Azenta (AZTA) KeyBanc Annual Healthcare Forum 2025 summary

NIH and academic funding exposure

• Recent NIH grant review pause created uncertainty, but no major deal cancellations or losses have occurred; only some delays are noted.

• Customer analysis shows actual risk from academic/government funding is about 2% of 2025 revenue, much lower than the previously cited 35%.

• Opportunities are emerging as core labs close, with institutions seeking outsourced solutions.

• Cost-saving measures are being redirected to sales, marketing, and R&D to counteract headwinds.

• Academic business is about 18% of total, with over half in the U.S.

Business operations and growth strategy

• Focus on portfolio optimization, operational excellence, and disciplined capital allocation.

• Lean business system and indirect procurement team established to drive efficiency.

• Ongoing cost optimization and investment in growth areas like sales and R&D.

• B Medical divestiture process is progressing, with a broad 12-month timeline for completion.

• Analyst day planned for June to update on long-range plans and strategic initiatives through 2027.

Sample management and storage business

• Storage as a service is a key growth driver, with 50 million samples managed and long-term contracts (7–25 years).

• BioArc Ultra automated storage is being deployed in the UK, Miami, and soon Boston, offering efficiency and cost advantages.

• Cryogenics and automated storage systems are seeing solid demand, especially as funding and CGT markets recover.

• Core products make up about 60% of SMS, with the rest in biorepository services.

• Backlog covers about 75% of the year, with no cancellations reported.