Bio-Techne Q2: CGT a ‘major growth driver’

The bioprocess firm saw net sales of $550 million for the first six months of fiscal year 2024, up 1.5% year-on-year. Sales in its protein sciences segment fell slightly. Pre-tax profits stood at $83 million, down from $170 million the year prior. 

Sharing insights during Q2 financial call, CEO Kim Kelderman pointed, the firm is facing “several headwinds” with continued “soft biotech funding environment, destocking of its large original equipment manufacturer (OEM) […] and broad economic challenges in China,” mirroring concerns from fellow bioprocess vendors.

However, he added that Bio-Techne’s CGT portfolio, which includes proteomic reagents, will be a major growth driver. 

“Cell and gene therapy is here to stay,” he said. “In fact, we believe that these technologies will play a significant role in treating and curing terrible diseases and therefore we will continue to invest in the strategic growth pillar.” 

Furthermore, Kelderman shared the company’s strategic plan for expanding its GMP portfolio and pairing it with the immune cell therapy, “In addition, we are finalizing the […] immune cell therapy manufacturing solution which pairs our GMP proteins and our GMP media with the Wilson Wolf G-REX,” he said. 

An agreement signed in 2021 gives Bio-Techne a 20% stake in St. Paul, Minnesota- headquartered CGT firm Wilson Wolf. Bio-Techne can also buy out Wilson Wolf at a price dependent on revenue targets. 

Both Bio-Techne and Wilson Wolf are a part of ScaleReady, a joint venture combining their capabilities with Fresenius Kabi’s aimed at creating a cost-effective cell and gene production platform. The joint venture came into effect in 2021 and included different elements for the platform contributed by each partner: Bio-Techne supplied the proteins, reagents, media, and gene editing technologies; Fresenius Kabi contributed its cell processing systems; and Wilson Wolf added its G-REX cell culture technology.

Bio-Techne’s chief financial officer James Hippel reassured the investors of “upcoming approvals “where the G-REX is packed in.” 

“So overall, we believe that Wilson Wolf will be doing great again,” he said, “and we know that John Wilson [CEO of Wilson Wolf] has invested in activities that bolster the adoption of our G-REX and the Wilson Wolf franchise. […] It’s the end of calendar year 2027 that Wilson Wolf will be fully part of the Bio-Techne family.” 

According to Wolf, G-REX, which stands for gas permeable rapid expansion, is a production platform created specifically to produce immune cells such as T cells, natural killer cells, and hematopoietic cells. A production platform, G-REX works by letting cells obtain the exact amount of nutrients and oxygen they need without complex instrumentation and monitoring.