Bio-Techne (TECH) 30 Oct 242025 Q1 Earnings call transcript

Good morning and welcome to the Bio-Techne Earnings Conference Call for the first quarter of fiscal year 2025. [Operator Instructions] I would now like to turn the call over to David Clair, Bio-Techne's Vice President of Investor Relations.

Good morning, and thank you for joining us.

On the call with me this morning are Kim Kelderman, President and Chief Executive Officer; and Jim Hippel, Chief Financial Officer of Bio-Techne.

Before we begin, let me briefly cover our safe harbor statement.

made including conference the beliefs results. comments considered may company's the statements, forward-looking and of during call this be future Some expectations about company's this materially from certain projected in XXXX the The statements actual those fiscal made forward-looking could during company's differ that cause identifies to results the for XX-K call. factors year

SEC developments. because filings Investor the information or new The not to undertake any the as on company available Relations well update events are of The or company's does company's its as other any forward-looking statements within XX-K future website section.

website issued financial will we may the measures upcoming and to this to Bio-Techne at of to GAAP these coming Investor the Separately, non-GAAP call, the of Difa, be morning Kim. information call Tables to provide conferences. you measures used participating are www.bio-techne.com. pertinent available connecting During on business reconciling We earlier Corporation the Stephens performance. now section measures the turn look release I forward Relations be in will UBS comparable many Jefferies to our in weeks, the over at most ongoing with events. in these press company's

conference joining the expectation. morning, us to pleased consistent Dave, initial our fiscal largely you with to Thanks, first year quarter and our everyone. that Thank call. start for good for I'm our report XXXX was

team led year-over-year our markets execution X% end combined the of to biopharma Bio-Techne stabilization revenue excellent Continued growth. with organic by

proteomic Our end in franchise, outperform growth platforms continue constrained spatial biology as well pillars, our analysis as our or including molecular diagnostics markets. to

detail, delivering Jim Bio-Techne containment experienced our business operating end markets, maintain but pillars later peer-leading want indications discuss quarters of the cell early this and team growth call, to performance last have first, in the the initiatives our to which strength more I'll positioned during profitability. the in we in to additional on quarter. for this recent in will a biotech company and but by put therapy encouraging continued give details productivity in profile. momentum our this focus line also the see in the It's gene is I margin top applaud validated in place with about its cost we improvement

These for while science the historical markets continued allow efficiencies will margins growth also as investments to expanding strategic return life rates. their

Before like to the significant we the our I'd we initiatives. social get progress ESG made the specifics to governance and quarter, of environmental, or advancing highlight

we we fourth X CSR. of X, During significant the the progress of report this reduce to quarter, front, a including recent sustainability the highlight issued corporate Bio-Techne made its latest this gas greenhouse Scope iteration emissions. of the the on CSR, or In X commitment letter and submission

evaluated will progress, commitment the positions sustainable by for These continued be a future. proud initiative Bio-Techne XXXX. and the in I'm team's of science-based reduction targets targets which

our our by let's market therapy with Overall, in Now end our strength discuss digits solutions. mid-single results, workflow QX and and gene performance starting cell an with biopharma overview geography. of increased by

stabilization also pharma our ordering customers. improving from from We and large trends sequential biotech saw customers continued

tough Europe. with both comparables quarter the in year-over-year the in digits single low U.S. increased and Academia in

is vertical. This comparable In Now the by growth cell the bolstered Europe strong the overall Americas, was was overall, strong prior growth performance by This which for grew in the low quarter. region. considering more mid-teens in gene even end in diagnostics our single market. year digits, impressive and excluding driven therapy performance from digits increased academia. we our mid-single Europe

growth. a remains a hurdle to challenging funding environment China, In

franchise. did in we strength, as our see and in therapy well gene cell of However, solutions our biology pockets including as spatial

anticipate during to tender research. investments year. stimulus-related digits Chinese healthcare of but the in Overall, China low government business scientific improve our activity, continues prioritize continue to translate we through which orders expect declined to instrument fiscal quarter double will the we into the in that first Our see quarter, to third

play in and role biology Our proteomic spatial of tools these an efforts. portfolio important

business. Now cell let's discuss therapy our the growth pillars within our starting segment, Protein gene and Sciences with

see portfolio developing Here, of our that of continues to that customers therapy. resonate value life-changing to reagents broad this the GMP proposition are we

Additionally, our continue cell for proteins transition customers GMP-certified to from using therapy RUO trials. begin reagents their preclinical as they to work clinical

for is increasing dynamic tailwind an This providing business. our

GMP customers including XX%, increased both as our large quarter, well over smaller the For as our the growth reagent biotech. in lines robust in product

among timing lumpiness. quarter-to-quarter order reminder, create a can customers our As larger

trailing So in grew the on upper our business XX-month reagents a GMP teens. basis,

constraints are We over market particularly considering the same performance the pleased period. this with

venture an give scale-ready to joint Wolf. on our like Wilson I'd Next, partner, update

and the of currently continues the a therapies of on is depending earlier, the place of of As end XX% and the in own cell drive synergies market-leading milestones. is or acquisition, of as XXXX the Bioreactor. -- of the many cost-effective you and purchase efficient to used XX% bioreactor Wilson the in U.S. clinical imminent an used the various the scaling currently around In will taking are front calendar developer and team is in aware, by Bio-Techne for of G-Rex businesses. of trials Europe GX Wilson the remainder between business Wolf potentially achievement Wilson Wolf We X

POPEX for GMP for cytokines Wolf quantity launch provides system optimized recently GMP Gx of of therapies. announced we close precise our bioreactor. simplified For the a the proteins highly The which expansion use of to of cell yet use of the Wilson are example, needed the OPEC enable

get the Wilson an Wolf during These Skill combined Bio-Techne and preclinical product nicely seeding program process, development in the to Additionally, offering GMP industry. nascent initiative GRX this both win positions bioreactors customers of actively to grant and launched the that is academic which biopharma ready power reagents. high-growth GVAX with experience Bio-Techne the customers and

proteomic the other the discuss brand. marketed Analytical let's simple growth Protein the pillar instrumentation Secondly, performance division Sciences, under of Poten our within

growth. mid-single-digit again revenue delivered service team more capital challenging equipment than was consumables the the strong environment by as and Here, offset growth once

our low single-digit Americas. performance to returned the our instruments, in that of of the at proteomic noting decline, several worth specifically portfolio it's quarters growth analytical Looking after

Continuing instrument enabling automated next-generation is called with run. on single Simple the the I'd a broad X-hour high-throughput up simultaneous give system, to an like Western our to of analysis LEO. latest a ProteinSimple, in This to update addition samples XXX franchise western

have at public the July, in market. launch We XXXX. Western our the end following on significant the is Leo upcoming for customer Western system remains announcement blood second the of of a half experienced fully Simple funnel the the interest team automated and fiscal year in building promising only the

of portfolio. the long a than see growth runway future XX%, penetration With this rate we in less for

on tools already to like artificial on position. strong is intelligence further leveraging our I'd Bio-Techne Before discussion to Proteomics an update up our we Protein Sciences, wrap give how you

reminder, only a to broadly Bio-Techne commercialize XXXX. As research was use in the company first proteins

last to by properties, and are heat AI our XX pairing internal therapies. exhibit including, are features. tools with relevant create course, enhanced designer new coatings applications, generative generated the team stability the of other R&D hyperactive are We pettable data engineered protein. to attributes many These years over cell novel These for

launched road in delivered Designer followed cytokines, the growth proteins, our will Protein segment. by our be is the X X% antibodies, aligned Overall, first We and factors with organic team many nicely which map. growth these recently and Sciences AI engineered

last segment, no distinct in this is declines this quarters. it over the in is the growth While X over improvement indicative single-digit way we've latent a potential the performance low of experienced

the headwinds, China biopharma is Remember segment Protein see markets where most market have to and that continue positioned segment improvement this exposure to both and the as we our to normalize. and most these Sciences is

segment segment. renamed segment. Now This and our in we has been the to as Genomics to recently the on spatial Diagnostics Diagnostics will move biology growth previously referred pillars and

increasing segment's indicative our field, name the leadership the in that the spatial biology new of we felt given However, is emerging segment more focus.

demand platform hyperplex COMET. that automated I'm we for following pleased to manufacturing our the for capacity insulin. cross-company have spatial to biology increased Within remains called demand spatial biology, successful the strong meet comments initiatives, fully high-throughput report growing

generating COMET Erniscope XX quarter, simultaneously. now the also enables and up RNA capability. This XX proteins to platform's which We the launched multiomic it can means last These and visualize on that biology targets detect assays who current the data broader are currently will leaders support capabilities to the enhanced key opinion top rollout, of this are in place in hands in multiomic take quarter. spatial which a

for to portfolio a of Earniscope consumable of the capabilities system umbrella. highest stream growing with validated under support will to launch is that pull-through the antibodies any we Bio-Techne a on validated comment. the Bio-Techne's paired R&D The Additionally, branded be antibodies continue instrument use expected

growth Our prostate in a other both kit growth perform pillar XX% ExoDx diagnostics is level business. a molecular within spatial Diagnostics to business, our and our nearly very with -- and test high continues which at

we will stages exosome-based to breast launch the tremendous We through realizing the businesses channel. surgeon of for our initial illustrated between of and kids insuring are mutation, ExoDx exist cancer-related ESRX which that synergies test the by upcoming the the the level commercialize in

differentiated facing the is with be team proven year performance. challenges of what start in industry. these our a challenges, to a delivered In fiscal is summary, off expectation. Despite that initial the another has aligned of prolonged XXXX quarter period to

remain in Our solutions bioactive continue science reagents customers in delivering generate to is to medicine. our differentiated tools unique positioned catalyze forward. on going to portfolio innovative advances focused of and rely growth and We the on

to call team Jim. We all accomplish With I'll the creating that, Jim? our the value stakeholders. the portfolio this to and have while over for turn

QX financial outlook. exchange give start Starting X%. year-over-year for EPS Adjusted basis basis, on performance. foreign QX $X.XX favorable to quarter X% detail increase the on prior was approximately the the compared year. compared a on $X.XX of then exchange quarter $XXX.X prior I'll and currency some a Kim. a some was to impact. with our foreign Thanks, having increase by GAAP in organic EPS an an performance with first on $X.XX quarter, additional million, was reported sales X% impacting with year financial overall the with $X.XX financial $X.XX the and thoughts in revenue

challenging our year-over-year, the business. market China America our North growth China end double low headwind The increased in mid-single instrument region facing geography. a remains low business and Looking QX. challenges at biggest Europe for digits organic digits. funding while decreased environment with in our digits. single by increased the

benefit in should during to start seeing stimulus-related the year. third the are activity We of fiscal in instrument quarter which region growth revenue this China,

single market of countries. in and biology APAC China quarter. single Biopharma increased portfolios, end and was digits our in offset digits growth instrument mid-single low macro by low benefiting and academia spatial China, excluding increased in outside By challenges from with in Japan Korea Asian other QX, increased South overall, partially digits the which both

end mentioned, in see biopharma in by previously global cell our Kim business and bolstered stability we sequential quarter. therapy the As to our market, which gene was continue in strength

SG&A Adjusted year, XX.X% gross QX in impact the was business. by exclusion by quarter in of XX.X% same Revenue the in to productivity while FBS expense to revenue the total lower R&D offset QX margin and P&L, of the product in year, revenue the of unfavorable company in was quarter partially driven compared prior XX.X% to XX.X% the of in adjusted year. compared initiatives the X.X% prior prior of the margin held-for-sale compared X.X% in was mix

SG&A expense impact of incentive control. in accruals decrease driven of basis product unfavorable was bonus mix year as the and Adjusted increase XXX XX% reinstatement well QX operating by partially diligent the The the as period of mentioned was previously due the a commission by prior points for accruals. primarily compensation the offset from of reinstatement margin to

prioritize ensuing the the optimizing during We containment and drive to of growth continue efficiencies our throughout leverage market cost goal to the recovery. initiatives operating initiatives the with organization execute

$X.X interest Net year million, our to the at income. to Looking levels operating expense decreasing lower compared was debt $X.X due to in prior million year. last below period QX compared numbers

year, on to debt adjusted nonoperating our related last bank a of income exchange increase the adjusted $XXX net to million, at of an Our the as our quarter. QX pooling foreign quarter million was income of the $X.X of of prior compared end in decrease balance the and primarily Wilson arrangements. $XX Other cash sheet to million compared XX% share $X.X the million Wolf reflecting impact stood

further Moving down the P&L.

basis prior down to Our year mix. adjusted the in XX was XX.X%, compared due QX geographic to points rate tax effective

million from shares generated was Turning $X.X to of during million with We and capital average capital was expenditures finished shareholders QX, return $XX.X the dividends. million. quarter way a capital. quarter, cash million $XX.X in by to in of our the outstanding. operations Also net we investment returned of flow $XXX.X diluted in and cash

and in sheet ratio cash, in balance QX Our below a position strong remains Xx leverage million well $XXX.X with EBITDA. our total finished

allocation. capital remains M&A priority forward, Going a for top

XX.X%, fetal currently segment. The Now revenue reported I'll the discuss increased the performance segments, Sciences reinstatement reported Sciences initiatives. of million, with product X%. starting unfavorable Thus, year period. of unfavorably by with of compensation is this quarter the QX cost segment year for as reporting sales margin by X%. classified revenue points business, accruals which flat business, Protein Protein of were to XXX volume the our management for compared the were impacted the bovine as decrease as revenue was serum basis $XXX.X offset growth prior as The Operating to exclusion compared segment organic prior and segment reported and well mix structural the win incentive a held-for-sale partially

Turning to same and QX sales reported with growth the compared XX% quarter to segment. Diagnostics Biology and million, were last Spatial organic the year. $XX.X both increasing

led growth. segment again once business Diagnostics Our

reinstatement incentive Moving to volume segment increased the due impact of and year's X.X%, initiatives, prior the Biology accruals. the operating segment's of leverage the Spatial margin offset compared on Diagnostics the at compensation to productivity margin by X.X% partially primarily operating

and the line margin and spatial summary, was QX largely of year we expectations In the the expectations with 'XX operating in year. for which our assumptions We keeps quarter, our biology scales anticipate diagnostics intact. fiscal improvement remainder provided last in throughout initial as performance steady fiscal

As continues of product research. gain to And expected, and with prostate acceptance capitalize strength our as it our of in fiscal in ExoDx broad started with across opportunity innovative year spatial informative of instrument business Biology Motor Diagnostics we its choice test to pipeline Diagnostics launches. Spatial the translational and on continues cancer a surgeon's segment. the front the

This first indicative we healthy half spending. first momentum the of improvement, with our our in levels the we biotech in played biotech is we strength throughout quarter saw mid-single-digit cell current therapy, the smaller stability gene market. in Sciences of funding and the starting in our out, materialize saw initial of suggest would given segment, to with biotech continued into year. end believe Within signs XXXX how Thus, saw biopharma combined our end the Protein we markets improvement growth

course Of look to similar we way, QX. said line performance our to expect another QX top

spend potential gradually rate a the of exit earlier-stage gradual see through of to single the continue as former stimulus in growth half second We Admittedly, by followed Chinese recovery funds large R&D released accelerate quarter a year in are to large for pharma our fiscal spending. high the project recent in organic fourth digits, restructuring wildcard new well remains to has greater as more this pharma the impact believe clarity investments We customers. as by potential the calendar most clear significant outlook. these normal for of a be on XXXX year the initiatives, IRA levels and of as path R&D rationalization

Our adjusted operating margin outlook also remains intact.

XXX half year of to and be points XXXX With expected prior to the points fiscal second first expected XXX higher to prior be basis approximately the XXX than XXX margin than year. to and lower basis half

negative will the the of to accrual related incentive compensation product mix. half first as year The margin have well as reinstatement headwinds

initiatives margin in revenue product greater second benefit planned and leverage, half the mix. While should from productivity volume improving

that, with prepared for back open questions. That to I'll call operator And line turn the the comments. to over concludes my the

line the from Puneet Partners. comes of Leerink question first Our Souda with

quarter on Congrats here. the

spatial, diagnostics both and the first great the seeing could versus side as to and is, current it's that. momentum I biopharma of to the in in you're market biotech speak beat how you rare X but is that backdrop improvement, And the to business. see sustainable it have on spatial say and to elaborate the see the what The diagnostic

and to confidence something continue can you on And quarter first unique just growth? should to December into bit you And half. that gives the elaborate your quarter? confidence the is -- what this why into that, continue not that So this a see ending to

quarters the pick seeing pitch and the biology it and Spatial you strong still thank your apart, runway great have We penetration of take I question, of tests, so. is -- sustainable? we I has then and of it if us, real market Jim. momentum so. ExosomeDx part had X and first part we're over believe do prostate diagnostics right? And we To and second have the last adoption. the Puneet, plenty ahead question, or it to it for your Yes, I'll

we quite So selling know we funnel. we R&D similar will -- That momentum, the go a In that strong laboratories. still believe we have a surgeon kits meantime, confident momentum continue to also that that we the are have diagnostics there. have we we're to also ways in

during upcoming in talked exosome-based ESRX right, channel an through already is will that about which addition, cancer genetic have breast test treatment portfolio. an We this year we for laboratory test, will other launch lounge Asuragen resistance that in tests And launch our fiscal we

momentum as nice If market its good is adoption jump good in right? comet launch early the the we R&D the to in bolstered view markets. that internally instrument, And spatial very biology the mean well sees I on are the instrument from enabling growth So still momentum consumables I this as and see of in point business, know the then days in will an we funnel. from then we

that We course, lounge. on early antibodies, have in or launched continuing the compatible can we've experiments run so which the on also now are multiomic R&D a that so true Multiomic of our instrument. scope we Systems do of launch you to last XX will And this in Comet branded that quarter this is days

X we arms believe continue in we that segment like So of that. and will this momentum have all

the I'll half Jim the microphone. give the of For question, second

thanks. Yes,

continue pharma. gene growth. larger therapy, within as we've And the strong we the calendar quarter and see cell -- seen first need materialize therapy benefit well again, As talked was, biotechs broader and we broad-based which the in -- by it would QX, year to cell quarter, saw what talked and had that for last -- and both we the biotech start gene as to this throughout very growth, about about here, as in funding our smaller into to we spend. we in QX, mid-single-digit by biotech have us quarter strength And growth

well Now customer quarter, the also some within we that know smaller And can yes, was lumpy. but be we have gene did mix and customers those even therapy large very strong. this cell

Now of the in quarter, QX. But daily Puneet, it strong. monitor QX strength that was what first we run encouraging saw expect level half necessarily you don't know, as our was very, in same that we our of back rate. We in was very that

to on business, momentum monitor started smaller under make biotechs quarter, rate back very start a are of business. half those not pop in daily actually a rates, for sales basis run up to the RUO that that $X,XXX growth large portion Our and our a We stabilize, up we to the pick And of bit. see to underlying the trends. just but look a

positive portfolio, Now some those the biotech momentum and it's more within races, but off that's run rates across to October. RUO see that saw growth our not continue into nice entire on we small broadly

So The that, some on us that's into not gives think, a we strong. that and as funding probably basis. what a very strong as cell gene broad-based more to starting it just confidence QX, spending in broad in did growth maintain, we therapy, is turn QX

So tide offset rising the come that growth seeing we're by SPAR we in Biotech. the perhaps but RUO a think in bit will down rates, in momentum our

Jim. Got it. super That's helpful,

metrics these cell moving you existing So the starts just or elaborate made. provided bit into And some on phases. are Can are and before. you had that you comments on later or think new trials account up I a following therapy trial gene

and the metrics are Just for cell business. the the account GMP overall gene and wondering proteins therapy where

of know, past funnel, as in pleased growth customers vertical, therapy Puneet, really XXX now have the we this and in mentioned the customers with are in cell we about and We XX which for the And are just which progress Yes, there. early see that through the see you progressing and sizes. trials. drives also stages volume But as the phases we we sizes the various smaller fortunately, well. increase order funnel, the of order then customers customers clinical the of gene

So we there is feel broad business. in momentum this

comes Johnson question from Our of Stephens. Jacob next J. with the line

this cell sticking income during Wilson below flow of think and other gene I therapy believe theme, the had I kind positive Wolf quarter. that's Congrats the on the the Maybe you line, quarter. on with where them maybe from few about and about talk the the Can other how in line that any think benefit you just income quarter? trend will next to how through. the And quarters?

the Jake, thanks question. for

probably see momentum, great Wilson is also the So Wolf you that's numbers and where coming from. seeing

as the we pitch moment. quarter with detail, growth Jim know, well. Wilson in. you ask at to financial great of further And over own I'll As a they XX% Wolf had XX% just

I I'd line contribution of income get the chunk part but big grow our the into cash the nonoperating from Yes, in other below say favorability came won't FX Wilson translation of Wolf, that a did of arrangements. that from it pooling But specifics to year-over-year. nicely

maybe OpEx, Jim, SG&A it. cost you, guess, on on the some sticking things, I Got with around pieces specifically the just of moving side line.

-- I are efficiency. guys think you about talking

then there. there's you of this But restructuring And SG&A kind year. think around of year, us obviously, And from -- any in reiterated just can had you I margin then and rest you no cost onetime incentive the year? Can your from kind rest for we you the your the of into in as return XQ? as any just the benefits the think help get about the comp. the of charge savings commentary think outlook pacing through items we of

couple is about so were in we upcoming headwinds of Sure. things had even in reversed for in mind if think year, be QX actually was to we than where a you specifically are quarter here, did going profile, to accruals than even that our QX, we margin I meaning clarity incentive to the further. QX comp keep last mean the stronger more performance they as QX QX, in our

there's also the comes the sequential month to employees that last a increases headwind merit part are QX that go the to to from slight when it there's So a headwind annually equation. our that profile about quarter. of think the larger When fact of you from margin QX, the our year-over-year

to have X basically relative we headwind of QX So as of a in that. months QX result

as happening but in think the we When on the it's and It in did about QX, as there. positive of view really, terms last we expansion still same guidance productivity holding can for kind margin. that's the of the modestly we growth QX and and you line back margin is half. our on we're have holding top as as So of half we pace recovery dependent predicted, that long quarter why and bottom to to the the that's initiatives through prioritization protect we line, come rationalization line. a And of a get lot back that overall think

of next question the with line Our comes Leonard from Dan UBS.

comment, First capacity? X better unit pull-through And remind Comet per like manufacturing ASP understand you the by to look you year model there. love much Could in then on the for expect instrument? I'd did me would what you increase is the what consumables? to And how also

village Yes, XXX also spatial variations your that can capabilities. of Dan, -- And that in thanks ASP is. enthusiastic -- about. around order there's is $XXX,XXX Yes, The for course, of the we types comment you so interest certain or

this we've we've discount So there's at -- able been had or around typically a And there, but in little $XXX,XXX. to bit not not of yet all. variation

the to X been point at we great. the price So see that has be right Momentum moment.

We have be demand. our manufacturing capacity increased with up able keep to to

do numbers talk shipped. many installed base unit usually how to about However, in we are we how many our or not as

frame So from. that part, will I

activity instruments in to revenue were you discussing? can just much on remind that your consumables. your And mix color versus on And any comments more the the magnitude offer could you you circle Okay. tender me on is of China back how China, of

Yes.

revenues our know, global Bio-Techne. you X% around overall China as So for is of

But mix as is known. believe a it has We well declining has You in side. more little been is -- XX/XX. that shifted typically, bit consumable and the towards the temporarily mix do revenue there the

know, XX% we instruments The So tender models, this activity instrumentation. we in it in benefits the first and at quarter. -- do is the looking slight inbound quarter, to are activity tender, And which if as we're acquisitions are you activity third around questions and comes our our calendar around consumables. some XX% see in we in

the is makes larger the Most is that academic Western and blot of setting. because on business, sense the aligned blot. also funding that refreshing And sits focused in with automated more capital Western

the have where we a that where all for. been in slight waiting we would turnaround we tailwind and could that's that's So a see expect spark which definitely -- country,

And in we're would I'd go -- what's right growth just add to it be declining pipeline, enough it in seeing QX. from our modest to the today in we a now, from growth the perspective, think region magnitude positive that

question next NewfronResearch. comes from of the line with Thomas Our

a and question related I kind do roughly year-over-year growth. kind comp of it basis, have of QX, But directional to on QX. think on in little sequentially kind Just a your had you guidance guess, I easier bit would have mid-single-digit a flat of

thoughts the QX. the just the kind So for just between sort growth any terms otherwise in of segments second of for what's mid-single-digit that driving of half target

nuance, day off that labs. are where and example, holidays, at in the a there's run purchased take the of around Yes. I sounds know vacations researchers the week rates that, because to fall, based mean year forth. regards is Christmas within of this the the important that the and beginning they're and Year's, in middle both but when their much their so again, for every nuances people a I with like sense end. of New the some to is And particularly it we're in opposed We -- and so of look holidays as daily business our

comp, relative talk easier bit So a example. about of to an you that's last year. when for a headwind

that of without it's into it's than So our see couple past us we QX that, and other stable continuing -- really it of call I significant I really just been, the yet. has uptick would as would any for quarters, pharma say

And pretty to we the least We're appears chugging think the of slowly single QX there's some momentum. but low it's much that the been to did a a hopeful -- an we way for I'm a at that released. momentum -- we're And biotech. seeing although QX as in biotech. specifically particular, biotech overall RUO has all we customers, And QX, large the our us, along digits. offset by get bigger will smaller think are into for gaining new XXXX budgets it bit in the market really regards settle and about bit have Academic gene exceptional our purchases. some with in down We and calendar quarter in a QX, be did gaining cell and in sorry, our therapy be

And just just, thoughts to your kind of in related of terms year-end I sort -- flush. quick on X guess, follow-up overall calendar year-end of budget that,

there either last you little think to very biopharma, year? I that by or to it's better incrementally not normal, was flush year, versus expect maybe be but last back budget would academic

in field seeing and doesn't companies back from pharma, well we're their expect much And that flush a flush hearing needs impact our budget bit. anyone's as that does has ahead guess There's do And been of more expensive out that. their year. there not other a it's said, with yet. in CapEx fact, right particular, again, But instruments. us higher And franchise, them necessarily budgets, as a a all the more budget -- perhaps that instrument result as you now. be But there us how little it it honestly, impact budgets particular, a normally XXXX. in holding they're does If percentage in might greatly ProteinSimple some of as being as return

field. say that more of as But would likely quickly. can the we're now, out hearing less than likely right on it flip based So I in what it pretty looks

know some won't really it December. it upside. happens, get into But if could we be So until we

your Bank. proceed question. the with from Bowers with comes Please Justin question next of line Our Deutsche

then stable of the sticking over terms are it, outlook with of Protein the there similar trends low are growth Jim, previous like there large in proteins fairly protein, different -- Sciences saying any been stable the would it pharma quarters. is then within With still is and ProteinSimple, then, for to follow-up rate last some the hearing that the franchise, i.e. be there? And has business you're Eliza And couple sounds within XQ, the Or run call spend businesses DSB. line of there? the correctly? in looking of on questions. fairly movement the segments, mid-teens within Is in organic just And within the that within we sort like with and biopharma, -- that -- you sort and i.e., are divergence single-digit of

by very to see to don't a funding our if improvement it hopefully about give with And a would can be that I markets, guidance that's and how just the Sciences biology, of biotech -- the kind in the component we more general you to would what there segment is within that Protein continues and driven suggest try diagnostics I generally the lumpy. as described gradual in very end any spatial what OEM there and is markets business But say momentum. is gain regards think of we end segment. I'll

kind So get QX although something is to as QX. in you same strong how we our this the of rate double-digit saw generally growth not in continue as diagnostics quarter, which to we may expect overall as be what growth

question questions say the to what generally of pertains of REO the I the around to it based. remember most was. As would similar in the to its terms performing very I'm our assays middle are reagents trying

that. Is around large pharma. More

Sorry,.

question the know I Yes, now. Sorry,

stable early we us, So yes, before, rates as calendar our customers it's talked on the we run we year I stable off about in of for kind pharma XXXX, larger when mean, their think drop And their saw been we've of budgets that seasonality down to perspective. seen be expect seen what terms in quarter-to-quarter from initially it somewhat We've were see released. we'd year-over-year overall. be a much sequentially pretty

in suggested, change now, May pharma frame, does our the either as probably until other won't the quarter XXXX, major one year. in which we but right it assuming any way seeing last back not time feel is our or of fiscal see pharma we to as of our expect didn't of like April, we come So much guidance

Understood.

X quick fiscal the in 'XX. What comp biopharma for follow-up. Just was

I talked find it a we quickly. it can know about I

at next Let's I'll question, point. go interject some to try to that and on the

Our next Schulte question comes Catherine from the line of Baird. with

around of on think close do your potentially can in what's XXXX? the any with This in for ultimately quarter. guess the wanted to visibility that to Everyone. Peterson the for fiscal comments portfolio. updated in you Hear to manufacturing I you instrument And guess, brand capacity Tom you your solid the growth Catherine. quarter what is that how Congrats maybe turn ACD pull-through being the on the get specifically? into on level pacobiology on the Comet. level to portfolio respect was I highest

Thanks, Yes. question. for Tom, this

the very it of biology, we're to first Comet the to launch pleased So the indeed comes the -- spatial our in expectations overall has momentum yes, quarters. couple see. if met

is a building We earlier had the -- indeed it's days, RNA of now running bit current we quarter. key now we -- necessary rollout, hands happen the the So know, for generating in will have you a As capacity. out this Comet, as little but a deliver of right? we the in can it opinion data to broader the do you sprint heard in feel on comfortable agents, on the that. in we leaders, the which scope script,

of The little ECD pressure especially in we call absolute if though, saw related assay was that the the there headwind talk pharma numbers. some level, But and pharma on put bit comes that of that growth We PDS from, division. don't some and franchise numbers services pressure there, projects. revenue to overall it a a overall on to

the So got is market in some talking overall health of projects which with we've been out, pharma line about. that pushed that

still nothing pushed projects there, impact definitely slight but So from new a out.

do the it. the seeing are Overall, happy Customers of know really bright. biology will with that though, We real we be is traction. see this future system spatial

our there, We from scope Systems will start on antibodies through have brand. RNA and the then available R&D we'll pulling

in of covering some And Any from the I Got of the it. entirety changes the quick around maybe just other instrument program in the activity. activity here the in levels some helpful. peers a quarter? this That's comments super we've then funnel purchases. that And hear guess, China on follow-up the stimulus isn't heard space underlying

how drive we in this high big macro of So a China these do seamless XXXX. And you kind I an to is? see think need level, growth a of to to impact improvement distributions at dynamic market broader China guess alongside typical do return in

Yes. I'll first Tom. the of it. take part Thanks,

seeing lines. As earlier, interest we're much we different which product -- expected, and in quoting see our activity what we we a mentioned is pretty

our the blot also much instrumentation, Jim give the impact earlier very in mentioned makes which Western mentioned will question, I sense it -- I rate. growth As about the earlier, related will to on him microphone have Western and and -- automated

it mentioned to to stimulus Yes, flip be a negative for be as growth. enough growth China I being will of able to modestly us earlier, from positive

of line Matt the from William with comes question Larew Blair. next Our

this on this, and hold the some pickup in? you visibility that's -- in versus I Or new the of guess, breakdown from broadly any generate clinical on was to biotech And returning? view back. coming pause to just or maybe the a I that stage within wanted and is look remember to extent sort or work and maybe you it's be, coming would now is your sell the delayed ask assess and second work sort have been part biopharma. project The of there's related if that in discovery of

Yes, expect. as mentioned see meantime, II the getting right? So would see for Thanks the both, some I the with progressing question. I I is In we've the Phase the -- I'm earlier a we of our but report a increasing, to smaller also you frequency if funnel order we through funnel. grow found and also that, to similar their customers and even found that number, should accounts be added portion and not in of orders clinical, into we think and we them clinicals Phase seen mentioning or to the we new then existing sure that are we in customers of speed glad the -- order be size the good smaller

activity with happy of of all equation. those pretty X the we're basically, on the level So parts

another Okay. you've entrants Wolf scale-ready new are in space with about made advance been grant Lominand working on announcement future you competitive there. clearly And a partnership, that that, Obviously, in remains of the investing owning the obviously you then Wilson

sort from as stand portfolio competitive standing strategy for the of sort and your of product take would the curious So just development as offering. be of I well on where you're that you

Yes. Thanks.

to we that solutions. R&D related are where competitive other the from be scalability, differentiating First the utilizing advantages systems we we with see them In just proteins, tremendous much the the The performance competitors. versus well specifically as there off, GRX flexibility very cytokines, position, our incubator are very we cost the synergies are happy hope know portfolio, with our media. and as the core significantly GMP the meantime,

So we overlap have a fantastic there.

We early use exposed the to GRX their decisions make GRX being of also to your use -- what where projects in a days with. the know the you the and you in a as you starting related agents it GRX customer and that begin is a vehicle to if

grants that important. feel So that's these the we are reason why

getting we getting going therapy in not their their solution design will also for therapy customers towards once these which that we faster, these the of also humanity, as our they as happy the utilizing them And well right are help We know tools is help with but forward. place. biotech the be GRX great their customers only agents that and

So feel it's win-win. smart a we to way create a

from comes question next with Ji Sung Scotiabank. Nam line Our the of

Just the of great challenging comparisons. on there academic things, the see end despite side market growth to

the could you have of business further of strongest the out elaborate maybe which pointed but terms might where quarter? in product Europe, seen You you -- segments growth or in the

very academic Yes. nicely comparable. mention it our grew against very did And Europe pleased because performance. We we with significant were overall

with meaning across happy the that academic as However, And were really in U.S., comparables in the that that was the different strong regions. we're well. the not very, lines the across performance and very U.S. product very means

As you levels good been funding news some know, just there the as around in in U.S. Horizon has funding well. Europe and

However, results. driver always say interesting not that true for are levels we the us, but funding overall the for

our definitely It adoption of direction are are related which where products from, benefiting year, been And where is to of products. drive cancer-related our last it's the the fields, typically the couple more clearly the years more funding flowing in neuroscience-related flows. these last which being in

academic. in So that's the dynamic there

opportunities, Got of Exosome updates any terms great technology. you. just especially might strong the see side, with partnership diagnostics be any wondering the And molecular in growth Great. then I the also there. on to if of Diagnostics there was

Yes.

thermal, So that we on it's around hands. rejection in kidney have, are as the agreement you with assay, working an know, Thermo's and teams signed

creating the exosome-based to support on team the the As there. we now, mentioned quarters, is other we that the in through at you have couple continue can efforts focused goes earlier, I Yes, going ESRX the in mainly that's for know, the and But sells making. channel. into testing market motors will our bringing have ourselves the exosome over signatures And the mentioned of And and assurgion last And we well very as test pipeline the that's commercializes that product first our operandis just script future. into on of for we're to is as what channel the I really laboratories. the focus as assergion based preferred

much. Great. Thank so you

session. would over the Q&A I closing call remarks. for to our to concludes Kim pass like This back

the today the able joining Bio-Techne of results deliver for you and for have to I'm questions. thank call this team's the quarter. accomplishments been and and you, proud Thank we your insightful extremely

all Thank positioned addresses portfolio highest in of is deliver to and the differentiated and a markets best-in-class our life you, for sciences some stakeholders performance growth day. great have Our going forward.

This concludes teleconference. today's

lines Thank may at disconnect this time. you your your for You participation.