Bio-Rad Laboratories (BIO) investor relations material

Growth priorities and market conditions

• Historical growth of 1.5%-2% and recent declines reflect both end-market challenges and portfolio positioning; reaching market growth requires stronger R&D vitality and execution, with no single quick fix.

• Q3 sales returned to constant-currency growth at just under 1%; management cited both improving end markets and internal progress, while noting recovery remains early in several areas.

• Large pharma and bioprocessing remained constructive; research demand varies by geography, with funding, budget priorities and researcher sentiment shaping activity.

• Broader biopharma funding is viewed as positive, but its impact depends on when resources reach customers; current funding is skewed toward later-stage commercial programs versus the discovery-stage portfolio.

Tools and process chromatography

• Process chromatography growth was reset lower for 2026-27 after vaccine-related customer policy changes reduced resin needs; growth is expected to resume in 2027 and beyond.

• Longer term, process chromatography is targeted to progress to mid-single-digit growth and ultimately high-single-digit growth, supported by clinical programs moving toward commercialization.

• ddPCR grew 7% in Q3; instrument sales grew more than 20% for a third consecutive quarter, supported by QX700 and the broad assay portfolio, now ported to the platform.

• Consumable pull-through remains below normal; research usage typically takes 6-12 months to normalize, and improved pull-through is expected to support growth in 2027 and beyond.

• China tools manufacturing capacity was added in Q1 2026 to qualify for more government tenders; China remains a volatile market and a mid-single-digit share of revenue.

Product development and AI

• R&D vitality is a priority; a new imager launched two quarters ahead of schedule and includes AI-enabled image analysis for Western blot analysis.

• AI is being used across functions, including finance, commercial, R&D and supply chain, with productivity measured; further AI adoption in products is planned over time.

• Combining AI with automation and workflow efficiency is a product-development focus; customer spending and new demand specifically tied to AI remain early-stage.