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Bio-Techne(TECH) - 2025 FY - Earnings Call Transcript
2025-12-03 21:17
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]
Bio-Techne(TECH) - 2025 FY - Earnings Call Transcript
2025-12-03 21:17
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]
Bio-Techne(TECH) - 2025 FY - Earnings Call Transcript
2025-12-03 21:15
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]
Bio-Techne Corporation (TECH) Presents at Evercore 8th Annual Healthcare Conference Transcript
Seeking Alpha· 2025-12-02 19:33
Group 1 - The company reported an organic decline of 1% in the first quarter, indicating a challenging macro environment [1] - Large pharma, which constitutes about 30% of the company's revenue, has shown strong performance with double-digit growth for three consecutive quarters [1] - The company is optimistic about the Chinese market, having experienced organic growth for two consecutive quarters and expecting continued growth in the upcoming quarter [2]
Bio-Techne (NasdaqGS:TECH) FY Conference Transcript
2025-12-02 14:22
Bio-Techne FY Conference Summary Company Overview - **Company**: Bio-Techne (NasdaqGS: TECH) - **Date of Conference**: December 02, 2025 Key Industry Insights 1. Performance in Large Pharma - Large pharma accounts for approximately 30% of Bio-Techne's revenue and has shown double-digit growth for three consecutive quarters [3][6] - The company is optimistic about continued strength in this segment, particularly in China, which has seen organic growth for two consecutive quarters [3][4] 2. Biotech Market Dynamics - Smaller biotech represents roughly 20% of Bio-Techne's revenue, but funding in this sector has decreased by 30% year-over-year [7][8] - Despite a high single-digit decline in biotech revenue in the most recent quarter, there is a belief that the market is stabilizing, with increased funding observed in recent months [11][12] 3. Academic and Government Market - Academic and government sectors contribute about 20% of global revenues, with stable growth in Europe but uncertainty in the U.S. due to NIH funding concerns [12][13] - Recent signals from Congress suggest flat budgets, alleviating some anxiety among academic customers [13][14] Financial Performance 1. Revenue and Growth - The company reported an organic decline of 1% in the latest quarter, attributed to headwinds from two major cell therapy customers who received Fast Track designation from the FDA [3][6] - Despite this, Bio-Techne managed to achieve a 90 basis points margin expansion [6] 2. Future Guidance - The company maintains a soft guidance for low single-digit growth in fiscal 2026, with expectations for Q2 results to mirror Q1 [19][20] - The underlying strength of the business is improving, with projections for better performance in the second half of the fiscal year [20][24] Product and Market Highlights 1. Product Portfolio - The ProteinSimple franchise continues to perform well, with double-digit growth in consumables [4][20] - The spatial product line has stabilized and is expected to improve, with positive growth in reagents [5][20] 2. Cell Therapy Dynamics - The Fast Track designation for two major customers has led to a temporary reduction in orders, as these customers are combining phases in their clinical trials [32][36] - The potential revenue from these therapies could reach $40-$50 million each upon commercialization, with a base case for commercial ramp starting in fiscal year 2028 [51][55] Market Risks and Uncertainties 1. Academic Funding Concerns - The primary uncertainty affecting the biotech market is the outcome of academic funding, which could impact spending in the biotech sector [25][26] - There is a belief that even in a flat academic market, Bio-Techne can outperform due to its positioning and product offerings [26][29] 2. Pharma Market Stability - While the pharma market has shown double-digit growth, uncertainties regarding pricing and tariffs have largely subsided, leading to a more stable outlook [30][31] Conclusion - Bio-Techne is navigating a complex market landscape with a focus on innovation and strategic positioning in key growth areas such as large pharma, biotech, and cell therapy - The company is optimistic about future growth, particularly in fiscal year 2027, driven by its diverse product portfolio and improving market conditions [15][19][78]
Bio-Techne Corporation (TECH) Presents at Jefferies London Healthcare Conference 2025 Transcript
Seeking Alpha· 2025-11-20 14:43
Core Insights - The overall growth for the quarter was reported as negative 1%, which does not accurately reflect the underlying performance of the company [2] - Core growth, excluding certain factors like cell therapy, was positive at 1% [1][2] Market Performance - Large pharma, which constitutes 30% of the company's revenues, showed strong performance with double-digit growth [3] - Concerns regarding tariffs had previously led to worries about large pharma potentially reducing orders, but this did not materialize, resulting in a positive outcome for the quarter [3]
Bio-Techne (NasdaqGS:TECH) 2025 Conference Transcript
2025-11-20 13:32
Summary of Bio-Techne Conference Call Company Overview - **Company**: Bio-Techne (NasdaqGS: TECH) - **Date**: November 20, 2025 - **Focus**: Life Science tools and reagents, particularly in cell therapy and proteomics Key Points Financial Performance - **Overall Growth**: Reported a negative growth of 1% for the quarter, primarily due to larger companies not ordering products after receiving fast-track designations, impacting revenue by 200 basis points [2][21] - **Core Growth**: Excluding the impact of cell therapy, core growth was positive at 1% [2] - **Large Pharma Revenue**: Contributed 30% of total revenues, with double-digit growth observed [2][5] - **GMP Protein Business**: Valued at $60 million within an $80 million cell therapy business, with significant growth in previous quarters (60% and 90% in Q1 and Q2 last year) [20] Market Dynamics - **Pharma Market**: Strong performance in both the US and Europe, with a healthy growth outlook despite potential shifts due to deglobalization [6][10] - **Biotech Funding**: Noted a resurgence in funding, particularly in October, with a shift towards accelerating programs rather than building infrastructure [7][8] - **Academic Market**: Experienced a messy environment in the US but showed stabilization and improvement in Europe, with a shift in grant focus towards oncology and neurological diseases [33] Innovation and Product Development - **R&D Investment**: 8% of revenues reinvested into R&D, leading to significant innovations across various verticals [12] - **New Products**: - ProPax for protein packaging, reducing human error and contamination risk [13] - ELA cartridge for ultra-sensitivity in protein analysis, enhancing capabilities in neurodiseases and inflammation [14] - LEO instrument with four times higher capacity and precision for larger pharma [15] - Exosome-based ESR1 breast cancer marker for therapy management [16] - Oxford Nanopore-based genetic testing kit for difficult-to-sequence genes [16] M&A Strategy - **M&A as Priority**: High priority for capital deployment, with improved availability of high-quality targets in the market [17] - **Wilson Wolf Acquisition**: Ongoing interest in acquiring Wilson Wolf, with a focus on strengthening the cell therapy portfolio [17][19] Competitive Landscape - **Cell Therapy Market**: Maintained a strong position against European competitors, leveraging 49 years of experience in complex protein design and manufacturing [22] - **AI in Protein Design**: Utilization of AI to enhance protein specificity and heat stability, leading to patentable innovations [24][25] Pricing and Promotions - **Promotional Activities**: Implemented grants to support new programs in constrained funding environments, increasing customer base from 550 to 700 for GMP proteins [26][27] Future Outlook - **Market Trends**: Anticipated improvements in grant funding and a shift towards more multi-year grants, providing better visibility for labs [35] - **Budget Flush Impact**: Minimal impact expected from year-end budget flush, as 90% of revenue is from consumables and services, not instrumentation [37] Additional Insights - **Reshoring and Deglobalization**: Expected to influence manufacturing dynamics positively, with local production reducing shipping inefficiencies [10][11] - **Academic Grant Trends**: Shift towards proteomics-based spending, indicating a favorable alignment with Bio-Techne's offerings [33]
Bio-Techne Corporation (TECH) Presents at Stephens Annual Investment Conference 2025 Transcript
Seeking Alpha· 2025-11-18 21:38
Core Insights - The company reported double-digit growth in the pharma end market for the third consecutive quarter, which constitutes approximately 30% of its total revenue [3] - The ProteinSimple franchise showed strong performance with double-digit consumable growth for the third or fourth straight quarter, indicating robust demand [3] - The spatial biology franchise is showing signs of recovery, particularly in academic and small biotech sectors, which have faced significant pressure [4] Financial Performance - The company highlighted strong quarterly performance in Q1, with specific emphasis on growth metrics in key franchises [2] - Continued momentum was observed in instrument sales towards the end of the quarter, particularly in October, suggesting positive market trends [3] Market Trends - The pharma market remains a critical growth area, contributing significantly to overall revenue and demonstrating resilience amid broader market challenges [3] - The recovery in the spatial biology franchise is noteworthy, as it is closely tied to academic and small biotech markets, which are currently under pressure [4]
Bio-Techne (NasdaqGS:TECH) FY Conference Transcript
2025-11-18 15:02
Bio-Techne FY Conference Summary Company Overview - **Company**: Bio-Techne (NasdaqGS: TECH) - **Date of Conference**: November 18, 2025 - **Focus**: Discussion on financial performance, market trends, and growth opportunities Key Highlights Industry Performance - **Pharma Market**: - Continued strong performance with double-digit growth for three consecutive quarters, contributing approximately 30% of total revenue [2][10] - Recent pricing mechanisms by large pharma have appeased regulatory concerns, leading to a more optimistic outlook [11] - **Spatial Biology Franchise**: - Signs of recovery with low single-digit growth in consumables and double-digit growth in instruments [3][4] - Growth in China noted for the second consecutive quarter, with expectations for continued growth [3][17] - **Biotech Market**: - Despite a 30% year-over-year decline in funding, the market showed resilience with low single-digit growth [10][14] - Recent increases in biotech funding, with October showing an 80% year-over-year growth, indicating potential recovery [15] Financial Performance - **Operating Margins**: - Expanded by 90 basis points despite challenging market conditions, attributed to portfolio management and productivity initiatives [5] - **Customer Dynamics**: - Two major cell therapy customers received FDA Fast-Track designation, which may create short-term headwinds due to reduced material purchases but is expected to enhance long-term growth potential [4][22] Market Trends - **China's Growth**: - Regulatory environment favorable for Bio-Techne, with expectations for China to become a net contributor to growth over the next 12-24 months [17][18] - Local competition exists, but brand strength and product quality remain key differentiators [20][21] - **Cell and Gene Therapy**: - Anticipated headwinds due to customer purchasing dynamics, but long-term growth prospects remain strong with potential revenue from commercialized therapies estimated at $100 million [35][36] Future Outlook - **Growth Projections**: - Confidence in achieving low single-digit organic growth in FY2026 despite near-term challenges, driven by stabilization in pharma and academic markets [58][59] - Long-term potential for double-digit growth as market conditions normalize and cell therapy commercialization ramps up [62][64] Product Development - **Innovations**: - Introduction of advanced instruments and consumables, particularly in the spatial biology and protein sciences segments, expected to drive future growth [54][50] - Ongoing development of AI-generated proteins and integration of new technologies to enhance product offerings [30][40] Additional Insights - **Market Positioning**: - Bio-Techne's focus on quality and consistency in product offerings is crucial for maintaining competitive advantage in both domestic and international markets [20][21] - **Customer Engagement**: - Continuous engagement with customers to understand their needs and preferences is vital for product development and market penetration [20] - **Long-term Strategy**: - The company is positioned to leverage its growth pillars (cell therapy, spatial, ProteinSimple) to exceed market growth rates and achieve sustainable long-term growth [63][64]
Bio-Techne Licenses AI-Designed NovoBody™ Duo Molecules from Monod Bio to Expand Recombinant Protein Portfolio
Prnewswire· 2025-11-18 11:30
Core Insights - Bio-Techne Corporation has entered into a licensing agreement with Monod Bio, granting exclusive commercial rights to a subset of Monod's NovoBody™ Duo molecules, which are AI-designed bispecific binding proteins [1][2] - This partnership aims to enhance scientific progress through innovative AI-powered designs, improving customization, stability, and performance for better therapeutic development [2] - The collaboration aligns with Bio-Techne's strategic growth initiatives and reinforces its position in AI-enabled innovation, a significant trend in global healthcare transformation [2][5] Company Overview: Bio-Techne - Bio-Techne is a global life sciences company that provides innovative tools and bioactive reagents for research and clinical diagnostics, generating over $1.2 billion in net sales in fiscal 2025 [3] - The company employs approximately 3,100 individuals worldwide and offers a vast portfolio of products to assist in scientific investigations and drug discovery [3] Company Overview: Monod Bio - Monod Bio is a Seattle-based biotechnology company that specializes in AI-powered protein design, creating novel protein binders and biosensors for research and diagnostic applications [4] - The company operates under a "Monod Inside" business model, partnering with leading organizations to bring next-generation products to market [4]