Neogen Corporation, a prominent entity in the animal and food safety sectors, has recently faced a voluntary recall of a key veterinary product. This action stems from identified microbial contamination, which led to adverse effects in horses. Simultaneously, the company released its second-quarter fiscal results for 2026, revealing a modest decrease in overall revenue but an underlying positive core growth, alongside a reported net loss. These events collectively shape the company's current standing and future prospects.
On January 28, Neogen Corporation initiated a voluntary recall of all in-date batches of its Neogen®Vet HYCOAT® Hyaluronate Sodium Sterile Solution. This product, designed for use in dogs, cats, and horses, is distributed by Neogen but manufactured by an external supplier. The recall was prompted by the discovery of microbial contamination within certain 10 mL/50 mg product vials. This contamination was linked to a series of reported adverse events in horses after they received intra-articular injections of the solution. While the company's investigation into the precise cause and scope of the issue is ongoing, the observed trend of adverse events was inconsistent with the product's intended and labeled use.
As a precautionary measure, Neogen Corporation extended the recall to include the 2mL/20mg product vials, even though no adverse events had been reported for this specific size when used as directed. The company is actively cooperating with the Food and Drug Administration (FDA) throughout this recall process, underscoring its commitment to product safety and regulatory compliance.
In parallel with these product safety concerns, Neogen Corporation also disclosed its financial performance for the second fiscal quarter of 2026. The company recorded a total revenue of $224.7 million, marking a 2.8% decrease compared to the same period in the previous year. Despite this overall revenue dip, the company experienced a 2.9% year-over-year increase in core growth. However, the quarter concluded with a reported net loss of $15.9 million, offset by an adjusted net income of $22.6 million. These financial figures reflect the operational challenges and strategic adjustments the company is navigating.
Neogen Corporation's business model is fundamentally structured around the development, manufacturing, and commercialization of products critical to food and animal safety. Its operations are organized into two primary divisions: Food Safety and Animal Safety. The recall primarily impacts the Animal Safety segment, highlighting the importance of robust quality control and supply chain management within this critical area of its business.
The company's response to the recall and its latest financial disclosures provide stakeholders with a comprehensive view of its operational health and commitment to addressing product safety issues. The ongoing collaboration with the FDA and the proactive recall measures demonstrate a concerted effort to mitigate risks and maintain market confidence. As investigations proceed and the company implements corrective actions, the focus remains on upholding its reputation for quality and ensuring the well-being of the animals its products serve.