Bio-Techne (NasdaqGS:TECH) FY 2025 Annual General Meeting October 30, 2025 09:00 AM ET Speaker0Good morning and welcome to the Bio-Techne Corporation Annual Meeting of Shareholders. I would now like to turn the conference call over to Shane Boonen, General Counsel and Corporate Secretary of Bio-Techne. Please go ahead. Welcome to our annual shareholders meeting. It is 8:00 A.M. Central Time on October 30, 2025, and the meeting is called to order. Today's meeting will be limited to the business matters outli ...

Core Insights - Bio-Techne Corporation has launched the ProximityScope assay, a spatial solution that integrates with the BOND RX staining platform from Leica Biosystems, enabling visualization of functional protein-protein interactions on fixed tissue with subcellular resolution [1][2][4] Product Features - The ProximityScope assay provides a visual signal only when two proteins are in close proximity, offering insights into biological mechanisms that were previously inaccessible [2] - It works in conjunction with the BOND RX staining system and ACD's RNAscope Multiomic LS kit, allowing for enhanced detection of RNA and protein on the same tissue section [2] - The assay combines high sensitivity, specificity, and low background, addressing limitations of traditional methods like bulk pull-down assays [3] Applications - Key applications include visualizing cell-cell interactions for immune checkpoint studies, analyzing cell surface interactions that activate signaling pathways, evaluating antibody-based therapeutics, and investigating intracellular interactions related to transcriptional activation [4] Industry Context - The ProximityScope assay represents a significant advancement in spatial biology, providing researchers with a powerful automated solution to decode complex biological systems and accelerate therapeutic innovation [3][4] - Bio-Techne generated over $1.2 billion in net sales in fiscal 2025, indicating strong market presence and demand for innovative life science tools [6]

Core Insights - Bio-Techne Corporation (TECH) is scheduled to release its first-quarter fiscal 2026 results on November 5, before market opening [1] - The company reported adjusted earnings per share (EPS) of 53 cents in the last quarter, exceeding the Zacks Consensus Estimate by 6.00%, with an average surprise of 9.22% over the last four quarters [1] Q1 Estimates for TECH - The Zacks Consensus Estimate for revenues is $289.3 million, reflecting a slight decrease of 0.04% from the previous year [2] - EPS is expected to remain flat at 42 cents year-over-year [2] Estimate Revision Trend - Earnings estimates have remained constant at 42 cents over the past 30 days [3] Factors Affecting Performance - Management indicated that macro uncertainties, including tariffs and potential NIH budget cuts, could slow growth momentum in Q1 fiscal 2026 [4] - The Protein Sciences division, which accounted for 72.5% of net sales in fiscal 2025, is expected to drive revenues through proteomic analytical tools and cell therapy workflow solutions [5] Product Portfolio and Growth - The core portfolio includes over 6,000 proteomic agents and 400,000 antibody types, supporting global customers in advancing therapeutics for precision diagnostics [6] - The protein analytical instrumentation business is anticipated to show strong momentum, continuing a trend of mid-teens year-over-year growth in instrument placements [7] - Demand for the next-generation high-throughput instrument, Leo, is expected to remain strong [8] Strategic Developments - A strategic distribution partnership with Sphere Bio will allow Bio-Techne to distribute ultrasensitive immunoassays for Alzheimer's disease biomarkers, potentially impacting Q1 revenues [9] Segment Performance - Protein Sciences revenues may rise due to strength in proteomic tools and cell therapy workflows, while Spatial Biology sales are likely to decline due to NIH funding concerns and project timing [10] - The consensus estimate for Spatial Biology revenues is $80.7 million, down 3% from the previous year [14] Challenges in Diagnostics and Spatial Biology - Organic revenues in the Diagnostics and Spatial Biology segment may have declined due to order timing and macro uncertainties affecting growth in the ExoDx prostate cancer test and diagnostic reagents business [12] - The Spatial Biology segment is facing headwinds from NIH funding uncertainty and a weaker biotech funding environment [13] Company Outlook - Bio-Techne has an Earnings ESP of -4.19%, indicating a lower chance of beating estimates [15] - The company currently holds a Zacks Rank of 3 (Hold) [16]

Core Insights - ScaleReady, in collaboration with Wilson Wolf Manufacturing, Bio-Techne Corporation, and CellReady, has awarded four G-Rex Grants totaling $375,000 to faculty members at Children's National Hospital to support cell and gene therapy initiatives [1][7]. Grant Details - Dr. Patrick Hanley received a $100,000 G-Rex Grant to develop a cost-effective CAR-T cell manufacturing process [2]. - Dr. Michael Keller and Dr. Hanley were awarded a $150,000 G-Rex Grant for optimizing Virus Specific T cell and Tumor Antigen Associate T cell manufacturing processes using G-Rex "M" series bioreactors [3]. - Dr. Amy Hont received a $75,000 G-Rex Grant for developing a closed system G-Rex manufacturing process for ATTACK TAAT cell therapy [4]. - Dr. Conrad Russell Cruz was awarded a $50,000 G-Rex Grant for optimizing CAR-modified TAAT cell manufacturing [4]. Program Impact - ScaleReady's G-Rex Grant Program has surpassed $40 million in no-cost product commitments aimed at advancing cell and gene-modified cell therapy development [7]. - Individual grants can be worth up to $300,000, and recipients gain access to exclusive support from ScaleReady's consortium of partners [7]. New Initiatives - ScaleReady has launched a free program called LEAN Cell & Gene™ in partnership with Hanson Wade to enhance CGT manufacturing efficiency [8]. Industry Context - Children's National Hospital is recognized as a leader in pediatric cell and gene-modified therapies, emphasizing the importance of collaboration in advancing these therapies [5][6]. - The G-Rex manufacturing platform is utilized by over 800 organizations and is involved in approximately 50% of CGT clinical trials [10].

Company Overview - Bio-Techne Corporation (TECH) is headquartered in Minneapolis, Minnesota, and specializes in developing, manufacturing, and selling life science reagents, instruments, and services for research, diagnostics, and bioprocessing markets, with a market cap of $9.3 billion [1] Earnings Expectations - Analysts expect TECH to report a profit of $0.37 per share on a diluted basis for the fiscal first quarter of 2026, which is unchanged from the same quarter last year [2] - For the full fiscal year, analysts project an EPS of $1.76, reflecting a 2.9% increase from $1.71 in fiscal 2025, and an expected rise to $2 in fiscal 2027, representing a 13.6% year-over-year growth [3] Stock Performance - TECH stock has underperformed the S&P 500 Index, which gained 14.4% over the past 52 weeks, with TECH shares down 18.7% during the same period [4] - The stock also underperformed the Health Care Select Sector SPDR Fund, which saw a 7.8% loss in the same timeframe [4] Recent Financial Results - On August 6, TECH reported its Q4 results, with an adjusted EPS of $0.53, surpassing Wall Street expectations of $0.50, and revenue of $317 million, exceeding forecasts of $315.4 million [5] Analyst Ratings - The consensus opinion on TECH stock is bullish, with a "Strong Buy" rating overall; out of 16 analysts, 11 recommend "Strong Buy," one suggests "Moderate Buy," and four give a "Hold" rating [6] - The average analyst price target for TECH is $66.77, indicating a potential upside of 11.9% from current levels [6]

Core Insights - Bio-Techne (TECH) is expanding its portfolio through acquisitions and strategic investments, indicating strong growth potential, particularly in international markets [1][8] - The company has experienced a decline in share price by 20.3% over the past year, contrasting with a 5.8% decline in the industry and an 18.7% rise in the S&P 500 [2] - Bio-Techne's market capitalization stands at $9.64 billion, with earnings consistently surpassing estimates in the last four quarters, averaging a surprise of 9.2% [2] Expansion and Growth Strategies - In fiscal 2024, Bio-Techne completed the acquisition of Lunaphore, which achieved nearly 50% growth for the full year despite order timing delays [3] - The company holds a 20% stake in Wilson Wolf, which is expected to grow by more than 20% in fiscal 2025, maintaining EBITDA margins above 70% [3] - Bio-Techne introduced ProPak GMP Cytokines to support CAR-T and TCR-T manufacturing workflows, reinforcing its leadership in RUO assays through a partnership with Sphere Bio [4] International Market Performance - Bio-Techne's core portfolio includes over 6,000 protein and 400,000 antibody types, essential for life science research globally [5] - In the fiscal fourth quarter, sales in the Americas grew in the low single digits, while Europe saw mid-single-digit growth driven by biopharma demand [5] - The Asia-Pacific region, excluding China, experienced low single-digit growth, with China showing low double-digit growth due to improved demand [6] Financial Health - As of June 30, 2025, Bio-Techne's total debt was $346 million, with cash and cash equivalents at $162 million, indicating a stable liquidity position [9] - Despite higher quarterly debt compared to cash levels, the company had no short-term payable debt on its balance sheet [9] Challenges and Competitive Landscape - The macroeconomic environment has led to increased raw material and labor costs, impacting the company's operations and margins [10] - Bio-Techne faces intense competition from both large global companies and smaller niche competitors, leading to pricing pressures [11] - The company's cost of sales rose by 15% in the fourth quarter of fiscal 2025, with selling, general, and administrative expenses increasing by 47.2% year over year [10] Earnings Estimates - The Zacks Consensus Estimate for Bio-Techne's fiscal 2026 earnings remains at $2.00, with revenues projected at $1.24 billion, reflecting a 1.7% increase from the previous year [12]

Core Insights - Bio-Techne Corporation (TECH) announced advancements in its spatial biology portfolio, specifically the RNAscope ISH technology and Lunaphore COMET, which are expected to enhance clinical utility workflows for lymphoid malignancies and B-cell clonality [1][8] - The company will showcase these innovations at the National Society for Histotechnology (NSH) Convention from September 26-30 in Long Beach, CA [1][8] Company Performance - Following the announcement on September 26, Bio-Techne shares increased by 2.7%, closing at $51.85 [2][8] - The company has a market capitalization of $8.07 billion and an earnings yield of 3.9%, which is significantly better than the industry's -21.1% [3] - Over the trailing four quarters, Bio-Techne delivered an average earnings surprise of 9.2% [3] Product Innovations - RNAscope technology allows for the detection of clinically relevant biomarkers within routine anatomic pathology workflows, while COMET provides automated, high-throughput analysis of RNA and protein biomarkers [4] - Scientific studies presented at the NSH highlighted the use of RNAscope for assessing B-cell clonality and COMET for spatial profiling of lymphoid malignancies [5][10] Market Trends - The spatial biology market is projected to grow from $1.64 billion in 2024 to $1.79 billion in 2025, with expectations to reach $2.88 billion by 2030, reflecting a CAGR of 9.85% [11] Recent Developments - In August, Bio-Techne agreed to sell its Exosome Diagnostics business to Mdxhealth SA while retaining rights to the exosome technology for future kit development [12]

Core Insights - Bio-Techne Corporation announced advancements in its spatial biology portfolio, specifically for RNAscope™ ISH technology and Lunaphore COMET™, which enhance the detection of RNA and protein biomarkers on the same tissue section [1][7]. Product Advancements - RNAscope™ technology allows pathologists to detect clinically relevant biomarkers within routine anatomic pathology workflows, while COMET™ provides fully automated, high-throughput hyperplex analysis of RNA and protein biomarkers, facilitating spatial multiomic workflows [2][7]. - The integration of these technologies into diagnostic workflows is being explored, particularly for assessing B-cell clonality and spatial profiling of lymphoid malignancies [3][7]. Event Participation - Bio-Techne will showcase its innovations at the National Society of Histotechnology (NSH) Convention from September 26–30 in Long Beach, CA, with presentations highlighting the advantages of RNAscope™ and its applications in clinical diagnostics [4][8]. Research Highlights - Studies presented include the use of RNAscope™ for assessing B-cell clonality and the application of COMET™ for spatial profiling of lymphoid malignancies, demonstrating the potential clinical utility of these technologies [3][8]. Company Overview - Bio-Techne Corporation is a global life sciences company that generated over $1.2 billion in net sales in fiscal 2025 and employs approximately 3,100 people worldwide, providing innovative tools and reagents for research and clinical diagnostics [9].

Group 1 - Mairs & Power Balanced Fund reported a return of 2.66% in the first half of 2025, underperforming benchmark indexes which rose 5.43% and 5.67% respectively [1] - The fund's performance was impacted by external factors such as tariff uncertainty, conflicts in the Middle East, and rising national debt [1] - The fund experienced a recovery, rising 25% from its low at the beginning of the quarter [1] Group 2 - Bio-Techne Corporation (NASDAQ:TECH) has a market capitalization of $8.239 billion and focuses on life science reagents, instruments, and services [2] - The stock of Bio-Techne Corporation saw a one-month return of -5.87% and a 52-week decline of 29.39%, closing at $52.92 per share on September 23, 2025 [2] - The company underperformed due to uncertainty in the funding environment, influenced by federal funding cuts and a weak venture capital landscape [3] Group 3 - Bio-Techne Corporation generated $317 million in revenues in the fiscal fourth quarter of 2025, reflecting a 3% year-over-year increase on an organic basis and a 4% increase on a reported basis [4] - The company is not among the 30 most popular stocks among hedge funds, with 37 hedge fund portfolios holding its stock at the end of the second quarter, up from 34 in the previous quarter [4] - Despite acknowledging Bio-Techne's potential, the company believes certain AI stocks present greater upside potential and lower downside risk [4]

Company Overview - Bio-Techne Corporation (TECH) is headquartered in Minneapolis, Minnesota, and specializes in developing, manufacturing, and selling life science reagents, instruments, and services for research, diagnostics, and bioprocessing markets, with a market cap of $8.3 billion [1] - The company focuses on proteins, cytokines, growth factors, immunoassays, and small molecules, positioning itself as a significant player in the biotechnology industry [1] Market Position - TECH is classified as a mid-cap stock, with a market cap exceeding $2 billion, highlighting its size, influence, and dominance within the biotechnology sector [2] - The company is committed to innovation, strategic acquisitions, and has a global presence, which positions it for continued success and growth opportunities both domestically and internationally [2] Stock Performance - Despite its strengths, TECH's stock has decreased by 34.5% from its 52-week high of $80.80, reached on November 6, 2024 [3] - Over the past three months, TECH stock gained 7.3%, underperforming the Dow Jones Industrials Average, which gained 8.7% during the same period [3] - Year-to-date, shares of TECH have dipped 26.5%, and over the past 52 weeks, they have fallen 31.5%, significantly underperforming the Dow Jones Industrials Average's YTD gains of 8.8% and 9.9% returns over the last year [4] Recent Financial Results - On August 6, TECH reported its Q4 results, with an adjusted EPS of $0.53, surpassing Wall Street expectations of $0.50, and revenue of $317 million, exceeding forecasts of $315.4 million [5] - In comparison, Adaptive Biotechnologies Corporation (ADPT) has shown significant resilience, with YTD gains of 132.4% and 227% returns over the past 52 weeks, indicating a competitive challenge for TECH [5]