Bio-Techne Corp at Stephens Investment Conference (Virtual) Transcript

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

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : So we'll be predictable and go the direction, I think, everybody goes with you first. Kind of post-COVID, really strong a couple of quarters. Some of that's due to some specific pieces of the portfolio that I want to dive into. But maybe first, just talk kind of high level what you're seeing from various end markets. In particular, maybe talk about the outlook for kind of life science funding in general since you always have a good feel for that.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : A lot of unicorns in the portfolio to talk about, too. But maybe talking about the instrument portfolio first. I mean -- I think that's been probably the big highlight over the last year or so. Just how much of this is labs looking at increased automation post-COVID? How much of this is maybe just about better customer awareness of the instruments you have? And then maybe -- well, we'll start there, and then I've got another follow-up.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. I mean you mentioned at your Investor Day -- I think there's 100-something slides out there if they want to know everything they need to know. But one that I really liked was kind of showing the relative maturity of your instrument portfolio. So you kind of talked about where we've been in the last year or so. But can you just talk about within the instrument portfolio, the greatest areas for growth across those franchises? I think it's Ella, but I'll let you comment on that.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : You mentioned Ella and Simple Western, 1 and 2, so I'll ask a question about #3 biologics. I think you launched some new instruments there earlier this year. Hopefully, I don't mess up the names, but I think it was Abby and Jess. Can you just talk about how that launch is going? And then as we think forward to -- like how much more opportunity is there for like innovation in the instrument platform?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. And then can you just remind us kind of mix of instruments versus consumables across that portfolio? 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: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. You've tried to move to cell and gene therapy, so I'll move in that direction since that's what I'm most interested in, and I think probably maybe what you're most excited about. I think you're excited about a lot.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : So on cell and gene therapy, maybe just talk about, I think, the largest near-term opportunity, GMP proteins. I think you just opened the facility, you just started shipping from that, if I'm not mistaken. So maybe just update us on where that stands or remind us kind of the revenue capacity there?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Pretty good. Can you just remind us the breadth of the offering, too, kind of where you are?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : It starts with an IL and ends with a couple of numbers?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : You've talked about the business, I think, doubling the next couple of years is the goal.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : So on that J Curve, maybe just talk about kind of high level the customers you're working with there today, where are they kind of in the clinical trial process?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. Just I guess following up on that, I guess, the path to the $10 million to maybe $50 million, that's commercial demand, right? So this...

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes, yes, yes. But that would be a commercial?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : That would be part of a blockbuster drug probably, right?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : But in -- where these customers are today, they're somewhere in clinicals? We're not -- and do you have anything kind of late stage?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Okay. Got you.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Maybe just on the ScaleReady partnership, can you just -- I think you alluded to the size of the relationships there. But can you just remind us kind of how big those are in terms of quantity across it, like 500 something?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes, yes. That...

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Over 600.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes. And that media is not -- that's separate from the 200 million proteins? So that's another opportunity?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Okay. That's not nothing. Just on the ScaleReady partnership, can you just talk -- I mean, is that something that was impacted by COVID and now that those people are getting -- I mean, I've seen them -- had a meeting on the [Mesos]. Is it helpful for them getting in front of people face-to-face again? Or...

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : And then in terms of kind of cell types, cell and gene therapy is a big world. Can you just talk about the -- maybe the key areas you're focused on in terms of the types of cell and gene therapies?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes. Got it.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes. So -- I mean you've got proteins launching, but the others -- maybe media down the road, the other 2 you have today, nonmagnetic feeds and then you mentioned nonviral, can you maybe just comment or update us on where those stand in terms of adoption?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : So that would be another new offering, magnetic?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes, I wanted to do that.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : And you're seeing it elsewhere, too. In the -- and some Simple Western?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Doesn't mean you're not going to try to outpace $15 million.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : And then something else on the cell and gene therapy side. You've alluded to media and, I guess, magnetic beads. But in terms of building out that portfolio further, if you're going to become a cell and gene therapy company in 10 years, can you just talk about how you think about organic versus inorganic efforts to get into cell and gene therapy?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes. I guess one bigger picture kind of follow-up there. Chuck, since you joined Techne, you've done a variety of deals that have given you a lot of capabilities. Do you think about kind of now versus a couple of years ago, you got a number of [unicorns, which we'll get the exons on here] in a second, in the portfolio, but you also have added a lot of talent, so is it easier for you to kind of make organic investments that add capabilities today than having to buy? Or has anything just have shifted there?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes, you're pretty good. 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: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : And they have cash.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes, if I'm not mistaken, I think, Jim had a picture of piles of bags of cash at your Investor Day. So certainly have it.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Many things. Maybe on Exosome, just starting on EPI. I know COVID was a headwind here on the volume side. But can you just give us an update on how volumes are trending there recently?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes. A couple of things to follow up on that. But first, just on the sales strategy, you mentioned some changes there. Can you elaborate on that?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got you. And then just on kind of the reimbursement side on EPI, can you talk about where that stands? And has that helped in the sales a lot?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Or the other large insurer there?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes. So you talked -- you mentioned kidney rejection, which is ExoTRU. Can you just update us where you stand on commercializing that test? What still likely to be had?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Okay. Yes. So in partnering, you haven't made a decision yet?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : And then something you also alluded to, but I just want to make sure we kind of -- we'd talk about, kind of the longer-term vision for Exosome and with Asuragen and the idea about maybe selling more kitted Exosome tests in the future. What does that business look like? And maybe why are you interested in that model?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. Now, let's see, does anybody have any questions since I'm hogging the questions? No. Okay. ACD, really strong growth there in recent years. I think it...

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : I wasn't going to say. So maybe just talk about what happened last quarter and the outlook there.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : You have also hired a lot of people, too.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : One follow-up on ACD. I think something maybe I underappreciated or maybe I didn't, but from your Investor Day, it was kind of like the longer-term vision for what ACD could look like, kind of moving into like, I think, translational research and diagnostics. Could you just give lay person idea of what that...

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Opportunity, for sure. Maybe just last question for me. Just the digital efforts, I think you're probably paying Google a bunch of money on ad importance. Can you just talk about the progress you made here? And then -- and what the kind of future opportunity on the digital side looks like?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Yes. It's probably hard to quantify it precisely, but that's probably the best way.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : All right, Chuck. I think we've hit our time. Thanks very much for joining us here at Nashville, and thank you all for joining us. 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.