LANSING – Neogen (NASDAQ:NEOG) Corporation (NASDAQ: NEOG) today announced the launch of CelluSmart technology, a new development from Megazyme by Neogen, aimed at enhancing the measurement of cellulosic ethanol in biofuel production. This innovation is seen as a step forward for the ethanol industry in its quest to produce more sustainable, low-carbon fuels.
CelluSmart builds on the existing National Renewable Energy Laboratory (NREL) procedure by incorporating a yeast-degrading cocktail (YDC), which is expected to help ethanol producers lower their carbon intensity scores. This advancement could open doors to new markets, such as sustainable aviation fuel, by meeting the U.S. Environmental Protection Agency's (EPA) requirements for an approved method from a voluntary consensus standards body.
John Adent, Neogen's President and CEO, emphasized the importance of the ethanol industry in renewable energy and expressed confidence that CelluSmart technology would contribute to its growth and sustainability efforts. Dr. Jason Lilly, Neogen's Vice President of the Americas and Australia/New Zealand, also highlighted the company's ongoing partnership with the biofuel industry and its commitment to providing technologies that support a sustainable future.
CelluSmart technology is incorporated into ASTM Method E-3417-24 and aligns with achieving climate goals by potentially reducing greenhouse gas emissions by 60% compared to standard petroleum-based fuel.
The introduction of CelluSmart technology is based on a press release statement from Neogen Corporation.
InvestingPro Insights
As Neogen Corporation (NASDAQ: NEOG) unveils its innovative CelluSmart technology, the financial metrics and analyst outlooks provide a broader perspective on the company's market position. The company's market capitalization stands at a robust $3.51 billion, reflecting its significant presence in the industry. Despite recent market volatility, Neogen has demonstrated impressive revenue growth over the last twelve months as of Q3 2024, with an increase of 28.93%, signaling strong demand for its offerings and potential for continued expansion.
Investors interested in the company's financial health will note that Neogen's gross profit margin remains strong at 51.32%, underscoring its ability to maintain profitability in its operations. Additionally, an InvestingPro Tip highlights that the company's liquid assets exceed its short-term obligations, suggesting a sturdy financial footing that could support further investment in innovations like CelluSmart technology.
For those looking at investment timing, another InvestingPro Tip points out that Neogen's stock is currently in overbought territory according to the Relative Strength Index (RSI), which may influence investor strategies. With significant returns over the last week and month, at 23.27% and 30.62% respectively, the company's stock has been responsive to positive developments. Analysts predict profitability for Neogen this year, aligning with the company's optimistic outlook on its new technology.
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