Bio-Techne Delivers Strong Q3 Performance Amidst Uncertainty, Eyes Future Growth in Core Reagents and Cell Therapy Markets
Bio-Techne, a leading life science company, has reported a strong third quarter performance, with 6% organic revenue growth despite operating in a relatively uncertain macro environment. According to Kim Kelderman, President and Chief Executive Officer, the company delivered yet another strong quarter with an emphasis on profitability, driven by operational efficiencies that led to an adjusted operating margin of 34.9%. The team's ability to balance investments for future growth with initiatives to drive efficiencies has maintained industry-leading profitability.
The performance was led by low double-digit growth in pharma, which is expected to return to historical growth rates in calendar 2025, following the realignment of R&D pipelines during much of 2024. The company saw early signs of this improvement in its fiscal second quarter and continued momentum into the third quarter.
Bio-Techne's U.S. academic customers are facing uncertainty around future funding of research projects due to major policy shifts, including a flat Internet cost reimbursement rate of 15% across all NIH grants. However, once the dust settles, the company stands to benefit from NIH grants geared towards combating chronic diseases like cancer, diabetes, and neurological disorders, as its product portfolio is perfectly aligned with those research areas.
In the Protein Sciences segment, strong execution drove demand for a market-leading catalog of research reagents, protein analysis tools, and cell therapy workflow solutions, resulting in 7% organic revenue growth. The company's core portfolio of research use only proteomic agents boasts over 6,000 proteins and 400,000 antibody types, providing global customers with novel insights into biological pathways to develop and manufacture advanced therapeutics and enable precision diagnostics.
Bio-Techne is encouraged by the FDA's recent announcement to advance public health by replacing animal testing in the development of monoclonal antibodies and other drugs with more effective human-relevant methods. This shift aligns with the company's product portfolio and presents opportunities for growth in core reagents and cell therapy markets.
The company is well-positioned for future growth, driven by its strong execution, diversified product portfolio, and alignment with emerging trends in life sciences. As Kim Kelderman noted, 'We are pleased to report another strong quarter, and we continue to execute on our strategic plan.'
Bio-Techne will participate in upcoming healthcare conferences, including the BofA Securities, RBC Capital Markets, Benchmark, William Blair, Jefferies, and Goldman Sachs health care conferences. The company looks forward to connecting with investors and stakeholders at these events.
