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 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]