The Big Picture: IDEXX grew 10% in a quarter when fewer pets saw a vet, screwworm turned up in an Arizona dog, and Zoetis and Elanco report later this week.
The Big Story: Fewer visits, more tests
IDEXX reported third-quarter revenue of $1.214 billion on Monday, up 10% both as reported and organically. Its core business, recurring diagnostics sold to vet clinics, grew 11% overall and 10% in the U.S. The company raised its 2026 revenue outlook to $4,741 million to $4,767 million and its earnings outlook to $14.96 to $15.16 per share.
That growth came while clinic traffic shrank. U.S. clinical visits fell 1.9% from a year earlier in the third quarter, according to CATalyst Council's analysis of Vetsource data from 6,595 practices. Dog visits fell 3.3%. Cat visits rose 2.7%.
So the money is coming from what happens inside each visit. IDEXX placed more than 1,900 of its new inVue Dx analyzers in the quarter, bringing the installed base to nearly 11,000, and its in-clinic consumables grew 14%. Reference lab revenue grew 10% on testing volume and price. The one soft spot: rapid assay tests grew 1%, with price gains covering lower volume.
Who it affects: diagnostics reps (the pitch is utilization per visit, not more visits), pharma reps whose products depend on dog wellness traffic, and practice managers weighing new in-house equipment.
Zoetis reports Thursday and Elanco Friday. Both sell mostly into the same dog visits that are shrinking, so watch whether they can show the same per-visit growth.
Screwworm reaches Arizona, in a dog
USDA confirmed New World screwworm in a dog in Cochise County, Arizona, on Oct 29, the state's first case. Officials are setting a 20-kilometer infested zone with animal movement controls, plus trapping and sterile fly releases. It follows the first U.S. wildlife case, an elk in Pecos County, Texas, confirmed Oct 21.
Four products have FDA emergency use authorization for screwworm: Elanco's CLiK Extra and Bimeda's Bimectin for livestock, and Zoetis's Simparica Trio and Sergeant's Capstar for dogs (Capstar also covers cats). Each covers only the species and uses on its authorization.
Who it affects: small animal clinics and parasiticide reps in the Southwest, not only cattle accounts. USDA is asking owners and vets to check animals daily for draining or growing wounds and to report suspected cases right away.
Product Watch
Merck launches Nobivac NXT Rabies in the U.S. Announced Monday, the 1-year and 3-year vaccines are for healthy dogs and cats 12 weeks and older. Merck is selling them as non-adjuvanted, preservative-free and thimerosal-free. Rabies is a vaccine every clinic buys, so expect Merck reps to push for share against established brands.
Source: Merck Animal Health, Nov 2
Regulation Watch
FDA pilot could shave about two years off food animal drug reviews. FDA's Center for Veterinary Medicine opened a voluntary pilot on Oct 27 that sorts residue test methods by risk, so methods close to ones FDA and USDA labs already use need fewer steps. Sponsors can also validate one method once instead of twice. FDA estimates the residue evaluation could finish about two years sooner.
Source: FDA, Oct 27
Talk Track
"AAHA published new parasitology guidelines on Oct 28 covering 12 emerging parasites. They push routine testing for healthy pets and year-round prevention, with reminders to help clients stick to it." (Antech, Boehringer Ingelheim, Merck and Zoetis sponsored the guidelines.)
"Screwworm is now in Arizona and in a dog. Daily wound checks matter, and four products have emergency authorization, each for specific species."
"Cat visits have grown 12 quarters in a row while dog visits fall. If you sell feline products, this is your week."
Sources: AAHA, USDA APHIS, CATalyst Council
The Number: −1.9%
The drop in U.S. clinical visits in the third quarter. Fewer visits, yet IDEXX's U.S. recurring diagnostics grew 10%. The growth is in what each visit is worth.
Source: CATalyst Council, Oct 13
What We're Watching
Cencora, Wednesday Nov 4. MWI's parent reports before the open. Listen for any update on the $3.5 billion Covetrus and MWI merger, still under FTC review.
Zoetis, Thursday Nov 5. Whether U.S. dog sales have stopped shrinking.
Elanco, Friday Nov 6. Whether its newer pet products keep growing.
Bird flu in Washington dairies. 34 herds confirmed since Oct 8, 33 in Yakima County and 1 in Benton County.
Animal Health Brief is an independent publication by the editorial team. Not investment advice. Coming soon: The Animal Health Industry Map, free for subscribers.