Thanks, everyone, for hanging with us towards the end of the day here. Thanks for joining us for the Bio-Techne management presentation. My name is Matt LaRue. Very happy to have CEO Kim Kelderman here and Dave Clair from Bio-Techne here as well. Thanks to them for joining us. I have two logistical comments. One, the breakout is in Maher on the second floor. Second, for a list of our research disclosures and conflicts of interest, you can visit williamgclair.com. I will turn it over to Kim. Thanks again for joining us.
Thank you, Matt. It's always an honor to be at this conference. I'm excited to provide you an update on our company, Bio-Techne. Before I get into the actual materials, I want to draw your attention to our safe harbor statement, which you can find on biotechne.com under the investor relations section. With that, I will start off with a very important part of the presentation, which is the beginning of everything, which drives us and what is exciting to us. That is our mission statement. We improve the quality of life by catalyzing advances in science and in medicine. It's important for our daily work, but also for our vision and our strategy. It's what drives value, long-term value for our customers and for our stakeholders. On the next three slides, I'll give you a quick overview of the status as the company is currently.
The slides thereafter, it's more focused in on, honed in on the strategy that we will continue to deploy going forward. Now, Bio-Techne, where are we at? We are in Minneapolis, headquartered, around 3,100 employees that work from 34 locations globally. We've worked for 48 years really hard on creating a differentiated portfolio of core protein-based reagents and products that we leverage to enter into high-growth markets. Underneath, in the middle, you see that we report in two segments. It's the protein sciences segment, as well as the diagnostics and spatial biology segment. Within the protein sciences segment, we have very high-quality differentiated core reagents, which are 6,000 proteins, 400,000 antibodies. We have a beautiful menu of small molecules and a vast menu of immunoassays. Those core reagents, we utilize and pull through into certain growth factors.
We have a growth factor around proteomic analytical instrumentation, where we apply those core reagents and pull through on a standard basis through the equipment, this portfolio. In addition, we have a growth factor around cell therapy. There we also have various solutions that I will get into. In the other segment, we have a growth factor around spatial biology. Obviously, we have an instrumentation there, but also core reagents we pull through. The diagnostic precision diagnostic tools have a similar setup. Last but not least, there is also a core in that spatial diagnostic business, where we have diagnostic reagents and controls. That is a very cool portfolio, which gives you growth and it gives you high margins because of the mix between those growth factors, as well as the core reagents. On the right-hand side, you can see the breakout of our revenues.
In 2024, we generated $1.2 billion in revenues, of which 80% came from selling consumables. 9% of the revenue is related to instrumentation, 9% of it related to services of that instrumentation, 2% related to royalties. It is worth noting that 11% within the 80% of the consumables are consumables that directly get pulled through on our installed base within our instrumentation. Here you can see that we have a highly differentiated portfolio that is very consumable-rich and allows for a strong profitability profile of our company. If we double-click on the revenues, here you can see the circles on the left-hand side. Let's focus on the outer circle, where you can see that 72% of our revenues are related to the protein sciences segment, and therewith, much bigger than the 28% that are diagnostics and spatial biology business. However, last year, that portion was 26%.
The diagnostic and spatial biology business has been outgrowing the protein sciences segment. Therewith, the balance is going to, over time, equal out. If you look at the inner circle, you can see the product lines that belong in those segments. If you look at core RUO reagents, you can see that we have 42% coming from that area, which are the proteins, the antibodies, and the small molecules. Select versions of that, we've been able to apply towards the cell and gene therapy growth vertical, where we specifically focus on cell therapy. We optimized a subset of this RUO portfolio for GMP usage and GMP certification. The proteomic analytical instrumentation is 24% of our revenues and is a very highly differentiated offering that also pulls through, of course, the reagents that I was talking about earlier.
If we then move up to the right, we can see that we have the core diagnostic controls, 12% of our revenues, molecular diagnostics, 6%, and then spatial biology at this point in time, 10% of our revenues. As you would expect from a very high-quality and differentiated portfolio, our end markets are skewed towards the pharma, biotech, and markets. We do have 21% globally of our revenues coming from academics. About half of that comes from the U.S. We deem academic markets strategically important because the scientists of the future that will enter the biotech and pharma companies, we like that they are already acquainted with our quality, our reputation, and our instrumentation, and that will eventually trickle through in the buying behavior once our students grow up.
On the right-hand side there, you see that 17% of our revenues are related to diagnostic and markets, and then 12% are related to distributors, which we mainly use in the APAC region, as well as in Latin America. On the bottom here, you see the geographies. 60% of our revenues come from the Americas, and then 15% from APAC China, 25% from Europe. That is kind of how our regions stack up if it comes to our revenue differentiation. In the next slide, I will summarize the foundation of our success in words. Over the decades, and that is 48 years in the making, we have created a durable and differentiated product portfolio, which gives us a balanced exposure to established, but also emerging applications in high-growth end markets.
We can play in those end markets successfully because we have a fantastic portfolio that leverages the protein and antibodies that took us so long to put together. This resulted actually in a very high-quality portfolio and, of course, a high reputation and a loyal customer base. We have an organic and inorganic innovation machine, and we unlock with that certain new high-growth opportunities. In addition, we build a lean and nimble team globally, and we have a culture of ownership and accountability. That's, of course, a very impressive position to be in as a starting point, but we are very dedicated to executing against a very interesting and differentiated strategy, which I will walk you through in the coming slides. Here are our growth factors and the pyramid slide, as I call it.
On the left-hand side, you can see the different development phases that a usual project goes through for our customers. Researchers start off with research and discovery, and at some point, that rolls into a translational and development phase, where your research becomes something tangible, and you start validating and looking at the manufacturing processes. Eventually, this then turns into either a diagnostic or into a treatment. We feel that those phases are heavily influenced by mega trends, which you see in the middle of this pyramid, right? We feel that those are up-and-coming and long-term trends influencing the progress through those phases. We always look at our multi-omic insight generation. We feel that most of our customers truly need the right tools to look at multi-omic progress, meaning you look at your DNA and your RNA and how this translates in proteomics.
This is an important aspect of discovering quickly and efficiently new drug opportunities. We do believe that proteomic interrogation at scale, so high volume, high throughput, is here to stay. It is typically now used in the research and discovery phase, but we feel it will mature and go up the ladder into translational, as well as into the eventually diagnostic space. AI-enabled innovation will be broadly applied. We feel that novel therapeutic approaches, such as cell therapy, are here to stay. We see tremendous progress and promise. Precision medicine will also continue to be important, as every individual is biologically different. Healthy aging. Who would not want to grow as old and as healthy as possible? We know that we have a growing aging population, and therefore, we feel that is at the pinnacle of this pyramid.
We play a very important instrumental role helping our customers to get through those phases, taking into account those different mega trends. We group our growth factors on the right-hand side of this pyramid. We typically talk about the discovery of novel biological insights, which is a focus point for us, the development and manufacturing of advanced therapeutics, and then the enablement of precision diagnostics, where you want to diagnose early and you want to pick the right treatment. Therewith, we feel that our growth factors capitalize on these mega trends and truly help our customers roll through those phases as efficient as possible. That is what we all want. If I then map that slide of our portfolio that we have shown investors and customers for a long time on the left-hand side, you see the portfolio as I showed on slide one.
If you then would like to make the translation to these growth factors that you see on the right-hand side. This is how we map our solutions and explain and prioritize internally the strategies that we want to evolve. We look at number one, the discovery of novel biological insights. There, our recombinant protein and small molecule solutions really help in cell-based work, cell therapy, but also organoids and other activities. A large menu of antibodies can power the proteomic platforms, the high-throughput proteomic platforms for the mega trend I mentioned earlier. Then, of course, spatial biology, where we allow multi-omics on our solution, which is very important in neuro and immuno-oncology, and also a mega trend. On the right-hand side, you see our proteomic analytical instrumentation, where automated ELISA and Western blot are essential processes and very important for research applications.
If you then go to the next phase in the development, where you go into the manufacturing of advanced therapeutics, there you can see that we have a leading portfolio of GMP reagents that are GMP certified. We have 20% of the company called Wilson Wolf, which has a G-Rex, which is a device where you can grow your cells and where we would enter all our GMP reagents to optimize the cell growth. That, of course, helps with cell therapy. It is a very cost-effective and scalable solution. We have exceptional quality in proteins and antibodies. That gives you a real advantage from early process development all the way into high-volume GMP manufacturing and is essential to help our customers with consistency and high quality of these reagents.
On the proteomic analytical instrumentation, you see that all three of our platforms, the ELISA, the Simple Western, as well as the biological platforms, play a relevant role in process development, but also in QA/QC of different lots of manufacturing of various therapies. It is important to cell therapy, gene therapy, RNA therapy, and even protein-based therapies like ADCs and others. Little there underneath that box, you see the spatial biology and the Comet solutions, where the Comet is an instrument fully automated to run RNA as well as proteomic analysis. Spatial biology overall is very important in the cell therapy and gene therapy to look at biodistribution. That rounds out how our products then map to the growth vertical number two.
If you look at number three, enablement of precision diagnostics, there we have a tremendous know-how and a large offering in proteins that really enable proteomic diagnostic applications. We have a portfolio of diagnostic reagents and controls, which is a very sticky business and serves most of the large IVD companies globally. A few years ago, we bought Asuragen, which is a company that has a portfolio of genetic testing, kitted genetic testing that sells into laboratories. They also brought a channel to sell into laboratories. We already had the exosome DX, which basically is a capability to fish out exosomes out of your sample so you can find hard-to-find genes. With the Asuragen technology, you can read hard-to-read genes. A very powerful combination that you can run on easily accessible instrumentation, such as CE and/or qPCR instrumentation, widely available.
If we then move to the last part, which is spatial biology, we have several markers like HPV and Kappa Lambda that are already in the clinic. One of the few spatial companies on the IS side already has more or less 10% of our revenues coming from the clinical space. It is outgrowing the RUO portfolio. Very promising part there. Now, if I would look at how do we strengthen those verticals, that is, of course, looking at organically and later on inorganically, but in this slide, organically, innovation, how we strengthen also aligned with the three vectors. The first vector in the discovery of novel biological insights, there we started shipping two quarters ago the LEO instrument. It is a next-generation high-throughput, fully automated Western blot system that can run anywhere between 25-100 samples.
You have fantastic flexibility, high throughput, and it runs within three hours. Therefore, an ideal fit for biopharma customers. We have a real strong pipeline. We're really happy with the uptake that we've generated from this system. I mentioned earlier, we're 48 years into the development of proteomics-based materials. Of course, have a vast database around proteins and antibodies. We definitely use this database, proprietary database, to have AI help us design AI-generated proteins. We've launched eight of those over the last couple of quarters. Those are hyperactive proteins and antibodies that are actually not existing in nature. That means you can patent them. That creates a durable advantage for us.
That is why we want to be one of the first movers in this space and continue to more or less launch 9-12 of those annually to further our differentiation. On the multi-omic spatial biology platform, we launched a multi-omic solution, RNA and protein for visualization on the Comet instrument. Here you see that you can run about 12 targets if it comes to the RNA. On the same slide, we have 24 protein targets. It is really interesting to see that if you bring in a certain RNA, whether it blocks or whether it accelerates the production of a certain protein. That is very often how the mechanism of action is with drugs. You can see this on one slide.
The instrument allows you to run four slides in parallel overnight, all the way from putting your sample in, staining, and processing into an image. The next morning, the image is ready. It is the one and only box that does all of this fully automated in high throughput. We are very proud of this solution. In the middle vector, it is basically the cell therapy solution, where we have launched ProPak. Those are little bags with the right concentration and the right amount of GMP proteins or cytokines that you can squirt into the Wilson Wolf G-Rex, which is this small bioreactor, disposable bioreactor. Now your system is actually foolproof. We optimize the quantities and concentrations of the different reagents to optimize your cell growth so that you early in stage have enough cells to reinject into the patient.
We feel this is a very powerful, scalable, affordable solution for cell therapy. Last vector, the enablement of precision diagnostics. I talked about the marriage of the kitted Asuragen portfolio, combined that with the hard-to-find capabilities of exosomes. We have launched our ESR1 kit, which is the combination using the combination of the two capabilities. This is a kit that detects ESR1 mutations, 11 of them. That helps manage breast cancer and reoccurrence of breast cancer and the treatment of breast cancer. Doing that monitoring at the right time and the right frequency actually doubles the life expectancy of a patient. Therefore, we feel that it's a very important progress and shows the capabilities in this pipeline. We will continue to bring out kittable products that we can sell into laboratories through our channel that are differentiated in the market.
So collectively, you can see that those innovations strengthen our portfolio. Our financial performance. Now, we can see here the two different bar graphs for revenue and operating income. Of course, we had a fantastic bull market followed by a pandemic, which, of course, put a lot of wind in the sails of the life science tools markets. At some point, biotech funding, large pharma spent because of the IRA, as well as the China economy, were headwinds. Here you can see that at some point, our revenues flattened out. Fortunately, we are one of the few life science tools companies that stayed in the black. We still have 1% growth. Not that we are proud of it, but it was a lot better than many others.
You see in the two smaller bars in the box to the right that the year-to-date, so that's the first three quarters of our fiscal year 2025, the growth came back. We are happy that we booked year-to-date 6% organic growth. We have, of course, newer trends hitting our Q4. It would be lovely to talk about the dynamics in a breakout session that we will entertain later. Operating margins, also 40% CAGR. At some point, we had a product mix shift with the down year where the protein sciences segment, high margin, had some tougher times to grow. The diagnostic space was growing much faster. That is why you see a shift there if it comes to operating income. We also had our first year of the Lunaphore acquisition on board, which was a very early-stage acquisition, also putting some pressure on operating margin.
If you combine for the five years, you're still looking at 9% growth. You also can see that our year-to-date for the first three quarters continued to be in the black and is now back up by 5%. Good. Let me now talk through the inorganic expansion. We want to just say that M&A will continue to be our top priority for capital deployment. Yes, over the last couple of quarters, we also bought back some of our stock because we felt that we are undervalued under the current conditions. Buying high margin or high growth companies that we could add to the portfolio would still be a high priority for us. I grouped this along with those three growth factors that I talked about earlier. Here you can see that the discovery of novel biological insights is indeed vertical number one.
It is also the highest priority for us. It is nice that the priority where to invest is aligned with the numbering here. Number one for us would be this vector. We would be looking at analytical platforms, especially the ones that pull through our core reagents like the Razor Razor Blade model I described a couple of times, product tokens that belong in there, different applications that we could utilize, and of course, other targeted innovation capabilities. If you go one vector lower, also of interest for us would be cell therapy workflow components. Yes, we have the G-Rex and we have the GMP proteins, cytokines, and small molecules. There are other components that would fit in that workflow. We would be quite happy to take on an acquisition like that. Same for bioanalytical solutions and other opportunistic expansion.
Now, let me stay away from number three. It's highly unlikely. On the right-hand side, you see that we could start another growth vector. It could opportunistically be done. I do believe that I don't have to talk about number three and the one to the right just because there's so much opportunity for us that we could definitely be more effective in our strategic sweet spot, which is the vector number one and two. That's where we will focus on for the time being. Now, let me map those opportunities back to our core portfolio. Here you see in the middle that we have the core products and the four growth verticals around it. In total, these address $28 billion of market opportunity.
Our core products, which took us decades to build together, we continue to expand and, of course, make sure that those are applicable for many of the proteomic analytical different growth vectors, such as the proteomic analytical instrumentation, where we continue to expand in different applications, especially applications around cell therapy. The lower left, you see cell and gene therapy, where our state-of-the-art proteins, after you create and pass the GMP hurdle, are being utilized to grow this market and to enable cell therapy companies to have a scalable solution, especially if you combine this with the G-Rex bioreactor. This will create a very unique, efficient, and scalable solution, which is instrumental to the development of this end market.
If you then move to the top right, spatial biology, there we have combined the ACD portfolio of about $120 million run rate of core reagents to detect RNAs, 75,000 different probes. We combined that with the Lunaphore instrument, which already talked about the multi-omic capabilities and its differentiated performance. We, of course, have a portfolio of antibodies that you could use to detect certain proteins. This instrument is going to be the highest pull-through instrument for our core reagents as it uses antibodies as well as the RNA reagents. On the bottom right, you see our precision diagnostic tools, where we talked about the power of exosomes, interrogating exosomes, as well as the power of distributing kits to different laboratories with the Asuragen brand name.
I think this is really showing how we created a very differentiated position in a very sustainable market that we play. Sustainable is an important word for us. That is why I have a slide on sustainability. We published our fourth corporate sustainability report. There you can read all about our people and how we have a diverse and inclusive workplace, a fantastic team that works on advancing science. We launched over 800 new products in 2024. To the bottom left, we are overall a relatively environmental-friendly company. We nonetheless continue to focus on reducing waste, especially if it comes to packaging. We have quite a portfolio of different projects and activities to improve our footprint. On the right-hand side, from the governance point of view, we are supervised by a board of directors with deep scientific as well as business expertise.
Now, to my final slide to just summarize my overall presentation. The key takeaways are that the mega-trends that I showed in the pyramid slide create a flywheel for our three strategic growth factors. Over the last 48 years, Bio-Techne has built a very differentiated proteomic core portfolio, which provides leverage across the different vectors. We have a strong innovation and M&A pipeline. We enjoy a durable position in critical applications across $28 billion of market opportunity. This really enables sustainable and above-market financial performance if it comes to top line, because we aspire to always outgrow the overall market by 500- 1,000 basis points. On the bottom line, because our operating margins, we target always anywhere between 35%-40% EBITDA range. Of course, if there is a newer acquisition in there, it will temporarily dip.
We will always aspire to get back to that range. Of course, we want to deliver high teens CAGR for the adjusted earnings per share. We will deliver this performance while we unlock the possibilities of science. So thank you for your interest in Bio-Techne. I hope to see you in the breakout session.