Food and animal safety provider, Neogen Corporation (NEOG - Snapshot Report), announced that it has completed the acquisition of Davis-based animal genetics company, Scidera Genomics, LLC on January 1. However, the company did not disclose the terms of the deal.
Privately-held Scidera, formerly known as MetaMorphix, Inc. or MMI Genomics, was a pioneer in providing high quality genotyping services to the livestock industry. The company boasts of a solid research and development pipeline, and patent position. The acquisition should boost Neogen’s animal genotyping testing technology and help the company offer better solutions to its animal genomics customers.
Neogen will incorporate the acquired entity in its Animal Safety Division. The division is a market leader in the development, manufacture and marketing of diagnostic products, pharmaceuticals, rodenticides, disinfectants, veterinary instruments, vaccines, topicals, and genetic testing services for the global animal safety market.
Neogen plans to continue its operations from the facilities at Davis as well as retain Scidera’s staff and client base, as they are a perfect fit for the company's animal genomics, GeneSeek and Igenity businesses. Neogen acquired GeneSeek and Igenity in 2010 and 2012, respectively, to expand its animal healthcare product line.
Michigan-based Neogen develops and markets products dedicated to food and animal health safety. Its acquisition strategy, new products along with sales and marketing capabilities for specific markets and international operations continue to accelerate growth. In October 2012, Neogen acquired Colorado-based animal health company, Macleod Pharmaceuticals. The acquisition is successfully contributing to the company’s top-line growth.
However, competition from IDEXX Laboratories (IDXX - Analyst Report) in certain niche areas remains a headwind. Currently, the stock retains a Zacks #2 Rank, which translates into a short-term Buy rating.