Downgrade to Hold Following Announced Merck KGaA Acquisition; PT to $73

Research evidence excerpt

Downgrade to Hold Following Announced Merck KGaA Acquisition; PT to $73

TD Cowen Bio-Techne Corp

Global Research June 29, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Life Science Tools:

Price targets are based on several methodologies which may include: analysis of market risk,

growth rate, revenue stream, discounted cash flows (DCF), EBITDA, EPS, cash flow (CF), free

cash flow (FCF), EV/EBITDA, P/E, PE/growth, P/CF, P/FCF, premium (discount) / average group

EV/EBITDA, premium (discount) / average group P/E, sum of the parts, net asset value, dividend

returns, and return on equity (ROE) over the next 12 months.

We make investment recommendations on certain early stage, pre-revenue companies based

upon an assessment of their business model, technology, probability of market success,

and the potential market opportunity, balanced by an assessment of applicable risks. Such

companies may not be assigned a price target.

Investment Risks

Risks to the Medical and Life Science Tools sector may include: reduction or delay in research

and development budgets and government funding, reduced or delayed purchasing from

health care / hospital customers, increased or extended regulatory hurdles or processes for

regulated products, increased dependence on volatile emerging markets for revenues and

profitability, and general macroeconomic challenges.

Risks To The Price Target

Risks to the downside include but are not limited to further macroeconomic deterioration from

current levels; inability to execute on M&A integration; erosion of market share and pricing due

to competition; inability to deliver on margin targets; and value-destructive M&A; shareholders

do not approve Merck KGaA acquisition offer. Risks to the upside included but are not limited