Oct 30 (Reuters) - Bio-Techne ( TECH ) beat

first-quarter profit estimates on Wednesday helped by growth in

its diagnostics and spatial biology segment, sending the shares

of the biotech company up 4.59% in premarket trading.

On an adjusted basis, the Minnesota-based company posted a

profit of 42 cents per share, surpassing the estimates of 38

cents per share, according to data collected by LSEG.

The recent Federal Reserve interest rate cuts could lower

borrowing costs, offering relief to biotech companies-clients of

contract drug manufacturers-that were forced to cut back on

spending. Analysts are optimistic about a potential near-term

recovery in the industry, which has been struggling since 2023.

"The strength in cell and gene therapy, combined with

favorable year-to-date funding dynamics, gives us increased

confidence in the forthcoming recovery in our biotech end

market," CEO Kim Kelderman said on Wednesday.

Sales at its protein sciences unit remained flat at $204.5

million, compared with the previous year. The unit develops and

manufactures biological compounds used for research and

diagnostics and to develop cell and gene therapies.

Revenue from its diagnostics and spatial biology unit, which

produces tools and compounds used to make therapeutics and

vaccines, rose 14% to $83.2 million.

Larger peer Thermo Fisher raised its annual profit

outlook last week, banking on improved demand for its tools and

services used in clinical trials.

Total revenue for the quarter came in at $289.5 million,

beating analysts' estimates of $280.26 million.