Bio-Techne Corporation, headquartered in Minneapolis, Minnesota, is a global life sciences company founded in 1976 by Roger C. Lucas. It operates through two segments: Protein Sciences and Diagnostics and Spatial Biology. The Protein Sciences segment provides biological reagents such as cytokines, antibodies, and cell selection technologies, along with proteomic analytical ...Bio-Techne Corporation, headquartered in Minneapolis, Minnesota, is a global life sciences company founded in 1976 by Roger C. Lucas. It operates through two segments: Protein Sciences and Diagnostics and Spatial Biology. The Protein Sciences segment provides biological reagents such as cytokines, antibodies, and cell selection technologies, along with proteomic analytical tools like automated western blot and ELISA systems. The Diagnostics and Genomics segment offers diagnostic products including controls, calibrators, assays, and spatial genomics tools for research and clinical applications. With approximately 3,100 employees across 34 locations worldwide, Bio-Techne serves customers in over 100 countries. The company's financial metrics show a market cap of $11.3 billion, a gross profit margin of 65%, and a strong commitment to R&D with 8% of revenue invested in innovation. Under the leadership of CEO Kim Kelderman, Bio-Techne continues to focus on advancing science and improving human health through its portfolio of well-known brands. The company went public in 1989 and has consistently paid dividends, reflecting its financial stability and growth trajectory.
Operator: Good morning, and welcome to the Bio-Techne Earnings Conference Call for the Third Quarter and Fiscal Year 2026. [Operator Instructions] I would now like to turn the call over to David Clair, Bio-Techne's Vice President, Investor Relations. Please go ahead.
David Clair: Good morning, and thank you for joining us. On the call with me this morning are Kim Kelderman, President and Chief Executive Officer; and Jim Hippel, Chief Financial Officer of Bio-Techne. Before we begin, let me briefly cover our safe harbor statement. Some of the comments made during this conference call may be considered forward-looking statements, including beliefs and expectations about the company's future results. The company's 10-K for fiscal 2025 identifies certain factors that could cause the company's actual results to differ materially from those projected in the forward-looking statements made during this call. The company does not undertake to update any forward-looking statements because of any new information or future events or developments. The 10-K as well as the company's other SEC filings are available on the company's website within its Investor Relations section. During the call, non-GAAP financial measures may be used to provide information pertinent to ongoing business performance. Tables reconciling these measures to most comparable GAAP measures are available in the company's press release issued earlier this morning on the Investor Relations section of our Bio-Techne Corporation website at www.bio-techne.com. Separately, in the coming weeks, we will be participating in the Bank of America and Jefferies Healthcare Conferences. We look forward to connecting with many of you at these upcoming events. I will now turn the call over to Kim.
Kim Kelderman: Thank you, Dave, and good morning, everyone. Welcome to Bio-Techne's Third Quarter Earnings Call for Fiscal 2026. The Bio-Techne team continued to execute with discipline in a dynamic and uneven end market environment. Our quarterly performance was supported by sustained strength from our large pharmaceutical customers and stable to improving trends in our U.S. academic end market. These positives were partially offset by continued softness in emerging biotech spending, resulting in a 2% organic revenue decline for the quarter. Importantly, we are seeing encouraging indicators that point to an ongoing improvement in the U.S. academia and an eventual recovery in emerging biotech, which positions us well for a stronger fiscal 2027. As discussed in our prior earnings call, order timing related to 2 cell therapy customers that received FDA Fast Track Designation along with the timing of a large OEM commercial supply order created a 400 basis point headwind in the quarter. Excluding these factors, underlying organic revenue growth was 2%. There were several notable highlights during our third quarter, including the following: our Spatial Biology portfolio delivered mid-teens growth and exited the …