Neogen Corporation (NEOG - Free Report) recently launched the enhanced version of its Igenity Beef profile, which is a genomic test for commercial cattle. Notably, last September, with an aim to advance its Igenity Beef profile, the company formed a partnership with International Genetic Solutions (“IGS”). Under the tie-up, the company implemented IGS’ platform that ranks as the largest multi-breed beef genetic evaluation globally.
Per Neogen’s management, the enhancement will enable commercial beef producers to access the best possible technology and information. The updates are currently live and available to cattle producers.
For investor’s note, Igenity has been in the forefront of advancements in commercial genomic testing for beef since 2003.
With the latest enhancement to its genomic profile, Neogen aims to expand in the global animal genomics service business. Notably, animal genomics service forms a component of the company’s Animal Safety segment.
Significance of the Launch
Igenity Beef is now more enhanced as it is driven by genomic knowledge from the same genetic evaluation which represents the genomic-enhanced expected progeny differences from various partner breed associations of Neogen.
The Igenity Beef profile provides accurate and powerful results to commercial beef producers, which in turn enables them to measure their herd and empower mating decisions. The enhancement will help producers utilize technology to improve genetics of the commercial beef population and in turn profitability of the producers.
Per a report by Grand View Research, the global animal health market size was valued at $47.1 billion in 2019 and is expected to witness a CAGR of 5.8% between 2020 and 2027. Factors like rising demand for protein food and increase in incidence of food-borne diseases globally are expected to drive the market.
Given the market potential, the latest announcement is well-timed.
Recent Developments in Animal Safety
Of late, Neogen has been witnessing a slew of developments within its Animal Safety segment.
The company received the Organic Materials Review Institute’s clearance for its AquaPrime NeoKlor water disinfectant in May, which was in compliance with the USDA National Organic Program with certain usage restrictions.
In April, Neogen in association with Superior Livestock Auction launched a commercial beef certification program, Igenity Branded, verified by a genomic test.
Neogen acquired the assets of Chile-based Magiar Chilena (Magiar) in March, which is a distributor of food, animal, and plant diagnostics including Neogen products. Post-acquisition, Neogen incorporated the Magiar assets into its wholly-owned subsidiary, Neogen Chile SpA, for continued operations in Chile.
In January, Neogen in partnership with Angus Genetics launched updated content to Angus GS, which is the first genomic profiler specifically designed for Angus cattle. In the same month, Neogen released the first and only genetic test in the beef industry Igenity+Envigor, which measures heterosis in crossbred cattle.
Also in January, Neogen partnered with Gencove to develop next-generation animal genomic tests.
Shares of the company have gained 15.8% in the past year compared with the industry’s 2% growth and the S&P 500’s 3.9% growth.
Zacks Rank & Key Picks
Currently, Neogen carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Aphria Inc. (APHA - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Owens Minor, Inc. (OMI - Free Report) .
Aphria’s long-term earnings growth rate is projected at 24.6%. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently sports a Zacks Rank #1.
Owens Minor’s long-term earnings growth rate is estimated at 8.3%. It currently carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>