Harvard Bioscience (HBIO) Sidoti Micro-Cap Virtual Conference summary

Business overview and strategy

• Focus on advanced science tools for academic, CRO, pharmaceutical, and biotech customers, with a balanced revenue split between academic and industrial segments.

• Strategic shift underway to grow industrial and pharmaceutical customer base, leveraging global sales and technical expertise.

• Outlined a strategy focused on commercial expansion, efficient operations, and disciplined capital allocation, targeting double-digit revenue growth, 60% gross margin, and 20%+ EBITDA margin over the long term.

• Emphasized a diversified customer base across academia, CROs, biotech, and pharma, with over 35% recurring revenues and a global sales footprint.

• Strong brand reputation and high barriers to entry support growth ambitions, with strong relationships with blue-chip customers.

Product innovation and growth areas

• Key technologies include electroporation, patch clamp, microelectrode arrays, and implantable telemetry for drug development and testing.

• New product launches in 2024–2025 include the SoHo implantable telemetry system, VivaMARS neuro-behavioral system, BTX electroporation for bioproduction, and MeshMEA organoid platform.

• New Mesh MEA organoid system enables long-term, in vitro organ testing, reducing reliance on animal models and improving drug candidate selection.

• Expansion into bioproduction and CGMP applications with BTX and amino acid analyzer systems, targeting recurring consumable revenue.

• Organoid platform expected to be the largest growth driver in 2025, with significant early adoption and minimal competition.

Financial performance and outlook

• Double-digit top-line growth, 60% gross margins, and 20% adjusted EBITDA margin targeted.

• Profitability maintained through lean operations and cost management, with self-funding for growth unless capital needs arise for expansion.

• Positive inflection in demand observed about six months ago, with sequential and year-over-year growth expected.

• Base business tracks market growth, with recent headwinds from Asia-Pacific and China due to destocking and policy uncertainty.

• Stressed the importance of recurring revenue streams from consumables and services, supporting long-term growth targets.