Techne Corp. has a market cap of $2.17 billion; its shares were traded at around $58.25 with a P/E ratio of 19.8 and P/S ratio of 8.1. The dividend yield of Techne Corp. stocks is 1.7%. Techne Corp. had an annual average earning growth of 14.9% over the past 10 years. GuruFocus rated Techne Corp. the business predictability rank of 5-star.TECH is in the portfolios of Bill Frels of Mairs & Power Inc. , Ron Baron of Baron Funds, Jim Simons of Renaissance Technologies LLC, Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:The Company manufactures and sells products for the biotechnology research
and clinical diagnostics market (cytokines, assays and related products) and
the clinical diagnostics market (hematology controls and calibrators). In
fiscal 2010, 2009 and 2008, net sales from the Company's biotechnology
segment were 66%, 66% and 64%, respectively, of consolidated net sales. Net
sales from the Company's R&D Europe segment were 27%, 27% and 30%,
respectively, of consolidated net sales for same periods. The Company's
hematology segment net sales were 7%, 7% and 6% of consolidated net sales for
fiscal 2010, 2009 and 2008, respectively. Financial information relating to
the Company's operating segments is incorporated herein by reference to Note
L to the Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.
Year Ended June 30,
2010 2009 2008
- - -
Research expense (in thousands):
Biotechnology expenses $ 24,331 $ 22,792 $ 21,632
Hematology expenses 790 772 762
- - -
$ 25,121 $ 23,564 $ 22,394
= = =
Percent of net sales 9.3% 8.9% 8.7%
In fiscal 2004, the Company purchased a 10% equity interest in Hemerus
Medical, LLC (Hemerus) for $3.0 million. In fiscal years 2006 through 2008,
the Company invested an additional $1.8 million in Hemerus, increasing its
ownership percentage to 19%. In fiscal 2010, as a result of Hemerus issuing
additional ownership units, the Company's ownership percentage decreased to
13.8% as of June 30, 2010. Hemerus was formed in March 2001 and has acquired
and is developing technology for the separation of leukocytes from red blood
cells and to extend the shelf life of the isolated blood products. Hemerus
owns two patents, has several patent applications pending and has received
FDA clearance to market its products in the U.S. In parallel with this
investment, R&D Systems entered into a Joint Research Agreement with Hemerus.
The research involves joint projects to explore the use of Hemerus' filter
technology to applications within R&D Systems' Hematology and Biotechnology
Divisions. Such applications, if any, may have commercial potential in other
laboratory environments. The Company accounts for its investment in Hemerus
under the equity method of accounting as Hemerus is a limited liability
company. The Company's net investment in Hemerus was $1.2 million and $2.2
million at June 30, 2010 and 2009, respectively.
In fiscal 2007, the Company invested $7.2 million for an 18% equity interest
in Nephromics LLC (Nephromics). Nephromics has licensed technology related
to the diagnosis of preeclampsia and has sublicensed the technology to
several major diagnostic companies for the development of diagnostic assays.
In fiscal 2008, Nephromics issued additional membership units which reduced
the Company's ownership percentage to 16.8%. In fiscal 2009 and fiscal 2010,
the Company received distributions of $1.3 million and $50,000, respectively
from Nephromics. The Company accounts for its investment in Nephromics under
the equity method of accounting as Nephromics is a limited liability company.
Its net investment in Nephromics was $4.0 million and $4.5 million at
June 30, 2010 and 2009, respectively.
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