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  "documentTitle": "Heska Corporation (HSKA)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2021-10-25 00:00:00",
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  "notes": "Includes a Google Trends chart comparing Tri-Heart vs HeartGard and a quote from Heska regarding their manufacturing facility.",
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      "kind": "callout",
      "text": "“We view this facility as an asset which could allow us to control our cost of goods on any pharmaceuticals and vaccines that we may commercialize in the future.”",
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      "text": "We believe the PVD and OVP segments are worth little because they are sub-scale, major product Tri-Heart has minor share and has been de-emphasized by Merck, and because another large drug targets bovine as opposed to companion animal applications.",
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      "text": "Google Trends comparison of Tri-Heart vs HeartGard",
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      "kind": "list",
      "text": "Tri-Heart seems to have minimal mindshare compared to HeartGard; Why does this deserve a “companion animal” multiple?; What new drugs has Heska developed in the past five years?",
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      "kind": "paragraph",
      "text": "Heska's Pharmaceuticals, Vaccines and Diagnostic (“PVD”) and Other Vaccines and Pharmaceuticals (“OVP”) business segments manufacture an odd mix of drugs largely for others, including a bovine drug for Elanco and Tri-Heart heartworm chewables for Merck. Most PVD and all OVP products are manufactured at Heska's Des Moines, IA facility, which is listed as Diamond Animal Health in most state and federal records. We believe the PVD and OVP segments are worth little because they are sub-scale, major product Tri-Heart has minor share and has been de-emphasized by Merck, and because another large drug targets bovine as opposed to companion animal applications. Comparables with greater scale and better products trade a material discount to Heska multiples.",
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      "text": "We view this facility as an asset which could allow us to control our cost of goods on any pharmaceuticals and vaccines that we may commercialize in the future. — Heska 2020 10-K",
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      "text": "Source: Google Trends, Heska website, Heska 2020 10-K",
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      "text": "The Value of Heska's PVD And OVP Businesses Are Particularly Questionable",
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