Neogen Corporation - Company Summary

Overview

Neogen Corporation is a diversified company specializing in food and animal safety products and services. The company develops, manufactures, and markets a broad range of diagnostic testing solutions, veterinary instruments, pharmaceuticals, vaccines, and genomics testing services.

Business Segments

1. Food Safety

• Core Activities:
  • Diagnostic test kits and complementary products (culture media) used by food and feed producers/processors.
  • Detect pathogens (e.g., E. coli, Salmonella, Listeria), natural toxins, food allergens, ruminant by-products, food quality, and nutritional components.
• Products:
  • Disposables, immunoassay, DNA detection kits, advanced software systems.
  • Key tests: natural toxins & allergens, bacteria & sanitation (e.g., ATP tests), indicator media, and microbial analysis products.
• Clients: Food manufacturers, processors, regulatory agencies, laboratories.
• Revenue: Approximately 71.3% of total revenues for fiscal year 2025.
• Acquisition: Acquired 3M's Food Safety Division (FSD) via a Reverse Morris Trust transaction on September 1, 2022.
• Manufacturing Locations: US, Europe (UK), Ireland, Brazil, Netherlands.
• Market Reach: International sales via direct offices in the UK, Europe, Middle East, Africa, India, Latin America, Asia Pacific, and Canada.
• Customers: Do not rely on any single customer for 10% or more of revenue.
• Key Technologies: Proprietary antibodies, RNA/DNA testing methods, licensed technologies (royalty rates 2-10%).

2. Animal Safety

• Core Activities:
  • Development, manufacture, marketing, and distribution of veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, diagnostic products, rodent/insect control, disinfectants, insect control products, and genomics testing services.
• Products:
  • Veterinary instruments (needles, delivery systems).
  • Animal health products (digestive aids, vitamins, antibiotics, vaccines).
  • Insect and rodent control products.
  • Genomics services (DNA testing, trait analysis for livestock and pets).
• Clients: Veterinarians, livestock producers, breed associations, pet owners, laboratories, distributors.
• Revenue: About 28.7% of total revenues for fiscal year 2025.
• Recent Development: Entered an agreement to sell its global cleaners & disinfectants business in April 2025.
• Manufacturing Locations: US, Canada, Australia, China, Brazil, North Carolina.
• Market Reach: Globally marketed via direct teams and distributors.
• Products Focus: Animal vaccines (e.g., USDA-approved botulism vaccine), diagnostic kits, biosecurity products, genetic testing.

Company Size & Financials (Fiscal Year Ended May 31, 2025)

• Total Revenue: $894.7 million
• Net Loss: $(1.092) billion (primarily due to a $1.059 billion goodwill impairment charge)
• Employees: Approximately 2,974 worldwide
  • U.S.: 1,676
  • International: 1,298
• Market Capitalization: As of November 30, 2024, approximately $2.7 billion in market value.
• Stock: Traded on NASDAQ under symbol NEOG; 217,205,186 shares outstanding as of June 30, 2025.
• Ownership: No individual shareholder holds more than 10%, and no single customer accounts for 10% or more of sales.

Strategic Focus

• Increase sales of existing products.
• Introduce innovative products and services.
• Expand international sales.
• Acquire businesses and form strategic alliances.

Key Points

• Revenue primarily from food safety (over two-thirds).
• Continued investment in R&D (~2-3% of revenues).
• Focus on product innovation, proprietary technology, and protecting intellectual property.
• Significant challenges include integrating recent acquisitions, managing supply chain risks, and navigating regulatory requirements.

Note: This summary is based solely on provided data, with no speculative details.