CNBC just quoted a survey from TD Ameritrade which stated “33% of Americans have considered fostering or adopting a furry friend now that social distancing is the norm. Across generations, that rate is highest for millennials, who came in at 50%, versus Gen X, at 33%, and baby boomers, 25%.”
The survey also found that 47% of dog owners said that having a pet is more expensive than they had thought it would be, while 41% of cat owners said the same.
Investor Place recently published an article titled “These 7 Pet Care Stocks Will Reduce the Cost of Pet Ownership”
It mentions the stocks as the ones that you could buy from the PAWZ (ProShars Pet Care ETF (CBOE: PAWZ) portfolio of holdings.
Some of their holdings include:
FreshPet (NASDAQ: FRPT) is one of the first to explore refrigerated pet foods and mainly because of this, they have grown their customer base from 1.8 million to 3.2 million in the past five years. The stock as up 98% YTD as of last week but like the rest of the market, gave back a few points this week.
Freshpet is currently investing in distribution, marketing, and manufacturing to keep up with its rapid growth. To help fund this, it recently issued 4 million shares valued at $252 million.
Chewy (NYSE: CHWY) has been making some serious waves since the lockdown. Down 25% from its recent highs, CHWY is still up 83% for the year. Chewy has initiated an auto ship option that allows consumers to replenish their pet food at specific intervals.
Zoetis (NYSE: ZTS) was spun off by Pfizer (NYSE: PFE) in 2013 at the time when it was the leader in Animal health. YTD, Pfizer is down 12.5% yet Zoetis is up 23% and seeming finding new highs almost every day.
Zoetis has invested big time in the animal diagnostics market, which is worth over $4 billion, and has recently sped up its M&A activity with its recent acquisition of ZNLabs and Ethos Diagnostic Science. ZNLabs is an established supplier of veterinary lab services, and Ethos Diagnostic Science is a reputable diagnostic lab.
With the turnaround in the market and seemingly a heating up M&A market in petcare, here is an emerging company that needs to be on your radar.
Have a look at PetVivo (OTCQB: PETV).
PetVivo has yet to attract the attention of the ETF’s but the company did just announce regarding their patent that “Our biomaterial technology and the claims issued in this patent provides us extremely comprehensive coverage”
PetVivo is an emerging biomedical device company leveraging the investments in the human biomaterials and medical device industries to commercialize therapeutics to pets.
The company has a portfolio of 19 patents that protect the company’s pipeline of 16 products for the treatment of animals and people. Its lead product “Kush” is a veterinarian-administered intraarticular injection for the treatment of osteoarthritis in dogs and horses is scheduled for expanded commercial sales later this year.
Currently trading at around $.82 per share, with a market cap coming in at around $16 million, the stock was recently given a target price of between $1.74 and $2.32 per share by Marble Arch Research. You can download the full report here:
Marble Arch Research notes that PetVivo (OTCQB: PETV)achieved a major funding milestone last month, removing the main obstacle to its product commercialization goals. Commercial production of its disruptive osteoarthritis treatment device, Kush®, for canines and equines, a market we estimate is worth ~$3BN in the US alone, is due to commence in September 2020.
The report continues “At ~1x FY23 sales, the stock is substantially undervalued relative to its comps mostly trading in a comparable 3X-4X P/S multiple range.”
Just recently a new successful Kush study came to light when Just 4 weeks ago, Fender Bender, a racehorse suffering from osteoarthritis, was put up for sale and claimed for $3,000.00 and the new owner treaded him with PetVivo’s Kush. Fender Bender won at Canterbury Park on August 4, 2020.
PetVivo is benefiting from trials on the human side with a lower barrier to approval for pets.
According to The American Pet Products Association, almost 85 million households have a pet and over the last 30 years pet ownership has gone from 56% to 68% of all households.
It seems that PetVivo has value here. If you’re looking for a biotech that has not enjoyed a massive run yet, Pet Vivo may be the solution.
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