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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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      "kind": "callout",
      "text": "Heska has spent $12.4 million more on R&D in over the past two years relative to its previous four-year average. However, given Heska's oft-cited guidance on development costs, this implies minimal improvement in its product portfolio. In fact, Heska R&D spend is underwhelming compared to leader IDEXX and comparable companies.",
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      "kind": "callout",
      "text": "Heska is being outspent almost 20-to-1 by IDEXX, the animal health diagnostic equipment leader.",
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      "text": "R&D / Revenue: 4.5%",
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      "text": "Examining incremental R&D spend since 2019 suggests Heska has been able to add just 6 new features / menus to its products. More importantly, how has Heska funded the development cost of the Element AIM, a new product the Company claims has been entirely developed internally? We believe this raises serious questions about Heska's Element AIM disclosures.",
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      "text": "Heska is being outspent almost 20-to-1 by IDEXX, the animal health diagnostic equipment leader.",
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      "kind": "quote",
      "text": "\"The addition of major features and menu expansions to existing platforms often requires between $1 million and $3 million of investment and one to two years of time to reach our markets.\" — Wilson at Investor Day November 2020",
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      "kind": "source-note",
      "text": "Source: Heska 2020 10-K, Bloomberg",
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      "text": "Heska R&D Disclosure and Historic Spend Analysis",
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      "text": "Comparable Company R&D Spending Comparison",
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      "kind": "title",
      "text": "We Find It Hard To Understand How Heska Has Accomplished All This With Minimal R&D Spend",
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