Neogen ( NEOG Quick Quote NEOG - Free Report) recently made an addition to its ELISA product line. The company announced the launch of its Veratox VIP assay to detect cashew allergens. This is the second assay in Neogen's Veratox VIP line of enhanced quantitative ELISA products.
This is expected to boost Neogen’s food safety business.
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The latest Veratox VIP assay detects low levels of cashew allergen across different product types and processing environments. According to the company, the test, which is based on the uncomplicated testing methodology of the Veratox product line, performs accurately across sample types.
The quantitative test shows a high level of specificity to very low levels of cashew protein (down to 0.2 ppm). This assay can test samples from a wide range of product types and processing environments, including heat-processed and UHT matrices. Veratox VIP for Cashew utilizes a 30-minute time-to-result and ready-to-use, non-hazardous reagents, just like the original Veratox product line.
With the demand for plant-based foods and alternative proteins increasing, Neogen believes a highly sensitive test like this will receive huge customer acceptance. According to the company, at present, cashew is being consumed in more unique ways than before. Accordingly, the market needs an easy-to-use and highly sensitive solution like the Veratox VIP assay for its detection.
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Meanwhile, going by
The Insight Partners report, the food allergen testing market was valued at $592.39 million in 2018 and is projected to reach $1,198.53 million by 2027 at a CAGR of 8.2%. Considering this huge prospect, we believe the latest launch by Neogen is well-timed. A Glimpse into Neogen’s Growth Strategy
Neogen, in its mission to be the leading company in the development and marketing of solutions for food and animal safety, follows a vision that focuses on increasing sales of existing products, introducing products and product lines, expanding international sales, and acquiring businesses and forming strategic alliances.
Going by the first leg of the growth strategy, Neogen is progressing well in terms of picking the right growth markets and gaining a bigger share of those markets. In the fourth quarter of fiscal 2022, the StandGuard insecticide product line grew significantly. Within the general sanitation product line, the AccuPoint Advanced Next Generation handheld ATP sanitation monitoring system recorded market share growth in the quarter. The company’s veterinary instruments product line also gained market share from its competitors. Additionally, the Megazyme acquisition, completed in December 2020, continues to grow and gain acceptance domestically and internationally, recording growth of nearly 16% in the first year since the acquisition.
In terms of the second leg of the growth strategy, Neogen is progressing well with its strong R&D activities.
With respect to the third leg of international growth, the company’s international operations registered 14% growth in sales in the fiscal fourth quarter.
As far as acquisitions and forming strategic alliances are concerned, Neogen acquired Thai-Neo Biotech Co., Ltd. — a longstanding distributor of its food safety products in Bangkok, Thailand — in July 2022. The acquisition complements Neogen’s operations in India, China, and Australia and expands its access to the fast-growing Asia/Pacific food safety market. The acquisition of Delf UK Limited and Genetic Veterinary Services Inc in December 2021 demonstrates Neogen’s commitment to portfolio diversification and finding businesses that synergistically pair with its Food and Animal Safety segments, thus providing customers with new products and solutions that protect people, animals and food. In fiscal 2022, the company invested about $38 million in acquisitions.
Share Price Performance
Shares of Neogen have underperformed the
industry over the past year. The stock has declined 62% compared with the industry’s 48.4% fall. Zacks Rank and Key Picks
Currently, Neogen carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the medical space are
AMN Healthcare Services, Inc. ( AMN Quick Quote AMN - Free Report) , ShockWave Medical, Inc. ( SWAV Quick Quote SWAV - Free Report) and McKesson Corporation ( MCK Quick Quote MCK - Free Report) .
AMN Healthcare has a long-term earnings growth rate of 3.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.7%, on average. It currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has lost 4.7% against the industry’s 36.7% fall.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has outperformed its industry in the past year. SWAV has gained 26.1% against the industry’s 29.7% fall in the past year.
McKesson has an estimated long-term growth rate of 9.9%. The company surpassed earnings estimates in the trailing three quarters and missed in one, delivering a surprise of 13%, on average. It currently carries a Zacks Rank #2 (Buy).
McKesson has outperformed its industry in the past year. MCK has gained 64.3% against the industry’s 15.8% fall.