Zomedica Increases Manufacturing Capacity with Expansion of its Roswell, Georgia Facility; Can Support Production to Five times Current Levels
Zomedica (NYSE American: ZOM), a veterinary health company, announced the completion of its manufacturing and distribution facility expansion in Roswell, Georgia. The expansion increases the facility's size to 18,400 sq. ft., adding 6,000 sq. ft. of adjacent space, and enhances order fulfillment efficiencies while increasing manufacturing capacity five-fold. This development supports the growing demand for Zomedica's products, including TRUVIEW, VetGuardian, Assisi, PulseVet, and TRUFORMA instruments. Zomedica aims to leverage the Roswell facility's enhanced capabilities to streamline global distribution and meet customer demand efficiently. The company's CEO, Larry Heaton, emphasized the timely nature of the expansion amidst rapid sales growth.
- Expansion of Roswell facility increases total size to 18,400 sq. ft.
- Manufacturing capacity enhanced five-fold.
- Improved warehousing and order fulfillment efficiencies.
- Supports growing demand for Zomedica products.
- Leverages experienced operational team at Roswell facility.
- Expansion aligns with rapid sales growth of product lines.
- No specific financial data on expansion costs or funding sources.
- No immediate impact on revenues or profits disclosed.
- Potential increased operational costs due to expanded facility.
Insights
The expansion of Zomedica’s manufacturing capacity at their Roswell facility is a significant move that can have substantial financial implications. By increasing their manufacturing capacity five-fold, Zomedica aims to cater to the growing demand for their veterinary diagnostic and therapeutic products. This expansion could lead to increased revenues, assuming the demand continues to rise. Notably, scaling production often brings economies of scale, potentially reducing per-unit manufacturing costs and improving profit margins. Additionally, improved warehousing and order fulfillment efficiencies could lower operational costs and enhance customer satisfaction, which bodes well for long-term profitability. However, investors should consider the costs and risks associated with such an expansion, including the capital expenditure involved and the ability to maintain quality control as production scales.
Zomedica’s portfolio includes products like TRUVIEWTM, VetGuardian®, Assisi® and PulseVet®, which are specialized for equine and companion animals. The veterinary industry is experiencing a significant rise in pet ownership and spending on pet health, creating a favorable market for Zomedica. The expanded manufacturing capacity aligns well with market growth trends, enabling Zomedica to meet increasing customer demand. Additionally, the enhanced distribution capabilities can improve the availability of their products, potentially increasing their market share. However, the veterinary market also faces competition from established players and maintaining a competitive edge will require continued innovation and effective marketing strategies.
Timely expansion enhances capacity amidst rapid sales growth
ANN ARBOR, MI / ACCESSWIRE / June 4, 2024 / Zomedica Corp. (NYSE American:ZOM) ("Zomedica" or the "Company"), a veterinary health company offering diagnostic and therapeutic products for equine and companion animals, completed the expansion of its global manufacturing and distribution facilities in Roswell, Georgia. The expansion, which increases the facility's total size to 18,400 sq. ft., adding 6,000 sq. ft. of adjacent space, enhances warehousing and sales order fulfillment efficiencies while increasing manufacturing capacity five-fold to support the growing demand for Zomedica's products.
"As we continue to strengthen operations at our Roswell facility, the additional warehousing and order fulfillment capacity will drive improved efficiencies," stated Tony Blair, Executive Vice President and Chief Operating Officer. "The Roswell Global Manufacturing and Distribution Center is managed by a quality team with extensive operational experience. We will continue leveraging and enhancing this expertise to increase capacity and streamline global distribution for our current and future product lines."
Zomedica manufactures several key product lines, including TRUVIEWTM, VetGuardian®, Assisi®, and PulseVet® products, as well as TRUFORMA® instruments, at the Roswell facility. TRUFORMA® cartridges are manufactured at the Company's Plymouth, Minnesota facility.
"I'm extremely pleased with the progress at our Roswell facility," stated Larry Heaton, Zomedica's Chief Executive Officer. "This expansion comes right on time as our product lines and associated sales are growing at a rapid pace. Our goal remains the same, to fulfill customer demand for our expanding portfolio of products with efficient production and distribution, as we remain committed to expanding our manufacturing capacity and capabilities.
About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American:ZOM) is a veterinary health company creating products for horses, dogs, and cats by focusing on the unmet needs of clinical veterinarians. Zomedica's product portfolio includes innovative diagnostics and medical devices that emphasize patient health and practice health. Zomedica's mission is to provide veterinarians the opportunity to increase productivity and grow revenue while better serving the animals in their care. For more information, visit www.zomedica.com.
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Cautionary Note Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include statements relating to our expectations regarding future results. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, including assumptions with respect to economic growth, demand for the Company's products, the Company's ability to produce and sell its products, sufficiency of our budgeted capital and operating expenditures, the satisfaction by our strategic partners of their obligations under our commercial agreements, our ability to realize upon our business plans and cost control efforts and the impact of COVID-19 on our business, results and financial condition.
Our forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: continued growth of sales, the outcome of clinical studies, the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments, uncertainty as to whether our strategies and business plans will yield the expected benefits; uncertainty as to the timing and results of development work and verification and validation studies; uncertainty as to the timing and results of commercialization efforts, as well as the cost of commercialization efforts, including the cost to develop an internal sales force and manage our growth; uncertainty as to our ability to successfully integrate acquisitions; uncertainty as to our ability to supply products in response to customer demand; uncertainty as to the likelihood and timing of any required regulatory approvals, and the availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; veterinary acceptance of our products; competition from related products; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; our ability to secure and maintain strategic relationships; performance by our strategic partners of their obligations under our commercial agreements, including product manufacturing obligations; risks pertaining to permits and licensing, intellectual property infringement risks, risks relating to any required clinical trials and regulatory approvals, risks relating to the safety and efficacy of our products, the use of our products, intellectual property protection, risks related to the COVID-19 pandemic and its impact upon our business operations generally, including our ability to develop and commercialize our products, and the other risk factors disclosed in our filings with the SEC and under our profile on SEDAR+ at www.sedarplus.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Investor Relations Contact:
Zomedica Investor Relations
investors@zomedica.com
1-734-369-2555
SOURCE: Zomedica Corp.
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