How Does Neogen Company Work?

The Food Safety segment offers diagnostic test kits and related products to detect harmful substances in food and feed. This includes solutions for identifying pathogens, natural toxins, and allergens, crucial for maintaining consumer safety.

Neogen's Animal Safety segment provides a wide array of animal healthcare products. These range from veterinary instruments and pharmaceuticals to vaccines, parasiticides, and advanced genomics testing services for livestock producers.

Within Animal Safety, Neogen excels in genomics, offering services that aid livestock producers in genetic improvement and performance enhancement. The company also provides biosecurity products like disinfectants and insect control solutions.

Neogen's operations are distinguished by a broad product portfolio and a significant global presence in over 140 countries. The company actively invests in innovation, exploring areas like AI-driven pathogen detection and blockchain for supply chain traceability.

A major milestone was the September 2022 acquisition of the former 3M Food Safety Division, significantly broadening Neogen's offerings. By fiscal year 2024, most integration work, including production relocation, was completed. In July 2025, Neogen divested its Cleaners & Disinfectants business for $130 million to concentrate on its high-margin Food Safety and Animal Health segments.

Neogen faced operational hurdles, including shipment delays and an increased backlog in Food Safety, stemming from a new ERP system implementation and the conclusion of transition service agreements with 3M. While these issues were largely resolved by the end of fiscal year 2024, market share impact persisted into fiscal year 2025. The company also recorded a $1,059.3 million non-cash goodwill impairment charge in fiscal year 2025, primarily impacting the Food Safety segment.

Neogen's competitive edge is built on brand strength, technological leadership, and a comprehensive product suite. Its Molecular Detection System (MDS) is recognized by the USDA's Food Safety Inspection Service as the primary screening method for Salmonella and Listeria. The company continues to invest in core immunoassay and microbiological capabilities, alongside key platforms like Petrifilm and MDS.

Recent product introductions include the AI-powered Listeria Right Now™ and the Petrifilm Automated Feeder, designed to enhance lab productivity. With a global presence in over 140 countries, Neogen also distinguishes itself through consultative customer service. A new CEO, appointed in July 2025, is driving a targeted improvement plan focused on accelerating growth and expanding margins, prioritizing market share gains in North America and impactful innovation.

Neogen holds approximately 17.95% of the In Vitro & In Vivo Diagnostic Substances Industry market share, ranking second to Idexx Laboratories. Its strategic focus on high-margin allergen and pathogen detection contributes to its strong standing in the global food safety market, which is projected to reach $61.7 billion by 2033, growing at a 10.12% CAGR.

Integration challenges from the 3M Food Safety business acquisition have led to operational issues, including shipment delays and production constraints. The company also recorded significant goodwill impairment charges in fiscal year 2025 related to this acquisition and faces risks from reliance on third-party suppliers, intense competition, and geopolitical instability.

For fiscal year 2026, Neogen anticipates revenue between $820 million and $840 million, with projected adjusted EBITDA of $165 million to $175 million. The company plans to reduce capital expenditures to approximately $50 million in fiscal year 2026 and repay $100 million of debt.

Neogen's strategy includes developing new products, expanding into new markets, and bringing Petrifilm manufacturing in-house to boost gross margins. The company is also focusing on strengthening international operations and sales, particularly in Asia, Europe, and Latin America.