EPA Validates NEOGEN's Disinfectant for Use Against COVID-19
NEOGEN Corporation NEOG announced that the U.S. Environmental Protection Agency (“EPA”) has validated the effectiveness of the company’s BioSentry 904 Disinfectant against the COVID-19-causing SARS-CoV-2 virus, when used per the revised label instructions. The disinfectant, which is a hospital-grade broad-spectrum sanitizer, has been recommended for use on washable, hard and non-porous surfaces (cabinets and counters, for example).
Notably, the EPA had earlier granted an emergency approval to the BioSentry 904 Disinfectant to be used against SARS-CoV-2 under the agency’s emerging-pathogens provision.
Apart from the BioSentry 904 Disinfectant, NEOGEN also offers Parvosol II RTU Disinfectant, Synergize Disinfectant, COMPANION Disinfectant, COMPANION Disinfectant Wipes and Peraside 5% Disinfectant. These also carry the EPA’s emerging-pathogen approvals to combat the spread of COVID-19.
With the recent clearance, NEOGEN aims to strengthen its Rodenticides, Insecticides & Disinfectants business on a global scale. For investors’ note, the Rodenticides, Insecticides & Disinfectants business is a component of the company’s broader Animal Safety arm.
Significance of the Approval
Per the company, the EPA’s approval of BioSentry validates the effectiveness of the product against a broader range of human-illness causing pathogens. The coronavirus outbreaks in the food industry, among others, highlight the importance of products that effectively fight against the same.
Industry Prospects
Per a report by Grand View Research, the global animal health market size was valued at $47.1 billion in 2019 and is expected to witness a CAGR of 5.8% between 2020 and 2027. Factors like rising demand for protein food and increase in incidents of food-borne diseases globally are expected to drive the market.
Given the market potential, the approval is expected to enhance the company’s business.
Recent Developments in Animal Safety
Of late, NEOGEN has been witnessing a slew of developments within its Animal Safety segment.
The company’s AquaPrime Activator was reviewed by the Organic Materials Review Institute’s (“OMRI”) in August and was determined to be in compliance with the USDA National Organic Program, with usage restrictions. In the same month, NEOGEN completed the previously announced acquisition of the U.S. (including territories) rights to Elanco’s StandGuard Pour-on for horn fly and lice control in beef cattle and related assets.
In May, NEOGEN launched the enhanced version of its Igenity Beef profile, which is a genomic test for commercial cattle. In the same month, the company received the OMRI’s clearance for its AquaPrime NeoKlor water disinfectant, which was in compliance with the USDA National Organic Program with certain usage restrictions.
In April, Neogen in association with Superior Livestock Auction launched a commercial beef certification program, Igenity Branded, verified by a genomic test.
Price Performance
Shares of the company have gained 6.8% in the past year against the industry’s 5.2% fall and the S&P 500’s 15.4% growth.
Zacks Rank & Key Picks
Currently, Neogen carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are QIAGEN N.V. QGEN, Thermo Fisher Scientific Inc. TMO and Hologic, Inc. HOLX.
QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently flaunts a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
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