PetMeds Sales Fall; Screwworm, AI, and Image License Checks Expand

1. IDEXX plans two Cancer Dx additions and a January MultiCue Dx presentation

OBSERVED

On August 13, IDEXX said it plans to add canine mast cell tumor detection to Cancer Dx in September 2026. It plans to add hemangiosarcoma detection in December 2026. The company also plans to present MultiCue Dx at the Veterinary Meeting & Expo in January 2027. ¹

All three dates are planned and may change. MultiCue Dx’s launch date, included tests, price and performance data are unreported. IDEXX quotes a US Cancer Dx price as low as $15 when clinics add it to most routine panels processed at an IDEXX reference laboratory. It quotes a higher, undisclosed price when Cancer Dx is ordered on its own. ¹

VIEWPOINT

The two planned additions could make Cancer Dx useful for more canine cancer screening decisions. A price of as little as $15 with eligible IDEXX panels may make clinics more willing to order the test. Including Cancer Dx with those panels may also encourage clinics to add it to existing laboratory orders.

Before changing the routine tests they offer, practices and groups should review the evidence and identify which IDEXX panels qualify for the lower price. They should compare contracted cost, client price and expected gross margin before updating demand forecasts. Once availability is confirmed, they can track orders, billed price and margin by clinic. Use the January MultiCue Dx presentation to check which tests it will include, its launch date, price and performance evidence.

CONFIDENCE

High — IDEXX’s investor presentation supports the planned Cancer Dx additions, the January presentation and the quoted price of as little as $15 with eligible panels. The planned dates may change; MultiCue Dx’s launch date, included tests, price and performance data are unreported.

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2. PetMeds net sales fall 19.9% as cash declines

OBSERVED

On August 13, PetMeds reported $41.0 million in net sales for the first quarter of fiscal 2027, down 19.9% from a year earlier. Reorder sales fell 20.5%, and new-order sales fell 20.2%. ²

Recurring net sales accounted for 61.5% of gross sales, up from 57.6% a year earlier. PetMeds includes AutoShip & Save sales and membership revenue in recurring net sales. Cash and cash equivalents fell from $21.4 million on March 31 to $13.1 million on June 30. PetMeds’ operations used $7.7 million in cash during the quarter. ²

Management identified conditions that raised substantial doubt about PetMeds’ ability to keep operating. In accounting terms, this is substantial doubt about its ability to continue as a going concern. Management’s response plan includes reducing advertising and media spending, lowering operating expenses and limiting capital spending. ²

Management judged that it was likely to carry out the plan and that the plan would address those conditions. It concluded that the plan removed substantial doubt about PetMeds’ ability to operate for the 12 months after the interim statements were issued. The interim figures are unaudited. ²

After the quarter ended, PetMeds agreed to sell its Florida headquarters and distribution-center properties for $37.0 million. If the sale closes, PetMeds would lease 100,519 square feet at one property from the buyer for 10 years. PetMeds expects the sale to close in the third quarter of fiscal 2027, subject to due diligence, a final lease and other closing conditions. ²

VIEWPOINT

PetMeds faces a trade-off between preserving cash and winning new customers. Lower advertising and operating spending may conserve cash while leaving PetMeds with fewer ways to attract new customers. If the property sale closes, it could add cash. PetMeds would then lease part of one property for 10 years.

Falling repeat orders show that weakness extends to sales from existing customers as well as new orders. Recurring sales made up a larger share while PetMeds’ overall sales were lower. The filing leaves the change in recurring sales dollars unclear. Results from other online pharmacies are needed before treating PetMeds’ decline as a market-wide trend.

The filing confirms financial pressure and raises the possibility that PetMeds’ service could be disrupted. Clinics should monitor PetMeds prescription request counts, approval times and client-reported order failures. Suppliers should monitor the property sale, unpaid invoices, days to payment, rebate balances and order volume. Competing pharmacies with efficient transfer and fulfillment processes may capture orders if customers encounter service problems.

CONFIDENCE

High — PetMeds’ Form 10-Q supports the results, management’s going-concern assessment and the pending property sale. The figures are unaudited, and whether PetMeds will carry out the response plan and complete the property sale is uncertain.

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3. FDA authorizes emergency use of Simparica TRIO to treat New World screwworm in dogs

OBSERVED

On August 13, the US Food and Drug Administration (FDA) issued Emergency Use Authorization (EUA) 006691 for the prescription drug Simparica TRIO. The EUA covers treatment of New World screwworm larval infestations, called myiasis, in dogs and puppies of all ages and weights. FDA has approved Simparica TRIO for other uses. New World screwworm treatment remains an unapproved use allowed under the emergency authorization. The EUA covers treatment only. ^{3, 4}

FDA applied its “may be effective” standard. The effectiveness evidence comes from one laboratory study of 12 adult beagles. Researchers experimentally infested wounds in 6 treated dogs and 6 controls. ^{5, 6}

At 24 hours, researchers found no live larvae remaining in the treated wounds. Researchers recovered an average of 30.7 live larvae from each control dog’s wound. Based on the number of live larvae remaining after 24 hours, FDA reported 100% effectiveness. FDA said the drug appeared to work mainly by expelling live larvae. ^{5, 6}

FDA identified limited safety and effectiveness evidence for dogs younger than 8 weeks or weighing less than 2.8 pounds. The fact sheet’s dosing table begins at 2.8 pounds, while the EUA covers lighter dogs. FDA concluded that the known and potential benefits outweigh the known and potential risks for dogs of all ages and weights. ^{5, 6}

Veterinary facilities and veterinarians must tell clients that New World screwworm treatment is an unapproved use of Simparica TRIO allowed under the EUA. They must explain the risks, benefits and any alternatives. They must report serious adverse events that may be related to use under the EUA. ^{3, 6}

Facilities must record the client and patient names, patient age and how the infestation appeared (disease manifestation). They must also record the number of doses prescribed or administered, lot number and other medicines given. They must keep EUA records for at least 2 years after the emergency declaration ends or the authorization is revoked. ^{3, 6}

The US Department of Health and Human Services or FDA may set an earlier end date for keeping these records. Zoetis and authorized distributors must record lot numbers, quantities, sites receiving the product and dates received. ^{3, 6}

FDA says most US dogs have a low risk of exposure. ⁴

VIEWPOINT

Confirmed cases are likely to drive demand in affected regions. Clinics and groups need a procedure for treatment under the EUA that they can activate when a case is confirmed. They should use local case reports and referral routes to set stock levels and train staff. Zoetis and distributors need to trace each lot and use regional case and product-use data to identify accounts that need support.

CONFIDENCE

High — FDA documents establish the authorization and the duties to inform clients, keep records and report adverse events. FDA’s effectiveness finding relies on one 12-dog laboratory study, and the dosing table begins at 2.8 pounds.

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4. Cat fracture study finds language models can miss cases surgeons classify for surgery

OBSERVED

On August 14, the Journal of the American Veterinary Medical Association published a study testing five large language models. These artificial intelligence (AI) systems generate text from a user’s instructions. ⁷

The models assessed text summaries from 73 cat fracture cases after researchers removed identifying details. The fractures involved metacarpal bones in the front paws or metatarsal bones in the hind paws. Two board-certified veterinary orthopedic surgeons with more than 15 years of experience classified each case for either surgery or care without surgery. The study compared each model’s answer with the surgeons’ agreed decision. ⁷

The surgeons classified 49 cases for surgery. ChatGPT classified 39 of them for surgery and recommended care without surgery for the other 10. Qwen and Claude Sonnet recommended care without surgery for all 49. ⁷

Across all five models, the more common error was recommending care without surgery for cases the surgeons classified for surgery. The models recommended surgery for cases assigned to care without surgery less often. ⁷

The study used cases from one referral hospital. Each model received one text summary and the same prompt in a new session, then produced one response. The study omitted images and detailed examination findings. ⁷

It compared model answers with the surgeons’ agreed decisions. Patient outcomes fell outside the study. The findings apply to the February 2026 model versions and this task of deciding whether the cat fractures needed surgery. ⁷

VIEWPOINT

How often a model misses surgery cases gives buyers a clearer safety test than overall accuracy alone. Clinics and groups should test each model on local cases and ask vendors to report how often it recommends care without surgery when a surgeon recommends surgery.

A veterinarian should review model answers during use. Teams should record the model version and prompt, then rerun the same cases after each update. This testing can reveal performance changes before wider use.

CONFIDENCE

Moderate — the peer-reviewed paper reports complete methods and results. The study compared model answers with the surgeons’ agreed decisions; patient outcomes fell outside its scope. Results from one hospital, text-only cases and one response per model may have limited relevance to other settings.

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5. Battery Ventures invests in Vetspire; Thrive’s ownership ends

OBSERVED

On August 13, Vetspire announced an investment from Battery Ventures to support its growth. Vetspire said it will operate as a standalone company. The investment amount, Vetspire’s valuation and Battery Ventures’ ownership share is undisclosed. ⁸

Zachary Seely, an executive with experience in healthcare software, joined Vetspire as chief executive officer. Joe Mazzarella continues as president and will focus on customer support and customer experience. The transaction ended Thrive Pet Healthcare’s ownership of Vetspire, while Thrive remains a long-term customer. ⁸

Vetspire said it will use the funding to speed up product and AI development. Its product, engineering and customer-support teams will continue serving existing customers during the ownership and leadership changes. Vetspire reports that its software is used in more than 800 pet hospitals and clinics across the US and Canada. ⁸

VIEWPOINT

Ending Thrive’s ownership may open sales opportunities with clinic groups that compete with Thrive. Battery Ventures’ investment and new leadership may lead Vetspire to release product and AI updates more often. Customers may then need to update software connections and clinic workflows more often.

Before renewal, existing customers should record current fees, support response times, service reliability, software connections and data export rights. Prospective customers and partners should confirm whether the ownership change affects software access, connections with other systems or contract terms.

New clinic-group customers and more frequent product releases would show whether the investment supports growth. System reliability and support response times would show its effect on customer service.

CONFIDENCE

High — Battery Ventures’ announcement supports the investment, leadership change and end of Thrive’s ownership. Financial terms, Battery Ventures’ ownership share and any resulting product or contract changes are undisclosed.

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6. Four copyright lawsuits allege veterinary practices used the same image without a license

OBSERVED

On August 13, Veterinary Information Network (VIN) News reported that Nick Vedros had filed at least nine federal copyright suits since late 2024. Four suits named veterinary practices as defendants. VIN said each complaint alleges that a veterinary practice used the same dog-and-cat photograph on its website without a license. ⁹

VIN reported that image-monitoring tools can scan many websites automatically for matching photographs. One defendant told VIN that the photograph had appeared in a blog post published almost 10 years before the lawsuit. ⁹

Public summaries of court records reproduced by Justia show that the four cases were filed between August 2025 and March 2026. The cases were filed in Texas, the District of Columbia, Maryland and California. The available records contain allegations and no court finding of infringement or liability. ^{10, 11, 12, 13}

VIN reported that all four cases were resolved within months. Justia’s summary of the Maryland court record lists a settlement order and a later dismissal filing. Public records provide no settlement terms or findings by a court. ^{9, 12}

VIEWPOINT

Automated image searches can expose practices to copyright claims over content published years earlier. A practice may keep an image when it changes marketing agencies, is acquired or rebuilds its website. The copyright risk persists if the image’s license record is lost.

Practices and groups can respond faster to claims by keeping long-term records of each image’s source, license and permitted commercial uses. Complete records can reduce the need for urgent image replacement and help teams give counsel and insurers the facts sooner. Vendor agreements reviewed by counsel should name who keeps records of image licenses and who responds to claims. The initial image review should cover older website pages, social-media accounts and shared image libraries.

CONFIDENCE

Moderate — VIN’s report and four public summaries of court records on Justia document four similar suits against veterinary practices. The Maryland summary records a settlement order and dismissal. Public settlement terms and findings by a court are unavailable.

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