Bio-Rad Laboratories Inc. reports a 6.7% decrease in fourth-quarter net sales compared to 2022, largely attributed to ongoing weakness in biopharma markets. Life Science segment sales declined by 19.1%, driven by lower sales of key products, while Clinical Diagnostics segment saw a 5.3% increase bolstered by strong demand for diabetes and quality control products.

Despite a slight decline in gross margin to 53.8%, the company's income from operations dropped to $95.3 million compared to $118.7 million in the same period last year. Net income for Q4 2023 stood at $349.7 million, impacted by changes in fair market value of equity securities related to the company’s investment in Sartorius AG.

“The ongoing weakness in biopharma markets continued to impact our fourth-quarter 2023 results, which were largely in line with expectations,” said Norman Schwartz, Bio-Rad’s President and Chief Executive Officer. “Shifting focus to 2024, our full-year outlook reflects ongoing execution of our corporate transformation initiatives, effective expense management, and a cautiously optimistic view of a gradual biopharma sector recovery in the second half of the year,” Mr. Schwartz continued. “We also recognize the efforts of our global employees, whose ongoing dedication and commitment to our customers’ success helped us navigate the challenges of 2023.”

Looking ahead, CEO Norman Schwartz expresses a cautiously optimistic outlook for 2024, expecting a gradual recovery in the biopharma sector in the latter half of the year. The company acknowledges the resilience of its global employees in navigating the challenges of 2023.

Bio-Rad also provides its full-year 2024 financial outlook, anticipating a modest non-GAAP, currency-neutral revenue growth of approximately 1.0 to 2.5% with an estimated non-GAAP operating margin of approximately 13.5 to 14.0%.

Full-Year 2023 Highlights:

• Full-year 2023 reported net sales of $2,671.3 million compared to $2,802.2 million for the full year of 2022.
• Excluding COVID-related sales, full-year 2023 revenue decreased 0.4 percent year-over-year on a currency-neutral basis.
• Full-year 2023 reported net loss of $637.3 million, or $21.82 net loss per share, on a fully diluted basis, compared to a net loss of $3,627.5 million, or $121.79 net loss per share, in 2022.
• Advanced minimal residual disease (MRD) research through several industry collaborations leveraging Bio-Rad’s QX600™ Droplet Digital™ PCR System (ddPCR).
• Introduced ddPCR Microsatellite Instability (MSI) Kit and supporting software for oncology applications including cancer tissue and plasma samples.
• Continued to expand libraries of StarBright™ dyes for flow cytometry in immunology research, as well as a portfolio of antibodies for the development of bioanalytical assays used in preclinical and clinical drug development.
• Introduced the CFX Opus Deepwell Dx Real-Time PCR System offering researchers efficient, accurate, and precise quantification to help improve in vitro diagnostic assay development and diagnostic testing.
• Partnered with Element Biosciences to deliver RNA sequencing workflow between Element’s AVITI™ System and Bio-Rad’s SEQuoia™ Express and SEQuoia™ Complete Stranded RNA Library Prep Kits.
• Launched the PTC Tempo 96 and PTC Tempo Deepwell Thermal Cyclers with enhanced usability to support PCR applications in basic and translational research, process development, and quality control.
• Introduced IH-500 NEXT™ fully automated blood typing system with enhanced features for routine blood testing.
• Announced a patent dispute settlement and cross-licensing agreement with QIAGEN N.V. relating to digital PCR technology.
• Published Bio-Rad’s corporate sustainability report for 2022 and saw meaningful improvements in several sustainability rankings based on increased scores in environmental, labor, human rights, health and safety reporting and policy implementation, as well as higher scores on sustainable procurement metrics, reporting, and work with women and minority-owned businesses.