(Reuters) – Bio-Techne on Wednesday beat third-quarter profit and revenue estimates, helped by better-than-expected demand for its cell and gene therapy products and testing and diagnostic devices.
On an adjusted basis, the company posted a profit of 48 cents per share, beating analysts’ estimates of 45 cents per share, according to LSEG data.
“As expected, we experienced subsiding headwinds from de-stocking but also delivered year-over-year growth in a depressed biopharma end market,” said CEO Kim Kelderman.
The company said in a conference call in February that the soft funding environment continued to impact China, which contributed to 10% of the company’s total revenues in the fiscal year 2023, according to latest regulatory filings.
However, the company added it expects headwinds to be less severe going forward as inflation and interest rates appear to have stabilized in China.
The Minnesota-based company reported third-quarter revenue of $303.4 million, compared with analysts’ estimates of $292.2 million.
Sales at its largest protein sciences unit were $214.6 million, a fall of 2% from a year earlier. But it still came ahead of analysts’ expectations of $209.7 million.
The unit develops and manufactures biological compounds used for research and diagnostics and to develop cell and gene therapies.
Revenue from its diagnostics and genomics unit, which manufactures tools and compounds used to make therapeutics and vaccines, rose 16% to $87.5 million.
Larger peer Thermo Fisher in its post-earnings conference call said it is seeing continued improvements in biotech funding environment, partly because of a stimulus program announced by China.
Bio-Techne on Monday announced a strategic distribution agreement with Thermo Fisher where Thermo through its European arm will distribute Bio-Techne’s extensive portfolio of products to laboratories and research institutions across Europe.
(Reporting by Sneha S K in Bengaluru; Editing by Vijay Kishore)
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