Rewrites paragraph 1, updates shares, adds executive comments in paragraphs 4 to 6 and analyst comment in paragraph 7
By Siddhi Mahatole
Nov 5 (Reuters) - Biotech firm Bio-Techne TECH.O on Wednesday missed Wall Street estimates for first-quarter revenue, hurt by subdued demand for its products, sending its shares down more than 4%.
The Minneapolis, Minnesota-based company develops products used in medical research, drug development and diagnostics.
Uncertainty due to cuts to U.S. academic funding as well as concerns related to President Donald Trump's tariffs have been weighing on the company's clients. The company said in August it expected these pressures to spill into fiscal 2026.
"We expect this headwind to intensify in Q2," CFO Jim Hippel said in a post-earnings call with analysts.
Bio-Techne saw "encouraging signs" of stabilization in U.S. academic end-market and "continued strength from large pharmaceutical customers, while funding headwinds persisted for emerging biotech companies," CEO Kim Kelderman said.
Kelderman added there was a 1% decline in organic revenue, "primarily due to clinical stage timing from a couple of large customers in our cell therapy business and the anticipated ongoing softness in biotech funding."
Leerink Partners analyst Puneet Souda said that the quarterly miss is "not surprising given well-known challenges in research and discovery end-markets, but still likely to be viewed negatively by investors."
Bio-Techne's quarterly revenue came in at $286.6 million, falling short of estimates of $291.2 million, according to data compiled by LSEG.
Sales at the company's largest protein sciences unit, which develops and manufactures biological compounds used for research and diagnostics, fell 1% to $202.2 million during the reported quarter.
Quarterly revenue from its diagnostics and genomics unit, which manufactures tools and compounds used to make therapeutics and vaccines, fell 4% to $79.5 million.
The company posted an adjusted profit per share of 42 cents for the quarter ended September 30, in line with analysts' estimates.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shreya Biswas and Shailesh Kuber)
((siddhi.mahatole@thomsonreuters.com;))