Tom DeBourcy

Tom DeBourcy asked about Twist's international growth strategy and how the company is adapting its platform to address regional market demands and challenges, such as tariffs.

Answer

CEO & Co-Founder Dr. Emily Leproust explained that Twist's low variable cost and strong value proposition—offering more research for a given budget—position it well to navigate funding challenges and tariffs. She stressed that the company's resilience comes from its diverse model, serving thousands of customers across many SKUs, which enables continued sequential growth.

Tom DeBourcy of Nephron Research asked about the lower-than-expected organic growth in the Diagnostics and Genomics segment, questioning if timing issues impacted the Asuragen portfolio, which is typically less affected by macro changes.

Answer

CEO Kim Kelderman confirmed that weaker growth in the diagnostic reagents and Asuragen businesses was due to the timing of large customer orders, not a loss of market share or a market slowdown. He pointed to healthy year-to-date growth rates for both businesses as evidence of underlying strength. He also noted the Spatial Biology division was the part of the segment most impacted by NIH funding headwinds.

Tom DeBourcy of Nephron Research asked for more detail on how the Transplant Pharmacy creates synergies with the Testing Services business. He also inquired about the feedback from transplant centers regarding the company's software solution for the upcoming IOTA Program.

Answer

CEO John Hanna explained that Patient and Digital Solutions, including the pharmacy, foster deeper customer engagement, which helps drive growth in Testing Services by improving patient adherence to testing protocols. He also reported receiving 'a lot of positive feedback' on the IOTA software and noted the team is actively educating centers on its capabilities ahead of the first reporting cycle in 2026.

Tom DeBourcy inquired about the contract manufacturing transition, specifically West's ability to fill the pipeline as CGM revenue declines. He also asked about the strategic path for SmartDose and its potential to achieve margins comparable to HVP components.

Answer

CEO Eric Green stated there is strong customer interest in new long-term contracts, with a focus on delivery devices and higher-margin drug handling. For SmartDose, he reiterated a two-pronged strategy: improving margins through automation (targeted for late 2025/early 2026) while continuing to evaluate all strategic options for the business.

Tom DeBourcy questioned the weakness in the Animal Safety segment, contrasting it with USDA estimates for protein market growth. He also asked for a go-forward annual revenue run rate for the restructured global genomics business.

Answer

CEO John Adent clarified that sales *out* of their large distributor channels remained positive in the low single digits, suggesting the issue is the timing of inventory purchases by distributors rather than end-market weakness. Regarding genomics, Adent explained the business entered the year at roughly $90 million and is being restructured to focus on the more differentiated bovine segment, which is in the '$50s' million range and continues to grow.

Tom DeBourcy asked about the potential time frame for the strategic pruning of the Animal Safety portfolio and how to think about the timeline for making these decisions.

Answer

CEO John Adent stated that while he couldn't give a specific timeline until a deal is complete, the company has moved into the next stage with active engagements. He noted the focus is on lower-growth, lower-profitability, and more cyclical categories, and that they are targeting a significant amount of Animal Safety revenue, 'probably around half,' for these strategic alternatives.

Tom DeBourcy of Nephron Research asked about the strategic rationale for creating a Chief Commercial Officer position. He also inquired about ongoing portfolio review, specifically regarding product overlaps from the 3M acquisition and the potential for divesting lower-margin products. Finally, he asked about the strategic importance of the China market for Neogen's growth.

Answer

CEO John Adent explained that the new Chief Commercial Officer role is designed to create a dedicated focus on demand generation, a move enabled by the strong operations team built by the retiring COO. Adent confirmed that portfolio review is an ongoing process focused on maximizing capital returns and that some product line consolidation has already occurred. Regarding geographic focus, he stated that the strategy is to invest across the entire Asia Pacific region, not just China, to diversify growth opportunities and leverage low market share in markets like Japan, Korea, and Latin America.