In the current market, Zomedica Corp. (ZOM) stock plummeted by 0.77% to the price of $0.84 at the time of writing. ZOM stock closed its previous trading session at $0.85.
The expansion of a direct sales team and organization for ZOM and TRUFORMA
The ZOM stock announced on 15th April 2021 that it has planned to expand its operations of commercialization, marketing and sales of its product. Zomedica will do so by expanding the direct sales organization and at the same time shifting from its distributor-based sales effort.
The ZOM stock wants to transition into the distributor-based sales model as quickly as possible because the anticipated disruption and changes in the current distributor has limited the ability for the company to market its products effectively. Therefore accelerating towards the direct sales organization is the immediate operative goal and transition that the company is working on.
Initially affect the sales of TRUFORMA and other products but only for the short term; in the long term the operative process of direct sales will strengthen the development, commercialization, and sales of any future product along with TRUFORMA.
The accelerated process of developing the direct sales team has proven effective because the company has a current sales force of eight employees as direct field sales personnel that come under two regional managers and the executive vice president of sales and chief commercial officer.
The company believes that this direct sales force will dramatically improve the ability to serve the customers and effectively sell the products in the veterinary market based on the long-term plan. For this, the first commercial sale of the company’s product before its launch date has been a sign of high expectations of demand for TRUFORMA and Zomedica’s financial strength.
The potential of ZOM stock’s performance and sales of TRUFORMA in 2021
With the latest milestone in its flagship product, we need to look into the stats of the pet diagnostic market. The most significant data about the market is that 93% of the dog owners visit veterinary annually and with the average lifespan of dogs in mind, that means they will visit for 15 years give or take. Furthermore, 67% of the households keep a single pet at least and $99 billion is the amount that consumers spent on their pets in the US, 2020.
The performance of the sales operation gives and potential market share gives investors and shareholders a positive expectation for the ZOM stock. However, there is still the volatility of the stock in the past one-year trend that needs to be heeded.
These stats are very welcoming for Truforma and with other assays in the phase to be released soon, 2021 seems highly for ZOM stock to rise. Zomedica has also submitted an in the company’s SEC 10-K form, a bull thesis which indicates the market potential for companion animal diagnostic market forecasted to reach $2.8 billion (a 5-year CAGR of 9.8%) by 2024. Similarly, the global veterinary immunodiagnostic market has been forecasted to reach $2.1 billion by 2022 (CAGR 9.6%) This potential is well within reach as the company keeps reaching its milestones one by one.