Bio-Techne Corp at Goldman Sachs Global Healthcare Conference Transcript

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

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : Great. So maybe just to start out, maybe just a brief description of Bio-Techne for people in the audience. And then maybe just kind of touch on the performance last quarter relative to peers. It's a pretty strong quarter. And I'm just sort of what was the drivers of that? Have you seen in the continued momentum of that?And as we sit here today in June.

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : Just staying high level, again, your focus on consumable differentiate to a bit certainly gives you a little bit more high recurring revenue, more defensiveness, the inventory issues, obviously, through a bit of a [Markie] wrench into that. But maybe just talk about how that business positions you for to be more resilient, more defensive in these kind of environments?

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : Got it. There's been a lot of focus on this strong funding quarter for Bio-techne in Q1, and there are some expectations that continues. I know, there's a lag period of a few quarters for that to come through, but just given what we saw in the first quarter, are you starting to see any signs of increased business activity and that's base from those customers?

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : Just stick with biopharma but focused in the large pharma side? Is there any signs of kind of reduced hesitation there, what would it take you to really kind of call it inflection in demand from the large pharma side?

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : You want to touch on China for briefly in your in your opening comments, you called out stabilization in China over the last few quarters. Now, you've got the potential impact of stimulus, which has become a major topic for investors another company in the sector, kind of points friction and starting out with that spending just due to the complexity of the program. 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: Matt Sykes - Goldman Sachs & Co LLC - Analyst : You've talked in the past about you still view China as one of the faster-growing regions longer term, and you've been able to grow in that region due to the some of the services and products you're offering? What gives you confidence in sort of the structural growth within China because there's a lot of debate cyclical versus structural and how China might be changing? What is your view on China looking at the portfolio that you're serving to that market?

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : This kind of switching some of your growth drivers. You talked about the Cell and Gene therapy some very strong quarter, 30% growth that you mentioned about $80 million business for you today. How significant of a growth driver do you expect that business to be it sounds like you're putting a lot of investment into it and what are you most excited about? And what's differentiated about your approach to that market for customers? 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: Matt Sykes - Goldman Sachs & Co LLC - Analyst : Maybe talk a little bit about the spatial segment. You talked a little bit about in your opening comments. Certainly a lot of growth potential there also increased competition. But could you maybe talk about how you fit into that market? How comment is really differentiated space and kind of any updates on the production front in that business?

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : And then we've talked a lot about consumables. You do have an instrument portfolio. I mentioned the percentage of it, but just given the debates around implementation and sort of the weaker capital budgets and things like that that we've experienced. Are you seeing any incrementally positive trends there? And just kind of remind us of what your expectations are for instrument growth over the course of this year and how you see kind of the puts and takes over the course of this year playing out for instrumentation and capital equipment?

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : Got it. You touch on the prostate cancer test and the early success you're having there in liquid biopsy. How long is the runway for growth there? Who are you competing against or how are you differentiated? And are you planning to leverage the strength in liquid biopsy maybe across the portfolio in what you've seen in the prostate test. 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: Matt Sykes - Goldman Sachs & Co LLC - Analyst : Now to kind of M&A. You guys have been active over the years in M&A, most recently with Lunaphore acquisition. How are you thinking about capital deployment, M&A moving forward gaps in the portfolio in areas that you're looking into?

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : Are we seeing, valuations kind of bid-ask spread expectations from sellers has that I mean, it seems like we've kind of had fits and starts. We've seen multiples compress over the last couple of years, but it's not the same for everyone. So as you look at sort of your pipeline of potential opportunities, how you see valuations and expectations of sellers matching sort of where your focuses?

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : You've talked about you said earlier about sort of getting to mid 30s EBITDA margin as you exit the year and sort of getting that 35% to 40% range over the longer term, what are the drivers of that margin expansion outside of a revenue recovery? What other levers are there to drive that margin expansion this year and then into next year, to get to that goal that appears.

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : Maybe things that (Multiple Speakers) are going to interoffice?

Question: Matt Sykes - Goldman Sachs & Co LLC - Analyst : With that, we're out of time. Kim, thank you so much for joining and really appreciate your time.