NEOGEN (NEOG) Igenity Branded Calves Score Highest US Sales
NEOGEN's (NEOG) Igenity-tested calves earn an average premium of over $59 in the summer selling season.
NEOGEN Corporation NEOG recently talked about its Igenity branded program,which can help in mitigating the risk associated with purchasing calves in the marketplace. Igenity, which was originally launched in 2019, can be used as a marketing tool for cattle producers. This program was launched under the partnership between NEOGEN and Superior Livestock.
According to the company, Igenity Branded calves topped livestock sales through the United States in the summer.
A Few Words on Igenity
Igenity Branded, powered by NEOGEN, is a beef certification program verified by a genomic test.
It claims to provide a secondary marketing avenue to producers currently utilizing the Igenity Beef or Igenity Feeder genetic tools.
According to NEOGEN, through the use of Igenity genomic profiles, an animal's genetic merit for various traits across commercial cattle of all weight classes and breeds, are quantified. Then, producers can market their calves for sale through Igenity.
The company also noted that calves tested through the Igenity Branded program can be classified into three different marketing groups—Elite, Premier, and Choice. This classification is based on their average Igenity Terminal or Maternal Index. To get the Igenity Branded qualification, producers must test at least 35% of their calf crop.
Interestingly, Igenity-tested calves earn an average premium of over $59 per head during the summer selling season.
Growth Through Strategic Partnerships
Of late, Neogen has inked a series of partnership deals, which are expected to aid in the company’s segmental growth as well as international expansion.
In June 2021, Neogen extended its strategic partnership with Gencove, Inc. The extended collaboration aims to continue the development of robust and innovative animal genomic testing. Through this multi-year global agreement, Neogen can offer its SkimSeek low-pass sequencing technology to customers across the agricultural community.
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In the same month, the company collaborated with the Center for Aquaculture Technologies (CAT) to provide high-quality genotyping services to aquaculture producers. This partnership will bring together Neogen and CAT’s expertise to apply modern sequencing and genotyping technologies to aquaculture species. It is expected to support the aquaculture sector in making more informed breeding decisions.
In January 2021, Neogen acquired Ireland-based Megazyme, Ltd. — a major supplier of analytical solutions used by quality control laboratories in the global food and beverage industries. The acquisition of Megazyme provides Neogen a natural and complementary expansion of food diagnostics portfolio at the same time aligning with an aim to provide comprehensive leading solutions to global food producers.
Other notable partnerships of Neogen include the one with Transnetyx (in genotyping array) and National FFA (to support the agricultural organization and help fight the spread of COVID-19).
Share Price Performance
Shares of Neogen have underperformed the industry over the past year. The stock has gained 9.8% compared with the industry’s increase of 12.1%.
Zacks Rank and Key Picks
Currently, NEOGEN carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the Medical-Instruments industry include Semler Scientific Inc. SMLR, ALCON INC ALC, and IDEXX Laboratories, Inc. IDXX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Semler Scientific has a long-term earnings growth rate of 25%.
ALCON has a long-term earnings growth rate of 17.7%.
IDEXX has a long-term earnings growth rate of 19.9%.
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