NEOGEN (NEOG), Transnetyx Partner to Advance Mouse Genotyping
NEOGEN Corporation NEOG recently entered into a partnership with Transnetyx, Inc. to collaborate on distribution and advancement of the miniMUGA genotyping array (Mouse Universal Genotyping Array). Notably, NEOGEN aims to leverage Transnetyx’s wide-reaching footprint in the model organism community via the collaboration.
For investors’ note, the miniMUGA is the fourth iteration of NEOGEN’s murine (relating to or affecting mice or related rodents) genotyping portfolio. Further, miniMUGA differs from the previous versions as it was specifically designed for quality control applications.
With the recent collaboration, NEOGEN aims to strengthen its Genomics business on a global scale. Notable, the Genomics business is a part of its broader Animal Safety arm.
Rationale Behind the Collaboration
The miniMUGA array, powered by NEOGEN Genomics, was developed by researchers at the University of North Carolina Chapel Hill. The panel contains numerous markers that can be used to determine the genetic background in over 241 inbred mice. It aims to provide a valuable platform for genetic QC and a vital new tool to increase rigor and reproducibility of mouse biomedical research. The partnership is aimed at providing the biomedical research community with a comprehensive and affordable solution for testing the genetic background of their mouse models.
Per NEOGEN’s management, the partnership will serve the whole biomedical research community via the combined expertise of Transnetyx and NEOGEN’s expertise in the development of genomic solutions.
Industry Prospects
Per a report by Research And Markets, the global mice model market size is projected to reach $1.9 billion by 2025 from $1.4 billion in 2020 at a CAGR of 6.4%. Factors like increasing implications of mouse clinical trials for more predictive outcomes and growing R&D expenses in the pharmaceutical & biopharmaceutical industries are likely to drive the market.
Given the market potential, the collaboration seems to have been timed well.
Recent Developments in Animal Safety
Of late, NEOGEN has been witnessing a slew of developments within its Animal Safety segment.
The company, this month, launched a foaming antibacterial hand soap, COMPANION Foaming Antibacterial Hand Soap, which is highly effective against harmful bacteria and is skin-friendly.
NEOGEN, in October, launched the Igenity Feeder, which is a DNA tool designed to assist cattle producers in the stocker and backgrounder phase to rank and manage feeder cattle according to their genetic potential for carcass traits.
In August, NEOGEN received the Organic Materials Review Institute’s certification stating that its AquaPrime Peraside 15 is in compliance with the USDA National Organic Program, with usage restrictions. The same month, the Environmental Protection Agency 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.
Price Performance
Shares of the company have gained 11.5% in the past year compared with the industry’s 5.3% rise and the S&P 500’s 16% growth.
Zacks Rank & Key Picks
Currently, NEOGEN carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are ResMed Inc. RMD, Thermo Fisher Scientific Inc. TMO and Align Technology, Inc. ALGN.
ResMed’s long-term earnings growth rate is estimated at 14.5%. The company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 18%. It currently carries a Zacks Rank #2.
Align Technology’s long-term earnings growth rate is estimated at 18.3%. It currently carries a Zacks Rank #2.
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