Bio-Techne (TECH, Financial) is a good example-it was one of the portfolio`s top contributors in the first half of 2020. Bio-Techne is a leading developer and manufacturer of high-quality purified proteins, reagent solutions, and tools used in clinical and diagnostic research. Its near-term growth is being suppressed by temporary, COVID-19-driven research lab closures, especially in academia. However, the company has seen a partial offset in the form of accelerating demand for its consumables and diagnostic tools as biopharma companies race to develop tests for both the coronavirus and antibodies, as well as for patient monitoring. In addition, the company entered into a partnership with Mt. Sinai and Kantero Biosciences and is awaiting emergency approval for its own quantitative serological antibody test for the virus that it believes will have unmatched accuracy.
Bio-Techne (Nasdaq: TECH) 2020
Beyond COVID-19, Bio-Techne has what we think are tremendous long-term growth opportunities within both its existing product portfolio and in development. The company`s reagents and analytical solutions are critical "picks and shovels" in more general life sciences research and development. Since the arrival of its current CEO in 2013, the company has tripled revenues via aggressive new product development, geographic expansion, and acquisitions.
Even on this larger revenue base, we think double-digit organic growth can be sustained over the next several years as Bio-Techne leverages its consumables portfolio into new growth areas, such as manufacturing proteins for commercial use in the rapidly expanding cell and gene therapy areas, and as market adoption of its tissue and liquid biopsy offerings takes hold. Finally, with modest financial leverage, the company is also poised to resume layering on additional growth vectors via acquisition.
From Royce Investment Partners' commentary on Small-Cap Premier quality holdings.
