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  "docId": "019dd923-622c-750b-8b98-a3d302cd2d9a",
  "docSlug": "2692179b6d0b",
  "documentTitle": "PetIQ, Inc. (PETQ)",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-04-30 00:00:00",
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  "notes": "Uses callout boxes to highlight specific quotes from earnings calls to support the thesis that the intermediary model is becoming obsolete.",
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      "kind": "callout",
      "text": "Quotes from Erin Wright and Mendo Akdag regarding direct relationships and changes in distribution.",
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      "kind": "callout",
      "text": "Quotes from David Westenberg and Mendo Akdag regarding buying outside the traditional veterinary channel.",
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    {
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      "kind": "callout",
      "text": "Should Merial and other manufacturers no longer feel the need to sell only to veterinarians – a direction in which they appear to be moving – what value would the VIP acquisition have brought to PetIQ?",
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      "kind": "list",
      "text": "PETS Earnings Call: Q3 FY17",
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      "text": "PETS Earnings Call: Q2 FY18",
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      "kind": "paragraph",
      "text": "While Merial may benefit from the PetIQ-VIP relationship so long as it prefers to sell to licensed veterinarians, it and other veterinary drug manufacturers have increasingly entertained the possibility of selling directly to retail. In particular, on a number of recent earnings calls, PetMed Express (PETS), an online retailer of veterinary medications, has indicated that it is now working towards developing direct supply relationships with manufacturers.",
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      "kind": "paragraph",
      "text": "To the extent that the now-combined PetIQ-VIP business has an economic \"moat,\" the source of its competitive advantage is that it is at once a licensed veterinarian and distributor of veterinary drugs, giving manufacturers greater access to the retail channel without having to sacrifice their (now superficial) policy of selling only into the veterinary channel. Should Merial and other manufacturers no longer feel the need to sell only to veterinarians – a direction in which they appear to be moving – what value would the VIP acquisition have brought to PetIQ?",
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      "kind": "quote",
      "text": "\"Our relationships with our vendors are very good, I would say. There is some changes happening, but we may disclose that in our 10-K in May.\" — Mendo Akdag, President and CEO, PetMed Express; \"It's a possibility, yes.\" — Mendo Akdag, CEO, PetMed Express",
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      "kind": "title",
      "text": "Does Merial Even Need The PetIQ-VIP Relationship Anymore?",
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