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Neogen® MDS Awarded Contract from USDA Food Safety and Inspection Service

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Neogen (NASDAQ: NEOG) announced that its Molecular Detection System has been selected by the USDA Food Safety and Inspection Service (FSIS) as the primary method for detecting Salmonella and Listeria monocytogenes in meat, poultry, and egg products. The USDA FSIS has trusted Neogen's system for over five years due to its reliability and efficiency. The new contract also includes Listeria spp. and the Neogen Molecular Detection Assay 2 for Salmonella Enteritidis and Salmonella Typhimurium. Neogen's system utilizes LAMP technology for fast and accurate pathogen detection and can conduct up to 96 tests simultaneously across various sample types. This recognition underscores Neogen's commitment to global food security.

Positive
  • USDA FSIS selects Neogen's Molecular Detection System as primary method for pathogen detection.
  • Neogen has supplied the USDA FSIS with reliable and efficient detection systems for over five years.
  • New contract includes advanced assays for Salmonella Enteritidis and Salmonella Typhimurium.
  • Neogen's system can perform up to 96 different tests concurrently, enhancing testing efficiency.
  • LAMP technology offers fast and accurate pathogen detection, beneficial for food manufacturers.
Negative
  • The press release does not provide specific financial terms of the new contract.
  • No detailed information on the expected financial impact of the contract on Neogen's revenues.
  • The release lacks data on potential market competition affecting Neogen's position.

Insights

The recent announcement from Neogen Corporation about the USDA FSIS contract is significant for the company’s financial health. This contract is a validation of Neogen’s technology and an indication of the government’s trust in their products. It can lead to increased revenue and market penetration in the food safety sector. In the short term, investors might see a boost in stock price due to market optimism. In the long term, sustained government contracts solidify Neogen's revenue stream, potentially leading to stable financial growth. Investors should watch for upcoming earnings reports to see the financial impact of this contract.

Rating: 1

The adoption of Neogen's Molecular Detection System (MDS) by the USDA FSIS highlights the technological advancements in pathogen detection. The use of loop-mediated isothermal DNA amplification (LAMP) technology is a game-changer in the food safety industry. LAMP allows for rapid and accurate detection of pathogens, which is important for maintaining food safety standards. The ability to run up to 96 different tests concurrently enhances efficiency and reliability, making it attractive for large-scale food safety operations. This technological validation might spur interest from other global food safety agencies and manufacturers, potentially expanding Neogen’s market reach.

Rating: 1

From a market perspective, the USDA contract places Neogen in a favorable position within the food safety solutions market. This contract not only strengthens their footprint in the U.S. but also sets a benchmark that could be influential in other regions. The endorsement from a significant governmental body like the USDA could act as a catalyst for securing more international contracts. This strategic win highlights the importance of reliable and effective technology in food safety, potentially increasing the adoption rate among food producers and contract labs globally. Investors should consider the potential for market expansion as a positive indicator for future growth.

Rating: 1

LANSING, Mich., June 10, 2024 /PRNewswire/ -- Neogen® Corporation (NASDAQ: NEOG), an innovative leader in food safety solutions, announced today that the U.S. Department of Agriculture Food Safety and Inspection Service (USDA FSIS) has named the Neogen Molecular Detection System as its primary method to be used for the detection of Salmonella and Listeria monocytogenes testing for meat, poultry and egg products.

USDA FSIS has been using the Neogen Molecular Detection System for Salmonella and Listeria monocytogenes for over five years, attesting to the reliability and efficiency of the system. As part of the new contract, the agency also selected Listeria spp. and the newly available Neogen Molecular Detection Assay 2 – Salmonella Enteritidis/Salmonella Typhimurium.   

"Food producers and contract labs around the world have long trusted the Neogen Molecular Detection System as a fast, accurate, reliable, and easy-to-use method for pathogen detection," said John Adent, Neogen's President and CEO. "We are proud to receive this recognition and demonstrate our continued commitment to fueling a brighter future for global food security."

The Neogen Molecular Detection System (MDS) makes the detection of foodborne pathogens simple and fast by utilizing loop-mediated isothermal DNA amplification (LAMP) technology. The Neogen MDS system utilizing LAMP technology provides food manufacturers with speed and ease in identifying these pathogens.

The system simultaneously accommodates individual, pathogen-specific assays, enabling users in meat, poultry, and other food and beverage categories to run up to 96 different tests concurrently for a range of organisms and across various food and environmental samples. The next-generation Neogen Molecular Detection Assays have been consistently validated by leading scientific validation organizations throughout the world (AOAC® INTERNATIONAL, AFNOR, MicroVal) for a comprehensive variety of sample types.

Individuals interested in learning more about the Neogen Molecular Detection System and its various test kits can contact their local Neogen Food Safety representative or visit https://www.neogen.com/molecular-detection-system.

About Neogen

Neogen Corporation is committed to fueling a brighter future for global food security through the advancement of human and animal well-being. Harnessing the power of science and technology, Neogen has developed comprehensive solutions spanning the Food Safety, Livestock, and Pet Health & Wellness markets. A world leader in these fields, Neogen has a presence in over 140 countries with a dedicated network of scientists and technical experts focused on delivering optimized products and technology for its customers.

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PR@Neogen.com

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SOURCE Neogen Corporation

FAQ

What is the primary method selected by USDA FSIS for detecting Salmonella and Listeria in meat products?

The USDA FSIS has selected Neogen's Molecular Detection System as the primary method for detecting Salmonella and Listeria monocytogenes in meat, poultry, and egg products.

How long has the USDA FSIS been using Neogen's Molecular Detection System?

The USDA FSIS has been using Neogen's Molecular Detection System for over five years.

What additional assays are included in the new contract with Neogen?

The new contract includes assays for Listeria spp. and the Neogen Molecular Detection Assay 2 for Salmonella Enteritidis and Salmonella Typhimurium.

What technology does Neogen's Molecular Detection System use for pathogen detection?

Neogen's Molecular Detection System uses loop-mediated isothermal DNA amplification (LAMP) technology for pathogen detection.

How many tests can Neogen's Molecular Detection System perform concurrently?

Neogen's Molecular Detection System can perform up to 96 different tests concurrently.

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