Idexx Laboratories says millennials will continue to drive pet-care craze through the roof
Idexx Laboratories has been on a roll this year. And it sees the good times continuing. Why? The answer is one simple word: millennials. These young adults are treating their pets like the children that many of them have decided not to have (or delay having). That means buying them the best food and toys, making them a part of the family, and – of course – making sure they get the best medical treatment available! And that last one is Idexx’s stock-in-trade.
Idexx Laboratories has seen its share price soar by 40% year to date
Source: Yahoo Finance
Apparently, an impressive 42% of millennials are convinced their “fur babies” have special pet healthcare needs. Comparisons with panicking mothers who fret about their children’s ‘allergies’ (in less-enlightened times, a staple trope in cinematic comedy) are noted. But millennials really do want to give their pets a better way of life – and as pampered cat and dog life expectancy continues to rise, it looks like they’re pulling it off. Not alone, of course – the early diagnostic treatments that are helping to prolong pet lives is down to Idexx.
In a recent interview, the company’s CEO, Jonathan Ayers, says that he expects Idexx’s diagnostics business to increase massively, bringing in $24 billion a year by 2042. In 2017, this segment bought in $3.5 billion – that’s an almost seven-fold increase! Describing how he came up with that figure, he said: “These are long runways to growth. The nice thing about demographics is you can predict them out for decades. Millennials are more likely to go to the vet more frequently and more willing to listen to an advanced standard of care.”
He added that Idexx’s product is the most comprehensive set of diagnostic tools available – and that’s what gives it an advantage with the veterinarians that administer all this healthcare. He said: “When we bundle those together in terms of a complete diagnostic offering, you put in our cloud-based solution ... you get the whole diagnostic history right there whether you sent the results out or you had it run on your in-house lab.”
Dominion holds Idexx Laboratories in its Global Trends Luxury Fund.
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