Zomedica (ZOM) stock has lost 165% of its value since it announced the first commercial sale of its truforma platform a month ago. The company’s announcement last Thursday that was not concerned by investors and the stock continues to fall. However, I think that the announcement is a good news.
The company said in this announcement that as Truforma’s market presence grew, it intended to transition from a distributor-based sales model to a direct sales organization. However, due to anticipated changes at its current distributor that will affect its ability to market its products effectively, thereby, it will be accelerating that transition and the building of a direct sales organization. The company currently employs eight direct field sales personnel, supported by two regional managers, a Vice President of Sales, and a Chief Commercial Officer.
In fact, this transition will benefit the company in the long run. Building a direct sales force will significantly improve the ability to serve its customers and to sell its products in the veterinary market. At the same time, this move may also mean that the company has made a big progress on its Truforma platform over the past month, and saw the prospects of this product.
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