(RTTNews) - Thursday, food safety testing and animal health applications products provider Neogen Corp. (NEOG: News ) said it has formed a new Brazilian Subsidiary, Neogen do Brasil for distribution of Neogen's food safety products throughout the Latin American country.

Neogen expects to accelerate the success of the company's products and use the opportunities in Brazil through Neogen do Brazil. The company believes that there is substantial opportunities for sales growth for its products in Brazil as the country is one of the world's largest food producer and exporter.

Neogen expects the new company to start business with an annual revenue base of about $1 million, based on its recent sales performance.

Josue Furtado Fihlo will manage the new entity headquartered near Sao Paulo and Flavio Mello will be the sales manager.

"Now with the fifth largest economy in the world, one of only a few countries likely to show an increase in its gross domestic product for 2009, and a major food producer and exporter, Brazil has become a very important country to Neogen's future success," said Lon Bohannon, Neogen's president and chief operating officer.
Neogen has a significant source of revenue from outside of the United States. In the most recent quarter, about 41% of Neogen's revenue was from countries other than the U.S.

Neogen's Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect foodborne bacteria, natural toxins, genetic modifications, food allergens, drug residues, plant diseases and sanitation concerns. Neogen's Animal Safety Division markets a wide range of products related to animal care.

NEOG is currently trading at $31.18, down 0.98% on Nasdaq.

To receive FREE breaking news email alerts for NEOGEN CP and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com