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Bio-Techne Fiscal Q1 Revenues Rise 13 Percent

NEW YORK (360Dx) – Bio-Techne said today that its fiscal 2019 first quarter revenues rose 13 percent year over year, thanks largely to a 17 percent increase in revenues from its protein science business.

For the three months ended Sept. 30, the firm reported revenues of $163.0 million compared to $144.6 million in Q1 2018, beating the analysts' average estimate of $161.9 million. On an organic basis, revenues grew 10 percent year over year. 

The firm reported that its Q1 diagnostics and genomics segment revenues were almost flat year over year at $36.7 million compared to $36.6 million. Protein sciences revenues rose to $126.4 million from $108.1 million.

Bio-Techne President and CEO Chuck Kummeth said in a statement that the protein sciences business benefited from "exceptional commercial execution in both our reagent and analytical solutions business units," and added that sales in Europe exceeded the company's expectations "with double-digit growth for the past two years."

He also noted that the firm is busy integrating its acquired Exosome Diagnostics business and preparing it for "accelerated growth in the future." Bio-Techne paid $250 million in cash up front for the acquisition and could pay up to an additional $325 million contingent on the achievement of certain future milestones.

The firm noted that in addition to acquiring Exosome Dx, it recently closed an acquisition of Quad Technologies, which expands its portfolio into the growing and scalable markets within cell therapy.

In a note to investors, Leerink analyst Puneet Souda wrote that a revenue ramp is anticipated from the wide adoption of the Exosome ExoDx Prostate (IntelliScore), or EPI, prostate cancer test. He noted that the Exosome business represents a market potential of 4.7 million patients with 50 percent coming from Medicare, 15 percent from Medicaid, and 25 percent from commercial payors.

On a conference call to discuss the financial results, Kummeth said that he expects a Medicare reimbursement decision soon for the prostate cancer test, but that the timing of the decision is uncertain.

"Urologists in the field have shown great enthusiasm for the EPI test," he said, adding that in the recent quarter, clinicians processed almost 3,000 tests compared to 1,500 tests in the quarter ended March 31.

Since the acquisition date, Bio-Techne has more than doubled the number of people selling the test to 32 sales representatives, he added.

Separately, Kummeth noted that Bio-Techne is supplying instruments and cartridges as part of a strategic agreement that the firm inked recently with Micropoint Bioscience, the Shenzhen, China-based developer of a microfluidic test. Micropoint is handling all of the regulatory requirements for a test that will be used in the monitoring of autoimmune diseases in hospitals, he said.

Bio-Techne's Q1 net income rose to $17.4 million, or $.45 per share, from $15.9 million, or $.42 per share, in the prior-year quarter. The firm reported adjusted EPS of $.98, beating the analysts' average estimate of $.95 per share.

The firm's Q1 R&D expenses were up 10 percent to $14.8 million from $13.5 million, while SG&A expenses rose 15 percent to $67.1 million from $58.3 million.

Bio-Techne finished the quarter with $94.7 million in cash and cash equivalents and $69.0 million in short-term investments.

In morning trading on the Nasdaq, Bio-Techne's shares were down nearly 2 percent to $174.54.