Bio Rad Laboratories : 2024 Annual Report (Annual Report)

Published: 2025-03-26 16:53:05 ET BIO

Bio-Rad Laboratories

We advance science and save lives, together.

2024 FINANCIAL HIGHLIGHTS

FINANCIAL

HIGHLIGHTS

Net Revenue (in millions)

2021 2022 2023

Gross Proﬁt (in millions)

2021 2022 2023

Operating Income (in millions)

2021 2022 2023

Cash Flow From Operations (in millions)

2021 2022 2023

$ 2,546

$ 2,923

$ 2,802

$ 2,671

$ 2,566

$ 1,438

$ 1,638

$ 1,567

$ 1,427

$ 1,379

$ 421

$ 500

$ 483

$ 338

$ 269

$ 585

$ 669

$ 194

$ 375

$ 455

LETTER TO SHAREHOLDERS

Looking back over the last several years and all the changes we have seen, both internally and externally, I am reminded how important resilience is to an organization.

In fact, looking back to the beginning of Bio-Rad and thinking how we have continuously adapted to changing markets, new technology, and new ways to operate over the last 70 plus years, resilience and adaptability have played a big part in our success. At the same time, our commitment to quality and innovation, and a collective mindset of staying one step ahead, have enabled us to bring new and useful products to our customers.

2024 was a year of change for Bio-Rad with the addition of several new senior leaders. The seasoned executives we have appointed to lead our operations, ﬁnance, supply chain, legal, Life Science, and Clinical Diagnostics segments, collectively bring decades of experience and fresh ideas to the organization. Together, we are dedicated to enhancing customer satisfaction, operational excellence, and driving efﬁciency while fostering a culture of innovation and continuous improvement.

We entered the year anticipating a gradual improvement, especially in biopharma, but the pace of market recovery was slower than expected. While this created headwinds for our Life Science segment, we returned to a more normalized growth rate in our Clinical Diagnostics business. Even with the slower market recovery, our broad-based, multi-year transformation helped us effectively navigate the changing conditions around us.

For the full-year 2024, we reported sales of $2.6 billion compared to $2.7 billion in 2023. On a currency-neutral basis, 2024 sales decreased 3.6% year-over-year, driven by lower Life Science sales, and offset by stronger demand for our Clinical Diagnostics products.

Compared to 2023, we saw a 30-basis point improvement in our gross margin. The gross margin expansion was possible because of initiatives including the consolidation of several European manufacturing sites into our Singapore manufacturing hub and the opening of a new distribution center in Singapore. Collectively, these projects simplify our logistics network and inventory management to better serve our customers in the Asia Paciﬁc region. Both initiatives will also help us improve product margins going forward. And as we implement these and other operational improvements, we continue to carefully manage our operating expenses.

LETTER TO SHAREHOLDERS continued

On the product front, in 2024 we introduced two new Life Science research platforms - the ChemiDoc™ Go Imaging System for analyzing gels and western blots, and the ddSEQ™ Single-Cell Kit, a cost-effective sample prep solution for researchers to easily conduct single-cell gene expression and regulation analyses.

In Life Science, we acquired Saber Bio, a development-stage platform using our core droplet technology for high-throughput discovery of novel antibodies and T-cell receptors, which play a critical role in helping researchers identify potential therapeutic drug candidates.

We also expanded our library of assays for use with Droplet Digital™ PCR to advance early diagnosis and monitoring of various cancers, cell and gene therapy manufacturing, and food safety monitoring.

In addition, we made investments and formed partnerships to drive the penetration of our Droplet Digital

PCR platform into life science research and advanced clinical

OFFICERS

Clockwise from top center:

Norman Schwartz Chairman of the Board, Chief Executive Ofﬁcer

Jonathan P. DiVincenzo President,

Chief Operating Ofﬁcer

Roop K. Lakkaraju Executive Vice President, Chief Financial Ofﬁcer

LETTER TO SHAREHOLDERS continued

diagnostics. We partnered with the Allegheny Health Network of hospitals to generate clinical evidence across various cancer types using Bio-Rad's Droplet Digital PCR technology for minimal residual disease monitoring of solid tumor cancer patients after treatment. We made an investment in Oncocyte to support the commercialization of transplant monitoring assays deploying Bio-Rad's QX600™ Droplet Digital PCR System, offering laboratory customers a highly sensitive alternative to centralized sequencing test providers. We also invested in Geneoscopy to support the launch of their FDA-approved, non-invasive colorectal cancer screening test utilizing our digital PCR platform.

Bio-Rad begins 2025 in a strong position. Our long-term strategy remains intact, and we believe in our ability to deliver value to our customers. In Clinical Diagnostics, we have leading positions globally for our core platforms. We are actively investing in supporting their growth while building positions in new molecular diagnostic applications. In Life Science, we will continue to focus on the biopharma sector, especially with our digital PCR and process chromatography products, and new product development around cell biology.

The operational improvements made over the last several years put us in a position to continue to expand our margin proﬁle. As the markets get back on a solid growth trajectory, this will further support our margin expansion.

We have an incredibly talented team, several new products in development, and we enter 2025 with renewed focus on our mission to collaborate with our customers in advancing science and improving healthcare outcomes to save lives.

Thank you for your support and interest in Bio-Rad.

Norman Schwartz

CHAIRMAN AND CHIEF EXECUTIVE OFFICER

2024 PRODUCT HIGHLIGHTS

PRODUCT

HIGHLIGHTS

New Applications Using Bio-Rad's Droplet Digital PCR Technology

Vericheck ddPCR™ Empty-Full Capsid Kit for

Gene Therapy Production

Many gene therapies use AAV viral vectors to deliver therapeutic genes to patients' cells. The manufacturing process produces a mixture of full (containing the gene of interest) and empty capsids. The Vericheck ddPCR Empty-Full Capsid Kit measures viral titer and the ratio of empty to full capsids, enabling accurate quality assessment. This is the ﬁrst ddPCR kit to simultaneously detect protein and genetic material.

dd-Check STEC Solution for Food Safety Testing

This assay detects virulence genes from Shiga toxin-producing Escherichia coli (STEC) in food samples. It is the ﬁrst ddPCR method approved by AOAC International, a leading association for food safety. Unlike standard qPCR testing methods for STEC, ddPCR technology can detect colocalization of virulence genes in a single bacterium, reducing false positives.

ddPLEX ESR1 Mutation Detection Kit for

Oncology Research

This kit is a powerful research tool that enables same-day multiplexed detection, discrimination, and quantiﬁcation of seven mutations in the ESR1 gene. Mutations in ESR1 drive resistance to some types of breast cancer therapies. Using this kit, researchers can quickly and effectively assess breast cancer samples to support their research studies.

2024 PRODUCT HIGHLIGHTS

Solutions for Life Science Research and Drug Manufacturing

Foresight™ Pro 45 cm Diameter Chromatography Columns for Drug Manufacturing

Prepacked with Bio-Rad resins, these columns extend Bio-Rad's portfolio for process-scale chromatography across various stages of biological drug production. Foresight Pro Columns offer manufacturers an integrated solution for downstream puriﬁcation of biotherapeutics, including vaccines, antibodies, and recombinant proteins.

ChemiDoc Go Imaging System for Life

Science Research

The ChemiDoc Go Imaging System is the ﬁrst benchtop imager on the market to leverage advanced complementary metal oxide semiconductor (CMOS) digital imaging to capture gel and western blot images with the same high sensitivity as larger instruments. Researchers can use the ChemiDoc Go System's user-friendly interface, LED illumination, and cloud connectivity for easy and accurate benchtop imaging.

ddSEQ Single-Cell 3' RNA-Seq Kit for Single-Cell Analysis

Designed to run on Bio-Rad's droplet-based ddSEQ Single-Cell Isolator, the ddSEQ Single-Cell 3' RNA-Seq Kit and accompanying Omnition v1.1 Analysis Software enable researchers to easily conduct single-cell gene expression and regulation analyses. This kit supports a broad range of research ﬁelds, including oncology, immunology, neurology, and stem cell biology.

2024 YEAR IN REVIEW

2024 YEAR IN

REVIEW

Bio-Rad is a leader in developing, manufacturing, and marketing a broad range of products for the life science research and clinical diagnostics markets. We operate a global network of research, development, manufacturing, and sales operations with approximately 7,700 employees and $2.6 billion in revenues in 2024.

Our customers include universities, research institutions, hospitals, and biopharmaceutical companies, as well as clinical, food safety and environmental quality laboratories. Together, we develop innovative, high-quality products that advance science and save lives.

47.2%

AMERICAS

32.5%

EMEA

20.3%

ASIA-PACIFIC

Reference

Hospital

Labs

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2024

OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________________________ to _________________________________

Commission file number 1-7928

BIO-RAD LABORATORIES, INC.

(Exact name of registrant as specified in its charter)

Delaware

94-1381833

(State or other jurisdiction of incorporation)

(I.R.S. Employer Identification No.)

California

94547

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code

(510) 724-7000

Securities registered pursuant to Section 12(b) of the Act:

1000 Alfred Nobel Drive,

Hercules,

Trading

Title of Each Class

Symbols

Name of Each Exchange on Which Registered

Class A Common Stock Par Value $0.0001 per share

BIO

New York Stock Exchange

Class B Common Stock Par Value $0.0001 per share

BIO.B

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to

Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒

☒ Yes

☐ Yes

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange

Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

☒

Yes

¨ No

Yes

¨ No

☒

subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated file

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

☐

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness

☒

of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered

public accounting firm that prepared or issued its audit report.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the

☐

registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based

☐

compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐

Yes

☒ No As of June 28, 2024, the last business day of the registrant's most recently completed second fiscal quarter, the aggregate market value of the Registrant's Class A Common Stock held by non-affiliates was approximately $5,342,352,777 and the aggregate market value of the registrant's Class B Common Stock held by non-affiliates was approximately $28,604,722.

As of February 11, 2025, there were 22,940,805 shares of Class A Common Stock and 5,070,337 shares of Class B Common Stock outstanding.

Documents Incorporated by Reference Document

Form 10-K Parts

(1)

Definitive Proxy Statement to be mailed to stockholders in connection with the registrant's 2025 Annual Meeting of Stockholders (specified portions)

III

BIO-RAD LABORATORIES, INC.

FORM 10-K DECEMBER 31, 2024

TABLE OF CONTENTS

Part I. 3

Item 1. Business 3

Item 1A. Risk Factors 10

Item 1B. Unresolved Staff Comments 22

Item 1C. Cybersecurity 22

Item 2. Properties 23

Item 3. Legal Proceedings 24

Item 4. Mine Safety Disclosures 24

Part II. 24

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of

Equity Securities 24

Item 6. Reserved 25

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 32

Item 8. Financial Statements and Supplementary Data 34

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 80

Item 9A. Controls and Procedures 80

Item 9B. Other Information 81

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 81

Part III. 81

Item 10. Directors, Executive Officers and Corporate Governance 81

Item 11. Executive Compensation 82

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder

Matters 82

Item 13. Certain Relationships and Related Transactions, and Director Independence 83

Item 14. Principal Accountant Fees and Services 83

Part IV. 84

Item 15. Exhibits and Financial Statement Schedules 84

Item 16. Form 10-K Summary 88

Signatures 88

Disclaimer

Bio-Rad Laboratories Inc. published this content on March 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 26, 2025 at 20:52:16.435.