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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 launched the Prozap Protectus Pour-On Insecticide – IGR, a new insect control product for beef cattle. This ready-to-use formula employs a triple-active approach, combining an insect growth regulator (IGR), adulticide, and a synergist to effectively target lice and various fly species. It is designed for easy application and provides season-long control with just one treatment. The product contains 3% diflubenzuron, 2.5% piperonyl butoxide, and 0.5% lambda-cyhalothrin, offering beef producers a more efficient and time-saving solution for insect management.
Neogen Corporation (NEOG) reported third-quarter revenues of $128.2 million, marking a 10% year-over-year increase, with year-to-date revenues up 14%. Net income for the quarter was $5.4 million, adversely affected by $10.6 million in costs related to the merger with 3M's Food Safety business. Gross margins decreased to 44.8%, impacted by rising raw material costs and a shift toward lower-margin products. Both Food Safety and Animal Safety segments experienced revenue growth, while international revenues rose 10%, though China saw a 17% decline due to COVID-19 restrictions.
NEOGEN Corporation (NASDAQ: NEOG) has launched a ready-to-use formulation of its Synergize® disinfectant, enhancing its biosecurity product line. This new formulation simplifies application for users, requiring no mixing and reducing the need for personal protective equipment. The disinfectant effectively eliminates a range of pathogens, including those responsible for avian influenza and COVID-19. NEOGEN aims to streamline processes and reduce costs for producers in animal agriculture, particularly amid high turnover rates and stringent safety requirements.
NEOGEN Corporation has introduced the K-Blue Luminescent substrate, enhancing its K-Blue product line, which now offers a high-sensitivity, two-component solution for laboratories. This substrate achieves excellent light emission at 430 nanometers and maintains a low background, making it suitable for various HRP concentrations. It complies with strict regulatory standards and is manufactured under an ISO 9001 quality system, ensuring reliable results. NEOGEN continues its commitment to providing high-quality testing solutions for food and animal safety.
Neogen Corporation (NASDAQ: NEOG) reported second-quarter fiscal 2022 results with revenues of $130.5 million, a 13% increase compared to the previous year. Notable growth in their Food Safety and Animal Safety segments contributed to this success. However, net income fell to $10.8 million, down 31.8% year-over-year, largely due to $9.3 million in professional fees related to the acquisition of 3M's Food Safety business. Operating expenses rose 42% year-over-year, prompting concerns regarding ongoing costs as they prepare for the integration of the acquired business.
NEOGEN Corporation (NASDAQ: NEOG) and 3M (NYSE: MMM) announced a transaction to separate 3M's Food Safety business, valued at approximately $5.3 billion, and combine it with NEOGEN. This merger aims to create a leading innovator in food safety, increasing NEOGEN’s revenue from this segment to approximately 70% of total revenue. Pro forma revenues are projected to reach $1 billion in the first full year post-closing, with anticipated synergies of $30 million in EBITDA. The transaction is expected to close by Q3 2022.
NEOGEN Corporation (NASDAQ: NEOG) has acquired Spokane-based Genetic Veterinary Sciences, Inc. (GVS), enhancing its portfolio in companion animal genetic testing. Founded in 2012, GVS offers genetic testing solutions for dogs, cats, and birds. NEOGEN aims to capitalize on the growing demand for pet genetics due to rising pet ownership. The acquisition supports NEOGEN's strategy to diversify its genomic offerings within agriculture and food production.
NEOGEN Corporation (NASDAQ: NEOG) announced the acquisition of Delf (UK) Ltd., a UK-based manufacturer of animal hygiene and cleaning products. Founded in 1928, Delf specializes in specialty chemical products and is a member of the Iodine Registration Group, enabling it to supply iodine-based biocides to the UK and EU markets. This acquisition aims to enhance NEOGEN's offerings in dairy chemicals, leveraging Delf's expertise in the UK dairy hygiene market. Terms of the transaction remain undisclosed.
NEOGEN Corporation (NASDAQ: NEOG) has received approval from the Organic Materials Review Institute (OMRI) for its AquaPrime® NeoKlor and BioSentry® AquaPrime Activator, confirming compliance with Canadian Organic Regime regulations. This allows NEOGEN to offer a chlorine dioxide water treatment system suitable for organic livestock producers in Canada. AquaPrime NeoKlor, a 7.5% sodium chlorite solution, improves the taste and odor of drinking water for various livestock species. The AquaPrime Activator enhances these properties and serves as a pH adjuster.
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