Bio-Techne(US:TECH)2025-11-20 13:32Summary of Bio-Techne Conference Call Company Overview - Company: Bio-Techne (NasdaqGS: TECH) - Date: November 20, 2025 - Focus: Life Science tools and reagents, particularly in cell therapy and proteomics Key Points Financial Performance - Overall Growth: Reported a negative growth of 1% for the quarter, primarily due to larger companies not ordering products after receiving fast-track designations, impacting revenue by 200 basis points [2][21] - Core Growth: Excluding the impact of cell therapy, core growth was positive at 1% [2] - Large Pharma Revenue: Contributed 30% of total revenues, with double-digit growth observed [2][5] - GMP Protein Business: Valued at $60 million within an $80 million cell therapy business, with significant growth in previous quarters (60% and 90% in Q1 and Q2 last year) [20] Market Dynamics - Pharma Market: Strong performance in both the US and Europe, with a healthy growth outlook despite potential shifts due to deglobalization [6][10] - Biotech Funding: Noted a resurgence in funding, particularly in October, with a shift towards accelerating programs rather than building infrastructure [7][8] - Academic Market: Experienced a messy environment in the US but showed stabilization and improvement in Europe, with a shift in grant focus towards oncology and neurological diseases [33] Innovation and Product Development - R&D Investment: 8% of revenues reinvested into R&D, leading to significant innovations across various verticals [12] - New Products: - ProPax for protein packaging, reducing human error and contamination risk [13] - ELA cartridge for ultra-sensitivity in protein analysis, enhancing capabilities in neurodiseases and inflammation [14] - LEO instrument with four times higher capacity and precision for larger pharma [15] - Exosome-based ESR1 breast cancer marker for therapy management [16] - Oxford Nanopore-based genetic testing kit for difficult-to-sequence genes [16] M&A Strategy - M&A as Priority: High priority for capital deployment, with improved availability of high-quality targets in the market [17] - Wilson Wolf Acquisition: Ongoing interest in acquiring Wilson Wolf, with a focus on strengthening the cell therapy portfolio [17][19] Competitive Landscape - Cell Therapy Market: Maintained a strong position against European competitors, leveraging 49 years of experience in complex protein design and manufacturing [22] - AI in Protein Design: Utilization of AI to enhance protein specificity and heat stability, leading to patentable innovations [24][25] Pricing and Promotions - Promotional Activities: Implemented grants to support new programs in constrained funding environments, increasing customer base from 550 to 700 for GMP proteins [26][27] Future Outlook - Market Trends: Anticipated improvements in grant funding and a shift towards more multi-year grants, providing better visibility for labs [35] - Budget Flush Impact: Minimal impact expected from year-end budget flush, as 90% of revenue is from consumables and services, not instrumentation [37] Additional Insights - Reshoring and Deglobalization: Expected to influence manufacturing dynamics positively, with local production reducing shipping inefficiencies [10][11] - Academic Grant Trends: Shift towards proteomics-based spending, indicating a favorable alignment with Bio-Techne's offerings [33]