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Bio-Techne Fiscal Q2 Revenues Flat, Miss Analyst Estimates on China, Biopharma Weakness

NEW YORK – Bio-Techne on Thursday reported flat fiscal second quarter revenues, missing analyst estimates on the top and bottom line due to ongoing weakness in China and the biopharma market.

For the three months ended Dec. 31, 2023, the Minneapolis-based life science research and diagnostic tools company reported revenues of $272.6 million compared to $271.6 million a year ago and below the Wall Street estimate of $277.5 million. Organic Q2 revenues declined 2 percent year over year, with acquisitions and foreign currency exchange each contributing a percentage point.

Bio-Techne noted that it was able to partially offset the biopharma headwinds with 20 percent growth in consumables for its instrument platforms.

"I am pleased with the team's continued execution in this dynamic operating environment, as we navigated a challenging China landscape and conservatism from a subset of biotech customers, which was partially offset by continued strength in our academic end market," Bio-Techne President and CEO Kim Kelderman said in a statement. "Encouragingly, we are seeing initial signs of stabilization in China, and remain confident in the long-term high-growth potential of this geography."

Revenues from the company's Protein Sciences segment, which supplies specialized proteins such as cytokines, growth factors, immunoassays, antibodies, and reagents to biotech and academic researchers, fell 3 percent to $197.7 million from $203.9 million a year ago, or 4 percent on an organic basis.

The firm's Diagnostics and Genomics segment, which sells bulk and custom reagents for in vitro diagnostics, spatial biology research products, and exosome-based diagnostic tests, grew 11 percent to $75.4 million from $68.0 million a year ago, or 5 percent organically.

Bio-Techne's Q2 net income fell to $27.5 million, or $.17 per share, from $50.0 million, or $.31 per share, a year ago. Adjusted Q2 EPS was $.40, just below analysts' average estimate of $.41.

The company's Q2 R&D spending inched up 2 percent to $22.9 million from $22.5 million last year, while its SG&A spending ballooned 24 percent to $115.7 million from $93 million a year ago.

Bio-Techne finished the quarter with $130.1 million in cash and cash equivalents and $5.5 million in short-term investments.

Separately on Thursday, Bio-Techne announced that its board of directors has decided to pay a dividend of $.08 per share for fiscal Q2. The dividend will be payable Feb. 26, 2024, to all common shareholders of record on Feb. 12, 2024.

In morning trading on the Nasdaq, Bio-Techne shares were down more than 5 percent at $66.50.