Techne Corp. (TECH, Financial) filed Annual Report for the period ended 2009-06-30.
Techne Corporation is a holding company which has two wholly-owned operating subsidiaries: Research and Diagnostic Systems Inc. and R&D Systems Europe Ltd. Research and Diagnostic Systems Inc. is a specialty manufacturer of biological products. R&D Europe distributes Research and Diagnostic Systems' biotechnology products in Europe. Its two major operating segments are hematology controls which are used in hospital and clinical laboratories to check the accuracy of blood analysis instruments and biotechnology products including purified proteins and antibodies. Techne Corp. has a market cap of $2.31 billion; its shares were traded at around $62.07 with a P/E ratio of 22.2 and P/S ratio of 8.7. The dividend yield of Techne Corp. stocks is 1.6%. Techne Corp. had an annual average earning growth of 18.9% over the past 10 years. GuruFocus rated Techne Corp. the business predictability rank of 5-star.
and clinical diagnostics market (cytokines, assays and related products) and
the clinical diagnostics market (hematology controls and calibrators). In
fiscal 2009, 2008 and 2007, net sales from the Company's biotechnology
segment were 66%, 64% and 66%, respectively, of consolidated net sales. Net
sales from the Company's R&D Europe segment were 27%, 30% and 27%,
respectively, of consolidated net sales for same periods. The Company's
hematology segment net sales were 7%, 6% and 7% of consolidated net sales for
fiscal 2009, 2008 and 2007, 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,
2009 2008 2007
- - -
Research expense (in thousands):
Biotechnology expenses $22,792 $21,632 $19,333
Hematology expenses 772 762 749
- - -
$23,564 $22,394 $20,082
= = =
Percent of net sales 8.9% 8.7% 9.0%
In fiscal 2004, the Company purchased a 10% 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 2009, as a result of Hemerus repurchasing and
retiring a third party's membership units, the Company's ownership percentage
increased to 22%. Hemerus was formed in March 2001 and has acquired and is
developing technology for the separation of leukocytes from blood and blood
components. 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 $2.2
million and $2.9 million at June 30, 2009 and 2008, 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, the Company
received a $1.3 million distribution 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 $4.5 million and $6.2 million at June 30, 2009 and 2008, respectively.
Read the The complete ReportTECH is in the portfolios of Ron Baron of Baron Funds.
Techne Corporation is a holding company which has two wholly-owned operating subsidiaries: Research and Diagnostic Systems Inc. and R&D Systems Europe Ltd. Research and Diagnostic Systems Inc. is a specialty manufacturer of biological products. R&D Europe distributes Research and Diagnostic Systems' biotechnology products in Europe. Its two major operating segments are hematology controls which are used in hospital and clinical laboratories to check the accuracy of blood analysis instruments and biotechnology products including purified proteins and antibodies. Techne Corp. has a market cap of $2.31 billion; its shares were traded at around $62.07 with a P/E ratio of 22.2 and P/S ratio of 8.7. The dividend yield of Techne Corp. stocks is 1.6%. Techne Corp. had an annual average earning growth of 18.9% over the past 10 years. GuruFocus rated Techne Corp. the business predictability rank of 5-star.
Highlight of Business Operations:
The Company manufactures and sells products for the biotechnology researchand clinical diagnostics market (cytokines, assays and related products) and
the clinical diagnostics market (hematology controls and calibrators). In
fiscal 2009, 2008 and 2007, net sales from the Company's biotechnology
segment were 66%, 64% and 66%, respectively, of consolidated net sales. Net
sales from the Company's R&D Europe segment were 27%, 30% and 27%,
respectively, of consolidated net sales for same periods. The Company's
hematology segment net sales were 7%, 6% and 7% of consolidated net sales for
fiscal 2009, 2008 and 2007, 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,
2009 2008 2007
- - -
Research expense (in thousands):
Biotechnology expenses $22,792 $21,632 $19,333
Hematology expenses 772 762 749
- - -
$23,564 $22,394 $20,082
= = =
Percent of net sales 8.9% 8.7% 9.0%
In fiscal 2004, the Company purchased a 10% 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 2009, as a result of Hemerus repurchasing and
retiring a third party's membership units, the Company's ownership percentage
increased to 22%. Hemerus was formed in March 2001 and has acquired and is
developing technology for the separation of leukocytes from blood and blood
components. 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 $2.2
million and $2.9 million at June 30, 2009 and 2008, 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, the Company
received a $1.3 million distribution 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 $4.5 million and $6.2 million at June 30, 2009 and 2008, respectively.
Read the The complete ReportTECH is in the portfolios of Ron Baron of Baron Funds.
