Abaxis, Inc.
(
ABAX
), a manufacturer of point-of-care blood analysis systems for
medical and veterinary markets, recently launched its new Kidney
Profile Plus panel for the treatment of critical and chronic renal
disease in animals, especially in canine, feline and equine
species. This VetScan Kidney Profile Plus (KPP) Rotor will be
exclusively used on the company's VetScan VS2 Chemistry instrument
that performs 25 different tests configured in 10 unique
panels.
According to Abaxis, enriched with all necessary critical
chemistry analytes, this KPP rotor is perfectly fit to diagnose and
monitor kidney disease in animals. The company also claims that
this product, together with other VetScan point-of-care instruments
for hematology and blood gas analysis will make a complete and
cost-effective package and add to the huge menu of Abaxis panels
for the VetScan Chemistry Instrument.
We note that Abaxis' veterinary instruments fulfill a
substantial part of the clinical diagnostic requirements of
veterinarians and the research marketplace. As per recent data, one
third of the North American veterinarians practice working with
Abaxis instruments for routine wellness testing and annual
check-ups.
We believe that this is a large market with an attractive growth
profile, as increased spending is driven by the rising number of
households with pets, enhanced human-animal bonding, aging pet
population, more focus on animal health or preventive care, and
advancements in pharmaceuticals and diagnostic testing. Abaxis is
performing well in its veterinary division with an expanded product
line and a growing direct sales force. The company also intends to
introduce more rapid assay of products, which would boost the
veterinary revenue.
Abaxis remains a strong player in the veterinary market which
accounted for 78% of its total revenues in fiscal 2012. Revenues
from this segment recorded robust growth of 17% during the last
reported quarter. Alongside, Abaxis Veterinary Reference
Laboratories' (AVRL) performance in the third full quarter of
operations complemented growth of the company's veterinary segment.
Abaxis is optimistic about its consistent performance in the
veterinary market and expects maintain this growth momentum in the
upcoming quarters.
However, we remain apprehensive based on Abaxis' dependence on
distributors to sell its products and increased legal expenses.
Besides, the presence of many big players like
Alere
(
ALR
) and
Idexx Laboratories
(
IDXX
) has made the human and veterinary diagnostic market highly
competitive. Currently, Abaxis carries a Zacks #5 Rank (short-term
'Strong Sell' rating).
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