2024-04-04 08:43:07 ET
Summary
- Bio-Techne is a life science tools and services company focused on the development and sale of reagents and consumables for life science research.
- The company's focus on the stable and lucrative life science research market has led to above-average growth and profitability compared to diagnostic companies.
- Bio-Techne has exhibited strong financial performance, with high profit margins and low leverage, making it a top performer among its peers.
- I expect recurring investments now during a weak market phase will pan out well for long-term investors.
Introduction
Bio-Techne ( TECH ) is a life science tools and services company, primarily focused on the development and sale of reagents and consumables for life science research. As a pure-play focusing on recurring services for the life sciences, rather than diagnostics, growth and profitability are above industry averages. Why? Well, healthcare is already a strong sector for secular growth, but life science (LS) research is far more stable, lucrative, and secular than the other half of the sector, diagnostics ((DX)). This is because outside of a COVID-like black swan event, DX is consumer facing, competitive, and the market is saturated due to most technologies being well-established (outside of a few growth niches). Instead, the LS market is always being invested in as returns from early academic and biopharma research benefit all areas of the healthcare market, including DX....
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For further details see:
Bio-Techne: Secular Growth Opportunities Always Exhibit Financial Excellence