Neogen (NEOG) Launches Genomic Test for Beef-on-Dairy Calves
Neogen Corporation NEOG recently introduced a commercial genomic tool for this expanding cattle industry as the first. The company launched Igenity BeefXDairy — a new and novel leading genomic test for beef-on-dairy calves.
The recent development will enable NEOGEN to continue offering advanced genomic solutions, strengthening the global foothold.
Benefits of Igenity BeefXDairy Test
The new Igenity BeefXDairy test gives producers insight into important traits like carcass quality, average daily gain, and the Igenity Terminal Index, which can be used to market the calf's growth potential to buyers. Genetic testing is essential for the effective management and marketing of beef-on-dairy cattle.
The new Igenity BeefXDairy test is an additional tool that enables producers to gather crucial data they need to advance and grow their operations effectively and sustainably. Neogen Genomics continuously provides high-quality data to support herd improvement and improve cattle operations.
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This product line marks a significant advancement in characterizing beef-on-dairy animals and will ultimately benefit dairy farmers, cattle purchasers and consumers of beef products. We can enable better quality, efficiency and sustainability within cattle production systems with more DNA testing.
Industry Prospects
Per a report by Markets and Markets, the global animal genetics market is projected to reach $7.7 billion by 2026 from $5.5 billion in 2021, seeing a CAGR of 7.1%. Growth in the animal genetics market is primarily driven by the rising consumption of animal-derived protein and increasing global population and rapid urbanization. Increasing focus on identifying superior breeds, increased adoption of genetic services to prevent genetic diseases and business loss and higher adoption of advanced genetic technologies are driving the market.
Progress Within Animal Safety Buisness
Animal Safety revenues in the fiscal third quarter were up 1.9% year over year, consisting of 2.2% core growth. The core growth was led by the company’s portfolio of biosecurity products, driven largely by insect control share gains in the animal protein market.
The company’s genomics business also performed well, with global core growth of 7.7%, led by volume increases in the global beef markets, partially offset by declines in testing in China caused by a continuation of COVID-related lab closures.
Per management, the acquisitions of GVS and CAPInnoVet are part of Neogen’s strategy to expand companion animal offerings. The acquisition of Delf UK Limited is expected to bolster its performance dairy chemicals offerings. Delf’s industrial cleaning products complement Neogen’s Quat-Chem disinfectant and cleaner offerings, enhancing its biosecurity portfolio.
Price Performance
Shares of the company have declined 25.7% in the past year compared with the industry’s fall of 30%.
Zacks Rank and Key Picks
Neogen carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Addus Homecare Corporation ADUS, Merit Medical Systems, Inc. MMSI and Hologic, Inc. HOLX.
The Zacks Consensus Estimate for Addus Homecare’s 2023 earnings indicates a 10.9% year-over-year growth. The Zacks Consensus Estimate for ADUS’s 2023 earnings has moved 0.5% north in the past 30 days.
Addus Homecare has a long-term estimated growth rate of 11.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Merit Medical reported a first-quarter 2023 adjusted EPS of 64 cents, beating the Zacks Consensus Estimate by 16.4%. Revenues of $297.6 million surpassed the Zacks Consensus Estimate by 5.9%. It currently carries a Zacks Rank #2.
Merit Medical has a long-term estimated growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20.2%.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%.
Hologic has gained 4.5% compared with the industry’s 2.6% rise in the past year.
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