Bio-Techne Corp at Stephens NASH 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 : Thanks for that, Chuck. Maybe just rather than diving into the 50,000 products, maybe taking the 10,000-foot view, you just reported a really strong first quarter, double-digit organic growth. Maybe just to start off, can you talk about what you're seeing -- about demand trends kind of by end market, geography, thus far in your fiscal 2021?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Maybe a couple of follow-ups on that. I mean you mentioned really strong instrument performance in the quarter. I think it was led by your Simple Western. I guess as we look longer term, obviously, that seems to be really resonating in this COVID environment. But when we get beyond COVID, do you think there will be kind of an increased shift or a continued shift to automated solutions like this? Is anyone going to want to go back to a manual process?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : And then maybe one other kind of high-level COVID question. Chuck, you always seem to have your pulse on the funding environment. Longer term, what do you think the longer-term implications are from COVID-19 in terms of life sciences funding, both here in the U.S. and I'll be interested in kind of thoughts on a more global perspective as well?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. And then maybe one last line that's kind of COVID questions. You've got this serology test where you partnered with Kantaro and Mount Sinai. Can you just remind us where that is in the EUA process? I think you have CE mark in Europe. And then just kind of talk economics to Bio-Techne from this work. And then how it compares to other serology tests that are out in the market right now.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. And then just maybe one other question...

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. Just waiting on the FDA. Just one other question here. In terms of the opportunity for serology tests, I think right now, serology testing is relatively low versus PCR testing. Can you just talk about what the volume ramp could look like for this test? And is this something where a vaccine is really going to drive demand for a serology test? So what's the kind of the catalyst for us to start seeing...

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : All right. I think we did 15 minutes of COVID, maybe we can move on to more exciting stuff.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Cell and gene therapy, Chuck, you mentioned it a couple of times. I think GMP proteins is the question a lot of investors have been asking about. I guess a couple of questions here. Maybe first, talk about the role these GMP proteins play in the cell and gene therapy workflow. Why the interest in GMP versus plain old proteins? And then maybe just touch on some of the demand you've been seeing for these GMP proteins.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : A couple of follow-ups after everything you mentioned there, Chuck. Maybe just one quick one. When you say you're seeing people who will need $10 million worth of GMP proteins, that would be for a -- if their therapy is commercially approved, that's the kind of demand you would see from a potentially...

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : [Both commercial?] Okay.

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got you. And then you mentioned B-MoGen and Quad, and talked about kind of where those play in the workflow. But can you just remind us when the time line for those deals may be starting to generate more meaningful revenues, what the revenue opportunity is from those assets and maybe where we are in that?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : And then something else you mentioned earlier, I just want to circle back on. You've got this JV with Wilson Wolf and Fresenius Kabi. Can you just talk about what that JV entails and how that's progressing?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. Maybe one follow-up I meant to ask earlier on GMP proteins. Can you just talk about the gross margin profile on GMP protein? Should we think about this as kind of in line with your traditional protein business or any way to think about that?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. That makes sense. And then maybe the last question here on cell and gene therapy and also maybe fast-forwarding to the M&A question, just with everything going on in cell and gene therapy and you having this growing portfolio of assets to serve this market, are you interested in adding additional capabilities to serve the cell and gene therapy end market inorganically? 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. Maybe shifting gears to Exosome. Maybe just to start off, talk about EPI test volumes maybe the last couple of quarters or how they trended last quarter. I think there's been some impact from COVID there, but it seems like things are bouncing back a little bit?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Well, as a 30-something year old, I can remember Cal Ripken, too. But one follow-up, you talked about the at-home version of this test. And I kind of wonder about this around diagnostics in general, post-COVID. I mean is this something that you think patients will prefer even when they can get out and about again, just because it's so convenient to do the test at home, that maybe there's a longer tail there?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. And then maybe a couple of kind of reimbursement questions. First, maybe on the MAC reconsideration process, can you just update us on where this stands?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : And then on the private payer front, can you just update us on discussions there? How impactful was that utility study that you referenced? And then any other -- anything else they're asking for? Is that...

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : Got it. Maybe 2 last quick ones, just broader on Exosome. Chuck, I think you've talked about after prostate, there's a couple of other potential testing opportunities from these Exosome assets. Can you remind us what those are? And then I think you've talked about potentially partnering there -- partnering those, can you talk about the strategy behind that?

Question: Jacob K. Johnson - Stephens Inc., Research Division - Analyst : A couple of minutes left. Maybe just one last big-picture question. I think you alluded to this a little bit at the beginning, Chuck. But I think you're hoping this year to kind of roll out formal 5-year targets. But I think you've kind of talked about some of -- how you view your 5-year targets. Can you just remind us of that? Talk about maybe some of the growth targets across the portfolio by... 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 : Well, I think myself and everybody else looks forward to one day seeing you guys in person and hearing about all of that. But for today, we appreciate you joining us virtually. Thank you, Chuck, Jim and Dave for the time.

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