Aug 7 (Reuters) - Bio-Techne ( TECH ) reported

fourth-quarter profit in line with estimates on Wednesday as

growth in the diagnostics and genomics unit offset weakness in

its protein sciences unit.

The Minnesota-based company posted an adjusted profit of 49

cents per share, meeting analysts' expectations according to

LSEG data.

Fourth-quarter revenue reached $306.1 million, slightly

below analysts' estimates of $306.5 million.

The company experienced continued stabilization in its

biopharma and China end-markets, CEO Kim Kelderman said.

The biotech sector faced challenges in 2023, with

contract drug manufacturers experiencing reduced spending from

their clients amid rising interest rates.

However, an improvement in the public funding environment

for early-stage biotechs is expected to improve in the second

half of this year driven by expectations of interest rate cuts

from the Federal Reserve in September.

Some

analysts

have noted that biotech funding could stabilize due to a

strong year for regulatory approvals in the United States in

2023.

Sales at its largest protein sciences unit decreased 4%

to$214 million, missing estimates of $218.4 million. The unit

develops and manufactures biological compounds used for

research, diagnostics, and the development of cell and gene

therapies.

Revenue from its diagnostics and genomics unit, which

manufactures tools and compounds used to make therapeutics and

vaccines, rose 15% to $90.7 million, beating estimates of $88.8

million.

In July, larger peer Thermo Fisher raised its

annual profit outlook, banking on improved demand for its tools

and services used in clinical trials.