港股午间收盘，恒生指数跌2.07%，恒生科技指数跌3.11%。港股科技ETF（159751）跌2.32%，恒生港 股通ETF（159318）跌1.86%。板块方面，酒店和度假村REIT、水务板块涨幅靠前；生命科学工具、生 物科技板块跌幅靠前。个股方面，汇聚科技跌10.16%，赣锋锂业跌10.23%；友宝在线涨9.4%，趣致集 团涨4.03%。 ...

Bio-Techne (NasdaqGS:TECH) 2025 Conference November 20, 2025 07:30 AM ET Company ParticipantsCharles Kummeth - CEO and PresidentTucker Peterson - VPTucker PetersonGreat. We're going to kick it off. I'm Tucker Peterson from the Life Science team. We're pleased to have Bio-Techne with us today. Welcome. Maybe kick off with a little just quick look back on the fiscal first quarter, some gives and takes. You did talk about kind of core growth up 1%. Maybe setting aside the cell therapy kind of noise here, we'll ...

港股收盘，恒生指数跌0.38%，恒生科技指数跌0.69%。港股科技ETF（159751）跌0.64%，恒生港股通 ETF（159318）跌0.14%。板块方面，工业集团企业、居家用品板块涨幅靠前；水务、生命科学工具板 块跌幅靠前。个股方面，山东黄金涨7.01%，招金矿业涨6.37%，紫金黄金国际涨6.19%；先声药业跌 5.76%，中庆股份跌7.18%；重塑能源涨29.38%，万国黄金集团涨10.6%。 ...

Core Viewpoint - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 0.28% and the Hang Seng Tech Index dropping by 0.8% [1] Market Performance - The Hong Kong Technology ETF (159751) decreased by 1.76% [1] - The Hang Seng Hong Kong Stock Connect ETF (159318) fell by 0.64% [1] Sector Performance - The oil and gas sector and passenger airline companies showed positive performance, leading the gains [1] - The communication equipment and life sciences tools sectors faced significant declines [1] Individual Stock Performance - Yaoshi Bang (药师帮) saw a drop of 8.12% [1] - Haotian International Construction Investment (昊天国际建投) fell by 10.05% [1] - Longpan Technology (龙蟠科技) increased by 9.29% [1] - Yihua Tong (亿华通) rose by 7.73% [1]

Core Viewpoint - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 0.94% and the Hang Seng Tech Index dropping by 1.41% [1] Market Performance - The Hong Kong Technology ETF (159751) decreased by 1.95% - The Hang Seng Hong Kong Stock Connect ETF (159318) fell by 1.34% [1] Sector Performance - Industrial group enterprises, hotels, and resort REITs showed strong gains - The automotive and life sciences tools sectors faced significant declines [1] Individual Stock Movements - Base Champion Group surged over 83% - Lao Pu Gold dropped by 8.21% - Mongol Mining fell by 9.45% - China Aluminum International (601068) increased by 30.52% - Yaojie Ankang-B rose by 11.18% [1]

Market Overview - The Hang Seng Index closed down by 0.76%, while the Hang Seng Tech Index decreased by 0.58% [1] - The Hong Kong Tech ETF (159751) rose by 0.91%, and the Hang Seng Hong Kong Stock Connect ETF (159318) fell by 0.21% [1] Sector Performance - The communication equipment, electronic devices, and instruments sectors showed strong gains [1] - The life sciences tools and passenger airlines sectors experienced significant declines [1] Individual Stock Movements - Lens Technology increased by 12.63%, Shandong Gold rose by 7.23%, Zhaojin Mining gained 6.35%, WuXi Biologics went up by 6.09%, and SMIC climbed by 5.16% [1] - China National Railway fell by 13.33%, and Longi Green Energy dropped by 7.81% [1] - Shandong High-speed Holdings surged by 29.76%, and MIRXES-B increased by 27.68% [1]

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.

Market Performance - The Hang Seng Index increased by 2.58% and the Hang Seng Tech Index rose by 3.52% [1] - The Hong Kong Tech ETF (159751) gained 3.11%, while the Hang Seng Hong Kong Stock Connect ETF (159318) increased by 2.2% [1] Sector Performance - The life sciences tools and pharmaceuticals sectors showed the highest gains [1] - The computer and peripheral devices, as well as forestry and paper products sectors, experienced the largest declines [1] Individual Stock Performance - Tencent Music (SW) surged by 15.63%, followed by Innovent Biologics with an increase of 8.82% [1] - Other notable gainers include CSPC Pharmaceutical (6.77%), WH Group (6.23%), WuXi AppTec (6.19%), Alibaba (6.09%), and Alibaba WR (5.51%) [1] - On the downside, Qutoutiao fell by 7.07% and 361 Degrees dropped by 9.29% [1] - Noteworthy increases also included China Literature with a rise of 19.61% and Hon Teng Precision Technology up by 11.78% [1]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $47.4 million, down from $69.4 million in Q2 2024. Excluding high volume Clean Cap, base revenue increased by 5% year-over-year [19][20] - GAAP net loss before non-controlling interests was $69.8 million for Q2 2025, compared to a loss of $18.4 million in Q2 2024 [20] - Adjusted EBITDA was negative $10.4 million for Q2 2025, down from a positive $13 million in Q2 2024 [21] - Basic and diluted EPS for Q2 2025 was a loss of $0.27 per share, compared to a loss of $0.07 per share in Q2 2024 [21] Business Line Data and Key Metrics Changes - Nucleic Acid Production (NAP) segment revenue was $31.1 million in Q2 2025, with base NAP business excluding high volume Clean Cap up 3% year-over-year [23] - Biologics Safety Testing (BST) segment revenue was $16.3 million in Q2 2025, reflecting a 10% year-over-year increase [24] - Adjusted EBITDA for BST was $10.9 million, resulting in an adjusted EBITDA margin of 67% [24] Market Data and Key Metrics Changes - Revenue by customer type in Q2 2025: 28% biopharma, 30% life sciences and diagnostics, 8% academia, 7% CRO, CMO, CDMO, and 27% to distributors [19] - Revenue by geography: 65% North America, 18% EMEA, 12% Asia Pacific (excluding China), and 5% in China [19] Company Strategy and Development Direction - The company is committed to improving operational excellence and execution through a restructuring plan aimed at reducing annualized expenses by over $15 million [6][7] - Focus on revenue diversification and growth across business segments, particularly in BST and NAP, with investments in new analytical products [10][11] - The company aims to return to sustainable positive adjusted EBITDA and free cash flow by 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for a stronger culture of accountability and operational discipline to drive results [5] - The CEO expressed optimism about the company's future, emphasizing the potential for growth and profitability despite current challenges [15] - The leadership team is focused on stabilizing the organization and exploring further growth opportunities post-restructuring [111] Other Important Information - The company has initiated a comprehensive business review and has withdrawn prior guidance for 2025, planning to reinstate guidance after completing the review [27] - Anticipated restructuring charges of approximately $8 million to $9 million in 2025, primarily for employee severance and related expenses [26] Q&A Session Summary Question: Guidance philosophy and visibility for 2026 targets - Management is focused on controlling costs and gaining confidence in the numbers shared, with no specific red flags indicating incorrect guidance [36][40] Question: Durability of BST improvement and pull forward dynamics - BST showed strong growth, with no significant pull forward dynamics from China or Asia impacting Q2 results [41][43] Question: Growth potential in China - Management expects China to become a growth driver as relations between the U.S. and China improve [47] Question: Impact of tariffs on CDMO business - Currently, there has been little movement regarding tariffs, but potential opportunities exist if tariffs lead to U.S. production shifts [51] Question: Positive surprises and challenges in the business review - Management was surprised by the extent of expenditures and the loyalty of customers in the preclinical to phase three segments [56][58] Question: E-commerce revenue potential - E-commerce currently represents a small percentage of revenue, but management sees significant potential for growth in this area [75][78] Question: Long-term margin potential - Management aims to restore profitability and free cash flow before addressing long-term margin targets [92][94]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $24.5 million, down 29% year over year due to temporary funding pauses and uncertainty in the U.S. academic and pharmaceutical end markets [15][16] - Gross profit was $11.3 million with a gross margin of 46.2%, while non-GAAP gross profit was $10.2 million with a non-GAAP gross margin of 41.8% [17][18] - Operating expenses increased to $48.4 million, up $15.2 million year over year, including significant costs related to acquisition and restructuring [19] - Adjusted EBITDA was a loss of $13.7 million compared to a loss of $4.1 million in the same quarter of the previous year [19] Business Line Data and Key Metrics Changes - Consumable revenue was $14.9 million, while instrument revenue was $2 million, with 10 instruments placed in the quarter compared to 22 in the previous year [16] - Accelerator lab revenue was $4 million, down 60%, driven by a decline in large multimillion-dollar projects from pharmaceutical customers [16] - Sales to diagnostics partners totaled $2.6 million, up from $0.7 million in the prior year period [16] Market Data and Key Metrics Changes - The customer mix was evenly split between pharma and academia, with academic sales declining 18% and pharma sales declining 38% [16] - The combined company expects to report $130 million to $135 million of revenue for 2025, with Simoa revenue expected to be $100 million to $105 million [21][22] Company Strategy and Development Direction - The company completed the transformative Equaya acquisition and is focused on sustainable double-digit revenue growth and margin improvement [6][7] - The strategic priorities include expanding the addressable market, accelerating the Simoa platform rollout, and building a foundation for an Alzheimer's diagnostic franchise [10][11][13] - The company aims to achieve approximately $85 million in synergy savings and cost reductions by 2026, with 75% of these expense reductions already implemented [7][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged temporary headwinds in academic funding and biopharma spending but expressed confidence in the long-term growth potential of proteomics [6][9] - The company is committed to achieving cash flow breakeven in 2026, even amidst challenging market conditions, and has already exceeded synergy expectations [24][25] Other Important Information - The company ended the quarter with $263.8 million in cash and equivalents, with adjusted cash usage improving by 49% year over year [20] - Akoya generated $18.2 million in Q2, contributing to the combined company's revenue outlook [21] Q&A Session Summary Question: Insights on Accelerator business and clinical trials - The Accelerator business grew approximately 40% year on year, with a net increase in customers, although project sizes are smaller than last year [29][30] Question: Academic funding outlook and customer confidence - There is strong resiliency in the consumables franchise, with approximately $100 million in consumables revenue, indicating potential positivity in academic funding [31][32] Question: Cost actions and long-term growth - The integration has focused on operating as one company, realizing significant synergies in operations and maintaining a focus on customer service while addressing cost structures [35][36]