NEOG

The FDA issued a warning letter to Neogen Corporation on September 29, 2026, following an investigation linking its veterinary wound care product Neogen Vet HYCOAT to at least 20 horse deaths from serious infections. The contaminated sterile solution represents the largest number of horse deaths associated with a quality defect in an FDA-regulated veterinary product.

Neogen initiated a voluntary recall in January 2026. The announcement triggered a 7.22% stock price decline. Pomerantz LLP is investigating potential securities fraud claims on behalf of investors.

The Medical Products industry faces moderate growth prospects with resilient healthcare demand offset by tariff pressures and manufacturing costs. ICU Medical shows strong momentum in infusion systems with improving earnings, Neogen benefits from commercial execution improvements in food and animal safety, while Trulieve Cannabis expects growth acceleration from new markets like Georgia and Texas despite Florida seasonal softness.

Neogen reported Q1 2026 revenue of $222.8 million, up 6.5% year-over-year, beating the consensus estimate of $208.09 million by 7.07%. EPS came in at $0.08 versus the estimate of $0.05, representing a 60% surprise.

The company showed strong performance across most segments, with Food Safety revenue at $163.2 million and Animal Safety at $59.6 million, both exceeding analyst expectations. The stock has a Zacks Rank #2 (Buy) rating.