Neogen Corporation (NASDAQ:NEOG) stock rose 0.43% (As on Dec 22, 11:24:41 AM UTC-4, Source: Google Finance) though the company in the second quarter of FY 22 has reported net income of $10,828,000, or $0.10 per share, compared to $15,885,000, or $0.15 per share, in the previous year’s second quarter. Net income for both the second quarter and year-to-date period was adversely impacted by significant fees in connection with the recently announced plan to combine 3M’s Food Safety business with Neogen’s existing operations. The company incurred $9.3 million in the second quarter for professional fees tied to due diligence, consulting and legal services related to the 3M deal. These fees contributed to an overall increase of 42% in operating expenses compared to the prior year’s second quarter.

Moreover, the revenues for the company’s Food Safety segment were $67,132,000 in the current quarter, which represents an increase of 17% compared to $57,534,000 in the prior year’s second quarter. On an organic basis, the segment’s revenue increased 11%, with the remaining contribution from the company’s December 2020 acquisition of Megazyme, a food quality and nutritional analysis business. A number of Neogen’s recently launched products continued to gain market share during the second quarter, as the Soleris rapid general microbial testing product line recorded a 22% increase, on strong growth in equipment sales. Sales of the new AccuPoint Advanced NG handheld sanitation monitoring system drove a reader sales increase of 19%, and the company’s innovative Listeria Right Now 60-minute test system recorded an increase of 35% over the prior year. The revenues for the company’s Animal Safety segment were $63,385,000 in the second quarter of the fiscal year, an increase of 10%, compared to $57,466,000 in the previous year; organic growth was also 10%. The growth was driven by a 30% increase in sales of veterinary instruments, including needles and syringes, resulting in large part from recently won private label business. Animal care products increased by 18% as the equine and companion animal markets returned to pre-pandemic demand levels and the ThyroKare supplement line, which relaunched in February 2021, continued to regain market share. On a worldwide basis, genomics revenues increased 8% with nice growth in our Scotland, Brazil, China, and Canada labs. Overall, the company had strong growth in the quarter with US revenues increasing over 9% and international operations, up 20%.