AI-Designed Protein Licensing Deal Could Be a Game Changer for Bio-Techne (TECH)

• Earlier this week, Bio-Techne announced that it entered into a licensing agreement with Seattle-based Monod Bio, securing exclusive commercial rights to a subset of AI-designed NovoBody Duo molecules that expand its recombinant protein and diagnostics portfolio.
• This move reinforces Bio-Techne's emphasis on AI-driven protein innovation for next-generation research and diagnostics, and positions the company at the forefront of precision medicine advancements.
• We'll explore how Bio-Techne's exclusive access to AI-powered NovoBody Duo molecules could impact its growth outlook and investment narrative.

AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Bio-Techne Investment Narrative Recap

To be a shareholder in Bio-Techne, you generally need to believe the company is well positioned to capture long-term demand from precision medicine and advanced diagnostics, despite short-term funding volatility in biotech and healthcare research. The recent licensing of Monod Bio’s AI-designed NovoBody Duo molecules strengthens Bio-Techne’s innovation capabilities, but it does not immediately offset near-term headwinds like weaker biotech funding or lower academic and pharma research spending, which remain the most notable catalyst and primary risk, respectively.

Among recent company announcements, the ProximityScope Assay launch stands out as highly aligned with the NovoBody Duo agreement, as both target next-generation proteomic research. Together, these underscore Bio-Techne’s drive for differentiated, high-value innovation, yet they don’t directly insulate the business from short-term funding constraints impacting life science consumables, which remain central to both risk and growth.

But before considering the opportunity, investors should be aware of how sustained declines in biotech and academic funding could still pressure results...

Read the full narrative on Bio-Techne (it's free!)

Bio-Techne's outlook anticipates $1.5 billion in revenue and $250.1 million in earnings by 2028. This implies a 6.5% annual revenue growth rate and a $176.7 million increase in earnings from the current $73.4 million.

Uncover how Bio-Techne's forecasts yield a $69.17 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community have estimated fair values for Bio-Techne between US$53 and US$70.24. With ongoing concerns about reduced R&D spending from funding headwinds, you can see how opinions can vary and why checking out several perspectives matters.

Explore 4 other fair value estimates on Bio-Techne - why the stock might be worth 10% less than the current price!

Build Your Own Bio-Techne Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bio-Techne research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Bio-Techne research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bio-Techne's overall financial health at a glance.

Curious About Other Options?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• These 11 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.
• We've found 16 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com