Heska Corporation sells, manufactures, markets and supports diagnostic and specialty products and solutions for veterinary practitioners.
The company’s portfolio includes point-of-care (POC) diagnostic laboratory instruments and consumables, including rapid assay diagnostic products and digital cytology services; POC digital imaging diagnostic products; local and cloud-based data services; practice information management software (PIMS) and related software and support; reference laboratory tes...
Heska Corporation sells, manufactures, markets and supports diagnostic and specialty products and solutions for veterinary practitioners.
The company’s portfolio includes point-of-care (POC) diagnostic laboratory instruments and consumables, including rapid assay diagnostic products and digital cytology services; POC digital imaging diagnostic products; local and cloud-based data services; practice information management software (PIMS) and related software and support; reference laboratory testing; allergy testing and immunotherapy; heartworm preventive products; and vaccines. The company’s primary focus is on supporting companion animal veterinarians in providing care to their patients.
Segments
The company operates through two segments, North America and International.
North America
This segment consists of the United States, Canada and Mexico. The company's strategic focus on POC diagnostic laboratory and imaging products is included in both segments. This segment also includes the contract manufacturing of vaccines and pharmaceutical products and a small veterinary laboratory.
International
This segment consists of geographies outside of North America, primarily the company’s operations in Germany, Italy, Spain, France, Switzerland, Australia and Malaysia. This segment includes the company’s PIMS business and veterinary laboratories.
Products and Services
The company offers a portfolio of veterinary POC (stationary and portable) laboratory diagnostic instruments for testing blood and other biological substances, for diagnostic imaging and for other uses. The company also markets and sells consumable supplies and services for these instruments.
POC Laboratory
Blood Chemistry
Element DC Veterinary Chemistry Analyzer (the Element DC) uses consumable, dry slide technology for blood chemistry and electrolyte analysis. The Element DC5x Veterinary Chemistry Analyzer (the Element DC5x), launched during 2018, delivers faster run times, higher throughput, and allows simultaneous staging of five patient samples. The Element DCX Veterinary Chemistry Analyzer (the Element DCX), launched during 2021, is a chemistry analyzer that is positioned between the economical Element DC and the higher-capacity Element DC5x. The Element DC, Element DCX, and Element DC5x utilize the same consumable test slides. The company is supplied with the Element DC, Element DCX, and Element DC5x, as well as the affiliated test slides and supplies under a contractual agreement with a single third-party supplier. These products are sold in the North America segment and Australia.
The company also markets and distributes the Element RC, Element RCXTM, and Element RC3X compact chemistry systems that utilize load-and-go rotors (consumables) for blood chemistry and electrolyte analysis. Rotors of various test menus are available, providing results in some cases for up to 21 tests. The company also markets and distributes the scil Element DC, compact chemistry system that utilizes load-and-go consumables for blood chemistry. The company is supplied with the Element RC, the Element RCX, the Element RC3X, and the scil Element DC under contractual agreements with third-party suppliers. These products are sold and marketed in the International segment.
Hematology
The Element HT5 Hematology Analyzer (the HT5) is a five-part hematology analyzer that measures key parameters, such as white blood cell count, red blood cell count, platelet count and hemoglobin levels in animals, and it is sold in both the North America and International segments. The company also markets the scil Vet abc Plus +, a four-part hematology analyzer, in the International segment.
Blood Gases and Electrolytes
The Element POC Blood Gas & Electrolyte Analyzer is a handheld, wireless analyzer which delivers rapid blood gas, electrolyte, metabolite and basic blood chemistry testing utilizing consumable test cards. The company markets this in the North America segment. In the company’s International segment, mainly Europe, it markets and sells Edan blood gas products.
Immunodiagnostics
The Element i+ Immunodiagnostic Analyzer (the Element i+), which launched during 2020, and as of January 3, 2023, is part of the company’s proprietary product offering, utilizes patented fluorescence waveguide immunoassay technology with laser evanescent illumination for in-clinic detection of Total T4, Cortisol, Progesterone, cCRP and cTSH. The Element i+ analyzer system has capability to run multiplexed assays in a consumable microfluidic cartridge, offering potential future menu expansions in endocrine, inflammatory, infectious disease, and other diagnostic target areas. The company markets this in both the North America and International segments. The Cube-Vet is a compact benchtop analyzer used for the determination of various immunodiagnostic parameters sold throughout Europe.
Coagulation
The Element COAG Veterinary Analyzer (the Element COAG) is a compact cartridge-based system used for coagulation and specialty testing. The company offers five consumable test cartridges on the Element COAG. The Element COAG+ Veterinary Analyzer is a lightweight, handheld, battery-powered, wifi-capable cartridge-based system used for coagulation testing. The company markets this in both the North America and International segments.
Urine and Fecal Diagnostics
The Element AIM Veterinary Analyzer (the Element AIM) is a novel, proprietary automated fecal and urine combination POC laboratory analyzer launched in 2021. The Element AIM analyzes images using artificial intelligence that can be presented for rapid viewing during the patient visit, eliminating manual sample processing and time-consuming microscopic slide review. Cloud image capture and continuous machine learning software capabilities allow identification, classification, and quantitation improvements. The company markets this in both the North America and International segments.
Digital Cytology
The HeskaView Telecytology service provides in-clinic automated microscopic slide scanning and computing equipment that is seamlessly integrated with an online, on-demand network of board-certified clinical pathologists available 24 hours a day, 7 days a week, 365 days a year in North America. Patient samples can be evaluated, and a comprehensive pathology report returned to the veterinarian quickly, expediting patient diagnosis and treatment and elevating overall patient care.
Rapid Assay Diagnostics
The company sells rapid POC tests to detect antigens and antibodies associated with infectious and parasitic diseases of animals. The truRapid line of lateral flow tests are single-use consumables that are fast, accurate, and convenient for veterinarians. There are over 20 different tests available for use, but only marketed in countries with respective regulatory approval, to detect antigens and antibodies for a variety of infectious and parasitic diseases. Both individual and multiplex tests are available to give clinics flexibility in testing options. truRapids can be used on a variety of samples, including feces, whole blood, serum, or plasma.
POC Imaging and Informatics
Digital Radiography
The company sells equipment, including digital radiography detectors and related accessories for use in digital radiography imaging diagnostics in both of its segments. With this hardware, the company also provides licensed embedded software, support, data hosting, warranty and other services. CloudDR solutions bring digital radiography detectors, acquisition workstations and acquisition software together to produce, review, archive and share radiographic image studies for the company’s veterinary customers. The company also sells mobile digital radiography products, primarily for equine use, such as the Cuattro Hub, a mobile digital radiography acquisition console that is capable of operating as a general wireless x-ray imager and as the control and display for DentiPod, an intraoral dental sensor, and SonoPod, a wireless ultrasound.
Ultrasound Systems
The company sells ultrasound products, including affiliated probes and peripherals, with varying features and corresponding price points from various suppliers in both of its segments.
Other Imaging Systems
The company sells CT (computed tomography) and MRI (magnetic resonance imaging) products with varying features and corresponding price points in its International segment.
Diagnostic Data and Support
Cloudbank is an automatic, secure, web-based image storage solution designed to interface with the imaging products the company sells. HeskaView+ is a Picture Archival and Communications Systems (PACS) for web or local viewing, reporting, planning and email sharing of studies on Internet-enabled devices, including personal computers, tablet devices and smartphones. SupportCloud is a support package, including call center voice and remote diagnostics, recovery and other services, such as the provision of warranty-related loaner units. Access and operation between the company’s imaging devices, Cloudbank and SupportCloud is supported by the acquisition software used in the equipment it sells. The aforementioned solutions are available in both of the company’s segments.
HeskaView and the company’s Data Capture Utility (DCU) are PIMS applications for POC devices. The HeskaView software can be used as independent practice information reporting software for Heska analyzers. HeskaView and the DCU can be used as a middleware to bi-directionally connect Heska’s analyzers to a wide variety of veterinary PIMS platforms used throughout North America.
scil vIP is software that enables connectivity for POC devices in the company’s International segment. The software can be used as independent practice information software or as middleware to connect POC equipment to PIMS throughout Europe. It further provides a web interface allowing users to access the software easily.
VetZ is the name of the company’s PIMS business. VetZ’s signature software offering is the ‘easyVET’ product which is sold via license to veterinary practices and combines practice management, image management, communication and other functionality. VetZ also provides recurring support service (including updates, upgrades, and helpdesk) after sale. In addition, VetZ provides ‘easyIMAGE’, a PACS software package as part of easyVET, as well as on a stand-alone basis, digital radiography systems (sourced from Heska), ‘vetsXL’ which is connectivity software between veterinary practices and laboratory, insurance management and other providers to veterinary clinics, and ‘petsXL’ which facilitates communication between veterinary clinics and pet owners. These software packages are offered primarily in Europe.
Heartworm Preventive Products
The company has an agreement with Merck Animal Health granting Merck Animal Health the non-exclusive distribution and marketing rights for its canine heartworm prevention product, Tri-Heart Plus Chewable Tablets, ultimately sold to or through veterinarians in the U.S. Tri-Heart Plus Chewable Tablets (ivermectin/pyrantel) are indicated for use as a monthly preventive treatment of canine heartworm infection and for treatment and control of ascarid and hookworm infections. The company manufactures Tri-Heart Plus Chewable Tablets at its Des Moines, Iowa production facility.
Allergy Products and Services
Allergies are common in companion animals. Clinical symptoms of allergies are variable, but often manifest as persistent and serious skin disease in dogs and cats. Management of allergic disease is clinically problematic, as there are a large number of allergens that may give rise to these conditions. ALLERCEPT Definitive Allergen Panels are used to determine the specific allergens to which an animal, such as a dog, cat or horse, is reacting. The test results often serve as the basis for prescription ALLERCEPT Therapy Shots and ALLERCEPT Therapy Drops. The company’s veterinary laboratories in Loveland, Colorado and Fribourg, Switzerland both offer blood testing using its ALLERCEPT Definitive Allergen Panels.
Other Vaccines and Pharmaceuticals (OVP)
The company manufactures biological and pharmaceutical products for a number of other animal health companies in its facility in Des Moines, Iowa. It manufactures products for livestock and companion animals. The company’s offerings range from providing a portfolio of services which include research, licensing, production, labeling and packaging of products to providing any one of these services as needed by its customers, as well as validation support and distribution services.
The company developed a line of bovine vaccines that are regulated by the U.S. Department of Agriculture (USDA). In January 2015, the company signed a long-term Master Supply Agreement related to these vaccines with Elanco Animal Health, Inc. (Elanco), which terminates on June 17, 2023.
Marketing, Sales and Customer Support
In both of the company’s segments, it sells and markets its core products and solutions to veterinarians through its internal marketing organization, its field sales organization, a telephone sales force and independent third-party distributors. In the company’s North America segment, its OVP products are marketed and sold by third parties under third-party labels. The company markets and sells outside its key countries through third-party veterinary diagnostic laboratories and independent third-party distributors. As of December 31, 2022, the company’s customer facing sales, installed base support and utilization organization consisted of 156 and 187 individuals in its North America and International segments, respectively.
Intellectual Property
As of December 31, 2022, the company owned, co-owned or had rights to one issued U.S. patent expiring in April 2024 and had one pending U.S. patent application. The company’s corresponding foreign patent portfolio as of December 31, 2022, included one issued patent in Canada expiring in August 2024.
The company also has obtained exclusive and non-exclusive licenses for numerous other patents held by academic institutions and for-profit companies. The company’s material licenses include its exclusive license to develop and commercialize the Nu.Q POC cancer screening and monitoring solution for dogs and cats.
HESKA, scil, ALLERCEPT, HemaTrue, Solo Step, Element DC, Element HT5, Element POC, Element i, Element i+, Element COAG, Element COAG+, Element DC5X and Element RC, Element RCX, Element RC3X, Element AIM, and scil vet, scil academy, scil vIP, scil ABC are registered trademarks of the company. TRI-HEART is a registered trademark of Intervet Inc., doing business as Merck Animal Health, which is a unit of Merck & Co., Inc., in the United States and is a registered trademark of the company in other countries. Nu.Q is a registered trademark of Belgian Volition SPRL.
Government Regulation
The company’s facility in Des Moines, Iowa is a USDA, Food and Drug Administration (FDA) and Drug Enforcement Agency (DEA) licensed biological and pharmaceutical manufacturing facility.
Among the conditions for certain regulatory approvals is the requirement that the company’s facilities and/or the facilities of its third party manufacturers conform to current Good Manufacturing Practices and other analogous or additional requirements.
The company or its distributors have sought regulatory approval for certain of its products from the Canadian Center for Veterinary Biologics, or CCVB (Canada); the Japanese Ministry of Agriculture, Forestry and Fisheries, or MAFF (Japan); the Australian Department of Agriculture, Fisheries and Forestry, or ADAFF (Australia); the Republic of South Africa Department of Agriculture, or RSADA (South Africa); the Agriculture, Fisheries and Conservation Department, or ADCD (Hong Kong); the Macau Animal Health Division of Animal Control and Inspection, or IACM (Macau); the Spanish Ministry for Agriculture, Fisheries and Food; and from the relevant regulatory authorities in certain other countries requiring such approval.
Acquisitions
In January 2022, the company acquired Veterinärmedizinisches Dienstleistungszentrum (VetZ) GmbH (VetZ). VetZ is a European leader in veterinary PIMS.
In January 2023, the company completed the acquisition of MBio Diagnostics, Inc., doing business as LightDeck Diagnostics (LightDeck). The LightDeck acquisition represents a meaningful increase in the company’s intellectual property portfolio, as well as its manufacturing and research and development capabilities.
Agreements
In March 2022, the company entered into a Master License and Product Supply Agreement with Belgian Volition SRL to develop and commercialize a POC cancer screening and monitoring solution for dogs and cats under an exclusive arrangement.
Suppliers
Major suppliers that sell the company proprietary products are FUJIFILM Corporation and Shenzen Mindray Bio-Medical Electronics Co., Ltd.
Research and Development
The company’s research and development expenses were $19.8 million in 2022.
Competition
In the POC diagnostic testing market, the company’s major competitors include IDEXX Laboratories, Inc. (IDEXX) and Zoetis Inc. (Zoetis).
History
The company was founded in 1988. It was incorporated in California in 1988 and reincorporated in Delaware in 1997. The company was formerly known as Paravax, Inc. and changed its name to Heska Corporation in 1995.
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