Neogen's Food Safety Division led the company's second quarter revenue increase, with sales up 20% from $15,379,000 in FY 2009 to $18,446,000 in FY 2010. Year-to-date, the Food Safety Division's revenues were up 16% to $35,921,000 for FY 2010. Sales growth in Food Safety was broad-based across multiple market segments and product lines for the quarter and on a year-to-date basis. Neogen's line of drug residue tests, led by sales of tests for dairy antibiotic residues increased significantly due to increased sales of higher value test kits, overall unit volume growth, and a relatively positive currency exchange rate for test kits sold in Euros.

Cool, wet weather conditions experienced throughout parts of the U.S. corn belt during the summer and fall led to sharp increases in demand for test kits to detect the presence of mycotoxins, especially vomitoxin. Sales of the company's Acumedia dehydrated culture media products improved over FY 2009's second quarter, as sales to traditional media customers and international distributors achieved double-digit organic growth. Food allergen test kit sales also continued their recent trend of strong same-store sales growth in the second quarter with an increase in excess of 20% compared to the prior year.

Neogen's Animal Safety Division second quarter revenues increased 6% to $16,805,000, compared to $15,808,000 in the previous fiscal year. For FY 2010's first six months, the Animal Safety Division's sales increased 9% over the comparable period last year to $31,677,000. Sales of Neogen's rodenticides, cleaners and disinfectants in the quarter increased 22% over the prior year primarily due to successful marketing programs for rodenticide products and a strong increase in domestic sales of disinfectants. Sales of the company's Kare line of companion animal products sold through ethical distribution channels also exhibited strong growth for the quarter.

The internal development and release of four new products in the second quarter, and the May 2009 acquisition of International Diagnostic Systems, led to a 26% quarter-over-quarter increase in sales of Animal Safety's diagnostic products. Sales of test kits used to detect drugs of abuse in the forensics market and sales derived from contract research and supply agreements both achieved significant growth.

Neogen's acquisition of the BioKits food safety business of Gen-Probe Incorporated was completed on the first day of Neogen's third quarter, Dec. 1. The acquisition includes more than 50 test kits for food allergens, meat and fish speciation, and plant genetics. The U.K.-based business is now a part of Neogen Europe Ltd., which is headquartered in Ayr, Scotland.

SOURCE Neogen Corporation