Neogen (NEOG) to Advance Feline DNA Testing With New Pact
Neogen Corporation NEOG recently collaborated with the Cat Fanciers' Association (CFA). With the goal of expanding the genomic products available to CFA members through marketing, education and promotion of Neogen technology and products, the partnership is centered around Neogen's My CatScanTM DNA testing services.
The recent development will enable Neogen to continue offering advanced genomic solutions and strengthen its global foothold.
About Cat Fanciers' Association
Since 1906, the world's most significant pedigreed cat registry and a not-for-profit network of member clubs — the Cat Fanciers' network — has been devoted to conserving, honoring and safeguarding cats. The goals of CFA are to protect and advance cat breeds with a strong pedigree and to improve the welfare of all cats. Millions of cat owners worldwide are encouraged by CFA to receive appropriate care, education and responsible cat keeping.
Strategic Implications
This strategic alliance will expand feline DNA testing and strengthen Neogen's relationship with the kitty community. Neogen and CFA are looking forward to a generative relationship that will spur innovation and raise awareness in the field of feline genetics.
Preservation breeding is all about making deliberate choices based on ancestry and, most importantly, health and genetic features. My CatScan by Neogen scans for more than 120 feline health concerns and genetic features, providing breeders with the information they need to build new generations of pedigreed cats meticulously.
Industry Prospects
Per a report by Grand View Research, the global pet DNA testing market size is estimated to reach USD 322.02 million in 2022. It is expected to witness a compound annual growth rate (CAGR) of 9.20% over the forecast period. The market growth is propelled by factors like increasing pet adoption rates, rising consumer genomics, increasing R&D activities by key companies & academic researchers and growing awareness & sales of pet DNA testing kits.
Recent Developments
Neogen’s Animal Safety segment is gaining from strong performances of a complete line of consumable products marketed to veterinarians and animal health product distributors. Its genomic identification and related interpretive bioinformatics services are showing strong prospects, too. The Animal Safety business continues to grow, led by sales of vet instruments and disposables and a new line of business with a large retail customer. Within the biosecurity portfolio, Neogen continues to grow solidly in cleaners, disinfectants and rodenticides.
In terms of the latest development, within worldwide genomics, the company registered solid growth in international beef markets and companion animal testing during the fiscal first quarter.
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In June 2023, Neogen launched My CatScan 2.0, an incredibly refined and improved version of the test. The extended analysis offered by My CatScan 2.0 gives cat owners, feline breeders and veterinarians a deeper level of knowledge to provide insights into the health and well-being of their feline pets.
Price Performance
In the past year, NEOG’s shares have increased 28.1% against the industry’s fall of 3%.
Zacks Rank and Other Key Picks
Neogen carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Haemonetics HAE, Insulet PODD and DexCom DXCM. While Haemonetics and DexCom carry a Zacks Rank #2, Insulet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 11.6% in the past year. Earnings estimates for Haemonetics have increased from $3.82 to $3.86 in 2023 and $4.07 to $4.11 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it posted an earnings surprise of 5.3%.
Estimates for Insulet’s 2023 earnings per share have increased from $1.61 to $1.90 in the past 30 days. Shares of the company have declined 40.9% in the past year compared with the industry’s decline of 7%.
PODD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 105.1%. In the last reported quarter, it delivered an average earnings surprise of 77.4%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.23 to $1.41 in the past 30 days. Shares of the company have fallen 7.8% in the past year compared with the industry’s decline of 7.1%.
DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%. In the last reported quarter, it delivered an average earnings surprise of 47.1%.
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