Top 10 holding IDEXX Laboratories, Inc. (NASDAQ:IDXX) is a leader in veterinary diagnostics. The company is benefiting from secular growth spending on pets, driven by favorable demographics, increased use of diagnostics, and an increasing focus on preventative care. It has had much success placing its proprietary testing instrument in clinics, and has a deep pipeline of tests and products. Its razor/razorblade model results in high retention rates and incremental margins. IDEXX is transitioning to all-direct distribution, which we expect will further enhance margins and future growth.
From the Baron Funds Small Cap Fund winter newsletter 2016.
