Bio-Techne Corporation (TECH): A Bull Case Theory

We came across a bullish thesis on Bio-Techne Corporation (TECH) on scuttleblurb’s Substack. In this article, we will summarize the bulls’ thesis on TECH. Bio-Techne Corporation (TECH)’s share was trading at $47.93 as of 28^th May. TECH’s trailing and forward P/E were 57.75 and 22.03 respectively according to Yahoo Finance.

Bio-Techne has built a diverse and complex business centered on its strong legacy in recombinant proteins, expanding downstream into antibodies, assays, and instrument platforms, while also moving into cell and gene therapy (CGT) solutions. Its revenue is split roughly between Protein Sciences and Diagnostics, which are closely linked—diagnostics identify disease biomarkers that then become therapeutic targets developed using Bio-Techne’s proteins and antibodies. Despite about 20 acquisitions over the past decade, its core legacy products still contribute 56% of total revenue, with the remainder coming from faster-growing, less penetrated markets.

Around half of Bio-Techne’s revenue comes from commercial R&D, now dominated by smaller, venture-funded biotechs rather than big pharma, making this segment more cyclical. Academia accounts for another 20%, a price-sensitive group vulnerable to budget swings. The company is gaining ground in GMP protein production for clinical and commercial use, a highly regulated and lucrative niche, though it trails established leaders like Miltenyi and Cellgenix. Bio-Techne has also expanded into proteomics and spatial biology through acquisitions.

While the company once forecasted nearly $2 billion in revenue by 2026, growth slowed due to several factors: COVID-related demand spikes followed by inventory destocking, a 20-30% revenue decline in China, fading COVID testing tailwinds, and cautious FDA oversight of CGTs that hurt growth expectations. Despite these setbacks causing a nearly 50% stock price decline, recent signs point to recovery with organic growth rebounding to 9% and instrument sales improving. Bio-Techne’s broad strategy reflects its efforts to protect core franchises while expanding into new growth areas, including becoming an instrument provider to capture more downstream value.

Bio-Techne Corporation (TECH) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held TECH at the end of the first quarter which was 24 in the previous quarter. While we acknowledge the risk and potential of TECH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TECH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.