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OMRI Clears NEOGEN's AquaPrime Peraside 15 as USDA Compliant

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NEOGEN Corporation (NEOG - Free Report) announced the receipt of Organic Materials Review Institute’s (“OMRI”) certification stating that its AquaPrime Peraside 15 is in compliance with the USDA National Organic Program, with usage restrictions. Notably, the AquaPrime Peraside 15 is registered with the Environmental Protection Agency (“EPA”) to clean and treat poultry and livestock drinking water lines.

Other notable offerings of NEOGEN from its water treatment program are the AquaPrime Activator and AquaPrime NeoKlor, both of which have been certified by OMRI in August and May, respectively.

With the latest clearance received by the company, NEOGEN aims to strengthen its cleaners and disinfectants business under the broader Animal Safety segment.

Significance of the Certification

Per management, the latest certification will enable the company to offer a complete suite of water treatment offerings for its producers operating under organic production umbrellas.

The Peraside 15 not only controls bacteria, fungi, slime and odor in water lines, it also sanitizes and disinfects equipment. Additionally, it treats fruit and vegetable process water systems.

Industry Prospects

Per a report by Markets And Markets, the global animal disinfectants market is projected to rise from $2.9 billion in 2019 to $4.4 billion by 2025 at a CAGR of 6.9%. Factors like increasing incidences of livestock diseases and growing awareness about animal hygiene are likely to drive the market.

Given the market potential, the latest certification is expected to boost NEOGEN’s business significantly.

Recent Developments in Animal Safety

Of late, NEOGEN has been witnessing a slew of developments within its Animal Safety segment.

In August, the EPA validated the effectiveness of NEOGEN’s BioSentry 904 Disinfectant against the COVID-19-causing SARS-CoV-2 virus, when used per the revised label instructions. In the same month, NEOGEN completed the previously-announced acquisition of the U.S. (including territories) rights to Elanco’s StandGuard Pour-on for horn fly and lice control in beef cattle and related assets.

In May, NEOGEN launched the enhanced version of its Igenity Beef profile, which is a genomic test for commercial cattle.

In April, NEOGEN in association with Superior Livestock Auction launched a commercial beef certification program, Igenity Branded, verified by a genomic test.

Price Performance

Shares of the company have gained 8.1% in the past year against the industry’s 1.2% fall and the S&P 500’s 13.8% growth.

Zacks Rank & Key Picks

Currently, NEOGEN carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .

QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently flaunts a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).

Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.

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