 2019 Chapter 3


There is great opportunity in veterinary diagnostics with particular interest in POC technologies and larger use

of in-lab diagnostics. As of 2018, both IDEXX and Abaxis reached all-time high share prices. With more and

more of the veterinary diagnostics players being acquired, there is a dwindling number of companies that are

focusing on animal health diagnostics specifically. Thus, there is limited room for acquisitions. Because of the

small pool of diagnostics, there will be more license partnerships for technologies used in human health, as

Boehringer Ingelheim has done.

Although these are the main players in veterinary diagnostics, there are also companies like Thermo Fisher

Scientific and Qiagen, which has spun off its animal health business to form Indical, that also have products

for the veterinary diagnostics market, however, they are primarily focused on human diagnostics. The top

three players make up over 94% percent of market share for veterinary diagnostics at a total of $2.4 billion

for 2018 (lxxv).

Figure 10: Estimated veterinary diagnostics market share

Source: Animal Pharm

Although listed in depth above, growth drivers specific to veterinary diagnostics are innovations in diagnostic

technologies, new immunoassay formats, improved diagnostic platforms, new instrumentation and the full

integration of internet-connected diagnostic devices. Pet owners are also increasing trips to their veterinarian’s

office in an effort to be preventive rather than prescriptive and in the case of production animals, POC

technologies are trending towards use on the farm for real time results, diagnosis and treatments.

The veterinary diagnostics market has seen great consolidation within the past few years, leaving room for little

competition yet great opportunities. Previously, many companies built their vaccine portfolios to create

preventative measures, but as governments continue to mandate responsible use of antibiotics, other

SAMPLE




Figure 14: IDEXX’s segments by revenues (2018)

Source: IDEXX 10-K

Examining the geographical representation of IDEXX’s values, it is interesting to note that in 2018 nearly 61% of

all revenues came from the US, or $1.35 billion. The remaining 39%, or $855.33 million, came from outside US.

However, when looking at the revenue breakdown by category, it is highly dependent on what geographical

regions represent the most sales. In 2018, the CAG division had 66% of its revenues coming from the US,

whereas the LPD division had almost 90% of its revenues coming from countries outside of the US. The last

division of IDEXX, water and others, had similar revenues come from both US and international countries.

87.45%

5.90%

6.65%

CAG LPD Water and Others

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Figure 19: Five-year history of VetLab consumables revenues

Source: IDEXX 10-K

The rapid assay revenues also increased from higher sales volume of single analyte SNAP products and of

canine SNAP 4Dx Plus test. The rapid assay revenue was $217.54 million at a 5.96% growth rate in 2018. The

average annual growth rate for the five-year period between 2014 and 2018 was 5.21%.

Figure 20: Five-year history of rapid assay revenues

Source: IDEXX 10-K

$165,647

$217,541

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

2014 2015 2016 2017 2018

Rapid Assay Products Growth Rate

$341,397

$617,237

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015 2016 2017 2018

$312,457 12.06%

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Figure 25: Five-year Forecast Total CAG Revenue

Source: IDEXX 10-K

3.1.2. Livestock, Poultry, and Dairy (LPD)

IDEXX’s LPD segment is responsible for the

developing, manufacturing, marketing, and selling of

a large range of tests and performing services for

numerous livestock diseases and/or conditions.

IDEXX has several active R&D and in-licensing

programs that make up the LPD portion of revenues.

Due to the unpredictable nature of disease

outbreaks, IDEXX finds its value in offering

proprietary tests for use in government programs

that can control or eradicate disease outbreaks for

livestock and poultry producers. Fluctuation in the

sector is normal, as there are several factors that can

affect demand of diagnostic testing products and

services (e.g. outbreaks can lead to higher demand,

successful eradication can lead to less demand, and

natural ebbs and flows of government funding can

shift demand).

Specifically, for dairy producers, IDEXX focuses on

developing, manufacturing, and selling testing

products for contaminate and residuals from

antibiotics. These testing products utilize the SNAP

platform and enable producers to meet and satisfy regulatory requirements or standards for testing milk. In

* IDEXX Laboratories' 10-K

$2,163,836

$3,380,756

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

2019 2020 2021 2022 2023

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condition identification based on the clinical situation. These reference ranges are offered for cats,

dogs, and horses.

• VetScan UA Instruments and Consumables

o The VetScan UA is a two-part urinalysis solution that is made up the Abaxis Urine Chemistry and

Sediment Analyzers.

• VetScan SA Sediment Analyzers and Consumables

o The VetScan SA is designed for urine microscopy with accuracy and reliability at the POC.

• VetScan Fuse

o VetScan Fuse is a bidirectional integration workflow which enables practice management software to

engage with Abaxis analyzers that seamlessly sends test results immediately to their practice

management software.

• Rapid Tests lxxxix

o Abaxis has a whole product line of VetScan Rapid Tests that allow the

detection of specific diseases. By use of the flow immunoassay

technology in these tests, immediate results are available. There are

nine different products that make up the Rapid Test segment of the

Veterinary Market for Abaxis:

• AVRL

Abaxis sold its entire AVRL (Abaxis Veterinary Reference Laboratories) business to Antech on March 31st, 2015.

AVRL provided reference laboratory diagnostic and consulting services for veterinarians through the US

including research institutions.

During the fiscal 2018, Abaxis enjoyed an increase in total revenues for the veterinary market by 8% or

$15.2 million from 2017. This was strongly aided by a 4% increase in the unit sales of veterinary reagent discs

sold due to an increase in utilization in its customer base even though its installed base of active chemistry

analyzers fell flat as compared to 2017. Primary revenue in this market was generated from veterinary

reference laboratory diagnostic and consulting services for veterinarians. In the fiscal year 2018, the revenues

from veterinary instruments decreased by $0.8 million or 2%. This reduction was due to a decline in the unit

sales of VetScan chemistry analyzers in North America because of fewer sales-type lease agreements.

▪ VetScan Canine Anaplasma Rapid Test

▪ VetScan Canine Ehrlichia Rapid Test

▪ VetScan Feline Leukemia Virus Antigen-Feline

Immunodeficiency Virus Antibody Rapid Test

▪ VetScan Giardia Rapid Test

▪ VetScan Canine Heartworm Rapid Test

▪ Vetscan Canine Lyme Rapid Test

▪ VetScan Canine Pancreatic Lipase Rapid Test

▪ VetScan Canine Parvovirus Rapid Test

▪ VetScan FLEX4 Rapid Test

- A. platys, Borrelia burgdorferi, Ehrlichia canis,

E. chaffeensis, E. ewingii, Dirofilaria immitis

*FLEX4 Rapid Test

SAMPLE




Much like IDEXX and Abaxis, Heska has majority of its sales form the United States, representing nearly $116

million in sales. Canada, Europe and other international markets make up the remaining 8% of revenues. The

sales were mainly attributed to companion animal diagnostics with a lesser percentage comprised of

production animal diagnostics.

Figure 37: Geographic breakdown of total Heska revenues

Source: Heska 10-K

Heska considers the CCA segment of its business to be its core and devotes most of its efforts and resources in

improving the prospects for this segment. Heska maintains a reliable and economic supply of products they

obtain from third parties, with almost all of its sales and marketing expenses, and R&D costs occurring in the

CCA segment. All of Heska’s CCA products are sold to or through veterinarians, however, they are also sold

directly to end users as well through distribution relationships such as the sale of kits to conduct blood testing

to veterinary diagnostic laboratories and third-party distributors. In 2018, revenues from direct sales accounted

for 57% of revenue whereas distribution relationships accounted for 43% of revenues. Heska separates its CCA

segment revenue into four main parts: 1. POC laboratory products including instruments, consumables and

services 2. POC imaging products including instruments, software and services 3. Single-use pharmaceuticals,

vaccines, and diagnostic test primarily related to companion animal 4. Other vaccines and pharmaceuticals.

Total company revenues for 2018 decreased by 1% to $127.4 million as compared to $129.3 million in 2017. On

the other hand, CCA segment revenues increased by 4% to $108.9 million in 2018 as compared to $105.2

million in 2017. This increase was mainly driven by a 14% increase in revenue from POC laboratory

consumables in addition to a 4% increase in POC imaging products due to increased sales of digital radiography

systems. This was partially offset by a decline of 22% in revenues from POC laboratory instruments, which saw

lower sales-type lease instrument revenue and lower infusion pump sales of $1.5 million and $1.3 million,

respectively. The CCA segment saw a decrease in revenue by 2% in 2017 of $105.2 million, as compared to

2016 at $107.4 million. This decline was attributed to mainly a 26% drop in revenue sales from Heska’s imaging

products, however, it was partially offset by a 12% increase in revenues from POC laboratory subscriptions,

92.31%

1.83%3.68% 2.18%

US Canada Europe Other international

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Chapter 3 Animal Pharm Diagnostics 2019


Figure 44: Five-year history of OVP segment revenues

Source: Heska 10-K

Though Heska’s OVP segment has taken a turn downhill, the company still remains optimistic about its growth.

In 2022, Heska is aiming to report revenues of $216 million, approximately 67% growth compared to the

$129 million in 2017. CEO Kevin Wilson claims they are going to focus on growing market share, growing the

sales team, and growing geography. Heska is especially looking to develop the sales of its consumables and

imaging technology. In addition, they have partnered with MBio’s Diagnostics to bring to market a new point of

care multiplex testing technology for vector borne diseases and parasitology (xcv). Below is a representation of

the kind of growth Heska hopes to achieve with Abaxis listed as a comparison depicting a conservative annual

growth rate of 8% (xcvi).

Figure 45: Predicted growth for Heska and Abaxis ($ million)

Source: Heska 10-K

$17,483 $18,522

-30%

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0%

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20%

30%

40%

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$-

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$30,000

2014 2015 2016 2017 2018

Total OVP Revenues YOY Growth

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Documents

Diagnostics 2019 · industry is comprised primarily of pharmaceuticals, feed additives, parasiticides and vaccines, with an overarching and larger addressable market being referred