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Neogen reports 19% increase in annual revenues
Date:7/22/2014

eogen's line of cleaners and disinfectants increased sharply in fiscal 2014, as various agricultural industries increased sanitation efforts to counter the spread of disease. Two of Neogen's disinfectants, DC&R® Disinfectant and BioSentry BioPhene Disinfectant, were recently demonstrated to be effective against the deadly porcine epidemic diarrhea virus (PEDv), which was estimated to be responsible for the loss of seven million baby pigs in the U.S. in the past year. 

Neogen's Food Safety segment revenue growth of 10% in fiscal year 2014 was entirely organic, as increased sales of multiple product lines into several market segments more than offset lower sales of mycotoxin test kits compared to the prior year. The lower sales of mycotoxin test kits were due to improved growing conditions for grain crops in the United States and Europe that led to less testing for the toxins compared to Neogen's fiscal 2013, not an erosion of market share.

Food Safety segment sales increases included sales of instruments and consumables associated with Neogen's Soleris® test system used to detect spoilage organisms, such as yeast and mold, which rose 17%. Sales of the company's leading line of food allergen tests increased by 18%, and tests for histamine also significantly increased in fiscal 2014 when compared to the prior year. Histamine is a toxin produced in certain types of harvested fish, especially tuna, if they are improperly handled.

Revenues from Neogen's Scotland-based subsidiary increased 24% for the fiscal year, with higher sales of food allergen test kits, genomics services, and several other key product lines. This increase is despite reduced demand in Europe for Neogen's meat speciation tests, which increased dramatically in fiscal 2013 because of the horse meat scandal. In fiscal 2014, Neogen achieved a 39% increase in sales of food and animal safety products at its Brazilian subsidiary
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SOURCE Neogen Corporation
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