Welcome to our dedicated page for Neogen news (Ticker: NEOG), a resource for investors and traders seeking the latest updates and insights on Neogen stock.
Headquartered in Lansing, Michigan, Neogen Corporation (NASDAQ: NEOG) is a prominent player in the global food and animal safety sectors. The company develops, manufactures, and markets comprehensive solutions designed to ensure the safety and quality of food and animal products. Neogen’s vast portfolio serves a range of industries, including food processors, veterinary services, and agricultural businesses, spanning over 140 countries worldwide.
Neogen’s operations are divided into two primary segments: Food Safety and Animal Safety. The Food Safety division, which accounts for approximately 70% of the company’s post-merger sales, includes diagnostic test kits, dehydrated culture media, and other tools used to detect pathogens, allergens, drug residues, and sanitization issues in food and feed processing. In the Animal Safety segment, contributing 20% of post-merger sales, Neogen markets veterinary instruments, pharmaceuticals, disinfectants, and genomics testing for various animals, including cattle, horses, and dogs.
Neogen has robust sales in the United States, which account for 60% of its total revenue, while international markets such as Canada, Europe, Asia, and Latin America make up the remaining 40%. The company's financial stability is underscored by its innovative product lines and strategic global partnerships, promoting long-term growth and market penetration.
Recently, Neogen has made significant strides in integrating the former 3M Food Safety business. The integration process, which includes the exit of transition service agreements and the incorporation of new product lines, is progressing well. In Q2 2023, Neogen reported revenues of $229.6 million, with a slight decline compared to the previous year, primarily due to transitional costs and market conditions. However, the company has shown resilience with core growth in its Food Safety segment, particularly in Asia, and easing destocking issues in its Animal Safety segment.
Neogen’s latest ventures include the launch of Neogen® Farm Fluid MAX, a dual-action disinfectant designed for challenging farm conditions, and the Neogen Molecular Detection Assay 2 – Salmonella Enteritidis/Salmonella Typhimurium, which provides rapid pathogen detection in poultry samples. The company also announced a strategic genomics partnership with Performance Food Group to enhance food traceability and quality assurance.
With a commitment to innovation and quality, Neogen Corporation continues to drive advancements in food and animal safety, contributing to global food security and public health. For investors and stakeholders, Neogen remains a reliable entity, navigating market challenges with strategic foresight and technological prowess.
Neogen Corporation has acquired Megazyme, Ltd., a leading supplier of analytical solutions for the food and beverage industries, based in Ireland. This acquisition aims to enhance Neogen's food diagnostics portfolio, leveraging Megazyme's innovative methodologies in carbohydrate and enzyme analysis. Megazyme will operate independently under Neogen's European division in Scotland, with Dr. Barry McCleary, Megazyme's CEO, serving as a strategic advisor. The terms of the agreement were not disclosed, but this move strengthens Neogen's position among major food producers.
Neogen Corporation (NASDAQ: NEOG) reported a 7% revenue increase to $115 million for Q2 FY2021, up from $107.8 million last year. Year-to-date revenues reached $224.3 million, also up 7%. Net income for Q2 was $15.9 million, down from $16.3 million, with earnings per share at $0.30. Despite a 13% sales increase in the animal safety segment, gross margin fell to 46.3% due to a shift in product mix. The food safety segment saw a 1% revenue rise, bolstered by new product launches. However, currency headwinds and COVID-19 disruptions impacted performance.
Neogen Corporation (NASDAQ: NEOG) has introduced rapid Reveal® tests for detecting meat species in raw meat and environmental samples. These tests deliver results in just 5 minutes and can identify as little as 0.5% of the target species, including horse, beef, sheep, and poultry. This innovation aims to prevent accidental or intentional meat mix-ups and assure product safety and labeling accuracy. Neogen's line of tests enhances food safety measures, supporting companies in maintaining brand integrity and consumer trust.
Neogen Corporation has launched Igenity® Canine Wellness, a preventative care DNA screening tool for veterinarians aimed at improving pet health management. This tool enables vets to predict genetic risks for common diseases, allowing for informed dietary and lifestyle recommendations. The screening process involves a simple cheek swab, with results provided to veterinary staff for client communication. The initiative is part of Neogen's broader goal to enhance animal health through innovative genomics solutions.
Neogen Corporation (Nasdaq: NEOG) has launched the Igenity Feeder, a DNA tool aimed at assisting cattle producers during the stocker and backgrounder phases. This tool measures genetic potential for key carcass traits, enhancing decision-making in nutrition and marketing. The Igenity Terminal Index (ITI) is integral for sorting cattle based on performance potential, allowing producers to optimize cattle uniformity and profitability. The product is now available for stocker and backgrounder operators, reinforcing Neogen's commitment to affordable DNA testing in the beef supply chain.
Neogen Corporation (NASDAQ: NEOG) has launched a new food extraction method, the Reveal 3-D Food Buffer, enhancing its ability to directly test various food products for allergens. This method allows testing at levels as low as 5 parts per million (ppm) for allergens including almond, peanut, and gluten, significantly increasing testing flexibility. The method is validated across diverse food matrices and adheres to current standards for detection limits. Neogen continues to focus on food and animal safety, offering a range of diagnostic test kits for various foodborne risks.
Neogen Corporation (Nasdaq: NEOG) reported an 8% increase in revenues to $109.3 million for Q1 FY2021, compared to $101.4 million in the previous year. Net income rose to $15.9 million, or $0.30 per share, up from $14.7 million, or $0.28 per share. Strong growth in the genomics and biosecurity product lines contributed to positive results, despite challenges in food safety markets. However, gross margin decreased to 46.0% from 47.5%, and operating expenses dropped 2% due to reduced travel. Currency fluctuations negatively impacted reported revenues in Brazil and Mexico.
Neogen Corporation (NASDAQ: NEOG) has launched an enhanced gluten detection test, Reveal® 3-D, which can identify gluten levels as low as 5 parts per million in just 5 minutes. This test simplifies the process for food industry customers by allowing them to test both food products and environmental samples using a single method. The product incorporates a specialized buffer for efficient extraction without compromising test speed. Neogen continues to provide various allergen testing solutions, catering to substantial food safety concerns.
Neogen Corporation (NASDAQ: NEOG) has signed a sponsorship agreement with the National FFA, committing to donate $1 for every 7-ounce bottle of its COMPANION™ Hand Sanitizer sold from Sept. 1, 2020 to Feb. 28, 2021, up to $250,000. The initiative aims to support agricultural education and combat COVID-19. CEO John Adent expressed the importance of investing in young agricultural leaders, while Molly Ball of the National FFA highlighted the partnership's role in ensuring safety amid uncertainty.
Neogen Corporation (Nasdaq: NEOG) announced that its BioSentry® 904 Disinfectant has received EPA approval for killing SARS-CoV-2, the virus that causes COVID-19. This hospital-grade disinfectant is effective when surfaces remain visibly wet for at least three minutes. The product addresses significant concerns following recent COVID outbreaks, particularly in the food industry. In addition to BioSentry 904, Neogen offers other disinfectants with emerging pathogen approvals, aiding in the fight against COVID-19.
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