Bio-Techne Corporation

Bio-Techne delivered a disappointing result in the last quarter while failing to meet Wall Street expectations in terms of revenues as well as earnings. The company had a decent organic growth in the second quarter of fiscal 2023. Its ExoDx prostate test continues to see record demand, and the order funnel for its protein and analytical tools is still full. The company also noticed the strongest effects of decreasing biotech spending in Q2 in North America. Nevertheless, North America was still able to increase by low single digits. The multiyear growth rates in North America remain in double digits and are consistent with its long-term objectives. Besides, GMP protein sales increased cross-selling activity throughout their portfolio as their customer is expanding, and they frequently buy additional products like RUO media, proteins, and small molecules. They further expanded their ACD portfolio by launching RNAscope Plus small RNA. RNAscope Plus offers researchers working on gene therapy a useful new tool for measuring changes in gene expression and cellular function brought on by adding regulatory RNAs to maximize effectiveness and safety. We give the company a ‘Buy’ rating with a revised target price.