(Reuters) – Bio-Techne reported fourth-quarter profit in line with estimates on Wednesday as growth in the diagnostics and genomics unit offset weakness in its protein sciences unit.
The Minnesota-based company posted an adjusted profit of 49 cents per share, meeting analysts’ expectations according to LSEG data.
Fourth-quarter revenue reached $306.1 million, slightly below analysts’ estimates of $306.5 million.
The company experienced continued stabilization in its biopharma and China end-markets, CEO Kim Kelderman said.
The biotech sector faced challenges in 2023, with contract drug manufacturers experiencing reduced spending from their clients amid rising interest rates.
However, an improvement in the public funding environment for early-stage biotechs is expected to improve in the second half of this year driven by expectations of interest rate cuts from the Federal Reserve in September.
Some analysts have noted that biotech funding could stabilize due to a strong year for regulatory approvals in the United States in 2023.
Sales at its largest protein sciences unit decreased 4% to$214 million, missing estimates of $218.4 million. The unit develops and manufactures biological compounds used for research, diagnostics, and the development of cell and gene therapies.
Revenue from its diagnostics and genomics unit, which manufactures tools and compounds used to make therapeutics and vaccines, rose 15% to $90.7 million, beating estimates of $88.8 million.
In July, larger peer Thermo Fisher raised its annual profit outlook, banking on improved demand for its tools and services used in clinical trials.
(Reporting by Sneha S K in Bengaluru; Editing by Tasim Zahid)
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