Bio-Rad Labs cuts 2023 revenue growth forecast as biotechs cut spending

Bio-Rad Laboratories

26/10/2023 22:44

Oct 26 (Reuters) - Bio-Rad Laboratories  BIO.N  on
Thursday lowered its annual revenue growth forecast, given the
uncertain pace of the biopharma sector's recovery and ongoing
macro challenges, sending the company's shares down about 11% in
extended trading. 
    The diagnostic firm's third quarter was primarily impacted
by further deterioration in biopharmaceutical, early biotech
customer spending and a challenging macroeconomic environment in
China.
    Bio-Rad now expects adjusted revenue growth between 0% and
0.5% on a currency-neutral basis, compared with a previously
expected growth of 4.5%. The outlook excludes Bio-Rad's
COVID-related sales. 
    The company — which sells laboratory apparatus, instruments,
diagnostics to drug manufacturers, biotechs and food producers —
cut its outlook for annual revenue growth on a currency neutral
basis for a third straight quarter.
    It reported total sales of $632.1 million for the third
quarter ended Sept. 30, while analysts expected $689.57 million,
according to LSEG data. 
    Bio-Rad echoed larger rival Thermo Fisher Scientific  TMO.N 
that signaled a slump in demand from biotechs for its services
used in making therapies and vaccines could extend into the next
year. 
    Bio-Rad's life science segment that serves biotech,
pharmaceutical and food testing clients, reported a 17.1% fall
in sales to $263.5 million.  
    The clinical diagnostics unit, Bio-Rad's revenue driver,
through which it manufactures and sells blood and other
diagnostic test kits to hospitals and physicians, reported sales
of $368.1 million.  
    On an adjusted basis, Bio-Rad earned $2.33 per share in the
July-to-September period, missing analysts' estimates of $2.78
per share, according to LSEG data. 

 (Reporting by Pratik Jain in Bengaluru; Editing by Shailesh
Kuber)
 ((Pratik.Jain@thomsonreuters.com;))