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  "documentTitle": "Heska Corporation (HSKA)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-10-25 00:00:00",
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      "kind": "callout",
      "text": "Heska didn't invent the consumables subscription model. However, it has innovated a special brand of it that seems to create a lot of friction with customers. Although Heska's primary sales pitch espouses the benefits of working with a smaller supplier rather than an 800 pound gorilla like IDEXX, our research leads us to believe that Heska is known for having onerous and restrictive contract terms.",
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      "kind": "callout",
      "text": "Heska didn't invent the consumables subscription model. However, it has innovated a special brand of it that seems to create a lot of friction with customers.",
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      "text": "Heska has gained a clear reputation for strictly enforcing subscription contract terms, even when there are extenuating circumstances. There are examples of vets who have faced financial hardships as a result of Heska contracts. In an environment when many vet practices owned by older practitioners are being consolidated, there is not much allure to a long-term contract. Heska talks at length about the desire to expand testing menus for its diagnostic equipment so that its customers can run more tests in-house and thus generate more fee revenue. However, Heska contract terms are not favorable to the vet for this objective. Heska subscription agreements generally contain minimum consumables purchase thresholds. We contrast Heska's practices and contracts with those of Zoetis, which is clearly positioning itself as the kinder and gentler supplier.",
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      "text": "Based On Our Primary Research, Heska's Subscription Terms Are Unpopular",
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      "text": "\"the worst decision of my professional career\" — Anonymous Vet",
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      "text": "Our Research Shows Many Vets Are Not Happy With Heska Subscription Terms",
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