Should You Continue to Retain Bio-Techne Stock in Your Portfolio?

Core Insights - Bio-Techne (TECH) is advancing in its four growth verticals, which are expected to drive growth in upcoming quarters [1] - The company has achieved ISO 13485 certification and is now pursuing clinical diagnostic opportunities on the Ella platform [1][6] - Acquisitions remain a key strategy for Bio-Techne to expand its portfolio and enter adjacent markets, despite facing macroeconomic challenges and competitive pressures [1][7][10] Growth Verticals - The Proteomics Analytical Instrumentation franchise, under the ProteinSimple brand, reported mid-single-digit growth in fiscal 2024, driven by SimplePlex and SimpleWestern products [4] - The Cell and Gene Therapy vertical is experiencing growth due to strong biotech funding and customer additions [4] - The Diagnostics and Spatial Biology vertical is showing solid growth, with positive responses from newly added RNAscope assays [5] - The Molecular Diagnostics vertical achieved nearly 40% growth in the first quarter of fiscal 2025, particularly in the ExoDx prostate test and Asuragen kit business [5] Ella Platform and Strategic Acquisitions - The Ella platform, following ISO 13485 certification, is gaining traction in clinical diagnostics, particularly for cell and gene therapy applications [6] - Bio-Techne's acquisition of Lunaphore is aimed at scaling up instrument production capacity to meet demand [7] - The company has made a 19.9% investment in Wilson Wolf and plans to acquire the remaining ownership by the end of calendar year 2027 [8] Challenges - The macroeconomic environment, especially in Asia Pacific and Europe, is leading to increased raw material and labor costs, which may impact operations through 2024 [10] - Bio-Techne faces intense competition from both large global companies and smaller niche players, leading to pricing pressures [11] Financial Performance - Over the past year, Bio-Techne's shares have increased by 15.4%, outperforming the industry growth of 0.9% [2] - The company's market capitalization stands at $11.97 billion, with fiscal 2025 earnings estimates recently adjusted down by 6 cents to$1.92 [2][12] - Revenue estimates for fiscal 2025 are projected at $1.22 billion, indicating a 5.6% increase from the previous year [12]