Zoetis Inc. revealed an agreement to buy the animal genomics business of Neogen Corporation for $160 million, a transaction that the animal healthcare company says will add genetic testing technologies and data tools to its capabilities. The company expects the acquisition to improve its ability to predict animal health outcomes and to enable more customized care for individual animals.
In premarket activity on Monday, Zoetis shares fell 1.1% to $129.72. The company had recorded a 4.2% gain in its stock during 2025 prior to this announcement.
Neogen's genomics operation includes five laboratories located across the United States, Brazil, Australia, China and the United Kingdom, and it maintains an additional office in Canada. According to the companies, the genomics business serves customers in more than 120 countries, giving the unit a broad international footprint.
Zoetis said it anticipates completing the acquisition in the second half of calendar year 2026. The company framed the purchase as a way to combine Neogen's genetic testing and data assets with its own animal-health platforms to refine predictions of health outcomes and to personalize care approaches.
The announcement highlights a targeted expansion of Zoetis' technical capabilities in genomics and data-driven health prediction for animals. The transaction is narrowly focused on Neogen's genomics business rather than Neogen as a whole, and it reflects an acquisition strategy centered on specific technologies and laboratory networks.
Market reaction to the deal was visible in the premarket decline in Zoetis shares, even as the company has posted gains earlier in the year. Completion timing is stated as an expectation rather than a certainty, with the companies projecting a close in the second half of 2026.
Sectors impacted: animal healthcare, genomics and related veterinary services; the announcement also has implications for market participants tracking corporate M&A activity in biotech-adjacent sectors.