TECH: Biotech Recovery Play with Acquisition Catalyst; Resume Coverage at Outperform

Research evidence excerpt

TECH: Biotech Recovery Play with Acquisition Catalyst; Resume Coverage at Outperform

Improved biotech funding will translate to demand, eventually. Biotech 2026 0.42A 0.46A 0.53A 0.51E

funding (VC, IPOs, secondaries) first inflected in Sept. '25 and has more than

tripled year-to-date Y/Y through April. If this continues, 2026 will be the AllPricedvaluesas ofin priorUSD unlesstradingotherwiseday's marketnoted.close, EST (unless otherwise noted).

strongest year since the COVID-bubble of 2020-2021, and stronger than

pre-pandemic. While this funding boost hasn't yet translated into demand

for Tools, we believe it will eventually. Bio-Techne derives ~20% of its sales

from private/SMID biotech, making it the most levered to a rebound in this

market among Tools providers.

Upcoming Wilson Wolf acquisition not fully appreciated. Bio-Techne

currently owns 20% of Wilson Wolf, a high growth cell therapy tools

company, and plans to buy the balance by the end of CY2027. Assuming

Wilson Wolf can maintain is double-digit sales growth rate and 70%+

EBITDA margins, we believe this deal is a jewel for 4.4x trailing 12 month

sales. It adds +100bps to Bio-Techne's structural growth, and increases Bio-

Techne's exposure to the cell therapy market to ~15% of sales, the most

in our coverage. While cell therapy's early history has been mixed, activity

level remains elevated and pipelines are full.

Price target appropriate for premium growth outlook, Wilson Wolf

option. Our $62 price target reflects a ~20x EBITDA multiple, including

consideration for Wilson Wolf. This is a premium multiple to peers but we

think justified to reflect a business in recovery (ex cell therapy comparison

issues) with improving but not yet fully re-established growth momentum.