Qiagen (NYSE:QGEN) FY Conference December 03, 2025 10:50 AM ET Company ParticipantsJohn Gilardi - VP Head of Corporate CommunicationRoland Sackers - CFOConference Call ParticipantsNone - AnalystNoneGreat. Thanks, everyone, for joining us this morning. A pleasure to have with us Qiagen's John Gilardi. We have the CFO, Roland Sackers, from Investor Relations. We have Daniel Wendorf. We have Jonathan Sheldon, VP of Communications. I guess, Roland, for me, when I looked at the numbers, your organic has been the ...

Core Viewpoint - Repligen Inc. (NASDAQ:RGEN) has experienced a recent share price increase, but its performance over the past month shows a decline, raising questions about potential overvaluation despite a yearly increase in stock value [1]. Group 1: Stock Performance - The current share price of Repligen Inc. is $155.36, reflecting a 0.65% increase [1]. - Over the past month, the stock has decreased by 1.36%, while it has increased by 19.66% over the past year [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for assessing a company's market performance, comparing the current share price to the company's earnings per share (EPS) [5]. - Repligen Inc. has a significantly higher P/E ratio of 7718.0 compared to the industry average of 43.15 in the Life Sciences Tools & Services sector, suggesting that investors may expect better performance from the company relative to its peers [6]. - A higher P/E ratio may indicate that the stock is overvalued, but it could also reflect investor optimism regarding future performance and potential dividend increases [5][6]. Group 3: Limitations of P/E Ratio - The P/E ratio, while useful, has limitations and should not be used in isolation; it must be considered alongside other financial metrics and qualitative factors [9][10]. - A lower P/E ratio could suggest undervaluation, but it may also indicate a lack of expected future growth from shareholders [10].

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $159 million, up 6% year-over-year and up 4% organically, with full-year revenue at $594 million, reflecting a 4% increase on a reported basis and 3% organic growth [14][15][16] - Non-GAAP EPS for Q4 was $0.21 and $0.51 for the full year, with adjusted EBITDA margin at 13% for Q4 and 11.2% for the full year, representing an expansion of approximately 230 basis points in Q4 and 310 basis points for the full year [14][15][16] - Free cash flow for the full year was $38 million, a notable improvement of $26 million year-over-year, with $546 million in cash, cash equivalents, and marketable securities at year-end [15][20] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $86 million for Q4, up 2% reported and flat organically, with a non-GAAP gross margin of 49.3%, up 180 basis points year-over-year [17] - Multi-Omix segment delivered record revenue of $73 million in Q4, representing 11% growth on a reported basis and 10% organic growth, driven by a 50% year-over-year increase in sequencing volume [18][19] Market Data and Key Metrics Changes - The macro environment remains volatile, with softer academic and NIH funding impacting growth, particularly in the U.S. market [9][10] - The company anticipates core revenue growth between 3%-5% for fiscal 2026, with expected adjusted EBITDA margin expansion of 300 basis points [11][21] Company Strategy and Development Direction - The company has implemented the Azenta Business System (ABS) to enhance operational efficiency and accountability, focusing on driving productivity, organic growth, and targeted M&A [8][10] - The strategic focus includes reinvesting savings into innovation, sales, marketing, and product management, with a commitment to value creation and operational excellence [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and capitalizing on opportunities arising from customer consolidation and outsourcing trends [9][10] - The company is entering fiscal 2026 from a position of strength, with a clear focus on delivering core growth and margin expansion [11][22] Other Important Information - The results exclude B Medical Systems, which is treated as discontinued operations, with an additional non-cash loss of $4 million recorded in Q4 [13] - The company plans to host an Investor Day to outline its multi-year growth strategy and capital deployment priorities [11][22] Q&A Session Summary Question: Guidance on growth and market conditions - Management noted that the market is expected to grow at 1%-2%, with a focus on delivering results for the full year despite a challenging first half due to capital expenditure slowdowns and government funding impacts [25][26][28] Question: Update on SMS growth and backlog - Management expressed confidence in mid-single-digit growth for SMS, supported by a strong backlog and new leadership driving commercial initiatives [29][30] Question: Insights on customer bases and macro conditions - Management highlighted strength in the pharma sector, with ongoing clarity around projects, while noting some delays in academic and government spending due to the recent government shutdown [39][40] Question: Expectations for M&A and market growth - The company is focused on tuck-in acquisitions to expand its core business, particularly in SRS and automated solutions, with a bullish outlook for 2026 [70][71] Question: Performance expectations for automated stores - Management indicated that while the automated stores segment is currently experiencing low single-digit growth, investments in R&D are expected to yield positive results in the long term [72][73]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $159 million, up 6% year-over-year, and up 4% organically, with full-year revenue at $594 million, reflecting a 4% increase on a reported basis and 3% organic growth [14][15] - Non-GAAP EPS for Q4 was $0.21, and $0.51 for the full year, with adjusted EBITDA margin at 13% for Q4 and 11.2% for the full year, representing an expansion of approximately 230 basis points in Q4 and 310 basis points for the full year [14][15] - Free cash flow for the full year was $38 million, a notable improvement of $26 million year-over-year, with $546 million in cash, cash equivalents, and marketable securities at year-end [15][20] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $86 million for Q4, up 2% reported and flat organically, with a non-GAAP gross margin of 49.3%, up 180 basis points year-over-year [17][18] - Multi-Omix segment delivered record revenue of $73 million in Q4, representing 11% growth on a reported basis and 10% organic growth, driven by a 50% year-over-year increase in sequencing volume [18][19] Market Data and Key Metrics Changes - The macro environment remains volatile, with softer academic and NIH funding impacting growth, particularly in the U.S. market [9][10] - The company anticipates organic revenue growth of 3%-5% for fiscal 2026, with expectations of a decline of approximately 1%-2% in Q1 due to capital expenditure slowdowns and government shutdown impacts [21][60] Company Strategy and Development Direction - The company has implemented the Azenta Business System (ABS) to enhance operational efficiency and accountability, focusing on driving productivity, organic growth, and targeted M&A [8][10] - Strategic priorities include embedding ABS deeper across the organization, optimizing capital deployment, and continuing to deliver core growth and margin expansion [11][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and highlighted opportunities arising from customers consolidating partners and investing in automation [9][10] - The company is well-positioned for fiscal 2026, with a focus on operational excellence and a strong balance sheet to support growth initiatives [11][22] Other Important Information - The results exclude B Medical Systems, which is treated as discontinued operations, with an additional non-cash loss of $4 million recorded in Q4 [13] - The company plans to host an Investor Day to outline its multi-year growth strategy and capital deployment priorities [11][21] Q&A Session Summary Question: Guidance on growth expectations and market conditions - Management noted that the market is expected to grow at 1-2%, with capital expenditure slowdowns impacting growth, particularly in the U.S. [25][26] Question: Update on SMS growth and backlog - Confidence in mid-single-digit growth for SMS is supported by a strong backlog and recent investments in commercial initiatives [29][30] Question: Insights on macroeconomic trends affecting customer bases - Management highlighted strength in pharma spending, with some projects being put on hold but showing signs of recovery [38][40] Question: Expectations for M&A activity - The company is focused on tuck-in acquisitions to expand its core business, particularly in SRS and automated solutions [69][70]

Bio-Techne 2025 Conference Summary Company Overview - **Company**: Bio-Techne (NasdaqGS: TECH) - **Event**: 2025 Steeple Healthcare Conference - **Date**: November 11, 2025 Key Points Financial Performance - **Organic Revenue Decline**: Bio-Techne reported a 1% organic revenue decline in Q1, primarily due to two large customers who had previously ordered high volumes of GMP proteins [6][10] - **GMP Proteins**: The decline was attributed to a 200 basis point headwind from these customers, who had fast-track FDA approvals and did not require new orders this quarter [6][10] - **Underlying Growth**: Excluding the impact of these two customers, the underlying growth was in the low single digits, around 1% [6][10] Market Dynamics - **End Markets**: - **Academic Market**: Challenging but showing positive signs, particularly in grants aligning with research areas [7][19] - **Biotech Market**: Constrained funding but some positive momentum due to increased M&A and licensing activity [7][8] - **Pharma Market**: Large pharma showed double-digit growth, stabilizing despite concerns over tariffs [8][10] - **China Market**: Achieved a second consecutive quarter of positive growth [8][10] Growth Projections - **GMP Growth Rate**: Expected to recover to over 20% in recovering markets, with potential for higher growth as more customers progress to commercial stages [14][15] - **Academic Market Recovery**: Anticipated mid to high single-digit growth as funding stabilizes and research activity normalizes [24][25] - **Pharma Growth**: Expected to continue double-digit growth, with Bio-Techne aiming to grow at twice the rate of pharma budget increases [28][25] Product Performance - **Spatial Business**: Experienced pressure but showed improvement, with double-digit order growth for the Luna4 instrument [30][41] - **Simple Western**: Continued strong performance with growth rates of 15%-20%, driven by demand from cell and gene therapy applications [49][51] Operational Insights - **Visibility in GMP Business**: Increased customer base expected to stabilize revenue, moving from a lumpy business model to more predictable revenue streams as customers transition to commercial stages [11][12] - **Operational Margins**: Expected expansion in operational margins despite challenges, with investments in R&D and new product development prioritized for future growth [66][69] Strategic Focus - **Investment in Innovation**: Bio-Techne is focusing on new product development, including advancements in organoids and other high-potential areas [76][77] - **Market Positioning**: The company aims to maintain a competitive edge by investing in high-quality programs and ensuring sticky revenue through strategic seeding of the market [71][72] Conclusion - **Outlook**: Bio-Techne is optimistic about future growth, with expectations of returning to double-digit growth as market conditions stabilize and improve [65][66]

Financial Data and Key Metrics Changes - The company achieved revenue of $699 million in Q3 2025, resulting in 1% organic growth, with foreign exchange (FX) providing a modest 1% tailwind [24][25] - Adjusted operating margins were 26.1%, slightly above expectations but down 220 basis points year-over-year due to tariffs, FX, and lower volume leverage [25][26] - Adjusted earnings per share (EPS) for the quarter was $1.18, exceeding the midpoint of guidance by $0.05 [6][26] - Free cash flow generated in the quarter was $120 million, representing approximately 90% of adjusted net income [7][8] Business Line Data and Key Metrics Changes - The Signals software business grew 20% organically in the quarter, with strong performance in Software as a Service (SaaS) [5][29] - The reproductive health business grew in the mid-single digits year-over-year, with newborn screening growing in the high single digits [5][31] - The diagnostics segment generated $356 million in revenue, up 3% on a reported basis and 2% organically, with immunodiagnostics declining in the low single digits [29][30] Market Data and Key Metrics Changes - The Americas saw low single-digit growth, Europe experienced mid-single-digit growth, while Asia declined in the mid-single digits, with China down in the low teens [28] - The life sciences segment generated revenue of $343 million, up 1% on a reported basis and roughly flat on an organic basis [28] Company Strategy and Development Direction - The company is focused on disciplined capital deployment, with a new $1 billion share repurchase authorization to replace the existing program [9] - The company is optimistic about future performance, anticipating organic growth of 2% to 4% for the year and adjusted EPS guidance raised to $4.90 to $5.00 [10][33] - The company is actively pursuing AI-driven solutions and strategic partnerships to enhance its product offerings and market position [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving customer confidence and investment levels in the science sector, despite a stable demand environment [5][19] - The company is cautious in its assumptions until sustained improvements in broader industry demand trends are observed [10][19] - Management highlighted the importance of recent strategic partnerships, including collaborations with Genomics England and Sanofi, which are expected to drive future growth [16][17] Other Important Information - The company reported a 6% reduction in Scope 1 and 2 emissions in 2024 and a 77% employee satisfaction rate [18][19] - The company received a AAA rating from MSCI, indicating strong performance in environmental, social, and governance (ESG) criteria [19] Q&A Session Summary Question: Commentary on 2026 growth outlook - Management indicated a prudent assumption of 2% to 3% organic growth for 2026, with signs of increasing activity in the pharma and biotech sectors [36][37] Question: Insights on life sciences business performance - Management noted that reagents were modestly lower than anticipated, with expectations for a similar market environment moving forward [41][42] Question: Customer activity levels in October - Management observed increasing activity primarily from pharma and biotech customers, particularly in instruments [45][46] Question: EPS growth expectations for 2026 - Management indicated that a 2% to 3% organic growth rate with 28% operating margins would imply high single-digit EPS growth for 2026 [47][48] Question: Confidence in Q4 ramp - Management expressed confidence in the ramp from Q3 to Q4, citing seasonal increases and expected contributions from software and instruments [53][55] Question: China diagnostics outlook - Management confirmed that China diagnostics would continue to face headwinds, with expectations for a return to muted growth levels in the second half of 2026 [76][78]

Financial Data and Key Metrics Changes - The company reported a strong Q2 performance with significant revenue beats, indicating stabilization in end markets [5][9] - Operating margin improved due to stabilization of tariff situations and effective expense management, with a noted increase of 200 basis points in operating margin outlook for the year [7][38] - Free cash flow remained strong, reflecting ongoing focus on cash generation [8] Business Line Data and Key Metrics Changes - Process Chrome showed strong performance, contributing significantly to revenue growth, with a year-over-year growth rate on consumables also noted [6][10] - The life science business continues to see pressure in the instrument segment, particularly among smaller biopharma companies, while consumables remain active [14][17] - The Droplet Digital PCR (ddPCR) portfolio is expected to drive mid-single-digit growth rates in the near term, with long-term aspirations for high single-digit growth [27][28] Market Data and Key Metrics Changes - The U.S. academic and government (A and G) market is stabilizing, with expectations of a decline of 0% to -10% in the second half of the year, compared to earlier forecasts of a -20% decline [16][18] - European markets, particularly France and Germany, are under pressure due to shifts in funding from healthcare to defense, while China faces macroeconomic challenges [19][20] - Japan and Korea have shown improvement in market conditions, contributing positively to the overall Asian market outlook [19] Company Strategy and Development Direction - The company is focused on expanding its product portfolio, particularly with the launch of Continuum and the integration of the Stila acquisition, which is expected to enhance market offerings [8][32] - There is a strategic emphasis on improving working capital efficiency and leveraging procurement to enhance margins and free cash flow [66][68] - The company aims to maintain a balance between investing in growth opportunities and managing share repurchase activities [85] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the stability of the end markets and the potential for gradual recovery in instrument sales as NIH budget finalization occurs [20][21] - The company anticipates that the resolution of the NIH budget will help rebuild trust among researchers, which is crucial for future growth in instrument sales [20] - Management highlighted the importance of consistent market growth rates, targeting a minimum of 3% growth to expand margins [76][77] Other Important Information - The company is actively monitoring the impact of tariffs, with a reduced headwind of 30 to 40 basis points factored into the outlook for the remainder of the year [51][52] - The integration of lean manufacturing concepts has shown immediate positive impacts on productivity and efficiency within the supply chain [60][62] - The company plans to hold a Capital Market Day event in the spring to provide updated long-range planning targets [87] Q&A Session Summary Question: What is the outlook for the U.S. A and G market? - Management expects the U.S. A and G market to remain stable, with no significant budget flush anticipated in the second half of the year [21] Question: How is the Stila acquisition expected to impact revenue? - The company anticipates a revenue contribution of approximately $15 million in the second half, with potential for growth as teams are trained and market integration occurs [32][34] Question: What are the growth drivers outside of China? - Excluding China, the Diagnostics business saw a growth rate of 3.7%, driven by strong performance in Quality Systems [46] Question: How does the company plan to address working capital efficiency? - Management acknowledged the need for improvement in working capital efficiency and is implementing initiatives to enhance inventory turnover and procurement leverage [66][68] Question: What is the company's capital allocation strategy moving forward? - The company aims to invest in growth opportunities while also considering share repurchases opportunistically [85]

Financial Data and Key Metrics Changes - The company reported $47 million in revenue for Q1 2025, exceeding expectations and showing a growth of over $4 million from Q4 2024 [6][27] - GAAP net loss before noncontrolling interests was $53 million for Q1 2025, compared to a loss of $23 million in Q1 2024 [27] - Adjusted EBITDA was negative $11 million for Q1 2025, down from a positive $8 million in Q1 2024 [28] - Basic and diluted EPS for Q1 was a loss of $0.21 per share, compared to a loss of $0.09 per share in Q1 2024 [30] Business Line Data and Key Metrics Changes - The Nucleic Acid Production (NAP) segment generated $29 million in revenue for Q1 2025, an increase of $1 million from Q4 2024 [6] - The Biologics Safety Testing (BST) segment reported $18 million in revenue for Q1 2025, up $3 million from Q4 2024 and flat compared to Q1 2024 [6][35] - The adjusted EBITDA margin for the BST segment was 70%, indicating strong performance [35] Market Data and Key Metrics Changes - Revenue by customer type in Q1 was 29% from biopharma, 28% from life science and diagnostics, 6% from academia, 7% from CDMO, and 30% through distributors [7] - Revenue by geography was 62% from North America, 15% from EMEA, 15% from Asia Pacific, and 8% from China [7] Company Strategy and Development Direction - The company is focused on a return to growth strategy and building a diversified franchise as a life science tool provider and clinical partner [10] - The strategy includes vertical integration in the NAP segment to enhance quality, speed, and cost efficiency [8] - The company aims to expand its product and service portfolio to drive long-term sustainable growth [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of transitioning from a COVID-driven revenue model to a more diversified business [39] - The company is closely monitoring trade dynamics and working to mitigate potential impacts from tariffs [39] - The cash position of $285 million is seen as sufficient to manage the reset period while focusing on long-term growth [40] Other Important Information - The company plans to publish its 2024 sustainability report, highlighting its commitment to sustainability and long-term strategic objectives [25] - The integration of recent acquisitions is progressing well, enhancing operational capabilities and supply chain control [32] Q&A Session Summary Question: Focus areas for new trials and reasons for discontinuation - Management noted that while preclinical programs were flat, clinical programs showed growth, indicating a focus on later-stage projects due to funding conservatism [44][46] Question: Drivers of incremental demand in the next 12-18 months - Incremental demand is expected from clinical progression, new business wins, and the transition from bulk reagent supply to comprehensive service offerings [48] Question: Opportunities for market share due to U.S. manufacturing - The company sees potential for market share growth as interest in U.S.-based manufacturing increases, particularly in the mRNA space [51][54] Question: Impact of U.S. policy changes on customer buying patterns - Customers are experiencing mixed impacts from government funding changes, with some securing long-term funding while others delay decisions [60] Question: Government work and exposure - The company has no direct government work currently, with past contracts fulfilled, but remains open to future opportunities [66] Question: Seasonality in BST revenue - Q1 is typically a high point for BST revenue, influenced by manufacturing cycles and strong performance in China [70][72]

Financial Data and Key Metrics Changes - The company generated total adjusted revenues of $730 million in Q4 2024, resulting in 6% organic growth, which was above expectations [18] - For the full year, total adjusted revenue was $2.76 billion, with 1% organic growth [19] - Adjusted EPS for Q4 was $1.42, exceeding guidance by $0.04, and for the full year, adjusted EPS was $4.90, representing 5% growth year over year [21][22] Business Line Data and Key Metrics Changes - Life Sciences segment generated $336 million in Q4, up 5% on both a reported and organic basis, but down low single digits for the full year [25] - Diagnostics segment generated $393 million in Q4, up 4% on a reported basis and 6% on an organic basis, with 4% organic growth for the full year [27] - The Life Sciences instruments revenue was down high single digits in Q4 and down low double digits for the full year [25] Market Data and Key Metrics Changes - In Q4, organic revenue growth was 5% in Life Sciences and 6% in Diagnostics, with mid single digits growth in the Americas, low single digits in Europe, and mid single digits in Asia, particularly high single digits in China [23] - For the full year, China experienced low single digit growth in diagnostics and mid teens growth in life sciences, but overall, China declined in the low single digits organically [24] Company Strategy and Development Direction - The company plans to step up strategic internal investments in 2025, expecting organic growth to improve [9][31] - A new Life Sciences Solutions business unit will be established, representing approximately 85% of the Life Sciences segment, reflecting a re-segmentation of the Applied Genomics business [14] - The company aims for adjusted operating margin expansion of 20 to 40 basis points in 2025, despite increased investments [31] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand trends have stabilized, the pace of recovery remains uncertain, leading to a cautious outlook for 2025 [39] - The company expects total organic growth in 2025 to be in the range of 3% to 5%, with balanced growth expected throughout the year [30] - Management expressed optimism about the potential for recovery in the Applied Genomics business as it transitions to the Life Sciences Solutions portfolio [63] Other Important Information - The company repurchased $185 million worth of shares in Q4, bringing total buyback activity for 2024 to $370 million [22] - Free cash flow for Q4 was $151 million, with a full year total of $578 million, equating to 96% conversion of adjusted net income [22] Q&A Session Summary Question: Insights on key end markets and recovery areas - Management acknowledged a path to recovery but emphasized uncertainty in the pace of return to normalcy, with diagnostics and software businesses showing signs of improvement while instrumentation remains a concern [39][40] Question: Guidance for China and stimulus impact - Management expects China to align with company growth averages, with modest stimulus impact anticipated [41][42] Question: Segment outlooks relative to overall guidance - Diagnostics is expected to perform above the company average, while Life Sciences is projected to be in the low single digits [46][47] Question: Expectations for reagents growth - Management indicated that the reagents business is gaining market share and is expected to grow in mid single digits for fiscal 2025 [48][50] Question: Q1 guidance and margin visibility - Management noted that Q1 margins are typically below the full year average, with a similar cadence expected as in 2024 [54] Question: Applied Genomics recovery expectations - Management expressed optimism about the recovery of the Applied Genomics business as it transitions to the Life Sciences Solutions portfolio [63] Question: FX impact on margins - Management clarified that FX does not have a material impact on operating margins [66] Question: Strategic investments for 2025 - Management highlighted increased investments in digital capabilities and expanding sales channels as part of their strategy for 2025 [70]