Heska Corporation (HSKA)
2003 Interview with: Robert Grieve, Chairman and CEO & Jason Napolitano, CFO
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Continuing product innovation and a completed restructuring plan leading to revenue growth for Heska Corporation



HealthcareAAA
Biotechnology & Drugs
(NASD: HSKA)

Heska Corporation

Robert Grieve
Chairman and
Chief Executive Officer



Jason Napolitano
Chief Financial Officer

Interview Conducted by:
Diane Reynolds, Co Publisher

CEOCFOinterviews.com
January 2003

Founded in 1988, Heska Corporation (Nasdaq: HSKA) develops, manufactures and markets innovative health products for dogs and cats. With unprecedented innovation, Heska brings simple solutions to complex veterinary medical needs to improve the quality of diagnosis, treatment and prevention of disease for companion animals. Among other advances, they have developed technology for the accurate diagnosis of allergy — the most common cause of skin disease afflicting dogs. Heska has advanced the state of allergy diagnosis for veterinary medicine with its ALLERCEPT™ family of allergy diagnostic and treatment products. When asked how it is that Heska has experienced three consecutive years of growth, Chairman and CEO, Robert T. Grieve responded, “I think that our growth has been primarily related to our innovation in product development.  We are constantly bringing out new products.  For example, next year we plan to have four additional companion animal health products.  The introduction of new products and their support of our marketing and sales effort tends to result in rapid revenue growth.” Mr. Grieve goes on to say, “Today, we are principally focused on dogs and cats, because that is where the real substantial growth is in this marketplace. Therefore, we imagine the bulk of our R&D expenditures and our marketing expenditures to remain in that area.”

In the past, Heska's research has led to significant developments in flea control and gene therapy. Through genomic sequencing, Heska's scientists identified hundreds of novel molecular targets for flea control products. Other important milestones have been attained recently in the development of a gene therapy product for the treatment of cancer in dogs. In 2000, Heska's diverse product line grew to more than 30 companion animal health products. This growth demonstrates their ability to create, market and sell product innovations to this highly specialized market. For example, Solo Step™ CH, a one-step, patient-side test for canine heartworm detection is the easiest, fastest test on the market. With a strong product portfolio and restructuring completed the management team at Heska has now set their sights on a new goal says CFO, Jason Nepolitano, “We have set a corporate goal of profitability for our current quarter, ending on December 31.  We have given investors guidance that we expect to have less than a million dollar loss in that period but we are doing everything that we can to get to profitability to meet our corporate goal.”

As a result of this increasing demand for improved pet health care, Heska continues to strengthen its market presence in the United States and is currently selling its products to more than 14,000 U.S. veterinary clinics. Heska addresses the special needs of these clinics by offering unique products that expand practice areas and by providing medical and technical consultation support.

Products include:
HESKA® Solo Step™ CH. - The easiest, fastest patient-side heartworm test on the market. Solo Step CH Batch Test Strips are in vitro diagnostic tests for the detection of Dirofilaria immitis antigens in canine serum or plasma.
 
HESKA® ALLERCEPT™ Testing and Treatment Services, The ALLERCEPT™ test uses certain unique proprietary allergens and a proprietary detection system making it the most sensitive and specific test for IgE.  Extremely accurate diagnosis can then continue with allergen-specific treatment.

F.A. Granules (Omega-3 & Omega-6 Fatty Acid Supplement) - Provides high levels of uniquely sourced fatty acids in a flavor base dogs love.

E.R.D.-Screen™ Urine Test  - Incorporates a monoclonal antibody specific for canine albumin (other proteins do not interfere with this test).  It identifies dogs “at risk” of developing end-stage renal disease and allows veterinarians to help them much earlier in the process.

SPOTCHEM™ EZ Automated Dry Chemistry System – This is an in-clinic blood chemistry systems.

i-STAT® Portable Clinical Analyzer. The acute care laboratory you can hold in your hand - Chemistry, Hematology and Electrolytes/Blood Gases.

HESKA® ABC-Diff Hematology Analyzer. Accurate in-clinic hematology analyzer delivers rapid results and improved practice profits.

To find out more about: Heska Corporation, you may order the complete text of our interview. To receive a copy of this highly informative interview, left click here: Contact & Ordering

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Interview Highlights:
- For what animals does Heska primarily produce veterinary products?
- What other markets do they target and how do they market those products?
- Does online competition affect their business?
- What is their current R&D spending?
- Where will future research and development expenditures be focused?
- How is it that Heska has experienced three consecutive years of growth?
- How large is Heska’s patent portfolio?
- With their restructuring completed, what is Heska’s focus going forward and what are their goals?
- What geographic markets are they looking to for expansion?
- Is Heska in a strong enough financial position to continue its growth strategy?
- How are things developing with their cancer therapy for companion animals?
- How are their alliances progressing?
- Has there been any change with regards to insurance for pets?
- What were the key points for their financial performance?
- Why did they exit the horse market?
- How will their new website be used in the future?
- Can veterinarians interested in a particular product download a demonstration video from their website?
- How many people do they have out in the field?
- Will European expansion involve their own sales team or will it be done through partnerships?
- What gives they an edge on their competition with regards to investors?