 Diagnostics represent one of the most attractive segments of the Animal Health market, in our view, with an estimated >8% annual CAGR

 The utilization of diagnostics remains low, but we are seeing vets increasingly integrate these products into their practices– Only 22% of sick visits and 9% of wellness visits include a bloodwork diagnostic despite best-in-class utilization of~40%

 Vets are highly incentivized to adopt diagnostics, particularly due to structural changes in the Rx market, which traditionally accounted for a substantial portion of practice profitability– Chewy.com and others are changing the longer-term economics of vet practices, a trend that favors diagnostics

 Pet owners are showing an increased willingness to pay more to support their pet’s health– COVID-19 has accelerated this trend

 Overall share in the Animal Health diagnostic space is relatively concentrated, and pricing remains healthy

 Idexx (point-of-care and reference lab) holds a clear leadership position in the industry with greater than 50% market share

 Mars Antech (reference lab), ZTS (point-of-care as well as an emerging reference lab) and Heska (point-of-care) represent the other key competitors in the space

 Industry pricing remains healthy with low- to mid-single-digit price increases and high rates of customer renewals for all major players

 Europe and other developed markets represent a significant growth opportunity for the sector

 Pet ownership is high in these markets, and pet owners are showing an increased willingness to pay for treatments to improve the health of their animals

 Despite this willingness to pay, diagnostic use remains well below US levels, a trend we see changing o