BIO-TECHNE ANNOUNCES NEXT-GENERATION HIGH THROUGHPUT SIMPLE WESTERN SYSTEM

Rhea-AI Summary

Bio-Techne (NASDAQ: TECH) has announced the launch of the Leo™ System, a next-generation Simple Western™ instrument. This advanced system offers:

• Higher throughput: Process up to 100 samples in a single 3-hour run
• 4-times larger experimental size compared to current systems
• Enhanced quantitative capabilities for rigorous bioanalytical methods
• Improved data quality and speed over traditional western blotting

The Leo System enables ELISA-like protein quantitation with western blotting specificity, opening up new applications in drug development, clinical biomarkers, and vaccine research. Bio-Techne expects to begin shipping the Leo System in 2025.

Positive

• Launch of Leo™ System, offering higher throughput and efficiency
• Ability to process up to 100 samples in a single 3-hour run
• 4-times larger experimental size compared to current systems
• Enhanced quantitative capabilities for bioanalytical methods
• Potential for new applications in drug development and clinical research

Negative

• Leo System not available for shipping until 2025

Insights

Biotechnology Analyst

The announcement of Bio-Techne's Leo™ System represents a significant advancement in protein analysis technology, potentially reshaping the landscape of drug development and bioanalytical research. As a biotechnology analyst, I see several key implications:

• Market Expansion: The Leo System's ability to process 100 samples in a 3-hour run and its 4-times larger experimental size compared to current models could significantly expand Bio-Techne's addressable market. This increased throughput and flexibility may attract new customers from pharmaceutical and biotechnology sectors, particularly those involved in high-volume drug screening and development.
• Competitive Advantage: The system's enhanced quantitative capabilities, which enable more rigorous bioanalytical methods, could give Bio-Techne a competitive edge in the protein analysis market. This is especially relevant for applications requiring regulatory submissions, potentially positioning the company as a go-to provider for drug development workflows.
• Revenue Growth Potential: While the Leo System is set to begin shipping in 2025, its advanced features could drive substantial revenue growth for Bio-Techne's Protein Sciences segment in the coming years. The system's ability to replace traditional western blotting workflows with improved data quality and speed may lead to higher adoption rates and potentially higher pricing power.
• Research & Development Impact: The Leo System's capabilities in quantitative immunoassay could accelerate research in areas such as targeted protein degradation, gene therapy and vaccine development. This might indirectly benefit Bio-Techne by fostering a more dynamic biotech ecosystem, potentially leading to increased demand for its products and services.

While the long-term impact remains to be seen, the Leo System appears to be a strategic move that could strengthen Bio-Techne's position in the protein analysis market and potentially drive growth in its Protein Sciences segment.

Financial Analyst

From a financial perspective, the announcement of the Leo™ System by Bio-Techne (NASDAQ: TECH) presents several intriguing aspects:

• Future Revenue Streams: With shipping expected to begin in 2025, the Leo System represents a potential new revenue stream for Bio-Techne. However, investors should note that this future income is not yet reflected in current financial statements and projections may need to be adjusted accordingly.
• Market Expansion: The system's enhanced capabilities could open up new market segments for Bio-Techne, particularly in areas where western blotting was previously considered impractical. This expansion could lead to increased market share and potentially higher revenues in the long term.
• R&D Investment: The development of the Leo System likely required significant R&D investment. Investors should look for increases in R&D expenses in recent financial reports, which could impact short-term profitability but potentially lead to long-term gains.
• Competitive Positioning: The Leo System's advanced features could strengthen Bio-Techne's competitive position in the protein analysis market. This could potentially lead to improved pricing power and higher profit margins in the future.
• Capital Expenditure: The launch of a new product line may require additional capital expenditure for manufacturing and marketing. Investors should monitor the company's cash flow statements and capital allocation strategies in the coming quarters.

While the Leo System shows promise, it's important to remember that its financial impact won't be immediate. Investors should closely monitor Bio-Techne's financial reports in the coming years to assess the system's contribution to revenue growth and profitability. Additionally, keep an eye on any shifts in the company's gross and operating margins as the new product line is introduced.

Market Research Analyst

As a market research analyst, the announcement of Bio-Techne's Leo™ System presents several interesting market dynamics:

• Market Disruption: The Leo System's capabilities in high-throughput protein analysis could potentially disrupt the current market for western blotting and protein quantification tools. Its ability to process 100 samples in 3 hours represents a significant leap in efficiency that could reshape industry standards.
• Expanding Applications: The system's enhanced quantitative capabilities open up new applications in drug development, clinical biomarker assays and vaccine development. This expansion could lead to a broader customer base for Bio-Techne, potentially including pharmaceutical companies, clinical research organizations and academic institutions.
• Competitive Landscape: The Leo System's advanced features may prompt competitors to accelerate their R&D efforts, potentially leading to increased innovation in the protein analysis market. This could result in a more dynamic and competitive landscape in the coming years.
• Adoption Challenges: Despite its advantages, the Leo System may face adoption challenges, particularly in conservative research environments or those with established workflows. Bio-Techne will need to invest in education and marketing to overcome potential resistance to change.
• Market Size Growth: The Leo System's ability to enable western-based readouts in applications where they were previously impractical could lead to an expansion of the overall market size for protein analysis tools. This growth could benefit not only Bio-Techne but also the broader life sciences tools industry.

The Leo System represents a significant advancement in protein analysis technology. Its success will depend on Bio-Techne's ability to effectively communicate its value proposition, navigate regulatory landscapes and support customers in integrating this new technology into their workflows. The market's response to this innovation will be important to watch in the coming years.

MINNEAPOLIS, July 31, 2024 /PRNewswire/ -- Bio-Techne Corporation (NASDAQ: TECH) is pleased to announce the launch of the Leo™ System. This next-generation Simple Western™ instrument offers higher throughput, flexibility, and efficiency over the current Jess™ and Abby™ Simple Western Systems. This state-of-the-art instrument enables simultaneous processing of up to 100 samples in a single 3-hour run, allowing scientists to process more samples in a day. Leo also provides 4-times the experimental size of Jess or Abby to facilitate quantitative assay designs including standard curves, QC samples, blanks, duplicates and reference standards. Leo's enhanced quantitative capabilities empower customers to design rigorous bioanalytical methods for use throughout the drug development process and in submissions to regulatory agencies. 

Simple Western instruments are fully automated, capillary western systems designed to resolve proteins based on molecular weight followed by immunodetection. Simple Western Systems replace traditional western blotting workflows by offering improvements in data quality and speed. The enhanced quantitation, reproducibility and throughput Leo now provides makes it possible for scientists to adopt western-based readouts in applications where westerns are not typically used due to inadequate reproducibility and lack of quantitation. Leo offers ELISA-like protein quantitation with the specificity and size resolution of western blotting, enabling new applications for western-based assays ranging from target screening & validation, targeted protein degradation, gene therapy potency assays, clinical biomarker assays, and vaccine development. 

"The upcoming introduction of the Leo System reaffirms Bio-Techne's commitment to advancing protein analysis technology. The ability to perform western analysis at this scale is truly game changing and will allow the adoption of Leo as a quantitative immunoassay platform in all stages of drug development and commercialization," commented Will Geist, President of Protein Sciences.

Leo is expected to begin shipping in calendar year 2025.

Get a first look at the Leo System and explore its capabilities at bio-techne.com/leo or click here to watch an introductory video.

About Bio-Techne
Bio-Techne Corporation (NASDAQ: TECH) is a global life sciences company providing innovative tools and bioactive reagents for the research and clinical diagnostic communities. Bio-Techne products assist scientific investigations into biological processes and the nature and progress of specific diseases. They aid in drug discovery efforts and provide the means for accurate clinical tests and diagnoses. With thousands of products in its portfolio, Bio-Techne generated approximately $1.1 billion in net sales in fiscal 2023 and has approximately 3,100 employees worldwide. For more information on Bio-Techne and its brands, please visit https://www.bio-techne.com or follow the Company on social media at: Facebook, LinkedIn, Twitter or YouTube.

Contact:
David Clair, Vice President, Investor Relations & Corporate Development
david.clair@bio-techne.com
612-656-4416

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SOURCE Bio-Techne Corporation

FAQ

What is the Leo™ System announced by Bio-Techne (NASDAQ: TECH)?

The Leo™ System is Bio-Techne's next-generation Simple Western™ instrument, offering higher throughput, flexibility, and efficiency compared to current systems. It can process up to 100 samples in a single 3-hour run and provides 4-times the experimental size of existing models.

How does the Leo™ System improve upon traditional western blotting?

The Leo™ System offers improvements in data quality, speed, and quantitation over traditional western blotting. It provides ELISA-like protein quantitation with the specificity and size resolution of western blotting, enabling new applications in drug development and clinical research.

When will Bio-Techne (NASDAQ: TECH) begin shipping the Leo™ System?

Bio-Techne expects to begin shipping the Leo™ System in calendar year 2025.

What are the potential applications for the Leo™ System announced by Bio-Techne (NASDAQ: TECH)?

The Leo™ System enables new applications for western-based assays, including target screening & validation, targeted protein degradation, gene therapy potency assays, clinical biomarker assays, and vaccine development.