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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Q & A
Analyst
David Westenberg

to think about it, so our models next year look correct.

Executive
John Adent

Okay. Steve will handle that one.

Executive
Steve Quinlan

Thanks John.

Executive
John Adent

You're welcome, Steve.

Executive
Steve Quinlan

So David, on the StandGuard product, we had about $160,000 of revenue for that product. Remember, we just bought it right near the end of July. We just kind of launched it into our market, so it's just starting off. But we're really encouraged about the prospects for the product lines. And the distributors that we purchased, I think it's important to note that we were doing business with a number of those distributors already and those numbers were already somewhat in our food safety numbers. So you're really seeing incremental revenues there. So it's really tough to call out and say well, Chile was X, because it was already -- we're in [Phonetic] the incremental margin there.

But, as John said, we're excited about the opportunities in those markets. We're staffing them up, we're kind of putting that NEOGEN infrastructure in and we're just excited about the future of those businesses. I think I'd probably stop there on that.

Analyst
David Westenberg

Got it. And just further on that question. Is it responsible to times that $160,000 by 12 to get the year run rate? Or is there just too much kind of noise and you just got the asset... [Speech Overlap]

Executive
John Adent

Yeah. It's a little early, you know, there is seasonality in that product and that's a little early. I wouldn't do that as a straight run rate. We'll have a little bit more clarity after next quarter, probably.

Analyst
David Westenberg

Got it.

Executive
John Adent

But we aren't happy with it also. [Speech Overlap]

Analyst
David Westenberg

Good. All right. I mean, I'll ask just one more question before I hop in the queue, don't want to hog all the questions here. Just lastly on competition. Are you seeing anything differently for maybe some of the players in the Life Science, tools, traditional ones like Waters or PerkinElmer? I know PerkinElmer, I think they launched a mycotoxins test. Are you seeing that in your -- in kind of a impact on the market? And then, as a follow-up to that, when you do see competitive products, is that kind of one of the things where you step on the gas in terms of R&D or is that one of the things where you maybe step on the gas in terms of acquisitions?

Executive
John Adent

So the answer is yes. So we have seen competitors and they continue to launch, right. You saw Hygiena launch a new ATP reader. You saw PerkinElmer buy their business in China before the COVID and you see others that are buying up smaller maybe a small portfolio of allergen testing or others.

So there is continued competition. And that's why our strategy is like we've talked about, we continue to invest in R&D. So I think that goes right hand in hand with what we just launched with a gluten test, where before you're having to do a test, test for raw materials