In the land of sugar and fat, health concerns for the general population are rising and this has extended towards our furry friends where diabetes in cats and dogs are a real risk which is being addressed by biotech company Universal Biosensors (ASX: UBI) and their blood sugar monitoring device.
As the latest extension of their sugar analysing devices which are used in agriculture and medicine, Universal Biosensors has launched its PETRACKR Diabetes product in the United States. The device enables pet owners to process a glucose test strip as a means of monitoring blood sugar levels within companion animals. The regulatory process to commercialise such products is substantially simpler than if used for human purposes.
Kicking off the launch, 10,000 PETRACKR analysers and 375,000 diabetes test strips have been delivered or are in transit to UBI warehouses in the USA and Europe.
An initial purchase order for $280,000 worth of devices and test strips have been signed while CEO John Sharman expects that the sales from these customers should reach around $2 million over the next 12 months.
Additional distribution partners are expected to be announced within 8 weeks with several deals in the United States already nearing completion according to Sharman.
“We are delighted with the launch of our PETRACKR blood glucose monitoring product. Blood glucose monitoring in companion animals (dogs and cats) with diabetes is a growing market and is estimated to be $270 million p.a,” said Sharman.
“Glucose test strip volumes are estimated to be approximately 150 million p.a. and device volumes in the order of 1 million p.a. The market is growing at 12% p.a. largely because of increasing pet adoption and increasing rates of obesity in pets globally”.
“UBI is confident that our PETRACKR product, (which leverages UBI’s human blood glucose monitoring pedigree and technology) will be a better alternative for customers in terms of price, accuracy, latest technology, user App and overall performance compared to the current products available in the market. We expect PETRACKR to win significant market share over time.”
The sale price of the device and test strips (which provide recurring revenue) are yet to be disclosed but similar devices in the US for pets retail for around $200.
Once the device is purchased, an app can be downloaded on a smart device which enables a pet owner to download and share the pet’s blood glucose results, insulin doses, meals, and exercise routine.
For the year ended 31 December 2022, Universal Biosensors reported $4.52 million in revenue which represented a 22% decline on the previous year. Substantial expenses tied to research, development and manufacturing however resulted in a $26.8 million net loss for the Company.
This trend has continued into 2023 with Universal Biosensors reporting $5.8 million in operating cash outflows for the quarter ended 31 March 2023. However, the Company remains reasonably well capitalised with a $21.2 million of cash on hand.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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