IDEXX Laboratories Highlights Diagnostic Pipeline, Reaffirms Long-Term Growth Targets

IDEXX Laboratories reaffirmed its growth targets for the long term during the Morgan Stanley Global Healthcare Conference. The company sees double-digit growth in reference laboratory recurring revenue and VetLab recurring revenue, leading to an elevated outlook. CEO Mike Erickson highlighted the company's diagnostic innovation pipeline and commercial investments, including expansion of the inVue Dx cytology platform, additional Catalyst tests, and a multi-cancer Cancer Dx panel.

Despite an anticipated 1.5% decline in veterinary visits in the second half, IDEXX remains confident in its long-term growth framework. CFO Andrew Emerson noted a 22 million increase in pets in the system since the pandemic, with 8-9 million more medicalized pets. IDEXX sees positive visit growth for older pets, with bloodwork inclusion in wellness visits increasing by about 50 basis points annually.

The company's Catalyst platform has expanded two-and-a-half times over a decade through menu additions and utilization support. IDEXX executives also discussed the upcoming MultiQ Dx platform, which they expect to be paradigm-changing.