{ "docId": "019dd923-622c-750b-8b99-1e32ee1ceb49", "docSlug": "cce862680d4f", "documentTitle": "Heska Corporation (HSKA)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-10-25 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 43, "pageCount": 128, "prevPage": 42, "nextPage": 44, "slideType": "preempt_rebuttal", "function": "preempt_rebuttal", "density": "dense", "nDataPoints": 0, "notes": "This is an activist short-seller report slide challenging the technological value proposition of a company's new diagnostic equipment.", "elementsJson": [ "paragraph" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-1e32ee1ceb49/43", "deckHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-1e32ee1ceb49#slide-43", "components": [ { "bbox": null, "kind": "callout", "text": "Practically speaking, we believe it is a stretch to call the new fecal analyzers a new piece of diagnostic equipment. In reality, the veterinary staff are still required to undergo a sample preparation process that must be done correctly to ensure accurate test results, and the equipment is actually just an automated microscope that uses algorithms to scan the slide for pre-determined image evidence of parasites.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f3c-7011-a9a7-1f2941afa899", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.94, "x": 0.03, "y": 0.44 }, "kind": "paragraph", "text": "Therefore, the second and more common practice is to send pet fecal samples to a centralized animal health reference lab. Given the use of more accurate diagnostic equipment, the use of additional testing protocols (such as antigen testing, which can identify eggs in earlier stages of growth), and greater laboratory personnel expertise, this is widely considered the most accurate diagnostic process. For this reason, the CPAC recommends that antigen testing be combined with microscopic examination. The only drawback is that the results of such tests are usually not available until early the following day.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "22f942f6-dd17-49a1-9b9b-bf2955e8bdef", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.94, "x": 0.03, "y": 0.27 }, "kind": "paragraph", "text": "Currently, pet fecal testing is performed one of two ways. First, in-clinic analysis can be performed using a variety of methodologies that vary in accuracy depending on type and personnel expertise. Most common is fecal floatation, which involves the physical preparation of the sample followed by analysis with a microscope. There are also a number of low cost disposable tests for certain applications. Fecal floatation has numerous potential limitations including misidentification given other debris in the sample, varying egg density, and varying stages of egg growth.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "285f3f56-854f-4087-be42-fbed0f8d7cd3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.94, "x": 0.03, "y": 0.17 }, "kind": "paragraph", "text": "We acknowledge that fecal testing can be an important treatment protocol for assessing the health of companion animals for the identification of the presence of roundworms, hookworms, and whipworms. In fact, the Companion Animal Parasite Council (CAPC) recommends two fecal screenings per year for adult dogs.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "40655d82-ce65-4ac3-a430-a14fbccee61c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.94, "x": 0.03, "y": 0.78 }, "kind": "paragraph", "text": "Finally, it is important to highlight exactly what functions the new point of care machines are performing. Practically speaking, we believe it is a stretch to call the new fecal analyzers a new piece of diagnostic equipment. In reality, the veterinary staff are still required to undergo a sample preparation process that must be done correctly to ensure accurate test results, and the equipment is actually just an automated microscope that uses algorithms to scan the slide for pre-determined image evidence of parasites.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5a048132-ee6a-4ddf-aeef-332f5f95cec3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.94, "x": 0.03, "y": 0.61 }, "kind": "paragraph", "text": "Practically speaking, this sub-24 hour turnaround time is adequate for a large portion of total testing activity and is most cost effective for the vet as it saves on the capital cost of an additional piece of diagnostic equipment and related consumables and reduces the burden on veterinary staff. Another typical argument against the use of reference labs is that the testing delay may require the pet owner to drive back to the vet following, but we note that (1) most people visit vets close to their home, and (2) a return trip doesn't seem too much to ask given how pets are being treated with greater care, and (3) a return visit isn't always required for treatment next steps, if any.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a0de41b2-65d2-45fe-8299-e8473bb93aac", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.67, "x": 0.31, "y": 0.03 }, "kind": "title", "text": "Fecal Testing Background: Currently Performed by Reference Labs; Timing Issues And Point of Care Solution Capabilities Seem Embellished In Our View", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eb189728-0ba1-45c7-ba83-5700aae4fd65", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 50, "from": 11, "beatId": "412174ed-5484-439a-aff3-7a3e556cebff", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "The Struggle", "beatSlug": "overcoming-monster-the-struggle", "evidence": "The deck presents an analysis of Heska Corp.'s financial performance, competitive position, and business model.", "position": 1, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }