Core Insights - Bio-Techne Corporation emphasizes its commitment to sustainability and human health through its 2025 Corporate Sustainability Report, highlighting the intrinsic connection between human health and environmental protection [2][4] - The company aims to achieve a 40% reduction in Scope 1 and 2 greenhouse gas emissions by transitioning to 100% renewable electricity at its Minneapolis headquarters [6] - Bio-Techne plans to set greenhouse gas reduction targets for Scope 1, 2, and 3, with validation submission to the Science Based Targets Initiative (SBTi) in 2026 [6] Sustainability Initiatives - The sustainability initiatives are designed to drive innovation across Bio-Techne's life sciences portfolio, focusing on efficiency and resource-conscious design in areas such as cell therapy workflows and precision diagnostics [3] - Enhanced governance measures include new Board oversight of artificial intelligence and the completion of double materiality and climate assessments to guide sustainability priorities [6] Financial Performance - Bio-Techne generated over $1.2 billion in net sales in fiscal 2025, showcasing its strong market position and financial health [5] - The company employs approximately 3,100 individuals worldwide, indicating a robust operational scale [5] Commitment to Employees and Communities - The company invests in culture and career development, providing learning opportunities aligned with its EPIC values: Empowerment, Passion, Innovation, and Collaboration [6] - Bio-Techne's leadership emphasizes the importance of diverse perspectives in driving innovation and creating lasting impact within communities [4]

Core Insights - The Brown Capital Management Small Company Fund experienced an 8.59% return in Q2 2025, underperforming the Russell 2000® Growth index which returned 11.97% [1] - The underperformance was noted to occur in the last few weeks of the quarter [1] Company Highlights - Bio-Techne Corporation (NASDAQ:TECH) is highlighted in the investor letter, with a market capitalization of $7.973 billion [2] - Bio-Techne's one-month return was -3.81%, and it experienced a significant decline of 31.43% over the past 52 weeks, closing at $51.26 per share on September 12, 2025 [2] - Bio-Techne Corporation was identified as a detractor to the fund's performance in Q2 2025 [3]

Group 1 - Bio-Techne stands out in the life science tools landscape due to its growth and margin profile [1] - The company trades at a more premium valuation multiple compared to its peers [1] - Understanding Bio-Techne's strategic positioning is crucial for investors, especially those new to the story [1]

Core Insights - Paramount, a Skydance Corporation, has appointed Dane Glasgow as Chief Product Officer, emphasizing its commitment to innovation in the entertainment sector [1][2][3] Company Overview - Paramount operates as a leading global media and entertainment company, structured into three segments: Studios, Direct-to-Consumer, and TV Media [4] - The company's portfolio includes renowned brands such as Paramount Pictures, CBS, Nickelodeon, and Showtime, among others [4] Leadership and Strategy - Glasgow will report directly to CEO David Ellison and is tasked with leading the product vision and strategy, focusing on digital platforms, immersive storytelling, and AI capabilities [2] - The appointment is seen as a strategic move to enhance Paramount's position in delivering consumer-focused media experiences [2][3] Executive Statements - CEO David Ellison highlighted Glasgow's extensive experience in scaling businesses and driving technological transformation as crucial for Paramount's growth [3] - Glasgow expressed enthusiasm about joining Paramount, emphasizing the opportunity to shape the future of entertainment through innovative technology [3]

Bio-Techne FY Conference Summary Company Overview - **Company**: Bio-Techne (NasdaqGS: TECH) - **Industry**: Life Science Tools Key Points Company Positioning and Growth Strategy - Bio-Techne is a leader in reagents for life science research, focusing on proteins, antibodies, and assays for diagnostics and therapeutics [4][6] - The company has invested heavily in automation of protein analytics, spatial biology, and cell therapy, which now account for approximately 45% of revenue, up from 30% pre-COVID [6][7] - 90% of Bio-Techne's business is recurring, primarily from consumables, which supports sustainable growth [7] Recent Financial Performance - The company reported a 3% growth in the most recent quarter, with notable performance in China (10% growth) and continued double-digit growth in large pharma [9][10] - Challenges included delays in shipping high-priced instruments due to geopolitical issues [9] Academic Market Exposure - Academic sales account for about 20% of total revenue, with U.S. academia contributing approximately 11-12% [13][14] - Despite funding constraints, consumables have remained flat, indicating resilience in the product portfolio [14][15] Market Dynamics in China - Positive sentiment in China suggests a gradual ramp-up in growth, with expectations of returning to double-digit growth in the long term [18][19] Biopharma Market Insights - Biopharma constitutes roughly 50% of revenue, with large pharma showing strong recovery and growth, while biotech funding has decreased significantly [20][21] - The uncertainty in biotech funding may impact future spending, but recent improvements in funding could signal a recovery [22] Cell Therapy Business - Bio-Techne is well-positioned in the cell therapy market, focusing on GMP proteins, with a significant increase in revenue from this segment [23][24] - The company has built a strong reputation for quality and has a competitive edge in the regen med space, which has greater market potential than CAR-T therapies [25][26] Core Reagents and Instrumentation - The core reagents business remains stable, with healthy competition in the antibody market [30][31] - The ProteinSimple platform has shown resilience, with growth driven by increased usage of consumables despite a downturn in new instrument placements [34][36] Spatial Biology and Competitive Position - Bio-Techne leads in spatial biology with RNAscope reagents and the new COMET instrument, which automates RNA and protein detection [39][41] - The company is positioned to capitalize on the growing demand for translational research tools [40] Strategic Divestiture - The recent divestiture of the Exosome Diagnostics business was driven by a misalignment with Bio-Techne's core capabilities and a lack of a clear path to profitability [43][45] Revenue Outlook and Market Conditions - The company anticipates low single-digit growth, managing costs and investments amid market uncertainties [47][50] - Optimism remains regarding recovery in key markets, with expectations that administrative-induced noise will settle down [51][53] Conclusion Bio-Techne is strategically positioned for growth in the life science tools industry, with a strong focus on automation, spatial biology, and cell therapy. Despite current market challenges, the company maintains a positive outlook for future performance driven by its recurring revenue model and innovative product offerings.

Core Insights - The company identifies three key end markets: pharmaceuticals (approximately 30% of revenue), smaller biotech (around 20%), and academia (also about 20%) [1] - The pharmaceutical sector is expected to experience a pipeline reshuffling due to the IRA legislation, with anticipated impacts continuing into 2024 but expected to stabilize by 2025 [1] - R&D funding is projected to be allocated more evenly across the portfolio, rather than being heavily focused on early-stage projects [1]

Core Insights - The company identifies three key end markets: pharmaceuticals (approximately 30% of revenue), smaller biotech (around 20%), and academia (also about 20%) [1] - The pharmaceutical sector is expected to experience a pipeline reshuffling due to the IRA legislation, with anticipated impacts continuing into 2024 but expected to stabilize by 2025 [1] - R&D funding is projected to be allocated more evenly across the portfolio, rather than being heavily focused on early-stage projects [1]

Summary of Bio-Techne Conference Call Company Overview - **Company**: Bio-Techne (NasdaqGS: TECH) - **Date**: September 09, 2025 - **Key Speakers**: CFO Jim Hippel, Dave Clair from IR Industry Insights End Markets - **Pharmaceuticals**: Accounts for approximately 30% of revenue, showing a return to double-digit growth after a period of pipeline reshuffling due to IRA legislation [5][6] - **Biotech**: Represents about 20% of revenue, experiencing low single-digit growth amidst significant funding declines, reaching almost eight-year lows [6][7] - **Academia**: Also around 20% of revenue, facing declines particularly in larger purchases and instrumentation, with core reagents holding steady [7][8] Geographic Performance - **Europe**: Solid mid-single-digit growth, largely unaffected by U.S. political dynamics [8] - **China**: Experienced double-digit growth, attributed to pull-in purchases due to tariff concerns, but overall performance was relatively flat [9][10] - **Rest of Asia**: Similar trends to China with slight low single-digit growth [11] Financial Performance - **Fourth Quarter Growth**: Achieved 3% organic growth, with pharma returning to normal growth levels [3][5] - **Outlook for Fiscal Year 2026**: Anticipated low single-digit growth, with analysts aligned on this expectation [16][17] Challenges and Risks - **Pharma Uncertainty**: Concerns regarding potential headwinds from MFN pricing and tariffs, leading to a cautious outlook [12][13] - **Biotech Funding**: Ongoing challenges due to reduced funding, making recovery difficult [14][15] - **Academic Market Sentiment**: Low sentiment among U.S. academic customers, with expectations for improvement in the next 12 months [45][46] Growth Drivers - **Instrumentation**: Strong performance driven by pharma's return to health, with instrumentation growth outpacing consumables [25][26] - **GMP Reagents**: Over 30% growth in fiscal 2025, driven by the importance of cell therapy and an expanding customer base [27][28] - **Acquisition Strategy**: Focus on M&A opportunities, particularly in private companies, with a professionalized corporate development team in place [41][42] Strategic Initiatives - **Margin Management**: Aiming for margin expansion despite a low-growth environment, with a focus on productivity initiatives and cost management [37][38] - **Investment in Growth Pillars**: Continued investment in cell therapy, proteomic analysis, and organoids, while divesting from non-core areas like exosome diagnostics [39][40] Conclusion - **Opportunities**: Optimism for recovery in academic and pharma markets, with potential for biotech to stabilize [45][46] - **Challenges**: Biotech remains a significant concern, with potential impacts from the health of pharma and academic markets [46]

Core Insights - ScaleReady, in collaboration with Wilson Wolf Manufacturing, Bio-Techne Corporation, and CellReady, announced the awarding of eight G-Rex Grants totaling nearly $2 million to recipients of the California Institute for Regenerative Medicine (CIRM) Manufacturing Network program [1][2][3] Funding and Grants - CIRM has created a funding opportunity aimed at enhancing operations of non-profit academic GMP manufacturing facilities and establishing partnerships to solidify California's position as a leader in cell and gene therapy manufacturing [2][3] - The G-Rex Grant Program is a $40 million initiative designed to support the development and manufacturing of cell and gene-modified therapies, with individual grants worth up to $300,000 [6][10] Awardees and Projects - Notable recipients of the G-Rex Grants include: - Dr. Dan Kaufman from UCSD, awarded $125,000 for a novel G-Rex based production system [4] - Dr. Taby Ahsan from City of Hope, awarded $300,000 for CAR-T cell therapy production [4] - Dr. Steve Feldman from Stanford Medicine, awarded $300,000 for CAR-T cell therapies [4] - Dr. Mohamed Abou-el-Enein from USC/CHLA, awarded $300,000 for a non-viral CAR-T cell therapy platform [4] - Dr. Dawn Ward from UCLA, awarded $150,000 for multiple G-Rex based workflows [4] Industry Impact - The G-Rex manufacturing platform is utilized by over 800 organizations and is involved in approximately 50% of CGT clinical trials, as well as five commercially approved CGT drugs [10] - ScaleReady's initiatives, including the LEAN Cell & Gene program, aim to enhance the efficiency and scalability of CGT manufacturing processes [7][11]

Financial Data and Key Metrics Changes - The company reported a 3% organic growth in Q4, aligning with expectations of low single digits growth [3] - Strong performance was noted in the large pharma end markets with double-digit growth, while biotech showed low single-digit performance [3][4] - The company expects a low single-digit growth environment for the upcoming fiscal year, influenced by market conditions and previous performance comparisons [48][51] Business Line Data and Key Metrics Changes - The cell therapy product line experienced a 20% growth in Q4 and 30% growth for the entire year, indicating strong momentum [11][12] - GMP proteins, part of the cell therapy business, grew 20% in Q4 and 30% overall for the year, although growth is described as lumpy due to large orders for clinical trials [21][23] - Core reagents business saw low single-digit growth in the quarter, with over 50% of revenue still coming from this segment [29][30] Market Data and Key Metrics Changes - The Chinese market showed double-digit growth in Q4, attributed to pull-ins from customers avoiding tariffs, but the company does not expect sustained double-digit growth [5][6] - Academic markets were described as volatile, with U.S. academic revenue down mid-single digits while Europe saw mid-single-digit growth [19][20] - The company noted that NIH exposure is low single digits, with overall academic end markets being neutral for the company [17][19] Company Strategy and Development Direction - The company is focusing on expanding its presence in cell therapy and biopharma markets, with significant investments in areas like organoids and protein sciences [59][60] - A recent divestiture of non-core businesses, such as ExosomeDx, is aimed at improving focus and profitability, with an expected immediate positive impact on the bottom line [45][47] - The company is committed to maintaining high margins and aims to achieve over 35% operating profit margin in the long term [56][61] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the stabilization of the Chinese market and the potential for growth in biotech activities from global investments [8][9] - There is concern about the impact of tariffs and funding challenges in the biotech sector, with management noting that some biotech companies are struggling to secure funding [13][49] - The company anticipates a gradual recovery in funding and market conditions, which could lead to improved growth rates in the future [54][55] Other Important Information - The company has launched new products, such as the high-throughput Simple Western at LEO, which has received positive reception and is expected to drive future sales [39][40] - The company is actively working on integrating its consumables and instrument offerings to enhance customer experience and drive sales [30][31] Q&A Session Summary Question: What is the outlook for growth in China? - Management indicated that the recent double-digit growth in China was largely due to pull-forward orders and does not expect sustained double-digit growth in the near term [5][6] Question: What is driving the growth in the biopharma segment? - The cell therapy product line is a significant driver, with strong growth reported in Q4 and for the year, supported by a promising pipeline [11][12] Question: How is the company addressing the impact of tariffs on customer spending? - Management noted that they have not heard significant concerns from customers about holding back spending, but are monitoring the situation closely [14][15] Question: What are the expectations for margin expansion in the coming year? - The company expects to see a 200 basis points improvement in margins, driven by strategic investments and operational efficiencies [56][60]