Daniel Markowitz

Bob confirmed SmartDose 3.5 was dilutive and its exit adds 50 basis points of margin for the full year, 100 basis points in the second half.

Bob said it is prudence rather than a real slowdown, with GLP-1 news constructive and OUS generics more of a 2027-plus driver.

Eric attributed NovaPure strength to demand for commercialized molecules plus continued pipeline feeding. Bob confirmed very nice NovaPure year-on-year growth with ongoing momentum.

Bob attributed first-half weighting to CGM contract $40M headwind unchanged from original guidance plus beginning-of-year prudence. Emphasized ongoing momentum in the business.

Eric cited regulatory audits and contamination control inspections driving accelerated customer interest. Bob noted opportunity could be larger than 6B units due to reshoring and customer desire to standardize specs globally.

Bob declined to quantify the gap but confirmed European capacity grew substantially Q4 to Q1 while demand grew faster. Eric confirmed non-GLP-1 HVP expected to grow high single to low double digits in 2026.

Eric confirmed tailwinds from destock comp, GLP-1, Annex-1, and resolution of one-off customer constraint. Noted timing of new drug approvals and Annex-1 project rolloff as variables. Bob confirmed GLP-1 growth broadly in line with end market growth.

Eric declined to give Q2-specific contribution, reiterating the 150 basis point full-year target. Noted project count is not a direct proxy due to variability in complexity and timing across projects.

Eric emphasized AnnexOne is long-term, not a one-or-two year event, with projects spanning pharma and generics shifting from standard to HVP products.

Kim confirmed these customers front-loaded raw material purchases for Phase III completion. Next demand inflection will come from commercialization and manufacturing validation processes, which Bio-Techne assumes is still to come.

Jim cited new streamlining activities initiated during Q1 plus some timing of strategic investments pushed to later in the year, providing confidence in full-year 100bp expansion target with potential upside.

Jim described strategic promotional spending to support academic and biotech customers during challenging times including heavier discounting and solution support. Kim added grant programs and early-project seeding ensure Bio-Techne maintains funnel position for when markets recover.

Jim explained the company is managing to low-single-digit growth with productivity actions, using ExoDx savings plus cost cuts to reinvest while expanding margins. When markets return, will reassess balance between reinvestment and incremental margin.

Kim confirmed cell and gene therapy growth was almost identical across the portfolio, not just Wilson Wolf.

Jim declined to provide FY2026 margin commentary but noted Q3 demonstrated the company is positioning extremely well for whatever FY2026 brings from an end market perspective.

Jim noted current spending is from already-approved grants so real impact is calendar 2026+. Referenced Trump first term where proposed NIH cuts were overturned by bipartisan Congress. Kim added 80% of academic revenue is consumables with low-ASP instruments around 0,000.

Jake described evolving product portfolio, service, and field team approach. Using advanced tools to analyze data and target patients and prescribers. Primary care is main location for NIT2 patients, which drove 2024 salesforce expansion. Physician education around existing coverage is priority.