Bio-Techne Corp at Bank of America Global Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Ryskin - Bank of America - Analyst : I guess just to kick things off, you reported fiscal 3Q results recently solid results especially considering some of the macro headwinds and macro uncertainty. We're going to spend a lot of time talking about that. But maybe you can just give us some highlights from the quarter, just sort of how it played out relative to expectations? Where were you a little bit able to see expectations, where you saw a little bit more headwinds?

Question: Michael Ryskin - Bank of America - Analyst : Okay. I want to -- next, I want to touch on some of the specific headwinds we've all been focused on in the market. First, let's talk about US academic, US A&G. Can you remind us what your exposure is here? What you've seen as calendar first quarter fiscal you played out? How April has gone for you?

Question: Michael Ryskin - Bank of America - Analyst : Okay. What should we keep in mind as far as the forward indicators of how that end market is going to do? There's a lot of indirect funds and indirect cost caps. There's a question on fiscal year '26 budget. The president has put out his initial proposal. Now we have to wait for Congress. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Michael Ryskin - Bank of America - Analyst : Yeah. You mentioned earlier when you talked about performance in the first quarter and A&G, the differentiation between consumables and instrumentation. When we think about the consumable side of things from a customer spending perspective, I think probably one of the better indicators is just absolute head count, scientists of the lab. If you're at the lab, you can't not be ordering reagent consumer, you got to do something. So what have you seen there in terms of hiring freezes, maybe actual reductions in force on some academic labs? Is there anything there that makes you concerned about forward momentum? James Hippel - Bio-Techne Corp - Chief Financial Officer, Executive Vice President - Finance I mean, I've seen reported on our customers are telling us -- also the headlines around this, first -- first week of February around versus postponing and the new students for PHP programs, et cetera. But that was right out of the gate in the very early stages of this. And we haven't heard any REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Michael Ryskin - Bank of America - Analyst : Okay. I want to talk about the other big policy issue, which is tariffs. Give us an update on your tariff exposure, mitigation efforts, and especially in light of the news yesterday of China tariff reduction to 30% and 10%.

Question: Michael Ryskin - Bank of America - Analyst : Okay. I mean, you talked about the mitigating steps you're doing and potentially scaling back on them. Are any of them sort of we're going to move ahead no matter what? Or are there areas where it's relatively quick and easy to say, you know what, at 30% versus 145%? It doesn't make as much sense to implement that.

Question: Michael Ryskin - Bank of America - Analyst : or (inaudible)

Question: Michael Ryskin - Bank of America - Analyst : Okay. And then the other topic I want to touch on before we go into specific products is just biopharma overall, your biggest exposure there. What did you see in the third quarter? How do you expect the rest of the year to play out? Any changes there?

Question: Michael Ryskin - Bank of America - Analyst : Okay. You're talking about the change in the deescalation of the trade war.

Question: Michael Ryskin - Bank of America - Analyst : Okay. Let's talk a little bit about some of the various product segments. The core portfolio of research reagents, antibodies, assays, proteins. There has been a decent amount of consolidation in that space over the last couple of years, over the last two, three, five years. Has that changed the industry dynamic a little bit? And how do you feel like you're positioned relative to some of these more consolidated vendor?

Question: Michael Ryskin - Bank of America - Analyst : Okay. We got about 10 minutes left, if there's any questions from the audience, feel free to jump in. Otherwise, we'll keep going. Want to ask about cell and gene therapy, especially GMP reagents, a big part of that business. So what's the split of your exposure there between cell and gene? And can you talk about how Q3 point outlook, your expectations, what you're seeing in that end market?

Question: Michael Ryskin - Bank of America - Analyst : Okay. There has been a lot of noise from a policy perspective here in terms of new political appointments within FDA, HHS, obviously still very recent, but has that changed any of your conversations with your customers? Or has that changed their sentiment or their appetite to invest in those cell and gene therapies?

Question: Michael Ryskin - Bank of America - Analyst : tOkay. Okay. I want to talk a little bit about the spatial business. Can you give us an update on how that's fared? Where are you most focused? And where do you see some of the bets going forward? Is that -- matures a little bit?

Question: Michael Ryskin - Bank of America - Analyst : Okay. We've got a couple of minutes left. I want to hit on a couple of topics. You mentioned -- we got a question. Unidentified Participant Can you hear me? Okay. You've made a lot of acquisitions over time, your last one being in spatial. Do you think you'll continue that trend? And what areas do you think it will be in to kind of add on?

Question: Michael Ryskin - Bank of America - Analyst : Got maybe 1 or 2 minutes left, I want (inaudible) a couple of last questions altogether. Maybe talk about fiscal 4Q earlier and sort of your expectations going for that. Could you walk us through that and then I'll bridge that to a fiscal year '26 question? Just -- how do you approach setting guidance in an environment like today, so much volatility change on a day-to-day basis. How is that going to impact your -- thinking ahead in the next 12 months?

Question: Michael Ryskin - Bank of America - Analyst : Got it. Okay. That's fair. All right. With that, we're out of time. Thank you very for joining us.