Zoetis announced Wednesday, May 16, 2018, that it would be acquiring Abaxis, a company that develops diagnostic instruments for veterinary services.
Best known in the farrier industry as the maker of Dormosedan gel, Zoetis is expected to have an increased presence in the animal health industry, especially in veterinary diagnostics.
Abaxis is a leading provider of diagnostic instruments and consumable discs, kits and cartridges for the animal health industry and its technology. Its products serve a large base of veterinarians in the United States, according to a press release published by Zoetis. With the merger, Zoetis is poised to move into an international market with Abaxis products because of their relationships with multiple countries outside the United States.
The veterinary diagnostics industry has grown 10% over the past 3 years and is estimated to have a value of approximately $3 billion. By 2024, it is expected to be valued at more than $5.4 billion. By acquiring Abaxis, Zoetis will be able to transition to focusing more on the diagnostics industry rather than just animal health, which is expected to have less growth.
Abaxis VetScan products include chemistry and hematology diagnostic instruments and companion discs, kits and cartridges. Since launching their diagnostic profile in 1995, they have created 14 additional assays and eight different profiles for various veterinary diagnostics. Their diagnostic technology can be used for more than 90% of the general chemistry tests used by medical and veterinary clinics, according to their website.
Juan Ramón Alaix, chief executive officer of Zoetis, says that the merger will allow the company to better serve a large customer base and to participate in the growing diagnostic industry.
“Together we can bring more veterinarian customers a broader range of products that fit into our comprehensive solutions and innovations, from prediction and early detection of disease in animals to prevention and treatment,” says Alaix.