LANSING, Mich., Dec. 11 Neogen Corporation(Nasdaq: NEOG) announced today that its Board of Directors has initiated a newshare repurchase program to purchase up to 500,000 shares of the company'scommon stock. In a joint move, the Board rescinded the previous stockrepurchase program first approved in 1999.
The shares will be repurchased on the open market or in negotiatedtransactions, depending on market conditions and other factors. Accordingly,there is no guarantee as to the exact number of shares to be repurchased.Shares repurchased under the program will be retired. Currently, there areapproximately 14,700,000 outstanding shares of Neogen common stock.
"Management and the Board of Directors believe that the company's sharesare undervalued from time to time -- and especially so in the very unusualmarket conditions that we have seen recently," said James Herbert, Neogen'sCEO. "We see no fundamental reason for our stock to be at its current value.The repurchase program does not mean that we are discontinuing our strategy ofusing cash and borrowing power for synergistic acquisitions. This is one ofseveral management initiatives aimed at increasing shareholder value."
Neogen last repurchased shares of its common stock in its 2003 fiscalyear. Of the more than 1.2 million shares authorized for repurchase under the1999 plan, the company repurchased approximately 875,000 shares.
"The share repurchase program reflects the Board's confidence in Neogen'slong-term growth prospects," said Lon Bohannon, Neogen's president. "Ourmanagement also remains enthusiastic about the company's continued substantialopportunities for increased sales in markets dedicated to food and animalsafety."
Neogen Corporation develops and markets products dedicated to food andanimal safety. The company's Food Safety Division markets dehydrated culturemedia, and diagnostic test kits to detect foodborne bacteria, natural toxins,genetic modifications, food allergens, drug residues, plant diseases andsanitation concerns. Neogen's Animal Safety Division markets a complete lineof diagnostics, veterinary instruments, veterinary pharmaceuticals,nutritional supplements, disinfectants, and rodenticides.
Certain portions of this news release that do not relate to historicalfinancial information constitute forward-looking statements. Theseforward-looking statements are subject to certain risks and uncertainties.Actual future results and trends may differ materially from historical resultsor those expected depending on a variety of factors listed in Management'sDiscussion and Analysis of Financial Condition and Results of Operations inthe Company's most recently filed Form 10-K.
SOURCE Neogen Corporation