Americans Are Spending More Than Ever on Pets, Sending the Entire Industry to New Highs
NEW YORK, June 15, 2021 /PRNewswire/ — Dogs have always been man’s best friend, but the amount of money pet owners are shelling out for their four-legged friends has grown substantially over the years. In fact, over the last 10 years the amount Americans spent on their pets has more than doubled to reach a whopping $103.6 billion in 2020. Millennials, which make up the largest group in the US, are spending significantly more on their pets than previous generations on pet food, grooming, vet care, pet insurance, and even monthly gift boxes, sending the entire industry to new highs. The boom in pet spending has boosted companies across the industry, including LexaGene Holdings Inc. (TSXV:LXG) (OTCQB:LXXGF) (FRA: 5XS2), The Original Bark Co. (NYSE:BARK), Petmed Express Inc. (NASDAQ:PETS), Zoetis Inc. (NYSE:ZTS), and Aon PLC (NYSE:AON).
With pet care increasing in cost, there are several factors to consider for your furry friend. These include the basics such as food, shelter, nutritional supplements, hygiene, and routine check-ups with a veterinarian. LexaGene Holdings Inc. (TSXV:LXG) (OTCQB:LXXGF) (FRA: 5XS2) is a molecular diagnostics company that develops molecular diagnostic systems for pathogen detection and genetic testing for other molecular markers for on-site rapid testing in various fields including veterinary diagnostics. LexaGene‘s MiQLab for Veterinary Diagnostics is a genetic analyzer designed to do real-time veterinary diagnostic testing at the point-of-care, allowing veterinarians to rapidly diagnose and determine what has caused your pet’s illness in comparison to conventional lengthy practices. The MiQLab, which is equipped with a bacterial and AMR test, screens for the seven most common bacterial pathogens as well as 13 different antimicrobial factors and returns results in approximately two hours.
In May, LexaGene hired several experienced veterinary sales representatives to support launching their MiQLab into this lucrative market, where the competition for in-hospital pathogen detection is practically non-existent. Within a month of expanding their sales team, LexaGene announced two purchase orders for its MiQLab System and could have more to come after generating “multiple MiQLab sale leads from ACVIM Forum,” which the company attended last week. The first purchase order came from Denver Animal Emergency, which has been using the system for several months through the early access program.
“We’ve compared the accuracy of the MiQLab to results generated by culture and there was such high concordance, we have found that we are running MiQLab more often than we are sending samples out for culture,” said Dr. Andrew Pierce, Owner and Medical Director of Denver Animal Emergency. “The MiQLab identifies not just the most common pathogens, but also many common antimicrobial resistance factors. Knowing this information soon after seeing the animal has boosted our confidence that our prescribed therapies will effectively treat the infection, even if it is found to be resistant to some antibiotics. Our veterinarians have enjoyed using it so much, and our clients are benefiting with better care, so it was an easy decision to purchase the system.”
A week later, LexaGene announced the closing of a sale to Alpine Veterinary Hospital, which provides a wide range of services including emergency and orthopedic surgeries in the Bay Area of California.
“We are excited that Alpine Veterinary Hospital sees that the future of animal care begins with the MiQLab System,” said LexaGene CEO and Founder, Dr. Jack Regan. “We continue to gain momentum in veterinary health as we’ve generated multiple MiQLab sale leads from ACVIM Forum, which we attended last week, and from the hard work of our dedicated sales team.”
Furthermore, LexaGene recently announced that it has partnered with Ethos Discovery to expand the test menu offerings that can be run on the MiQLab™ System. Ethos Discovery, which was an early adopter of the MiQLab technology due to the coverage of tests included in LexaGene’s first validated panel, is now interested in expanding the use cases for the MiQLab to help in the diagnosis of other disease conditions.
Pet Stocks Continue to Bolster Sales Revenue
The Original Bark Co. (NYSE:BARK) is a company known for its subscription service that includes dog food, toys, and other various dog products. The leading brand for dogs is a merger between special purpose acquisition company Northern Star Acquisition Corp. and Barkbox Inc. With its subscription service, Bark serves over 1 million dogs on a monthly basis and is approximately valued at $1.6 billion. Continuing the trend of advanced pet care, the subscription service is another example of an innovative company amongst millennial pet owners.
Petmed Express Inc. (NASDAQ:PETS) recently announced its Q4 and fiscal year results, revealing an 18.4% increase in net income as well as a 9.7% increase in reorder sales. The President and CEO commented on the unexpected success of the company earlier this year and states the increased e-commerce demand was partly due to the world health crisis but also projects the need for substantial pet care.
Global animal health company, Zoetis Inc. (NYSE:ZTS), is built on its history of supporting pet care takers. The company also reported its 2020 sustainability report and shared that it has committed $35 million over the past 5 years via its establishment, Zoetis Foundation. The foundation aims to advance opportunities for veterinarians and farmers.
For a pet owner, pet insurance can be an expensive cost to take on but it is also crucial to them as it ensures the pet is healthy and cared for. Aon PLC (NYSE:AON), the world’s largest global insurance broker with over $30 billion in assets, is a majority owner of Healthy Paws, a leading US per insurer that was recently voted number one in America.
As the animal healthcare industry continues to boom, experts foresee growth like never before. It is expected that the market value will reach numbers twice as high than its current value in the next several years. Furthermore, companies like LexaGene Holdings are producing innovative devices that will become a part of a veterinarian’s daily routine as well.
For more information on LexaGene Holdings, click here.
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