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Summary
- Zomedica (NYSE:ZOM) to launch the veterinary drug Truforma in the US from March.
- The veterinary health stock saw an amazing run on the stock markets this week.
- In the last six months, the stock value grew by over 1124 per cent.
American veterinary pharmaceutical company Zomedica Corp’s (NYSE:ZOM) recent success on the stock market has drawn investors’ attention, but is it a winning stock you are looking for in 2021?
ZOM stock’s amazing run this week has many investors baffled, especially at a time when common healthcare and consumer stocks appeared to be in demand.
Zomedica recently signed an agreement with drug distributor Miller Veterinary Supply for delivery of Truforma, which will hit the US market from March 30, 2021. The deal will allow Miller to market the drug in the eastern and mid-eastern states like Texas and Maine.
ZOM stocks were trading at US$1.91 a share at close on Friday, which was a 27 per cent increase from the previous close. The stock saw more than 112 per cent growth in the last five days, while its six-month and yearly growth figures were over 1124 per cent, and nearly 890 per cent, respectively.
It saw a whopping single-day trade of 441 million shares on Friday. And last 10-day and 30-day volume average were 168 million and 250 million, respectively.
The company is virtually debt-free with a 0.03 debt-to-equity ratio.
@Kalkine Media 2020
Company Performance
The company’s spending on research and development had increased by 181 per cent to $2.7 million in the third quarter, ending September 30, 2020, compared to the corresponding period a year ago. However, its net loss in the period was US$ 5 million.
In the last nine months ended September 2020, Zomedica’s comprehensive loss stood at approximately US$12.7 million, the company said in a statement.
Despite these losses, the healthcare company’s increased spending on research and development and growing portfolio have the potential to make it profitable.
Zomedica offers a range of products, including diagnostics and therapeutic services that help veterinarians to lower costs and increase productivity.
Its recent tie-up with Miller, one of the oldest wholesale veterinary distributors in the US, may see its fortunes change in 2021.
However, from an investment point of view, further evaluation of the stock will be needed before deciding.
