Stockhouse investors tend to be resource investors: primarily mining and energy. This is not surprising given that Canada is a resource-rich nation and the global capital for the junior mining industry. But what about diversification? Even the most enthusiastic resource investors generally want at least some exposure to other sectors.
Why not animal health? Healthcare is a growth industry with respect to human health, but it’s a mature industry where large cap companies control most of the sector. In contrast, animal health is an emerging growth sector in the healthcare space, offering a level of blue sky potential not available in human healthcare.
The pet-pharma market alone is a $10 billion a year market. In this large-and-growing sector, roughly 60% of all drugs dispensed for use on companion animals like dogs and cats and horses are human drugs, designed for human physiology. This opens up a tremendous opportunity for companies producing pharmaceuticals and related products specifically for animal healthcare. One of the companies seeking to fill this large void is Zomedica Pharmaceuticals Corp (TSX: V.ZOM, OTCQB: ZOMHF, Forum).
In contrast to human pharmaceutical products, drug development for companion animals is lower risk thanks to the less costly R&D model and shorter regulatory process. This adds up to the capacity to deliver pipeline value much earlier when compared to a human pharma company.
The greatest opportunity for investment in animal health is right here in North America. The U.S. alone has 57,000 practicing veterinarians focused on companion animals. We love our pets. We want them to receive quality healthcare. Zomedica’s mission is to assist veterinarians in providing a superior level of health for companion animals – while capitalizing on the market opportunities in this under-served sub-sector.