Bio-Techne (TECH) Goldman Sachs 45th Annual Global Healthcare Conference summary

Business performance and growth drivers

• Achieved 2% overall growth, with Diagnostics and Genomics segment up 10% (16% including Lunaphore acquisition), while Protein Sciences segment declined 1%.

• Four growth verticals—cell and gene therapy, protein analytics, spatial biology, and molecular diagnostics—outperformed the market and drove results.

• Cell and gene therapy vertical grew 30%, now an $80 million run-rate business, with GMP proteins up 40%.

• Operating margin reached 33%, up 290 basis points, with a 230 basis point headwind from Lunaphore; target range is 35–40%.

• 81% of revenues come from consumables, providing resilience and recurring revenue.

Market trends and funding environment

• Biopharma funding up 78% year-over-year, but still being monitored for sustained trend; typically a 2–3 quarter lag before impacting business.

• Large pharma demand remains stable but not yet a growth driver; expected to improve with R&D budget normalization, potentially becoming a driver in 2026.

• China market shows stable double-digit consumables growth; stimulus expected to drive future instrumentation demand, with easier comparables ahead.

• Long-term bullish outlook for China due to demographic trends and government focus on healthcare independence and cell/gene therapy.

Product and segment highlights

• Spatial biology segment strengthened by Lunaphore acquisition and ACD reagents, offering high-throughput, fully automated multi-omics solutions.

• Liquid biopsy business, led by exosome-based prostate test, is growing at 25% volume with significant market runway.

• Instrumentation remains under pressure from weak capital budgets, but academic market traction and consumables pull-through provide stability.