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Neogen (NEOG) Receives New Label Claims for Viroxide Super

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Neogen Corporation (NEOG - Free Report) recently announced that the U.S. Environmental Protection Agency (EPA) approved additional virucide claims to its Neogen Viroxide Super disinfectant. Further, Health Canada has also approved additional kill claims on non-porous surfaces for viruses that may cause African Swine Fever and Porcine Epidemic Diarrhea.

The latest development is likely to fortify Neogen’s Animal Safety business.

More on Neogen Viroxide Super

Neogen Viroxide Super is a peroxygen-based powder disinfectant that provides quick, broad-spectrum disinfection when used as part of a wide-ranging biosecurity program. Neogen Viroxide Super can disinfect animal housing and equipment, boot baths, vehicles, and other hard, non-porous surfaces.

Neogen Viroxide Super's active constituents are potassium peroxymonosulfate and sodium chloride, which have been verified effective against multiple industry-relevant bacteria and viruses. The product is effective in hard water, and its preparation is simplified by a color change to green, indicating ready to use.

Benefits of Latest Claims

The label claims stipulate that Neogen Viroxide Super can kill the virus on hard non-porous surfaces, which is the main source of Avian Influenza A, Bovine Viral Diarrhea, Porcine Respiratory and Reproductive Syndrome (PRRS), and African Swine Fever.

These additional virucidal claims further fortify the trustworthiness and reliability of the Neogen Viroxide Super disinfectant within production animal marketplaces, particularly with the ongoing Avian Influenza outbreaks.

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Per management, those working in production animal facilities, as well as in companion animal spaces, horticulture, and aquaculture environments, will be able to prevent the spread of disease and keep the people and animals they care for safe and healthy.

Industry Prospects

Per a report by MarketsandMarkets, the animal disinfectants market size is projected to reach $4.6 billion by 2027 from $3.2 billion in 2022 at a CAGR of 7.6%. Increasing focus on the expanding facilities, marketing schemes and information exchange programs to create awareness and enhance the use of animal disinfectants is projected to contribute to growth of the market.

Progress in Animal Safety

The latest development aligns with Neogen’s growing efforts toward fortifying its Animal Safety product portfolio.

In the second quarter of fiscal 2023, Animal Safety revenues were up 8.4% year over year, consisting of 6.9% core growth, 2.4% from acquisitions and a foreign currency headwind of 0.9%. The core growth was led by the company’s portfolio of biosecurity products, driven largely by share gains in the animal protein market, sales of dairy hygiene products, and new insect control products. The company’s line of parasiticides, acquired in September 2021, and veterinary instruments both reported an increase in market share gains.

The company’s genomics business also performed well, with global core growth of 7.9%, led by volume increases in the U.S. beef market, partially offset by declines in testing in China caused by COVID-related lab closures.

Per management, the acquisitions of GVS and CAPInnoVet are part of Neogen’s strategy to expand companion animal offerings. The company’s acquisition of Delf UK Limited is expected to bolster its performance dairy chemicals offerings. Delf’s industrial cleaning products complement Neogen’s Quat-Chem disinfectant and cleaner offerings, enhancing its biosecurity portfolio.

Share Price

In the past six months, Neogen has outperformed its industry. The stock has gained 27.9% compared to the 5.9% rise of the industry.

Zacks Rank and Key Picks

Neogen currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Avanos Medical, Inc. (AVNS - Free Report) .

Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hologic has gained 1.7% against the industry’s 17.5% growth in the past year.

Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.

Henry Schein has lost 12.4% compared with the industry’s 10.9% decline over the past year.

Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.

Avanos has lost 13.7% compared with the industry’s 17.5% decline over the past year.

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