Neogen Corporation NEOG recently announced that it has launched its Synergize disinfectant in Europe, the Middle East and Africa. The disinfectant can be used in combination with Neogen’s comprehensive suite of biosecurity products, including apparel, cleaners and disinfectants, including Neogen Viroxide Super, Farm-Foam EVO and AccuPoint NG.
The latest launch in other markets is expected to significantly expand Neogen’s business and solidify its foothold in the global Animal Safety space.
Significance of the Launch
Synergize disinfectant’s chemical composition enables it to kill both Gram-negative and Gram-positive bacteria, fungi, spores and viruses, but it is non-corrosive to hard surfaces. It can be applied on both hard and porous surfaces with a cloth, sponge, mop, mechanical spray device or in boot baths or soaking tubs.
The disinfectant has been approved by governments around various countries, including the U.S. Environmental Protection Agency, Health Canada and recently by the U.K. Department for Environmental, Food and Rural Affairs. Neogen has also widened the scope of its efficacy testing to include EN testing, thereby encompassing European Standards.
Per management, the Synergize disinfectant has proved trustworthy in North America for the safety of both people and animals. The latest availability in other countries is expected to enhance biosecurity portfolios around the world and keep the food chain safe and secure from harmful diseases.
Per a report by Fortune Business Insights, the global animal health market was valued at approximately $41.50 billion in 2018 and is anticipated to reach $67.56 billion by 2026 at a CAGR of 6.3%. Factors like increased production of animal-based food items, the introduction of effective information management systems and technological advances are likely to drive the market.
Given the market potential, the latest launch is expected to significantly strengthen Neogen’s business worldwide.
Notable Developments in Animal Safety
Neogen, in October, added a ready-to-use formulation of its COMPANION disinfectant — COMPANION RTU — to its veterinary biosecurity portfolio.
In September, Neogen launched the new Encompass platform for bovine genomic results management and visualization. This innovative new data management solution will likely allow Igenity customers to gain greater insight into their data and maximize the benefits of genomic testing.
In September, Neogen also announced its first-quarter fiscal 2023 results, where it registered a solid increase in its Animal Safety segment revenues. Sales of animal care products, including supplements, vitamin injectables, and companion animal parasiticides, also improved year over year, enhanced by the September 2021 acquisition of CAPInnoVet.
The growth was also driven by year-over-year increases across the company’s biosecurity portfolio, including an uptick in insect control products, and in cleaners and disinfectants. Neogen’s genomics business (reported through the Animal Safety segment) also recorded robust year-over-year increase in the fiscal first quarter.
Neogen stock has lost 64.5% over the past year compared with the industry’s 47.3% decline and the S&P 500's 17.5% fall.
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Zacks Rank & Key Picks
Currently, Neogen carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, ShockWave Medical, Inc. SWAV and McKesson Corporation MCK.
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has lost 0.6% compared with the industry’s 36.1% decline in the past year.
ShockWave Medical, carrying a Zacks Rank #2 at present, has an estimated growth rate of 23.6% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 146.1%.
ShockWave Medical has gained 24.1% against the industry’s 29.4% decline over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 4.8%.
McKesson has gained 65.9% against the industry’s 15.2% decline over the past year.
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