A trend noted in our Veterinary Diagnostics report: Some companies have seen higher rates of revenue growth in animal diagnostics than the average in human diagnostics, in vitro diagnostics. According to our most recent report on the IVD industry, the rate of growth for human IVD products (including instruments and reagents) is 6%. In many cases products show lower revenue growth, as basic chemistry tests are sold through group purchasing and competition is solidified. High growth molecular testing, FISH histology testing and other areas drive the total growth rate of human IVD up. In general, when the total market is considered, the veterinary diagnostic market does not grow any faster than the human IVD market. But in some product lines, revenue growth is faster.
At least two companies covered in our report have found veterinary diagnostics to be a source of revenue growth. IDEXX and Abaxis, among the top veterinary diagnostic companies have seen 8% or greater revenue growth in recent years. Part of that is from sales of food animal tests to the EU and emerging nations, though those markets as noted in Kalorama Key Point earlier this week, is declining. Companion animal testing has increased due to high-income pet owners making veterinary visits and spending where needed to test for diseases.
Both IDEXX and Abaxis have product lines in human diagnostics, though most of their money is made in veterinary diagnostics. These companies show that the model of using animal diagnostics to launch in IVD can work.
Our report covers some of the areas of vet dx that are experiencing the highest growth rates and pushing this market to over a billion dollars.