J.P. Morgan 44th Healthcare Conference Prahlad Singh Chief Executive Officer January 13, 2026 Safe Harbor This presentation contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to the Company's customers and end-markets, plans concerning business development oppo ...

Core Viewpoint - Revvity, Inc. is a life sciences and diagnostics company with a market cap of $11.1 billion, providing essential tools for genetic screening and infectious disease testing [1] Financial Performance - Analysts anticipate Revvity to report an adjusted earnings of $1.54 per share for the fourth quarter, reflecting an 8.5% increase from $1.42 per share in the same quarter last year [2] - For fiscal 2025, adjusted EPS is expected to be $4.91, slightly up from $4.90 in 2024, with a projected 8.2% annual increase to $5.31 per share in fiscal 2026 [3] Stock Performance - RVTY stock has decreased by 12.4% over the past 52 weeks, underperforming compared to the Healthcare Select Sector SPDR Fund's 13% increase and the S&P 500 Index's 16.9% gain [4] Growth and Profitability Challenges - Revvity has experienced weak underlying growth with constant-currency revenue growth averaging only 2% over the last two years, indicating soft demand [5] - Profitability has declined, with adjusted operating margin decreasing by over 9 percentage points in the past five years due to rising costs and limited operating leverage [5] - Financial performance has deteriorated, with both revenue and EPS declining annually over the past five years, leading to cautious investor sentiment [5]

Company Overview - Bio-Techne Corporation (TECH) has a market cap of $9.1 billion and operates in the life sciences sector, focusing on reagents, instruments, and services for research, diagnostics, and bioprocessing markets [1] - The company is classified as a "mid-cap" stock, with offerings that support applications in protein analysis, molecular diagnostics, oncology, and genetic research [2] Stock Performance - Shares of Bio-Techne have decreased nearly 26% from their 52-week high of $79.28, while the stock has increased 13.7% over the past three months, lagging behind the Health Care Select Sector SPDR Fund's (XLV) 14% gain [3] - On a year-to-date (YTD) basis, TECH stock is down 18.5%, underperforming XLV's 13.5% rise, and has declined 22.5% over the past 52 weeks compared to XLV's 10.7% return [4] Recent Financial Performance - In Q1 2026, Bio-Techne reported a 1% year-over-year revenue decline to $286.6 million, attributed to a 3% organic decline in Protein Sciences and a 4% decline in Diagnostics and Spatial Biology [5] - The revenue decline was influenced by cell therapy timing headwinds, which reduced growth by 200 basis points in Q1 and are expected to worsen to 400 basis points in Q2, alongside ongoing biotech funding softness [5] Analyst Sentiment - Despite the stock's underperformance, analysts maintain a bullish outlook, with a consensus rating of "Strong Buy" from 15 analysts and a mean price target of $68.58, indicating a potential upside of 16.9% from current levels [6]

Core Insights - The Mairs & Power Balanced Fund reported a return of 6.47% in the first nine months of 2025, underperforming benchmark indexes which increased by 11.35% and 10.73% respectively [1] - The market remains concentrated with a few mega-cap stocks related to artificial intelligence driving most favorable outcomes [1] Company Performance - Bio-Techne Corporation (NASDAQ:TECH) has a market capitalization of $9.478 billion and focuses on life science reagents, instruments, and services [2] - The one-month return for Bio-Techne was 0.13%, but it experienced a significant decline of 20.67% over the past 52 weeks, closing at $60.83 per share on December 10, 2025 [2] - In the fiscal first quarter of 2026, Bio-Techne generated revenues of $286.6 million, reflecting a 1% year-over-year decline on both an organic and reported basis [4] Fund Strategy and Sector Exposure - The fund's overweight position in Health Care, particularly in Bio-Techne, negatively impacted its relative performance in the first nine months of 2025 due to uncertainties in the biopharmaceutical funding environment [3] - The fund has taken advantage of recent weaknesses in Bio-Techne to increase its holdings in the company [3] - Despite acknowledging Bio-Techne's potential, the fund believes that certain AI stocks present greater upside potential with less downside risk [4] Hedge Fund Interest - Bio-Techne was held by 43 hedge fund portfolios at the end of the third quarter, an increase from 37 in the previous quarter [4]

Core Insights - The article discusses the anticipated economic environment in 2026, highlighting expected interest rate cuts and the impact on various sectors, particularly mortgage REITs and pharmaceutical companies. Group 1: Interest Rates and Mortgage REITs - Interest rates are projected to decline, with Fed Chair Jay Powell having already implemented two rate cuts, and more expected under Kevin Hassett's leadership [3][4] - Mortgage REITs like Annaly Capital (NLY) and Dynex Capital (DX) are well-positioned to benefit from falling rates, with yields of 12.3% and 14.7% respectively, and potential for significant price appreciation [4][5] - The easing of mortgage spreads, which are crucial for profitability, indicates a favorable environment for these mortgage REITs as they hold government-backed securities [5][6] Group 2: Pharmaceutical Industry and AI - The pharmaceutical industry is set to experience accelerated drug discovery cycles, potentially reducing the time from development to market from 10-15 years to 3-6 years due to AI advancements [7][8] - Companies like BlackRock Health Sciences Term Trust (BMEZ) are positioned to benefit from this trend, yielding 8.6% while investing in innovative drug development firms [9] - Danaher (DHR) is highlighted as a key supplier in the life sciences sector, providing essential tools and consumables for drug development, which are expected to see increased demand due to AI-driven research [11][12] Group 3: Consumer Goods - Hershey Foods - Hershey Foods (HSY) is noted for its strong brand portfolio and resilience despite rising cocoa prices, with management implementing efficiency plans and price increases to maintain cash flow [14][15] - The company has raised its dividend by 70% over five years, indicating a strong commitment to shareholder returns and positioning for a rebound as input costs stabilize [15]

Core Thesis - Bio-Techne Corporation is positioned as a global leader in life-science consumables and specialized tools, with a strong focus on research, diagnostics, and emerging therapies [2][3] Company Overview - Founded in 1976, Bio-Techne has undergone strategic pivots and acquisitions, currently led by CEO Kim Kelderman and CFO Jim Hippel [2] - The company operates with a performance-aligned compensation framework and has broad analyst coverage [2] Revenue Generation - Bio-Techne generates most of its revenue from high-quality, premium-priced consumables, holding a 30-40% market share in cytokines and growth factors, approximately 5% in antibodies, and a leadership position in cited proteins [3] - The product portfolio includes reagents, assays, instruments, and proprietary platforms, primarily sold direct-to-consumer with distributor partnerships, notably with Thermo Fisher [3] Market Position and Growth - Despite intense competition, Bio-Techne's premium brand, scale advantages, and diverse applications support its market share growth in precision medicine, biologics, and spatial biology [4] - The company has launched 800 new products in 2024 and expanded its total addressable market (TAM) from $3 billion to approximately $28 billion since 2013 [4] Financial Strength - Bio-Techne maintains solid financial strength with conservative leverage, strong free cash flow, and capacity for further acquisitions [5] - Current valuation reflects compressed multiples and cautious sentiment rather than a decline in fundamentals, indicating a compelling investment opportunity [5] Historical Performance - The stock price has appreciated approximately 34.8% since May 2025, driven by improved demand trends and solid core franchises [6] - The long-term TAM expansion is emphasized as a key factor for continued growth [6]

Core Insights - The article discusses the anticipated decline in interest rates and its implications for mortgage REITs like Annaly Capital and Dynex Capital, which are well-positioned to benefit from falling rates and currently offer high dividend yields of 12.3% and 14.7% respectively [1] - The introduction of "Applied AI" in drug discovery is expected to significantly shorten the time required to bring new drugs to market, potentially reducing the cycle from 10-15 years to 3-6 years, which will enhance profitability for pharmaceutical companies [1] - Danaher is highlighted as a key player in the life sciences sector, providing essential tools and consumables for drug development, benefiting from increased R&D activities driven by AI advancements [1][2] - Hershey Foods is noted for its strong brand portfolio and recent operational efficiencies, positioning it for a rebound after a period of margin compression due to rising cocoa prices [2] Mortgage REITs - Annaly Capital and Dynex Capital are expected to thrive as interest rates decline, with their portfolios consisting of government-backed mortgages that appreciate in value as rates fall [1] - The mortgage spreads, which are crucial for profitability, have been easing, creating favorable conditions for these mortgage REITs [1] Pharmaceutical Industry - The integration of AI in drug discovery is projected to compress development timelines, allowing companies to monetize successful drugs more quickly and extend their monopoly pricing periods [1] - BlackRock Health Sciences Term Trust is mentioned as a vehicle for investing in innovative drug development companies, offering an 8.6% yield [1] Life Sciences Sector - Danaher is positioned to benefit from increased demand for laboratory tools and consumables as pharmaceutical companies ramp up R&D efforts, driven by AI [1][2] - The company avoids the political challenges faced by drug manufacturers, focusing instead on providing essential support for drug development [1] Consumer Goods - Hershey Foods has implemented a two-year efficiency plan and raised prices, which has helped it maintain cash flow despite rising input costs [2] - The company has increased its dividend by 70% over five years, indicating strong shareholder returns and potential for future growth [2]

Core Insights - Agilent Technologies reported a strong quarterly performance with organic revenue growth of 7.2%, surpassing Wall Street's expectation of 5.3% [1] - The company provided robust revenue guidance for 2026, although earnings guidance was slightly below expectations [1] - Following the earnings report, Agilent's stock price increased by $3.60, or over 2%, but remains down more than $20 from its peak during the COVID year [1] Company Overview - Agilent Technologies specializes in providing instruments, software, and services for life sciences, diagnostics, and chemical analysis, including chromatography, spectroscopy, genomics, and laboratory automation solutions [2]

Core Insights - ClearBridge Investments reported that mid-cap stocks experienced growth in Q3 2025, driven by a favorable monetary policy environment and stabilizing earnings [1] - The Federal Reserve's rate cuts positively impacted small and mid-cap stocks, with value stocks outperforming growth stocks [1] - The ClearBridge Mid Cap Strategy outperformed the Russell Midcap Index, primarily due to stock selection in the consumer staples and healthcare sectors [1] Company-Specific Insights - Bio-Techne Corporation (NASDAQ:TECH) has a market capitalization of $9.57 billion and focuses on life science reagents, instruments, and services [2] - The stock of Bio-Techne Corporation saw a one-month return of -0.32% and a 52-week decline of 15.36%, closing at $61.40 on November 12, 2025 [2] - ClearBridge initiated a new position in Bio-Techne, citing its high-margin consumables and instrumentation portfolio as key factors for its appeal as a growth-oriented investment [3] Financial Performance - In Q1 2026, Bio-Techne Corporation reported revenues of $286.6 million, reflecting a 1% year-over-year decline on both an organic and reported basis [4] - Despite the potential of Bio-Techne as an investment, the company is not among the most popular stocks among hedge funds, with 37 hedge fund portfolios holding its stock at the end of Q2 2025 [4]

Company Overview - Ralliant has approximately 7,000 team members and 21 manufacturing sites[19] - The company serves around 90,000 customers[19] - Ralliant's revenue is over $2 billion[19] - The company possesses around 2,200 active patents[19] Financial Targets - The company targets revenue growth of 3-5% through the cycle[19, 37] - Adjusted EBITDA margin target is in the low to mid-20s percentage range[19, 37] - Free cash flow (FCF) conversion target is above 95%[19] - Net leverage target is 1.5x – 2.0x[19] - The company aims to generate over $1 billion of cumulative FCF through 2028[37] Revenue Breakdown by Segment - Test & Measurement segment accounts for approximately 60% of revenue[19, 22] - Sensors & Safety Systems segment accounts for approximately 40% of revenue[19, 22] Revenue Breakdown by End Market - Diversified Electronics represents 22% of revenue[19, 23] - Industrial Manufacturing represents 19% of revenue[19, 23] - Defense & Space represents 16% of revenue[19, 23] - Utilities represents 13% of revenue[19, 23] - Communications represents 13% of revenue[19, 23] - Semiconductor represents 9% of revenue[19, 23] - Other (including Food and Beverage, Healthcare, and HVAC) represents 9% of revenue[19, 23, 24]