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 (NASDAQ: NEOG) has finalized its merger with 3M's Food Safety business, creating a leading entity in food safety with a diversified product range and a strategic focus on long-term growth. Announced on December 14, 2021, the deal enhances Neogen's geographic reach and innovation capabilities. Existing Neogen shareholders will retain approximately 49.9% ownership, while 3M shareholders will receive about 50.1%. The merger aims at addressing trends in food safety and sustainability, positioning Neogen as a prominent player in the sector.
Neogen Corporation (NASDAQ: NEOG) announced that shareholders approved all proposals necessary for the combination with 3M's (NYSE: MMM) food safety business at a special meeting held on August 17, 2022. The merger is expected to finalize on September 1, 2022, pending customary closing conditions. Neogen's President and CEO, John Adent, expressed gratitude for shareholder support, highlighting anticipated growth and food security advancements. Final voting results will be filed with the SEC.
3M Company (NYSE: MMM) has launched an exchange offer to separate its food safety business as part of a Reverse Morris Trust transaction with Neogen Corporation (NASDAQ: NEOG). 3M stockholders can exchange their shares for SpinCo common stock, which will convert to Neogen stock post-merger. The exchange provides approximately $107.53 of Neogen shares for every $100 of 3M stock tendered. The offer, which may be oversubscribed, is set to expire on August 31, 2022. Following completion, holders of SpinCo stock will own about 50.1% of Neogen's outstanding shares.
Neogen Corporation (NEOG) reported strong growth in its fourth quarter and full fiscal year 2022, ending May 31. Revenues for Q4 rose 10% to $140 million, while annual revenues increased 13% to $527 million. Fourth-quarter EPS was $0.14, with adjusted EPS at $0.18, reflecting a 21% rise from the prior year. Gross margins improved to 46.4% in Q4, driven by higher-margin product sales and effective pricing strategies. The company announced plans to close its acquisition of 3M's Food Safety business in Q3 2022. Overall, Neogen is well-positioned as it approaches its 40th anniversary.
On July 20, 2022, Neogen Corporation (NASDAQ: NEOG) held a groundbreaking ceremony for a $70 million expansion of its Lansing, Michigan food safety facility. The project aims to create up to 100 new jobs and enhance Neogen's manufacturing capabilities with a 175,000 sq. ft. building dedicated to new equipment and laboratory spaces. Construction is set to begin in September 2022, with completion expected by December 2023. This expansion, alongside merging operations with 3M's Food Safety business, marks a significant step for Neogen as it celebrates 40 years in operation.
On July 6, 2022, Neogen Corporation (NASDAQ: NEOG) announced that its wholly-owned subsidiary, Garden SpinCo Corporation, priced an offering of $350 million senior notes due 2030. This offering supports the merger with 3M's Food Safety Business, in a Reverse Morris Trust transaction. The notes will be guaranteed by 3M initially and later by Neogen upon merger completion. In addition, SpinCo entered a $650 million senior secured term loan and $150 million revolving facility, totaling $800 million in credit facilities. The transaction is subject to closing conditions and shareholder approval.
Neogen Corporation (NASDAQ: NEOG) has acquired Thai-Neo Biotech Co., Ltd., a distributor of Neogen's food safety products based in Bangkok, Thailand. Established in 1992, Thai-Neo has over 20 years of experience in the food safety sector, particularly with mycotoxin assays and diagnostic test kits. This acquisition enhances Neogen's direct presence in Thailand and Southeast Asia, aligning with its growth strategy in the Asia/Pacific food safety market. The terms of the acquisition were not disclosed.
Neogen Corporation (NASDAQ: NEOG) announced that Health Canada has approved its disinfectant, Neogen Viroxide Super, for distribution in Canada. This peroxygen-based powder disinfectant offers rapid broad-spectrum effectiveness against various bacteria and viruses, including COVID-19 and avian influenza. The product is designed for use in agricultural and aquaculture settings, enhancing biosecurity measures. Neogen's commitment to biosecurity is underscored by its comprehensive suite of cleaning and disinfectant products.
Neogen Corporation (NASDAQ: NEOG) has launched Prozap Gamma-Defense, a new micro-encapsulated, slow-release insecticide aimed at poultry producers. This powerful solution targets pests like litter beetles and flies, utilizing gamma-cyhalothrin, a potent pyrethroid. One quart can treat up to 48,000 square feet and is effective in both poultry housing and outdoor settings. Neogen, recognized for its commitment to food and animal safety, continues to expand its insecticide portfolio to support livestock management.
On May 18, 2022, Neogen Corporation (NASDAQ: NEOG) announced the launch of an enhanced Veratox assay for peanut allergen detection. This new assay, known as Veratox VIP for Peanut, improves sensitivity down to 0.25 ppm, allowing for rapid quantification of peanut protein residues in various food products and cleaning processes. The assay's unique antibody combination and modified extraction process enable flexibility in testing across different food manufacturing environments. The launch aims to address the growing demand for safe plant-based foods amidst rising peanut allergy concerns.
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