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NEOGEN (NEOG) Inks Deal to Boost Global Genomics Business
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NEOGEN Corporation (NEOG - Free Report) recently acquired Genetic Veterinary Sciences, Inc. ("GVS"), a Spokane, WA-based companion animal genetic testing company. The terms of the agreement have been kept under wraps.
This buyout is expected to strengthen NEOGEN’s global genomics business.
Few Words on GVS
Established in 2012, GVS delivers genetic information to companion animal owners, breeders and veterinarians, facilitating optimal genetic health for dogs, cats and birds. The GVS brands include Paw Print Genetics, Canine HealthCheck, My CatScan and AvianDx.
According to management at GVS, the integration with NEOGEN presents an excellent opportunity for Paw Print Genetics and its related brands. GVS's commitment to quality and accuracy, along with NEOGEN's global reach and expertise, is anticipated to contribute to consistent growth in the companion animal market and develop solutions focused on pet health and wellbeing as well as the human-animal bond.
More on the News
Per NEOGEN management, with pet parenting garnering popularity around the world in recent years, especially due to the COVID-19 pandemic, the GVS acquisition is expected to advance opportunities for the company’s global genomics business.
Image Source: Zacks Investment Research
In fact, the combined expertise of NEOGEN and GVS teams will enable the companies to work synergistically as they strive to address the demands of the growing animal genomic testing market.
Industry Prospects
Per a report published in MarketsandMarkets, the global animal genetics market is expected to see a CAGR of 7.1% from 2021 to 2026. Factors such as rising consumption of animal-derived protein, expanding global population & rapid urbanization, increased focus on discovering superior breeds, increased adoption of genetic services and greater uptake of advanced genetic technologies are expected to fuel market growth.
Given the market prospects, NEOGEN’s recent GVS buyout seems well-timed.
Other Notable Developments
In December 2021, NEOGEN acquired U.K.-based Delf, an animal hygiene and industrial cleaning products maker. NEOGEN management believes that Delf’s 40 years of experience in the U.K. dairy hygiene market will help it strengthen its foothold in the region’s dairy chemicals market.
In September 2021, NEOGEN partnered with a multi-species animal breeding, genetics, and technology company named Hendrix Genetics. The deal aims to support the implementation of genomic selection in Hendrix's Sustainable Access to Poultry Parent Stock in Africa (SAPPSA) program.
In the same month, the company acquired CAPInnoVet, Inc., an Atlanta-based companion animal health company that provides pet medications to the veterinary market. The acquisition will enable NEOGEN to enter the retail parasiticide market. Under the terms of the deal, CAPInnoVet will become part of NEOGEN's Animal Safety business segment.
Price Performance
The stock has outperformed its industry in the past year. The company’s shares have moved up 1% against the industry’s 2.2% decline.
Omnicell has a long-term earnings growth rate of 16%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 17.4%, on average.
Omnicell has outperformed the industry in the past year. OMCL has gained 55.3% against the 40% industry decline.
McKesson has a long-term earnings growth rate of 8.9%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.9%, on average.
McKesson has outperformed its industry in the past year. MCK has rallied 32.2% compared with a 14.3% rise of the industry.
Thermo Fisher has a long-term earnings growth rate of 14%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 9%, on average.
Thermo Fisher has outperformed the industry it belongs to in the past year. TMO has gained 35.1% versus the industry’s 8.5% fall.
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NEOGEN (NEOG) Inks Deal to Boost Global Genomics Business
NEOGEN Corporation (NEOG - Free Report) recently acquired Genetic Veterinary Sciences, Inc. ("GVS"), a Spokane, WA-based companion animal genetic testing company. The terms of the agreement have been kept under wraps.
This buyout is expected to strengthen NEOGEN’s global genomics business.
Few Words on GVS
Established in 2012, GVS delivers genetic information to companion animal owners, breeders and veterinarians, facilitating optimal genetic health for dogs, cats and birds. The GVS brands include Paw Print Genetics, Canine HealthCheck, My CatScan and AvianDx.
According to management at GVS, the integration with NEOGEN presents an excellent opportunity for Paw Print Genetics and its related brands. GVS's commitment to quality and accuracy, along with NEOGEN's global reach and expertise, is anticipated to contribute to consistent growth in the companion animal market and develop solutions focused on pet health and wellbeing as well as the human-animal bond.
More on the News
Per NEOGEN management, with pet parenting garnering popularity around the world in recent years, especially due to the COVID-19 pandemic, the GVS acquisition is expected to advance opportunities for the company’s global genomics business.
Image Source: Zacks Investment Research
In fact, the combined expertise of NEOGEN and GVS teams will enable the companies to work synergistically as they strive to address the demands of the growing animal genomic testing market.
Industry Prospects
Per a report published in MarketsandMarkets, the global animal genetics market is expected to see a CAGR of 7.1% from 2021 to 2026. Factors such as rising consumption of animal-derived protein, expanding global population & rapid urbanization, increased focus on discovering superior breeds, increased adoption of genetic services and greater uptake of advanced genetic technologies are expected to fuel market growth.
Given the market prospects, NEOGEN’s recent GVS buyout seems well-timed.
Other Notable Developments
In December 2021, NEOGEN acquired U.K.-based Delf, an animal hygiene and industrial cleaning products maker. NEOGEN management believes that Delf’s 40 years of experience in the U.K. dairy hygiene market will help it strengthen its foothold in the region’s dairy chemicals market.
In September 2021, NEOGEN partnered with a multi-species animal breeding, genetics, and technology company named Hendrix Genetics. The deal aims to support the implementation of genomic selection in Hendrix's Sustainable Access to Poultry Parent Stock in Africa (SAPPSA) program.
In the same month, the company acquired CAPInnoVet, Inc., an Atlanta-based companion animal health company that provides pet medications to the veterinary market. The acquisition will enable NEOGEN to enter the retail parasiticide market. Under the terms of the deal, CAPInnoVet will become part of NEOGEN's Animal Safety business segment.
Price Performance
The stock has outperformed its industry in the past year. The company’s shares have moved up 1% against the industry’s 2.2% decline.
Zacks Rank and Key Picks
Currently, NEOGEN carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Omnicell, Inc. (OMCL - Free Report) , McKesson Corporation (MCK - Free Report) and Thermo Fisher Scientific (TMO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Omnicell has a long-term earnings growth rate of 16%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 17.4%, on average.
Omnicell has outperformed the industry in the past year. OMCL has gained 55.3% against the 40% industry decline.
McKesson has a long-term earnings growth rate of 8.9%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.9%, on average.
McKesson has outperformed its industry in the past year. MCK has rallied 32.2% compared with a 14.3% rise of the industry.
Thermo Fisher has a long-term earnings growth rate of 14%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 9%, on average.
Thermo Fisher has outperformed the industry it belongs to in the past year. TMO has gained 35.1% versus the industry’s 8.5% fall.