Bio-Techne (NasdaqGS:TECH) 2025 Conference Transcript

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]