Zomedica Corp (ZOM) Stock Continues to Underperform: Here is Why

Over the past months, Zomedica Corp (NYSEAMERICAN:ZOM) has seen its stock go on...

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Over the past months, Zomedica Corp (NYSEAMERICAN:ZOM) has seen its stock go on a bit of a rollercoaster ride and investors might be wondering if it might be worth backing the stock. The company launched its Truforma diagnostic platform for animals earlier this year but despite that, the stock has been stuck in a phase of stagnation.

That being said, experts believe that its diagnostic does in fact have the potential of being a revenue-generating product. However, investors who have jumped into the stock at this point are possibly convinced that Truforma is going to turn into a commercial success. Whether the product can become a commercial success or not is still up for debate since at the end of the day there are several factors at play.

One of the things that investors need to remember is that the company has made some structural changes in its sales strategy when it comes to Truforma. As a matter of fact, the Zomedica management has admitted that the ‘adoption curve’ of the product might get delayed as a result of those changes. In other words, the company believes that the adoption of Truforma might take longer than expected.

That is something that is a potential red flag for many investors considering the fact that the success of Truforma is going to determine the fortunes of its stock. The move to a direct sales approach is yet to bear fruit in any meaningful way and hence, investors might consider sitting on the sidelines for a bit longer when it comes to the Zomedica stock.

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