Bio-Techne Corp at Leerink Partners Healthcare Crossroads Conference Transcript

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

Question: Puneet Souda - Leerink Partners LLC - Analyst : So as we go through the conversation, please send me questions if you have, and I'll try to cover as we go. Maybe, Kim, just to start off a bit on the product segments that you serve, from -- you got the RU antibodies, to cytokines, to cell and gene therapy and protein sciences in the diagnostic business as well. And the quarter came in slightly better at 2% organic. Maybe take a minute and tell us where you feel more confident, which segments, which businesses, which products segments, where you are more confident in the recovery versus the rest and where it could take a little bit longer.

Question: Puneet Souda - Leerink Partners LLC - Analyst : And you talked about the biotech funding, I mean, now four months versus the results in the first quarter. One, the consumables side, how long does it take for that to flow? And wondering if you're already seeing some of these signs from biotech funding.

Question: Puneet Souda - Leerink Partners LLC - Analyst : Got it. Okay. What are you hearing from the academic customers? And maybe just -- I know you talked about this on biotech customers, but what -- yeah, what are you hearing from the academic side?

Question: Puneet Souda - Leerink Partners LLC - Analyst : Got it. One of the major questions for Bio-Techne when we look historically, obviously 2023, sort of rough patch for the industry. But historically, you have grown low double digits, top-line organic growth. I know -- look, fiscal '24 isn't over yet, but maybe if you just look out next couple of quarters, do you think we can start to get back to that historical growth pattern for -- in fiscal '25 maybe?

Question: Puneet Souda - Leerink Partners LLC - Analyst : But at least the comps should be getting easier going forward?

Question: Puneet Souda - Leerink Partners LLC - Analyst : Got it. I want to come back to China. But before that, maybe just, let's touch on the protein sciences segment. The RU antibody market, based on what you saw in the quarter, I mean, and what we heard from peers, it was a softer market. But maybe just tell us a little bit -- and that's no surprise given the times of recovery still. Maybe just update what are you seeing in that side of the business? What are some of the green shoots? What gives you confidence in overall the research-use-only antibodies market?

Question: Puneet Souda - Leerink Partners LLC - Analyst : What's the growth rate that you expect in longer term for this market? And I'm asking that because competitively speaking, there were some acquisitions, and they are with some of your larger peers now. Does that change the makeup of the market? What do you expect to be the long-term growth rate for the RU antibodies side?

Question: Puneet Souda - Leerink Partners LLC - Analyst : When you look at -- just wanted to touch on instruments briefly, [Ella], other instruments that you have for immunoassays. And I think it's still the only automated Western blot solution on the market. Tell us a little bit about what are you seeing on that front? Are you seeing recovery, or do you expect that to be more gated still, just given the consumables pickup first and then instrumentation?

Question: Puneet Souda - Leerink Partners LLC - Analyst : Got it. Let's shift gear to China. There's obviously talk of stimulus there. You have -- I mean, now the footprint is smaller. But you -- maybe just talk to us in terms of expectations from stimulus coming all the way to the consumables and products you serve. And what's your long-term view on China? Because I think that still is a question just given what happened last year. 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: Puneet Souda - Leerink Partners LLC - Analyst : And when you think about China for China production, is it largely focused on GMP side or is it -- maybe just walk us through what's on the priority level.

Question: Puneet Souda - Leerink Partners LLC - Analyst : Good point. Let's switch to cell and gene therapy, an important growth driver for you. And I want to talk within that Wilson Wolf as well. But maybe as you pointed out, GMP is a strength. Companies came to you for proteins and now they want more of it, right? In the third quarter, I think GMP was up 40%, I believe. One question we continue to get from investors is how much of this is one-time or large orders versus run rate business? Maybe just talk to us about where you are and how do you see the order progression.

Question: Puneet Souda - Leerink Partners LLC - Analyst : Yeah. I mean, I would say more on the order progression. So are these lump -- there's some lumpiness sometimes in these orders.

Question: Puneet Souda - Leerink Partners LLC - Analyst : Got it. Okay. Just wanted to follow up on Wilson Wolf. Maybe tell us how well the product is baked into the current auto -- autologous CAR Ts out there, either commercially on the market or the ones that are in the pipelines. I mean, we're hearing good things about this bioreactor, but maybe just help us understand where the adoption of this product sits. And just remind us again on the original targets that you had that would trigger the acquisition for this.

Question: Puneet Souda - Leerink Partners LLC - Analyst : Yeah, in terms of the pipelines and where it is right now commercially baked in into the products.

Question: Puneet Souda - Leerink Partners LLC - Analyst : Got it. I wanted to touch on before we run on time on the spatial side. There's lot of discussion there. There was an acquisition recently. Maybe just tell us given the makeup of the market, how are you situated with Lunaphore? What do you think it has most value proposition? Where do you think you can take share?

Question: Puneet Souda - Leerink Partners LLC - Analyst : And you had validated your antibodies on other immunoassay platforms before. And so it's a similar approach that you're using here too. 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: Puneet Souda - Leerink Partners LLC - Analyst : Okay. Got it. And one question, maybe just -- I know this is more of a Jim question. But when you look at the margin levers, just how much of this is really dependent on just growth returning back on the top line versus other levers that you have in place?

Question: Puneet Souda - Leerink Partners LLC - Analyst : Got it. That's great. Let me just have a quick rapid question here from the investor around the Asuragen acquisition that you did. We're hearing from NIPT companies about ACOG potentially benefiting them. Do you think that could be a volume driver if it comes through?

Question: Puneet Souda - Leerink Partners LLC - Analyst : Okay. Well, we're out of time with that question. But thank you again, Kim, for being here. Always fun to host you. 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: Puneet Souda - Leerink Partners LLC - Analyst : Okay, thank you. DISCLAIMER Refinitiv reserves the right to make changes to documents, content, or other information on this web site without obligation to notify any person of such changes. In the conference calls upon which Event Transcripts are based, companies may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks, which are more specifically identified in the companies' most recent SEC filings. Although the companies may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized. THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS. IN NO WAY DOES REFINITIV OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.