US-based life sciences service provider Bio-Techne Corporation (NASDAQ: TECH) has released its Q1 report for the fiscal year 2024, which ended on September 30, 2023. The company reported a 2% year-on-year (YOY) increase in revenues, reaching USD 276.9 million.
Segment Performance and Revenue Breakdown
Bio-Techne’s Protein Sciences segment contributed USD 204.7 million in Q1 sales, marking a 2% increase, while the Diagnostics and Genomics segment generated USD 72.8 million, with growth remaining flat for the quarter.
China Market Impact and Executive Insights
The China market, which accounts for approximately 10% of Bio-Techne’s business, was highlighted as a significant factor impacting performance during the earnings conference call. CEO Charles Kummeth attributed the slowdown to a soft biotech funding environment and an “evolving macroeconomic landscape.” A decline in government funding for new life sciences programs, which began in Q4’23, has continued into the current quarter, leading to a “low teens” percentage drop in China market sales. Kummeth noted that Chinese government funding for life sciences R&D at hospitals and academic institutions is significantly lower than the previous year. Additionally, the private sector has seen a slowdown in private equity and VC funding activity, leading to more cautious spending patterns for cash-dependent biopharma companies in the region. Despite these challenges, Bio-Techne remains optimistic about the long-term prospects for China, as the government continues to focus on modernizing healthcare across both urban and rural areas. However, there is no current forecast for when the market will return to a growth trajectory.
Bio-Techne’s Product and Service Offerings
Bio-Techne develops and manufactures a range of products and solutions for biotechs and researchers, including purified proteins, reagent solutions, antibodies, immunoassays, and cell and gene therapy workflow solutions. Their protein analysis solutions, sold under the ProteinSimple brand, support researchers with automated Western blot and multiplexed ELISA workflows. The company also develops diagnostics such as in situ hybridization assays (ISH) for research and clinical use, sold under the ACD brand, and a portfolio of clinical molecular diagnostic oncology assays, including the ExoDx Prostate test (EPI) for prostate cancer diagnosis.-Fineline Info & Tech
