VCA Antech Inc.
) jointly announced the signing of two long-term agreements. The
first is a long-term product supply deal for VCA's Animal
Hospitals, while the second is a co-marketing agreement with VCA's
Antech Diagnostic reference laboratories.
Following the news, Abaxis' share price increased 7.3% to close at
CA-based Abaxis manufactures and distributes portable blood
analysis systems for use in both human and veterinary patient care
globally. VCA, also based in California, is a leading animal
healthcare provider in the U.S. and Canada.
Per the long-term product supply contract, VCA will buy VetScan VS2
chemistry analyzers and diagnostic reagent discs from Abaxis. These
products will find place in most of VCA's more than 600 animal
hospitals located across North America.
With reference to the co-marketing agreement, Abaxis and VCA have
entered into a non-exclusive relationship to cash upon new growth
opportunities within the animal healthcare industry.
Representatives from both the companies will work together to
provide complete state-of-the-art diagnostic solutions. Such
solutions combining Antech Diagnostic laboratory services with
Abaxis' VetScan VS2 chemistry analyzers should help improve
veterinary practices throughout North America.
The co-marketing agreement between the two companies has opened up
new avenues for in-house testing and reference laboratory services,
which can now be effectively utilized by any type of veterinary
practice, be it single doctor, multi-doctor or specialty practice.
Management at Abaxis is quite upbeat about this deal. It views
VCA's established presence in the veterinary hospital industry as a
bright prospect for its cutting-edge diagnostic technology, and
expects to enhance the latter's capacity to offer patient care in a
more time and cost-effective manner.
With Abaxis and VCA now working together, the two companies are
positioned to generate incremental new business and expand market
share in their respective markets. The partnership will in turn,
provide a comprehensive suite of diagnostic solutions to the
Both Abaxis and VCA currently retain a Zacks Rank #3 (Hold). Some
better-ranked stocks worth considering in the medical products
ICU Medical, Inc.
). Both the stocks carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ABAXIS INC (ABAX): Free Stock Analysis Report
CARDICA INC (CRDC): Free Stock Analysis Report
ICU MEDICAL INC (ICUI): Free Stock Analysis
VCA ANTECH INC (WOOF): Free Stock Analysis
To read this article on Zacks.com click here.