Yahoo Finance Neogen's (NEOG) MDS Secures New Contract From USDA FSIS
Neogen Corporation NEOG recently announced that its Molecular Detection System (“MDS”) has been named by the U.S. Department of Agriculture Food Safety and Inspection Service (“USDA FSIS”) as the primary method for the detection of Salmonella and Listeria monocytogenes testing for meat, poultry and egg products. USDA FSIS has been using the Neogen MDS for Salmonella and Listeria monocytogenes for more than five years, attesting to the reliability and efficiency of the system.
The company expressed delight in receiving the recognition, demonstrating its ongoing commitment to fueling a brighter future for global food security.
More on the News
The Neogen MDS makes the detection of foodborne pathogens simple and fast for food manufacturers by utilizing loop-mediated isothermal DNA amplification (LAMP) technology. It simultaneously accommodates individual, pathogen-specific assays, enabling users in meat, poultry, and other food and beverage categories to run up to 96 different tests concurrently for a range of organisms and across various food and environmental samples.
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The next-generation Neogen Molecular Detection Assays have been consistently validated by leading scientific validation organizations throughout the world (AOAC INTERNATIONAL, AFNOR and MicroVal) for a comprehensive variety of sample types. As part of the new contract, USDA FSIS also selected Listeria spp and the newly available Neogen Molecular Detection Assay 2 – Salmonella Enteritidis/Salmonella Typhimurium (MDA2SEST). The Neogen MDS has been long trusted by food producers and contract labs around the world as a fast, accurate, reliable and easy-to-use method for pathogen detection.
Industry Prospects
Per a Research report, the global pathogen detection market was valued at $4.9 billion in 2022 and is expected to witness a CAGR of 8% up to 2030.
The market growth is propelled by continuous technology developments and newer applications in research and development that have helped mitigate the impact of the pathogen-based infectious disease burden. Additionally, the rapid detection and accuracy in results within less time are expected to boost the demand for pathogen detection in coming years.
Other Notable Developments
In April 2024, Neogen introduced the MDA2SEST kit that joins several other next-generation assays as part of the Neogen MDS pathogen testing platform. The new isothermal molecular assay is said to overcome certain limitations of existing solutions, such as traditional serology and PCR-based methods, with improved accuracy, reduced time to results and a streamlined workflow that provides increased productivity and unparalleled ease of use.
In addition, the company partnered with Performance Food Group, one of the largest food and food service distribution companies in North America. The latter’s PathProven food trace technology, combined with Neogen genomics’ world-leading DNA testing capabilities, can trace food products back to the feedlot, ocean or farm that they came from. This allows the entire production process to be carefully inspected and regulated, ensuring both the quality and origin of these products. The collaboration presents a new opportunity for Neogen to help improve efficiency and sustainability within the protein supply chain.
Furthermore, Neogen extended its Farm Fluid product line with the launch of Farm Fluid MAX in Great Britain. The dual-action disinfectant is designed for challenging farm conditions and is formulated for use as part of a Neogen Pathogen Programme. The company will soon make it available in other European markets, subject to global registrations and notifications.
Price Performance
In the past year, Neogen has mostly underperformed its industry. Shares of the company have dropped 12.4% against the industry’s 0.8% rise.
Zacks Rank and Key Picks
Neogen currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Hims & Hers Health HIMS, Medpace MEDP and ResMed RMD. While Hims & Hers Health and Medpace each sport a Zacks Rank #1 (Strong Buy), ResMed carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Hims & Hers Heath stock has surged 173.2% in the past year. Estimates for the company’s earnings have remained constant at 18 cents in 2024 and increased 3.1% to 33 cents in 2025 in the past 30 days.
HIMS’ earnings beat estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. In the last reported quarter, it posted an earnings surprise of a staggering 150%.
Estimates for Medpace’s 2024 earnings per share have moved up to $11.29 from $11.23 in the past 30 days. Shares of the company have surged 84.9% in the past year compared with the industry’s 7.1% growth.
MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.8%. In the last reported quarter, it delivered an average earnings surprise of 30.6%.
Estimates for ResMed’s fiscal 2024 earnings per share have remained constant at $7.70 in the past 30 days. Shares of the company have declined 2.6% in the past year against the industry’s rise of 0.9%.
RMD’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.8%. In the last reported quarter, it delivered an earnings surprise of 10.9%.
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