Why Idexx Laboratories is onto a good thing
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Why Idexx Laboratories is onto a good thing

Idexx Laboratories is THE major name in the specialised pet care industry, and – despite a number of pushbacks in the launch of its upcoming product – it’s becoming recognised as a truly brilliant company. The area the company works in, offering pet care and veterinary treatments, has expanded massively over the past few years, and shows no signs of slowing down. This is a direct result of Millennial pet owners, who see their animal companions as part of the family much more than the generations before them did.

Idexx Laboratories share price has appreciated by 43% so far this year

graph 2006 idexxlaboratories

SOURCE: Yahoo Finance

John Ransom, a Raymond James analyst, penned a note to clients recently that talked up the company’s prospects. Describing it as “brilliant” with an “unbelievable grasp of their business,” he wrote:

“Simply put, the company's execution continues to be second to none. Further, it is not often that a player in any space with dominant (approximately) 60% market share is able to maintain the base in highly competitive markets, yet Idexx posted placement numbers that suggest it could even be gaining share."

While Idexx’s business may sound niche, it’s not small – and the signs point to an industry that is continuing to grow. According to the American Pet Products Association, roughly 68% of American households have a pet. Looking deeper into that figure, it suggests that there are 90 million dogs and 94 million cats in American homes alone. And its most recent annual survey shows that dog owners spend “an annual average of $731 on routine and surgical vet visits combined.” For cat owners, that figure is $427.

Capitalising on the ubiquity of pets, and the owners of those pets willingness to spend, Idexx is in a powerful position to continue to dominate the industry. As Canaccord Genuity’s Mark Massaro said: "They beat on every single line, every single reference category. It gets down to extremely strong commercial execution. (Idexx has) one of the most savvy sales organizations I've ever seen."


Dominion holds IDEXX Laboratories in its Global Trends Luxury Fund.

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