Mairs & Power, an investment advisor, released the third-quarter 2025 investor letter for the “Mairs & Power Balanced Fund.” A copy of the letter can be downloaded here. As we move into 2025, the market’s concentration persists, with a few dominant mega-cap stocks tied to artificial intelligence (AI) driving most of the favorable outcomes. The fund returned 6.47% in the first nine months of 2025. The fund underperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. G ...

Core Insights - Bio-Techne Corporation has launched its next-generation Leo System, which utilizes Simple Western Technology to enhance life science research capabilities [1][4] Product Features - The new Leo System incorporates dual-channel fluorescence detection alongside chemiluminescence, increasing data throughput and efficiency while providing deeper insights from samples [2] - It offers a fourth multiplexing option, allowing researchers to quantify targets with varying expression levels and assess different proteoforms in the same capillary, processing up to 100 capillaries in three hours [2][6] Performance and Precision - The Leo System is noted for its high-throughput capabilities, achieving a variability of only 5-6%, which is considered remarkable in clinical research [3] - The system is designed to deliver unmatched precision and efficiency in protein analysis, enabling faster and more reliable results [4] Market Position - Bio-Techne aims to strengthen its leadership in proteomic analytical instruments with the Leo System, which supports complex assay configurations and compliance with regulatory standards [6] Company Overview - Bio-Techne generated over $1.2 billion in net sales in fiscal 2025 and employs approximately 3,100 people globally, providing innovative tools and reagents for research and clinical diagnostics [5]

Core Insights - Bio-Techne has a rich history of 50 years, with a core business that includes 7,000 proteins and 400,000 antibodies, serving as essential components for life science tools and laboratory research [2] - Over the past decade, Bio-Techne has focused on leveraging its components in faster-growing application areas, specifically in cell therapy and proteomics [3] Application Areas - The first application area is cell therapy, which involves growing immune or regenerative cells to treat diseases, supported by the necessary core components and bioreactor technology [3] - The second application area is proteomics, which is centered around proteomic analysis, although further details were not provided in the excerpt [4]

Bio-Techne FY Conference Summary Company Overview - **Company**: Bio-Techne (NasdaqGS: TECH) - **Industry**: Life Sciences Tools - **Established**: 50 years ago - **Core Products**: 7,000 proteins and 400,000 antibodies, serving as foundational components for life science research tools [2][4] Key Business Areas 1. **Cell Therapy**: Focus on growing immune and regenerative cells to treat diseases [2][3] 2. **Proteomics**: Emphasis on proteomic analysis, with a belief in market growth potential [3][4] 3. **Spatial Biology**: Investigating tissue interactions to assess therapy effectiveness [3][4] 4. **Molecular Diagnostics**: Capable of analyzing difficult-to-read genes, addressing gaps in next-generation sequencing (NGS) [3][4] Recent Financial Performance - **Q1 2026 Results**: - Cell therapy business showed rapid growth, with 60% and 90% growth in previous quarters [5] - Two major customers received FDA Fast Track approval, leading to expected revenue boosts [5][22] - Large pharma customers continued double-digit growth for three consecutive quarters [6] - China market showed positive growth for two consecutive quarters [6] - Margins improved to 29.9%, exceeding the forecast of 20% [6] Market Insights - **Biopharma Market**: - Accounts for 50% of revenue; large pharma contributes 30% of that [8] - Large pharma showed resilience despite tariff concerns, while biotech funding declined mid-teens year-over-year [8][9] - Recent M&A activity and lower interest rates are expected to stabilize biotech funding [9] - **Academic Research Market**: - Represents 20% of revenue; U.S. academic research is 12% and Europe is 8% [10] - U.S. market faced turbulence due to budget cuts and funding shifts, but bipartisan support is anticipated [11] - Shift in funding focus from infectious diseases to neurology, oncology, and weight management [11][12] - **China Market**: - Historically significant growth driver, currently at 8% of revenue [14] - Increased sensitivity towards life sciences post-COVID, with a focus on novel modalities [15] - Expected growth in the mid-teens as activity levels improve [16] Product Innovations - **R&D Investment**: Over 8% of revenues reinvested into R&D [17] - **Key Innovations**: - AI-enhanced protein design for improved stability and sensitivity [17] - ProPak for cell therapy, reducing contamination risks [18] - Leo protein analysis instrument for high-volume testing [18] - Multi-omics method for spatial biology [19] - ESR1 breast cancer test for treatment resistance [20] Strategic Acquisitions - **Wilson Wolf**: Bio-Techne plans to acquire the remaining 80% of Wilson Wolf by 2027, enhancing its cell therapy capabilities [24][25] Market Outlook - **Fiscal 2026 Expectations**: - Anticipated single-digit growth, with potential for double-digit growth in normalized market conditions [28][29] - Recovery expected in biotech and academic markets, with stabilization in large pharma [30][31] - Continued market share gains anticipated in protein analytics and spatial biology [32] Conclusion - Bio-Techne is positioned for growth through strategic innovations, market recovery, and a focus on high-demand areas within the life sciences sector. The company is optimistic about future performance as market conditions stabilize and improve.

We came across a bullish thesis on Bio-Techne Corporation on Valueinvestorsclub.com by rab. In this article, we will summarize the bulls’ thesis on TECH. Bio-Techne Corporation's share was trading at $64.63 as of November 26th. TECH’s trailing and forward P/E were 134.39 and 33.22  respectively, according to Yahoo Finance. Exact Sciences (EXAS) Climbs to 2-Year High on Abbot Merger Reports Tonhom1009/Shutterstock.com Bio-Techne, founded in 1976 and reshaped through a series of strategic pivots and acqui ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - The company ended Q1 with a negative growth of 1%, but when excluding two large cell therapy customers, the growth for the rest of the business was approximately 1% [6][8] - The company anticipates a similar overall growth rate for Q2, projecting a negative growth of 1% again, but with an adjusted growth of 3% when excluding the impact of the two customers [25][96] Business Line Data and Key Metrics Changes - The diagnostics business grew mid-single digits in Q1, building on a mid-teen growth from the previous year, indicating strong performance despite market challenges [30] - The ProteinSimple franchise has consistently outperformed, with no down quarters and double-digit growth in many recent quarters, indicating its resilience in a tough market [26][68] - The Spatial Biology segment saw flat revenue in Q1, but bookings increased double-digit, suggesting a positive trend moving forward [27][74] Market Data and Key Metrics Changes - The pharmaceutical market, which constitutes 30% of the company's revenue, has shown recovery with double-digit growth in recent quarters, alleviating previous concerns about regulatory impacts [11][12] - Academic market performance has improved, with expectations of a flat NIH budget, leading to reduced anxiety among academic customers [13][66] - Biotech funding has improved from a decline of 30% to a decline of 13%, indicating a potential stabilization in the biotech market [16][22] Company Strategy and Development Direction - The company is focusing on its ProteinSimple and Spatial Biology franchises to drive growth, especially as the market stabilizes [26][29] - The company is optimistic about the long-term potential of its cell therapy business, despite short-term challenges due to the two large customers [90][94] - The company is leveraging its strong customer relationships and grant programs to maintain interest in cell therapy, indicating a strategic focus on early-stage development support [92] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the near-term outlook, noting that while challenges remain, there are signs of stabilization in key markets [11][13] - The company expects to see improvements in the biotech market, but anticipates that significant revenue contributions from this sector may not materialize until fiscal year 2027 [22][57] - Management highlighted the importance of upcoming FDA approvals and commercialization timelines for the two large customers, which could significantly impact future revenue [49][50] Other Important Information - The company has a diverse customer base, with 700 customers, and is actively seeking to expand its market presence despite current challenges [91] - The company is experiencing a high level of interest in its instruments, indicating potential for future growth as capital expenditures begin to recover [71] Q&A Session Summary Question: What is the impact of the two large customers on the business? - The two large customers accounted for 35%-40% of GMP revenue at their peak, and their absence is expected to impact revenue for the remainder of the fiscal year [41][52] Question: How does the company view the future of the cell therapy market? - Management believes the quality of new clinical trials is improving, and despite current funding challenges, interest in cell therapy remains high [90][92] Question: What are the expectations for the diagnostics business moving forward? - The diagnostics business is expected to continue performing well, with a more even revenue distribution anticipated throughout the year [30][31]

Financial Data and Key Metrics Changes - The company ended Q1 with a -1% growth, primarily impacted by two large cell therapy customers who did not purchase materials, contributing approximately 200 basis points of headwind [6][8] - Adjusted for these customers, the growth rate for the rest of the company was +1% [25] - The company anticipates a similar overall growth rate for Q2, projecting a decline of -1% but an improvement to +3% when excluding the impact of the two customers [25][26] Business Line Data and Key Metrics Changes - The diagnostics business grew mid-single digits in Q1, building on a mid-teen growth from the previous year, indicating a strong performance despite lumpiness in customer purchasing patterns [30] - The ProteinSimple franchise has consistently outperformed, with no down quarters and double-digit growth in most recent quarters, indicating strong demand for its consumables [26][68] - The Spatial Biology segment experienced a flat performance in Q1 after a down quarter in Q4, but bookings increased double-digit, suggesting a recovery in interest [27][75] Market Data and Key Metrics Changes - The Pharma market, which constitutes 30% of the company's revenue, has shown resilience with double-digit growth returning after a brief slowdown due to regulatory concerns [12][61] - Academic market funding has stabilized, with NIH budget expectations now flat, improving customer sentiment and reducing anxiety [13][66] - Biotech funding has improved from a -30% decline to -13%, indicating a potential recovery in spending [16][22] Company Strategy and Development Direction - The company is focusing on its ProteinSimple and Spatial Biology franchises to drive growth in a stabilizing market, leveraging historical performance to navigate current challenges [26][29] - The company is optimistic about the long-term potential of its cell therapy business, despite short-term headwinds from key customers [89][92] - The strategy includes maintaining strong relationships with existing customers while exploring new opportunities in the biotech space [54][94] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the near-term outlook, noting that while challenges remain, there are signs of stabilization in key markets [11][13] - The company expects to see a gradual recovery in the biotech sector, with funding translating into spending over the next few quarters [57] - Management highlighted the importance of upcoming FDA approvals and commercialization timelines for key customers, which could significantly impact future revenue [49][50] Other Important Information - The company has seen a significant increase in its customer base, growing from 550 to 700 customers, indicating strong interest in its products [92] - The company is actively engaging in grant programs to support early-stage cell therapy developments, which could lead to long-term customer loyalty [93] Q&A Session Summary Question: What is the impact of the two large customers on the business? - The two customers accounted for 35%-40% of GMP revenue at their peak, and their absence will significantly impact revenue for the remainder of the year [41][52] Question: What is the expected timeline for commercialization of the therapies from these customers? - Management anticipates a timeline of 18 months to three years for commercialization following phase III results, with a base case of fiscal year 2028 for potential revenue [49][50] Question: How does the company view the current state of the cell therapy market? - Management believes the quality of new clinical trials is improving despite a slowdown in the rate of growth, indicating a healthy future for the sector [92]

Financial Data and Key Metrics Changes - The company ended Q1 with a negative growth of 1%, but excluding two large cell therapy customers, the growth for the rest of the business was approximately 1% [6][8] - The company anticipates a similar overall growth rate for Q2, projecting a decline of about 1% but an improvement to 3% when excluding the impact of the two customers [25][30] Business Line Data and Key Metrics Changes - The diagnostics business grew mid-single digits in Q1, building on a mid-teen growth from the previous year, indicating a strong performance despite fluctuations [30] - The ProteinSimple franchise has consistently outperformed, with no down quarters and double-digit growth in recent periods, suggesting resilience in a challenging market [26][70] - The Spatial Biology segment experienced a flat performance in Q1 after a down quarter, but bookings increased double-digit, indicating potential for recovery [27][75] Market Data and Key Metrics Changes - The pharmaceutical market, which constitutes 30% of revenue, has shown recovery with double-digit growth in recent quarters, alleviating previous concerns about regulatory pressures [12][13] - Academic market conditions have stabilized, with expectations of a flat NIH budget, improving sentiment among academic customers [14][66] - Biotech funding has improved, with funding levels increasing from a decline of 30% to a decline of 13%, suggesting a potential recovery in spending [17][22] Company Strategy and Development Direction - The company is focusing on its ProteinSimple and Spatial franchises to drive growth, especially as market conditions stabilize [26][75] - The strategy includes leveraging the strong demand for consumables and reagents associated with their instruments, which are expected to enhance margins over time [77][80] - The company is optimistic about the long-term potential of its cell therapy business, despite short-term challenges, due to the high quality of clinical trials being conducted [92][94] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the near-term outlook, noting that while challenges remain, there are signs of stabilization in key markets [12][14] - The company anticipates that improvements in funding and market conditions will begin to reflect in financial results by the second half of fiscal year 2026 [22][58] - Management highlighted the importance of maintaining strong relationships with customers and adapting to their needs as market conditions evolve [43][59] Other Important Information - The two large customers in the cell therapy space accounted for as much as 35%-40% of GMP revenue at their peak, but their absence is expected to impact revenue significantly in the near term [41][90] - The company has a diverse customer base, with 698 other customers, and is actively seeking to expand its reach in the cell therapy market through grant programs [94][96] Q&A Session Summary Question: What is the impact of the two large customers on revenue? - The two customers have significantly influenced revenue, making up a large portion of GMP revenue, and their absence is expected to reduce business temporarily [41][90] Question: How does the company view the recovery in the biotech market? - The company sees a lag of 2-3 quarters before funding translates into spending, but is optimistic about a recovery in fiscal year 2027 [58] Question: What are the expectations for the diagnostics business? - The diagnostics business is expected to continue performing well, with a more even revenue stream anticipated throughout the year [30][31] Question: How is the company addressing margin progression? - Management expects margin expansion to be consistent with revenue growth, projecting at least a 100 basis point improvement for the year [97]

Question-and-Answer SessionSo starting off sort of high level on the 1Q overview. You posted an organic decline of 1%. Can you just give us a quick overview of the quarter and I guess, the macro environment as you see it today?James HippelExecutive VP of Finance & CFO Yes. Let me start with what I see as our highlights for the quarter from an end market perspective. Large pharma continues to perform very well for us. As a reminder, large pharma is about 30% of our revenue. We had like the third quarter in a ...