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]

Core Insights - The company reported a negative 1% organic growth in the top line for the quarter, primarily due to larger orders in GMP proteins not repeating year-over-year, resulting in a negative $7 million impact [2] - Despite the decline in organic growth, the overall performance of the business is viewed positively, and it does not reflect the trends in the markets [2] Market Performance - In the pharmaceutical sector, the company experienced two consecutive quarters of double-digit growth, alleviating earlier concerns about potential slowdowns due to MFN rhetoric [3] - The biotech sector also continued to show positive trends, contributing to the overall market performance [3]

Bio-Techne Conference Call Summary Company Overview - **Company**: Bio-Techne (NasdaqGS: TECH) - **Date**: November 10, 2025 - **Key Speakers**: Kim Kelderman, Jim Hippel, Dave Clair Key Points Financial Performance - **Organic Growth**: The company reported a negative 1% organic growth in the top line, primarily due to a $7 million impact from larger orders in GMP proteins not repeating year over year [3][10] - **EBITDA Margins**: The EBITDA margin stood at 29.9%, indicating strong operational performance despite headwinds [6] Market Dynamics - **Pharmaceutical Market**: Continued to show double-digit growth, with positive trends in funding and deal activity [4] - **Academic Market**: Flat performance, but core business showed strength [4] - **Regional Performance**: - **Europe**: Mid-single digit growth as expected [4] - **U.S.**: Negative low single digits, but showing improvement [4] - **China**: Two consecutive quarters of growth, indicating a positive trend [4] Business Segments - **Core Business**: Flat performance, recovering from previous quarters [5] - **Growth Verticals**: - **Gene Therapy**: Added numerous customers in cell therapy [5] - **Protein Analytics**: Mid-single digit growth [5] - **Molecular Diagnostics**: Mid-single digit growth, with a significant 34% growth in the same quarter last year [5] GMP Proteins - **Customer Concentration**: Two major customers accounted for a significant portion of GMP protein revenue, with a $12 million headwind expected in the next quarter [16] - **Market Conditions**: The biotech market showed improvement, moving from negative 30% to negative 19% [11] Product Innovations - **New Product Introductions**: Strong pipeline of new products across various lines, including ELA and Western Blot instruments, expected to drive future growth [32][33] - **Organoid Market**: The organoid business is projected to grow significantly, with a current estimated revenue of $50 million and a CAGR of 20% [51][52] Future Outlook - **Growth Projections**: The company anticipates low single-digit growth for the year, with expectations for improvement in the second half due to easing headwinds and market stabilization [55][59] - **China Market**: Optimism about sustained growth in China, with a focus on gradual recovery [60][61] Margin Expansion Opportunities - **Divestitures**: The divestiture of Exosome and exiting low-margin businesses like fetal bovine serum are expected to enhance margins [62] - **Operational Efficiency**: Ongoing efforts to optimize manufacturing and improve collaboration across business units are anticipated to drive margin improvements [63][64] Conclusion - Bio-Techne is navigating a challenging market environment with a focus on innovation, customer acquisition, and operational efficiency. The company is optimistic about future growth, particularly in the organoid and cell therapy markets, while managing the impacts of customer concentration and market fluctuations.