LANSING - Neogen (NASDAQ:NEOG) Corporation (NASDAQ: NEOG), a company specializing in food safety solutions, announced today that its Molecular Detection System has been designated as the primary method for detecting Salmonella and Listeria monocytogenes in meat, poultry, and egg products by the U.S. Department of Agriculture Food Safety and Inspection Service (USDA FSIS).
The USDA FSIS has utilized the Neogen Molecular Detection System for over five years, highlighting the system's established reliability and efficiency. The renewed contract also includes the adoption of Neogen's assays for Listeria species and the recently developed assays for Salmonella Enteritidis and Salmonella Typhimurium.
Neogen's President and CEO, John Adent, expressed pride in the company's recognition by the USDA FSIS, reaffirming Neogen's commitment to enhancing global food security.
The Neogen Molecular Detection System employs loop-mediated isothermal DNA amplification (LAMP) technology, which simplifies and accelerates the identification of foodborne pathogens. It allows food manufacturers to conduct up to 96 different tests at once, offering flexibility across a variety of organisms and sample types.
This technology has received consistent validation from top scientific organizations, including AOAC INTERNATIONAL, AFNOR, and MicroVal, for a broad range of sample types.
Neogen's presence extends across over 140 countries, where it provides solutions not only in food safety but also in livestock and pet health and wellness.
This announcement is based on a press release statement from Neogen Corporation.
In other recent news, Neogen Corporation reported solid core revenue growth in its third quarter 2024 earnings call, despite facing operational challenges and shipping inefficiencies that led to revenue and earnings falling short of expectations. The company updated its full-year revenue guidance to between $910 million and $920 million and adjusted EBITDA to be in the range of $210 million to $215 million.
Neogen also announced the release of its Neogen Molecular Detection Assay 2 for Salmonella Enteritidis and Salmonella Typhimurium, designed to enhance pathogen testing protocols in the poultry industry. This new assay has received AOAC Research Institute Performance Tested Methods Program certification.
The company has also established a genomics partnership with Performance Food Group (NYSE:PFGC), aiming to enhance food traceability by using Neogen's DNA testing capabilities to verify the origin of food products.
Adding to its global presence, Neogen introduced a new disinfectant, Neogen Farm Fluid MAX, to the Great Britain market, with plans to expand its availability across Europe.
InvestingPro Insights
Neogen Corporation (NASDAQ: NEOG) has recently garnered attention with its Molecular Detection System becoming the primary method for foodborne pathogen detection in various products by the USDA FSIS. This endorsement could potentially have significant implications for the company's financial performance. According to InvestingPro data, Neogen's market capitalization stands at a robust $3.49 billion, reflecting investor confidence in the company's growth and market position. The company's revenue growth has been impressive, with a notable increase of 28.93% over the last twelve months as of Q3 2024, indicating a strong demand for their innovative food safety solutions.
Two relevant InvestingPro Tips for Neogen Corporation include the expectation of net income growth this year and the stock's current status in overbought territory based on the Relative Strength Index (RSI). These insights suggest that investors are optimistic about Neogen's profitability prospects, likely bolstered by the recent endorsement from the USDA FSIS. However, the overbought status could indicate a need for caution among potential investors, as the stock may be due for a pullback.
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