Zomedica Corp (NYSEAMERICAN:ZOM) Stock Sell-Off Intensifies After Earnings

Veterinary health company Zomedica Corp (NYSEAMERICAN:ZOM) came into focus among investors earlier on this year after having developed point of care products for dogs and cats.

Market Stats

On Monday, ZOM stock slumped 6.73% at $0.50 with more than 31.20 million shares, compared to its average volume of 27.29 million shares. The stock has moved within a range of $0.5000 – 0.5175 after opening trading at $0.5129.

Earnings Review

Last Friday, the company was in focus once again after it announced its financial results for the quarter as well as the nine month period, both of which had concluded on September 30, 2021. However, it seems that the numbers did not quite impress investors and yesterday, the Zomedica stock suffered from a selloff. It ended the day with a decline of as much as 7%. It should be noted that financial results did not include any numbers with regards to PulseVet, a company that Zomedica acquired on October 1, 2021.

In the third quarter, the company suffered a loss of around $6.3 million and the losses for the nine month period came in at $15.1 million. On the other hand, the revenues for the third quarter stood at $22514 and on the other hand, the revenues in the nine month period came in at $52331. The company informed that commercialisation of its animal diagnostic platform had commenced back on March 15, 2021 and hence, the sales activities were fairly limited during the course of the first three quarters of the year.

Key Quote

Larry Heaton, Chief Executive Officer of Zomedica, stated that, “During the third quarter the team at Zomedica continued building the installed base of TRUFORMA® instruments through our Customer Appreciation Program (CAP), which provides select customers with an instrument at no charge as long as they agree to purchase assay cartridges. Customer response to this program has been encouraging, with 144 customers enrolled to date, and we plan to continue offering it through the end of the year. We expect revenue from these CAP program customers to build sequentially as they utilize cartridges currently available, and new ones as they are released to market. We continue to work with our partner, Qorvo Biotechnologies, to develop new assays for the TRUFORMA® instrument and expect to release several new assays to market in 2022.

Traders Corner

ZOM stock is trading above the 50-Day and 20-Day Moving averages of $0.53 and $0.53 respectively. However, the stock is trading below the 200-Day moving average of $0.98. The stock is up 6% in the past 3-month.