What Happened?
Shares of life sciences company Bio-Techne (NASDAQ: TECH) fell 6.5% in the afternoon session after the company reported its fourth-quarter fiscal 2025 results, which included a significant net loss driven by a large impairment charge. The company posted a net loss of $17.68 million, a sharp reversal from the $40.59 million in net income recorded a year ago. This loss resulted from an $83.1 million impairment charge linked to the divestiture of its Exosome Diagnostics business. An impairment charge is an accounting entry used when an asset's value falls below its recorded worth. Furthermore, the company's gross margin tightened and it recorded an operating loss of $23.9 million, compared to an operating profit of $45.8 million in the prior year. The Diagnostics and Spatial Biology division also experienced a 1% decrease in sales.
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What Is The Market Telling Us
Bio-Techne’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 4.2% on the news that a new trade agreement between the United States and Japan spurred a broad market rally. The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual stocks.
Bio-Techne is down 30% since the beginning of the year, and at $50.06 per share, it is trading 37.7% below its 52-week high of $80.36 from September 2024. Investors who bought $1,000 worth of Bio-Techne’s shares 5 years ago would now be looking at an investment worth $751.23.
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