Neogen Corporation (NASDAQ:NEOG) on Wednesday initiated a voluntary nationwide recall of all unexpired lots of its Neogen Vet HYCOAT Hyaluronate Sodium Sterile Solution. The company identified microbial contamination in certain batches. The product, used for topical wound management, is distributed to veterinarians and intended for dogs, cats, and horses.The recall covers HYCOAT 10 mL/50 mg vials manufactured by a third-party supplier, after contamination was detected in some lots. Neogen said it has receiv ...

LANSING, Mich.--(BUSINESS WIRE)--Neogen Corporation (NASDAQ: NEOG) is voluntarily recalling all lots within expiry of Neogen®Vet HYCOAT® Hyaluronate Sodium Sterile Solution, for use in dogs, cats, and horses, to the veterinarian level. Neogen distributes this product, which is manufactured by a third-party supplier. This recall has been initiated due to microbial contamination in certain lots of 10 mL/50 mg product vials. Neogen received a number of reports of adverse events in horses following. ...

Core Insights - Neogen Corporation is a key player in the food and animal safety industry, focusing on products for food safety, animal safety, and genomics, with competitors like IDEXX Laboratories and Zoetis [1] - The company reported strong second-quarter fiscal 2026 results, with earnings per share (EPS) of 10 cents and revenues of $224.7 million, both exceeding expectations, leading to a 31.6% increase in stock price [2] - Neogen has raised its fiscal 2026 revenue guidance to between $845 million and $855 million, with an adjusted EBITDA of approximately $175 million, indicating a positive outlook [3] Financial Performance - The company experienced a 2.8% year-over-year revenue decrease, but core revenues grew by 2.9%, offsetting declines from divestitures and discontinued products [2] - Neogen's results exceeded the Zacks Consensus Estimate by 7.93%, reflecting strong performance [3] Financial Metrics - Neogen's price-to-sales ratio is approximately 2.35, and the enterprise value to sales ratio is about 3.09, indicating a premium valuation [4] - The enterprise value to operating cash flow ratio is high at 41.08, suggesting a premium relative to cash flow generation [4] - The debt-to-equity ratio stands at 0.38, indicating a low level of debt compared to equity [4] Liquidity Position - The company maintains a strong liquidity position with a current ratio of approximately 3.91, indicating sufficient current assets to cover liabilities [5] - Strategic initiatives and a strong market position have driven investor confidence, as evidenced by the stock price surge following the earnings report [5]

Core Insights - Neogen is a global leader in food and animal safety, providing diagnostic testing solutions across the food supply chain and animal health markets [1] - The company emphasizes the importance of food safety, highlighting that many consumers do not consider the safety of their food before purchasing [2] - According to the CDC, there were 50 million food-borne illness cases last year, with 100,000 requiring hospitalization and 3,000 resulting in death [2] Company Overview - Neogen is focused on creating solutions to ensure the safety of food consumed by the public [3]

Neogen Conference Call Summary Company Overview - **Company**: Neogen Corporation - **Industry**: Food and Animal Safety - **Core Business**: Provides diagnostic testing solutions across the food supply chain and animal health markets globally [1] Key Points and Arguments Market Opportunity - The food safety market is expanding due to increased food complexity, stricter regulations, and rising consumer expectations for quality and safety [4] - In 2022, there were 50 million foodborne illness cases in the U.S., with 100,000 hospitalizations and 3,000 deaths, highlighting the critical need for food safety solutions [2][3] - Neogen aims to ensure food safety, sufficiency, and suitability for everyone, positioning itself as a trusted authority in the industry [3][10] Business Structure and Portfolio - Neogen operates through two global business units: food safety and animal safety, with a focus on consumable-driven products that provide recurring revenue [4][5] - The company has market leadership in pathogen detection indicators, particularly with its flagship product, Petrifilm, which simplifies microbiology testing in food processing [5][6][8] Recent Challenges and Turnaround Strategy - Neogen has faced challenges following the acquisition of the 3M Food Safety business, which doubled its size but complicated integration [10] - The management team has been restructured, with five new leaders hired to drive the turnaround strategy, which includes three stages: stabilize, accelerate, and expand [12][13] - The goal is to achieve mid to high single-digit revenue growth and adjusted EBITDA margins of 20% to 30% in the long term [11] Innovation and Future Growth - Innovation is a key focus, with plans to enhance product offerings and address customer needs through a dedicated Chief Science Officer [14][17] - A new standalone Petrifilm production site in Lansing, Michigan, is on track for completion by November 2026, which will support product validation and production [16][17] - The company aims to increase investment in R&D, focusing on tangible projects that solve customer problems [17] Financial Performance and Guidance - Neogen reported improved Q2 results, exceeding consensus forecasts, but has been cautious in raising full-year guidance due to the need for sustained performance [25][26] - The management team is focused on building a predictable and sustainable business while recognizing the importance of restoring trust with investors [19][20] Additional Important Insights - The food safety industry is less constrained by reimbursement or government funding, driven instead by regulatory requirements, which presents a favorable market environment [22][30] - The innovation cycle in food safety is faster compared to human diagnostics, allowing Neogen to respond more quickly to market needs [30] - The company acknowledges past operational challenges but is optimistic about the potential for improvement under the new leadership team [31][32] Conclusion - Neogen is positioned in a growing market with significant opportunities for innovation and improvement. The new management team is focused on stabilizing the business and driving growth through enhanced operational execution and customer engagement [20][36]

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Unlocking Neogen's Potential J.P. Morgan Healthcare Conference January 14, 2026 © 2026 Neogen Corporation. All rights reserved. | 1 Disclaimer Forward-Looking Statements This presentation includes "forward-looking statements" as that term is defined in Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Neogen's current expectations and are subject to risks and uncertainties, which could cause a ...

Core Insights - Neogen Corporation (NEOG) reported adjusted earnings per share (EPS) of 10 cents for Q2 fiscal 2026, exceeding the Zacks Consensus Estimate by 42.86%, but down from 11 cents in the same quarter last year [2] - Revenues for the quarter decreased by 2.8% year-over-year to $224.69 million, with core revenues increasing by 2.9%, surpassing the Zacks Consensus Estimate by 7.93% [3][10] Revenue Breakdown - The Food Safety segment generated revenues of $165.6 million, reflecting a 0.8% year-over-year increase, driven by 4.1% core revenue growth, despite a negative impact from divestitures and discontinued products [4] - The Animal Safety segment reported revenues of $59.1 million, down 11.8% year-over-year, with a slight core revenue increase of 0.1% and a significant negative impact from divestitures [5] Margin and Expense Analysis - Gross profit for Q2 declined by 5.9% year-over-year to $106.7 million, with a gross margin contraction of 153 basis points to 47.5% [6] - Sales and marketing expenses decreased by 9.1% to $42.3 million, while administrative expenses rose by 12.9% to $65 million, leading to an operating loss of $5.4 million compared to a profit of $3.9 million in the prior year [7] Cash Position and Liabilities - Neogen's cash and cash equivalents at the end of Q2 totaled $145.3 million, an increase from $138.9 million at the end of Q1 [8] - The company has total outstanding debt of $800 million and a committed borrowing capacity of $201.5 million [8] Fiscal 2026 Outlook - Neogen raised its fiscal 2026 revenue guidance to a range of $845 million to $855 million, up from the previous estimate of $820 million to $840 million, with adjusted EBITDA expected to be around $175 million [10][11] - The company noted encouraging early progress with a return to positive core growth across the enterprise [12] Segment Performance Highlights - Within the Food Safety segment, the strongest core revenue growth was observed in Indicator Testing and Culture Media, attributed to higher sales of sample collection products [13] - The Biosecurity product category in Animal Safety saw strong growth in insect control product sales [13]

Core Insights - Neogen (NEOG) is identified as a food safety play but is currently not considered a safe investment for investors due to its weak performance following a problematic acquisition by 3M in the food safety sector [1] Group 1: Company Performance - Neogen has experienced significant value destruction as a result of its acquisition/merger with 3M in the food safety domain [1] - The company's business performance has been weak post-acquisition, indicating challenges in its operational effectiveness [1] Group 2: Investment Opportunities - The investment group "Value In Corporate Events" focuses on identifying actionable ideas from major corporate events such as earnings reports, mergers, and acquisitions [1] - The group aims to provide coverage of 10 major events each month to uncover the best investment opportunities [1]

Core Viewpoint - Neogen Corporation's stock has seen a significant increase following an upgrade by Guggenheim, despite a decline in revenue and net income, indicating strong investor confidence in the company's future performance [1][5]. Group 1: Stock Performance - Guggenheim upgraded NASDAQ:NEOG to a "Buy" rating with a new price target of $12, up from $8, leading to a stock price increase [1][5]. - Following the fiscal second-quarter earnings report, Neogen's stock surged by over 31%, rising from $9.71 to $12.04, marking a 31.57% increase [2][3]. - The stock has fluctuated between a low of $9.12 and a high of $10.24 on the current trading day, with a market capitalization of approximately $2.11 billion [4]. Group 2: Financial Performance - Neogen reported a revenue of $224.7 million for the fiscal second quarter, reflecting a nearly 3% year-over-year decline [2][5]. - The company's non-GAAP net income was $22.6 million, showing a slight drop compared to previous periods, but still exceeded analyst expectations [2][5]. - Analysts had anticipated revenue just above $208 million and non-GAAP net income of only $0.03 per share, indicating that Neogen outperformed these predictions [2][5]. Group 3: Company Strategy - Neogen attributed the revenue decline to divestitures and discontinued product lines, yet managed to exceed market expectations, which positively influenced investor sentiment [3][5].