Neogen partners with Biomatter to develop enzyme-based food safety products

LANSING, Mich. - Neogen Corporation (NASDAQ:NEOG), a $1.1 billion market cap company currently trading at $5.08, announced Monday it has entered into an arrangement with Biomatter to develop new enzyme-based products for food safety applications.

The collaboration will combine Neogen’s expertise in analytical development and technology with Biomatter’s Intelligent Architecture platform, which uses artificial intelligence and physical modeling to design enzymes with specialized capabilities. According to InvestingPro data, Neogen maintains strong liquidity with a current ratio of 3.32, indicating solid financial flexibility to pursue such strategic initiatives.

"By combining our leadership and innovation in food testing and risk mitigation with Biomatter’s cutting-edge enzyme engineering capabilities, we’re unlocking new possibilities that can enhance detection, improve efficiency, and ultimately protect and enhance the quality and safety of the global food supply," said Dr. Jason Lilly, Neogen’s Chief Scientific Officer, in a press release statement.

Laurynas Karpus, Biomatter’s Chief Executive Officer, stated that the partnership aims to "set new standards in the industry, making every step of the process more efficient, cost-effective, and ultimately more beneficial for the end user."

Neogen, which operates in over 140 countries, focuses on food safety, livestock, and pet health markets, generating annual revenue of $894.66 million. Biomatter specializes in designing novel enzymes using its AI-powered platform for various industries including medicine, diagnostics, agriculture, and biomanufacturing. For a comprehensive analysis of Neogen’s financial health and growth prospects, investors can access detailed Pro Research Reports available on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.

The companies did not disclose financial terms or specific product development timelines in their announcement. While Neogen currently operates with significant debt and wasn’t profitable over the last twelve months, analysts predict the company will return to profitability this year.

In other recent news, Neogen Corporation reported its fourth-quarter 2025 earnings, exceeding analysts’ expectations. The company posted an earnings per share (EPS) of $0.05, outperforming the anticipated -$0.03. Revenue also surpassed projections, coming in at $225.5 million against the expected $221.92 million. Despite these positive results, Neogen’s fiscal 2026 revenue guidance suggests flat to declining revenues when excluding its recently divested disinfectant business. This outlook has contributed to a cautious stance from analysts. William Blair downgraded Neogen from Outperform to Market Perform, citing concerns about the company’s growth prospects amid challenging macroeconomic conditions. These developments reflect the mixed sentiment surrounding Neogen’s future performance.

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