) acquired Fort Collins, Colorado-based Macleod Pharmaceuticals.
Following the acquisition, the privately-owned Macleod business
will be a part of Neogen's animal safety group.
Macleod, an animal health company, is the original manufacturer of
Uniprim, the popular antibiotic drug for horses. The antibiotic is
widely distributed across the U.S. Macleod's exclusive distribution
agreement with Bio-Agri Mix has made it possible for Uniprim to be
easily available in Canada. The change in ownership will not affect
Macleod's current employees as Neogen plans to retain staff and
continue to operate from the Fort Collins facility.
The acquisition is in line with Neogen's strategy of acquiring
allied businesses and developing key alliances. Uniprim will
enhance Neogen's portfolio of professional equine products. It also
presents a significant commercial opportunity and is expected to
garner incremental revenues for animal safety segment. Revenues
from the animal safety segment (43.7% of total revenues) increased
5% year over year to $23.5 million in the first quarter of fiscal
Neogen has been assiduously expanding its animal safety segment
through acquisitions. The company acquired GeneSeek in 2010 to add
depth and dynamism to its animal safety segment. In 2012, Neogen
acquired Igenity animal genomics business from Merial Limited.
Macleod's revenues for the last twelve months were roughly $4
million. Neogen witnessed year-over-year revenue growth of 8.8% to
$49.7 million in the most recent quarter. Excluding contributions
from the Igenity animal genomics business, the company's revenues
edged up 8.1% year over year.
Neogen is a provider of food and animal safety products. The
company's acquisition strategy, sales and marketing capabilities
for specific markets and international operations continue to boost
its top-line. However, competition from
) in certain niche areas remains a headwind.
Neogen currently has a Zacks #3 Rank, which translates into a
short-term Hold rating.
IDEXX LABS INC (IDXX): Free Stock Analysis
NEOGEN CORP (NEOG): Free Stock Analysis Report
To read this article on Zacks.com click here.