Why Elliott Sees Hidden Billions Inside Bio-Rad Laboratories

Activist investor Elliott Investment Management has built a sizable stake in Bio-Rad Laboratories, Inc. (NYSE:BIO) and is expected to push the life-science tools and diagnostics company to improve its lagging share performance.

Bio-Rad develops instruments and software used by hospitals, blood banks, and medical laboratories.

However, the company's founding family retains majority voting control, potentially complicating efforts by activists to drive strategic or operational changes, the Wall Street Journal reported on Sunday.

Sartorius Investment Draws Attention

Elliott is also reportedly a major investor in Sartorius, the German pharmaceutical and laboratory equipment supplier in which Bio-Rad holds a strategic investment.

Bio-Rad's stake in Sartorius is estimated to be worth roughly $5 billion, close to Bio-Rad's market value of approximately $6.6 billion.

Citing people familiar with the matter, the WSJ report added that Elliott views Sartorius as a high-quality company with strong long-term growth prospects, particularly as biologic drugs continue to dominate the pharmaceutical market.

The exact size of Elliott's investment in Bio-Rad and its specific plans could not be determined.

Shares Remain Under Pressure

Bio-Rad shares have fallen more than 70% from their pandemic-era peak above $800 per share in late 2021.

The company's turnaround potential, combined with the value of its Sartorius stake, could make Bio-Rad attractive to potential acquirers, according to people familiar with the situation.

Management has projected 2026 operating margins between 10% and 12%, well below levels seen in prior years and trailing peers in the sector, some of which post margins exceeding 30%.

Industry Conditions Begin To Improve

The broader life-science tools and diagnostics industry has faced pressure following restructuring efforts at major pharmaceutical companies after the COVID-19 pandemic.

Still, analysts have recently pointed to improving conditions as biopharma companies increase research and development spending, and dealmaking activity accelerates.

Recently, Bio-Rad Laboratories reported first-quarter adjusted earnings of $1.89, missing the consensus of $1.98.

Sales reached $592.10 million, beating the consensus of $588.88 million.

The company lowered its fiscal 2026 sales guidance from $2.59 billion-$2.62 billion to $2.51 billion-$2.59 billion compared to the consensus of $2.63 billion.

BIO Price Action: Bio-Rad Laboratories shares were up 12.94% at $279.57 at the time of publication Monday, according to Benzinga Pro.

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