Neogen plans to acquire U.S. rights and related assets to Elanco's StandGuard® insecticide

Rhea-AI Summary

Neogen Corporation (NASDAQ: NEOG) announced plans to acquire the U.S. rights to Elanco's StandGuard^® Pour-on for cattle insect control, enhancing its agricultural insecticide portfolio. This acquisition aligns with the FTC's recent approval of Elanco's buyout of Bayer AG's animal health business. StandGuard is a leading product in the domestic beef cattle insecticide market, offering Neogen immediate sales prospects and access to new registrations. The transaction terms remain undisclosed, but the acquisition signifies Neogen's strategic growth in agricultural biosecurity.

Positive

• Acquisition of StandGuard offers immediate sales opportunities.
• Enhances Neogen's existing agricultural insecticide portfolio.
• Access to gamma-cyhalothrin active ingredient expands product offerings.

Negative

• Terms of the agreement are undisclosed, leaving financial impact unclear.

LANSING, Mich., July 16, 2020 /PRNewswire/ -- Neogen Corporation (NASDAQ: NEOG) announced today that, in line with yesterday's Federal Trade Commission (FTC) press release, it plans to acquire the U.S. (including territories) rights to Elanco's StandGuard^® Pour-on for horn fly and lice control in beef cattle, and related assets. Closing remains subject to a final FTC consent decree for closing of Elanco's acquisition of Bayer AG's global animal health business.

StandGuard Pour-on is one of the leading products in the domestic beef cattle insecticide market, and represents an exceptional fit in Neogen's existing agricultural insecticide portfolio and organizational capabilities. Neogen entered the agricultural insecticide market with its 2014 acquisition of Chem-Tech.

"Elanco's divestiture of its StandGuard product is an unexpected opportunity that we could not pass on," said John Adent, Neogen's president and chief executive officer. "The product is a true bolt-on to complement our existing agricultural biosecurity infrastructure. This acquisition will provide Neogen immediate sales opportunities post-closing, along with both new registrations and access to the gamma-cyhalothrin active."

Neogen's 2014 acquisition of Chem-Tech brought the company Prozap^®, an insecticide brand that is well known in the large animal production industry, and is particularly popular with dairy and equine producers, and an extensive manufacturing and distribution facility in Pleasantville, Iowa.

Terms of the agreement were not disclosed.

Neogen Corporation develops and markets products dedicated to food and animal safety. The company's Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases and sanitation concerns. Neogen's Animal Safety Division is a leader in the development of animal genomics along with the manufacturing and distribution of a variety of animal healthcare products, including diagnostics, pharmaceuticals, veterinary instruments, wound care and disinfectants.

CONTACT:	Steve Quinlan, Vice President & CFO
	Neogen Corporation, 517/372-9200

 

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SOURCE Neogen Corporation

FAQ

What is Neogen's recent acquisition related to?

Neogen plans to acquire the U.S. rights to Elanco's StandGuard Pour-on for horn fly and lice control in beef cattle.

What is the significance of the StandGuard acquisition for Neogen?

The acquisition enhances Neogen's agricultural insecticide portfolio and provides immediate sales opportunities.

When was the acquisition announcement made?

The acquisition was announced on July 16, 2020.

Is there any financial information available about the acquisition?

The terms of the agreement for the StandGuard acquisition have not been disclosed.

How does the acquisition fit into Neogen's business strategy?

The acquisition aligns with Neogen's focus on expanding its agricultural biosecurity capabilities.