May 1(Reuters) - Bio-Techne ( TECH ) on Wednesday beat

third-quarter profit and revenue estimates, helped by

better-than-expected demand for its cell and gene therapy

products and testing and diagnostic devices.

On an adjusted basis, the company posted a profit of 48

cents per share, beating analysts' estimates of 45 cents per

share, according to LSEG data.

"As expected, we experienced subsiding headwinds from

de-stocking but also delivered year-over-year growth in a

depressed biopharma end market," said CEO Kim Kelderman.

The company said in a conference call in February that the

soft funding environment continued to impact China, which

contributed to 10% of the company's total revenues in the fiscal

year 2023, according to latest regulatory filings.

However, the company added it expects headwinds to be less

severe going forward as inflation and interest rates appear to

have stabilized in China.

The Minnesota-based company reported third-quarter revenue

of $303.4 million, compared with analysts' estimates of $292.2

million.

Sales at its largest protein sciences unit were $214.6

million, a fall of 2% from a year earlier. But it still came

ahead of analysts' expectations of $209.7 million.

The unit develops and manufactures biological compounds used

for research and diagnostics and to develop cell and gene

therapies.

Revenue from its diagnostics and genomics unit, which

manufactures tools and compounds used to make therapeutics and

vaccines, rose 16% to $87.5 million.

Larger peer Thermo Fisher in its post-earnings

conference call said it is seeing continued improvements in

biotech funding environment, partly because of a stimulus

program announced by China.

Bio-Techne ( TECH ) on Monday announced a strategic distribution

agreement with Thermo Fisher where Thermo through its European

arm will distribute Bio-Techne's ( TECH ) extensive portfolio of products

to laboratories and research institutions across Europe.