Neogen Corp. (NASDAQ:NEOG) Q1 2021 Earnings Conference Call - Final Transcript

Sep 22, 2020 • 11:00 am ET

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Neogen Corp. (NASDAQ:NEOG) Q1 2021 Earnings Conference Call - Final Transcript

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Executive
Steve Quinlan

Our strong cash position gives us the flexibility to pursue just about any of the many growth opportunities that we have in front of us.

I'll stop here and again emphasize that we're proud of the team and their overall performance in what continues to be a very challenging operating environment. We capitalized on a number of market opportunities during the quarter and we continue to be excited about both our current business and the new products that we're launching this year. And as always, we appreciate the support of our shareholders and all those listening on the call today.

At this point, I'll turn it back to John for further comments.

Executive
John Adent

Thanks, Steve. You know, as I previously said, our mission matters today more than ever. As the world fights through this crisis to eventually recovery, there are few things more important than a continuing safe and plentiful food supply. NEOGEN was built to respond in times of crisis and we have responded. We've done our best to assist the broader civic efforts to combat COVID-19 by making our sanitizers and disinfectants available outside of our traditional agriculture and veterinary markets.

Another example of an opportunity for NEOGEN that was created by the pandemic is sales of our test to detect histamine that Steve talked about. It's a spoilage indicator in some fish and especially used in tuna. Sales of canned tuna have spiked as consumers have sought less expensive sources of protein to consume at home and sales of our test kits for histamine increased by 20% compared to the prior year quarter.

We've also benefited from the now well documented increase of spending on pets especially dogs and cats during the COVID era. Our genomic operations recently marked the two millionth test performed on companion animal samples, mostly for dog breed of identification, but now expanding into canine wellness tests. As we responded to the pandemic, we've also recently launched some significant new products from our R&D pipeline.

As mentioned before, in July, we launched our new Soleris next generation, which is an automatic test system that detects microorganisms such as yeast and mold in a fraction of the time of traditional test methods. As Steve has mentioned, we've had a tremendously positive market reaction to this product launch, especially for the nutraceutical and cosmetic industries. Just last week, we launched an improved test for gluten, which has been one of our major food allergen test. The improved test rapidly detects gluten in food products, raw ingredients and environmental samples.

What that means is companies can now use the same set -- the same method to test for allergens in food and environmental samples as opposed to using different methods for different sample types. We believe that this is a major advancement from one of our core product lines and we're in the final stages of development for similar improvements to more of our food allergen tests.

We also expect that other major product launches in the