MINNEAPOLIS - Bio-Techne (NASDAQ:TECH) Corporation (NASDAQ: TECH) has announced its contribution to a $45 million Series A funding round for Spear Bio, a company specializing in ultra-sensitive immunoassays. The investment is aimed at advancing Spear Bio's product development and enhancing its manufacturing capabilities.
Spear Bio, established in 2021 and based in Woburn, Massachusetts, is recognized for its groundbreaking work in the measurement of protein biomarkers at the attomolar level using minimal sample volume. Its proprietary technology, Successive Proximity Extension Amplification Reaction (SPEAR), is licensed from Harvard University's Wyss Institute.
SPEAR technology is noted for its ultra-sensitivity, making it particularly useful for detecting low-abundance biomarkers in diseases such as Alzheimer's.
Kim Kelderman, President and CEO of Bio-Techne, expressed enthusiasm for the investment, highlighting the significant advantages of Spear Bio's detection technology over existing methods. He pointed out the potential for Spear Bio's assays to be used in early diagnosis of neurodegenerative diseases given that they are compatible with widely available qPCR equipment.
Feng Xuan, Ph.D., Co-founder and CEO of Spear Bio, underscored the endorsement from an industry leader like Bio-Techne. He indicated that the funding would position Spear Bio to rapidly advance its next-generation assay technology, facilitating the detection of biomarkers in challenging medical conditions.
Bio-Techne, a global life sciences company, supports scientific research and clinical diagnostics with innovative tools and bioactive reagents. The company reported over $1.1 billion in net sales in fiscal 2023 and employs around 3,100 individuals worldwide.
The information for this article is based on a press release statement.
In other recent news, Bio-Techne Corporation and Regulus (NASDAQ:RGLS) Therapeutics Inc. have reported positive results from their Phase 1b study for a potential treatment for Autosomal Dominant Polycystic Kidney Disease (ADPKD). This development is part of an ongoing collaboration that aims to develop therapies targeting microRNAs.
Meanwhile, Citi has downgraded Bio-Techne's stock from Buy to Neutral due to concerns over the stock's current valuation and uncertainties surrounding biopharma funding and operations in China.
In financial news, Bio-Techne reported a 2% year-over-year organic revenue growth for the third quarter of fiscal year 2024. The company's Diagnostics and Genomics segment saw a robust 10% organic growth, while the Protein Sciences segment experienced a slight revenue decline. However, strong demand for the ExoDx Prostate test and Comet platform was observed, and the company expects these products to have expanded capabilities by the end of the fiscal year.
Despite slight hurdles, Bio-Techne's CEO Jim Hippel has expressed confidence in achieving high single-digit or double-digit organic growth in fiscal year 2025.
InvestingPro Insights
As Bio-Techne Corporation (NASDAQ: TECH) stakes its claim in the future of ultra-sensitive immunoassays with its investment in Spear Bio, the financial metrics and analyst insights provide a deeper look into the company's market position. With a market capitalization of $12.7 billion and a P/E ratio standing at a hefty 64.42, Bio-Techne is trading at a high earnings multiple, an indicator of the market's high expectations for future earnings growth.
Despite these expectations, analysts have signaled caution, with 5 analysts revising their earnings downwards for the upcoming period. This may suggest that while Bio-Techne's technology and market presence are strong, there are factors that could impact its near-term financial performance. On a positive note, the company has consistently maintained dividend payments for 17 consecutive years, which speaks to its financial stability and commitment to shareholder returns.
The company's financial health is further evidenced by its ability to cover interest payments with its cash flows, and its liquid assets surpassing short-term obligations. These are crucial indicators of Bio-Techne's ability to manage its financial obligations and invest in growth opportunities like Spear Bio.
For those interested in a deeper dive into Bio-Techne's financials and for additional InvestingPro Tips, you can visit InvestingPro. There are 13 more tips available that can provide further insights into the company's valuation and performance. To get the most out of these insights, use the coupon code PRONEWS24 to receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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