Neogen Wins Major USDA Contracts
LANSING, Mich., Oct. 19 /PRNewswire/ -- Neogen Corporation (Nasdaq: NEOG - news) announced today that agencies of the U.S. Department of Agriculture have renewed their trust in Neogen's diagnostics to monitor the safety of the nation's grain and meat supplies.
The USDA's Federal Grain Inspection Service (FGIS) awarded Neogen a new contract to use the Company's quantitative test to monitor grain commodities, primarily corn, for aflatoxin. The contract, with the same terms as the initial contract signed in 1994, calls for the exclusive use of Neogen's test at FGIS locations nationwide for the next year, with an option to renew for an additional 4 years thereafter.
Similarly, the USDA's Food Safety Inspection Service (FSIS) renewed its 1-year agreement to use Neogen's rapid test for E. coli O157:H7 to screen the nation's meat supply for the deadly bacteria. Neogen's test has earned the use of the FSIS to monitor for E. coli O157:H7 every year since 1994, when Neogen began marketing the test.
``We are obviously quite pleased with the USDA's continued trust in our products' ability to protect consumers,' said Ed Bradley, Neogen's vice president of sales and marketing. ``As substantial as the agreements are with the USDA, their implications are much greater. The continued governmental use retains the tests' 'gold standard' status. Private testers who must comply with government food safety regulations have every reason to use the tests utilized by the regulators themselves.'
Aflatoxin, a byproduct of mold growth in grain, is considered by many to be the most potent naturally-occurring carcinogen, and has been linked to a variety of health problems in both humans and animals. Most private food and animal feed companies in the United States routinely test for the presence of this toxic residue in incoming grain supplies, as well as finished food and animal feeds. Government regulation requires all domestic grain shipped outside the United States, or destined for human consumption, contain less than 20 parts per billion of aflatoxin.
Neogen Corporation develops and markets products and services dedicated to food and animal safety. The Company's Food Safety Division markets diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases and sanitation concerns.
Certain portions of this news release that do not relate to historical financial information constitute forward-looking statements. These forward- looking statements are subject to certain risks and uncertainties. Actual future results and trends may differ materially from historical results or those expected depending on a variety of factors, including impact of the Year 2000 issue, and factors listed in Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's most recently filed Form 10-K.
SOURCE: Neogen Corporation |
