Bio-Techne(TECH)2025-02-05 19:24Financial Data and Key Metrics Changes - Adjusted EPS for Q2 was 0.40 in the prior year, with GAAP EPS at 0.17 last year [42] - Q2 revenue reached 211.6 million, with organic revenue increasing 8% [52] - Diagnostics and spatial biology segment sales were $84.1 million, with both reported and organic growth increasing 12% [54] Market Data and Key Metrics Changes - Sales in the Americas grew low double digits, driven by strong demand from cell therapy customers [15] - EMEA region also grew low double digits, with the automated protein analysis portfolio growing over 20% [15] - Sales in China declined low single digits due to a challenging economic environment, but expectations for modest positive growth in Q3 remain [17][18] Company Strategy and Development Direction - Company focuses on three major challenges: enabling discovery of novel biological insights, supporting development of advanced therapeutics, and enabling precision diagnostics [11] - Continued emphasis on M&A as a priority for capital allocation, particularly in areas related to analytical platforms and advanced therapeutics [51][83] - The company is optimistic about the long-term modernization of healthcare in China and aims to play a key role in this evolution [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in ongoing recovery in biopharma markets, particularly from large pharma customers [58] - Anticipated organic growth for Q3 is in the upper range of mid-single digits, with expectations for a return to growth in China [61] - Management noted that the recent strength in large pharma spending is a positive sign for broader R&D funding in 2025 [58] Other Important Information - The company launched four new designer proteins during Q2, bringing the total to six, with expectations for a steady cadence of new launches [33] - The spatial biology business continues to progress with the launch of the comet system, which is expected to have high consumable pull-through [35][36] Q&A Session Summary Question: Can you elaborate on the pull forward seen in cell and gene therapy GMP products? - Management noted that large orders were pulled into Q2 from Q3, indicating strong traction in cell and gene therapy [71] Question: What are the growth expectations for GMP reagents next quarter? - Management indicated that while growth may not match the previous quarter's surge, underlying growth remains strong [150] Question: How did Wilson Wolf perform in the quarter? - Management reported consistent growth in Wilson Wolf's core business, with expectations for solid double-digit growth in 2025 [165] Question: What is the outlook for the academic market given NIH concerns? - Management stated that NIH exposure is minimal, with academic growth rates improving despite external noise [95][82]