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Neogen Reports 30% Increase in Net Income
Date:7/26/2011

xpanding the use of its DNA genotyping technology for animal applications under Neogen ownership. GeneSeek's technology allows the acceleration of natural selection through selective breeding for traits, such as disease resistance and meat quality. Neogen recently announced its new NeoSEEK™ pathogen DNA detection method for E. coli strains — the first food safety laboratory technology developed through the close collaboration of Neogen's food safety research group and GeneSeek research team.

Despite a difficult comparison with the exceptional performance of FY 2010, when the division recorded a revenue increase of 25%, sales of Neogen's Lansing, Mich.-based Food Safety Division increased 12% from $76,454,000 in FY 2010 to $85,514,000 in the current year. While the acquisition of Gen-Probe's BioKits food safety business contributed to the division's fiscal year revenue gain, organic sales growth in Food Safety was broad-based across multiple market segments and product lines. Diagnostic products used in the detection of specific pathogens, general spoilage organisms, food allergens and for general sanitation all achieved solid double-digit sales growth for the year.

In FY 2011, Neogen recorded sharp increases in sales of its test kits to detect dairy antibiotic residues. In March, Neogen received the regulatory approvals necessary to allow milk producers and processors in the U.S. to use Neogen's new BetaStar® Plus to comply with FDA regulations that require the mandatory testing of raw milk tankers for dairy antibiotic residues.

Neogen's Scotland-based Neogen Europe subsidiary recorded a revenue increase of 27% in the current year compared to the prior year. Neogen Europe's revenue increase was broad-based, including increases in sales of Neogen's food safety diagnostics and Acumedia® dehydrated culture media. The company's Mexican subsidiary recorded a 38% sales increase compared to the prior year, and Neogen is be
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