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Maravai LifeSciences To Host Earnings Conference Call on Wednesday, May 8, 2024
Newsfilter· 2024-04-10 20:05
SAN DIEGO, April 10, 2024 (GLOBE NEWSWIRE) -- Maravai LifeSciences, Inc. (Maravai) (NASDAQ:MRVI), a global provider of life science reagents and services to researchers and biotech innovators, plans to announce its first quarter 2024 financial and operating results after the market closes on Wednesday, May 8, 2024, and will host a conference call and webcast on the same day at 2:00 p.m. PT/ 5:00 p.m. ET. To participate in the conference call by telephone, dial (888) 596-4144 or (646) 968-2525 and reference ...
Maravai LifeSciences(MRVI) - 2023 Q4 - Annual Report
2024-02-28 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-39725 Maravai LifeSciences Holdings, Inc. (Exact name of registrant as specified in its charter) | Delaware | 85-2786970 | | --- | --- | | (State or other juris ...
Maravai LifeSciences(MRVI) - 2023 Q4 - Earnings Call Transcript
2024-02-23 05:00
Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $110 million for Q4 2023, compared to a net income of $87 million for Q4 2022. For the full year, the GAAP net loss was $138 million, down from a net income of $491 million in 2022 [15][85] - Adjusted EBITDA for Q4 2023 was $21 million, with an adjusted EBITDA margin of 28%, exceeding expectations due to higher-than-anticipated revenues [12][112] - The company ended 2023 with $575 million in cash and $533 million in long-term debt, resulting in a net cash position of $42 million [16] Business Line Data and Key Metrics Changes - The Nucleic Acid Production segment generated $59 million in revenue for Q4 2023, with an adjusted EBITDA of $24 million, reflecting a margin of 41% [18] - The Biologics Safety Testing segment reported revenues of $15 million in Q4 2023, with an adjusted EBITDA of $12 million, resulting in a margin of 76% [88] - For the full year, the Nucleic Acid Production segment had revenues of $225 million and adjusted EBITDA of $83 million, a margin of 37% [115] Market Data and Key Metrics Changes - The company identified over 350 programs utilizing CleanCap, with more than 100 new programs in the last 12 months, indicating strong market interest [103] - The FDA approved nearly 50% more novel drugs in 2023 than in 2022, suggesting a favorable regulatory environment for the company's products [77] Company Strategy and Development Direction - The company is entering a new phase referred to as Maravai 3.0, focusing on innovation across the mRNA production workflow and diversifying its business for sustainable growth [68][119] - The strategy includes fostering key academic and industry partnerships to enhance innovation and accelerate market adoption of the latest technology [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the guidance range for 2024, noting a higher percentage of revenue recognized or committed compared to the previous year [25] - The company anticipates a return to growth in 2024, driven by a diversified customer base and increased binding commitments from customers [96][102] Other Important Information - The company plans to reduce capital expenditures to $30 million to $35 million in 2024, following the completion of facility investments [118] - The company will no longer estimate COVID-related CleanCap in its guidance, recognizing its use across various applications [89] Q&A Session Summary Question: Can you discuss the demand environment over the last 3 to 6 months? - Management noted a shift towards a more diversified customer base and a willingness to make binding commitments again, which is a positive change [96] Question: What is the anticipated decline in contractual commitments for 2024? - Management confirmed that there is a $50 million contractual commitment for 2024, down from $60 million to $65 million in 2023, and emphasized the importance of modeling this correctly for future projections [33] Question: Can you provide additional comments on the FUJIFILM partnership? - Management highlighted the strategic importance of the partnership, noting it could be meaningful but depends on customer signings as a CDMO [56]
Maravai LifeSciences(MRVI) - 2023 Q4 - Annual Results
2024-02-21 16:00
Exhibit 99.1 MARAVAI LIFESCIENCES REPORTS FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS Continued Focus on Expanding Product Portfolio, Market Leadership and Innovation SAN DIEGO, Calif., — February 22, 2024 — Maravai LifeSciences Holdings, Inc. (Maravai) (NASDAQ: MRVI), a global provider of life science reagents and services to researchers and biotech innovators, today reported financial results for the fourth quarter and full year ended December 31, 2023, together with other business updates. Recent ...
TriLink BioTechnologies® Solidifies IP Position with Awarded Patents for CleanCap® Capping Technology in China and Canada
Businesswire· 2024-02-21 13:00
SAN DIEGO--(BUSINESS WIRE)--TriLink BioTechnologies (TriLink®), a Maravai LifeSciences company (NASDAQ: MRVI) and global provider of life science reagents and services, has been granted patents by the China National Intellectual Property Administration (CNIPA) and the Canadian Intellectual Property Office (CIPO). Patent numbers ZL 2023 1 0734863.0 and CA 2999274 are related to TriLink’s CleanCap® technology for the co-transcriptional capping of mRNAs – a critical component of the production of synthetic mRN ...
Maravai LifeSciences(MRVI) - 2023 FY - Earnings Call Transcript
2023-11-16 15:00
Financial Data and Key Metrics Changes - The company reported a significant reliance on a single customer for the majority of its revenue last year, particularly related to the COVID vaccine, which has influenced its market narrative [11] - The nucleic acid production segment accounts for more than three-quarters of revenue, indicating a strong focus on this area moving forward [15] - The company maintains a net cash position of $580 million, which provides a solid financial foundation for future growth [19] Business Line Data and Key Metrics Changes - The nucleic acid production segment includes TriLink, Glenn Research, and AlphaZyme, which are critical for mRNA and other nucleic acid-based therapies [15] - The biologic safety testing segment, primarily through Cygnus Technologies, contributes about a quarter of revenue and is characterized by high margins [17] Market Data and Key Metrics Changes - The company is positioned in the mRNA and gene therapy markets, which are expected to see significant growth in the coming years, driven by advancements in programmable medicine [10][20] - The market for biologics is broad, with the company covering various cellular expression systems, which enhances its competitive positioning [18] Company Strategy and Development Direction - The company aims to focus on the discovery phase of drug development, seeking to be the first choice for customers in early-stage programs [7][8] - There is an emphasis on expanding capabilities through infrastructure investments made during the pandemic, which are expected to support future growth [13][20] - The company plans to continue its acquisition strategy to enhance its portfolio and drive both organic and inorganic growth [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current challenges in visibility for future orders, particularly in the COVID-related business, and is working closely with customers to understand their needs [26][28] - There is optimism regarding the potential announcement of a CRISPR medicine that could revitalize interest in the sector [34] - The long-term model anticipates a return to pre-pandemic growth rates, supported by a robust infrastructure capable of handling increased business without significant new investments [38] Other Important Information - The company has made cost adjustments to align its structure with the base business, reflecting a strategic response to current market conditions [28] - The CleanCap technology is expected to evolve from a COVID-specific application to broader respiratory vaccine applications [29] Q&A Session Summary Question: Update on non-COVID opportunities for CleanCap - The company plans to report on clinical trials and visibility in Q4, noting expected delays in programs due to funding concerns [22][24] Question: Revenue guidance for CleanCap in 2024 - The company is deferring guidance for 2024 due to a lack of visibility and is working with customers to understand their needs [26][28] Question: Incremental revenue from new facilities - The company is strategically opening new facilities to align with customer needs, with Flanders I expected to launch in Q2 [30][31] Question: Materiality of new partnerships - The partnerships are part of a broader strategy to engage customers early in the discovery process, which is expected to drive future development [32][33] Question: Long-term revenue targets and market indicators - The company is optimistic about returning to prior growth rates and expects to leverage its existing infrastructure to support this growth [34][36] Question: Capital allocation and stock buyback considerations - The company remains focused on M&A opportunities and maintaining a strong cash position for future investments [39]
Maravai LifeSciences(MRVI) - 2023 Q3 - Earnings Call Presentation
2023-11-08 08:53
Q3 2023 Financial Performance - Revenue reached $67 million[7] - Adjusted EPS was negative, at ($0.01) per share[7] - Adjusted EBITDA stood at $12 million[16] - Base Nucleic Acid Production (NAP) revenue totaled $36 million[7] - NAP revenue reached $51 million[16] - Biologics Safety Testing (BST) revenue was $16 million[33] Updated 2023 Financial Guidance - Revenue guidance was updated to $275 to $285 million[51] - CleanCap® COVID-19 revenue is projected at $61 million[51] - Adjusted EPS guidance was updated to ($0.01) to $0.01 per share[51] - Adjusted EBITDA guidance was updated to $55 to $60 million[51] Cost Savings and Restructuring - The company is targeting at least $30 million in annualized cost savings through workforce and expense reductions[19,35] - A workforce reduction of approximately 15% is planned, targeting $23 million in savings[19] - Non-labor expense reductions are expected to yield $7 million in savings[19]
Maravai LifeSciences(MRVI) - 2023 Q3 - Quarterly Report
2023-11-07 16:00
PART I - FINANCIAL INFORMATION This section provides the company's unaudited condensed consolidated financial statements, management's discussion and analysis, and disclosures on market risks and controls [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Maravai LifeSciences Holdings, Inc. as of September 30, 2023, and for the three and nine-month periods then ended It includes the balance sheets, statements of operations, comprehensive income, changes in stockholders' equity, and cash flows, along with accompanying notes | | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $700,865 | $847,902 | | **Total assets** | $2,267,553 | $2,282,315 | | **Total current liabilities** | $78,253 | $110,144 | | **Total liabilities** | $1,375,272 | $1,377,072 | | **Total stockholders' equity** | $892,281 | $905,243 | | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $66,865 | $191,263 | $214,804 | $678,288 | | **(Loss) income from operations** | $(15,417) | $116,903 | $(24,498) | $464,970 | | **Net (loss) income** | $(15,102) | $99,653 | $(28,393) | $403,234 | | **Diluted EPS** | $(0.05) | $0.34 | $(0.10) | $1.37 | | | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- |\ | **Net cash provided by operating activities** | $118,434 | $436,642 | | **Net cash used in investing activities** | $(109,407) | $(249,092) | | **Net cash used in financing activities** | $(61,560) | $(121,376) | | **Net (decrease) increase in cash** | $(52,533) | $66,174 | [Organization and Significant Accounting Policies](index=12&type=section&id=1.%20Organization%20and%20Significant%20Accounting%20Policies) Maravai operates in two principal businesses: Nucleic Acid Production and Biologics Safety Testing The company generates revenue primarily from product sales, recognized when control is transferred to the customer There have been no material changes to significant accounting policies during the period The financial statements consolidate Maravai Topco Holdings, LLC, with a non-controlling interest allocated to MLSH 1 - The company's two main business segments are Nucleic Acid Production (manufacturing mRNA, CleanCap®, oligonucleotides) and Biologics Safety Testing (selling analytical products for biologic manufacturing)[31](index=31&type=chunk) | Region | Q3 2023 Revenue (in thousands) | YTD 2023 Revenue (in thousands) | | :--- | :--- | :--- | | North America | $34,515 | $109,353 | | Europe, the Middle East and Africa | $7,622 | $33,763 | | Asia Pacific | $24,623 | $71,315 | | Latin and Central America | $105 | $373 | - For the three and nine months ended September 30, 2023, one customer, Nacalai USA, Inc., accounted for **22.9%** and **18.5%** of total revenue, respectively In the prior year periods, BioNTech SE and Pfizer Inc. were the significant customers, each exceeding **10%** of revenue[74](index=74&type=chunk) [Acquisitions](index=20&type=section&id=2.%20Acquisitions) The company completed the acquisition of Alphazyme, LLC on January 18, 2023, for a total purchase consideration of **$75.3 million** to expand its enzyme product portfolio This section also provides final details on the January 2022 acquisition of MyChem, LLC, for a total consideration of **$257.9 million**, which vertically integrated the company's supply chain for ultra-pure nucleotides | Component | Amount (in thousands) | | :--- | :--- | | Cash paid | $70,037 | | Fair value of contingent consideration | $5,289 | | **Total consideration transferred** | **$75,326** | - The Alphazyme acquisition resulted in **$42.4 million** of goodwill, allocated to the Nucleic Acid Production segment, and **$31.7 million** of identifiable intangible assets, primarily developed technology[83](index=83&type=chunk)[85](index=85&type=chunk)[99](index=99&type=chunk) - The MyChem acquisition, completed in January 2022, had a total purchase consideration of **$257.9 million** The contingent consideration period ended on December 31, 2022, with no payment made as revenue thresholds were not met[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Goodwill and Intangible Assets](index=24&type=section&id=3.%20Goodwill%20and%20Intangible%20Assets) As of September 30, 2023, goodwill increased to **$326.0 million** from **$283.7 million** at year-end 2022, primarily due to the Alphazyme acquisition Net intangible assets increased to **$227.9 million** No goodwill impairment was recognized | Segment | Balance as of Dec 31, 2022 | Acquisition | Balance as of Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Nucleic Acid Production | $163,740 | $42,361 | $206,101 | | Biologics Safety Testing | $119,928 | $0 | $119,928 | | **Total** | **$283,668** | **$42,361** | **$326,029** | - Net finite-lived intangible assets were **$227.9 million** as of September 30, 2023, with a weighted average remaining amortization period of **8.9 years** The largest component is Patents and developed technology at **$216.1 million**[101](index=101&type=chunk) [Segment Information](index=34&type=section&id=13.%20Segments) The company reports financial performance across two segments: Nucleic Acid Production and Biologics Safety Testing The chief operating decision maker evaluates segment performance based on Adjusted EBITDA Corporate costs are not allocated to the segments | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenue (in thousands)** | | | | | | Nucleic Acid Production | $51,228 | $174,881 | $165,944 | $623,786 | | Biologics Safety Testing | $15,638 | $16,382 | $48,863 | $54,509 | | **Segment Adjusted EBITDA (in thousands)** | | | | | | Nucleic Acid Production | $16,591 | $133,816 | $58,656 | $502,906 | | Biologics Safety Testing | $11,246 | $12,997 | $35,307 | $43,631 | [Subsequent Event](index=35&type=section&id=14.%20Subsequent%20Event) In November 2023, after the reporting period, the company announced a cost realignment initiative This plan is expected to reduce the workforce by approximately **15%** and result in one-time severance-related costs - The company initiated a cost realignment plan in November 2023, which includes terminating approximately **15%** of its workforce and is expected to incur about **$5.0 million** in one-time cash severance expenses in Q4 2023[159](index=159&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant decrease in revenue and profitability for the third quarter and first nine months of 2023 compared to 2022 The decline is primarily attributed to reduced demand for COVID-19 related products, particularly CleanCap® analogs The analysis also covers operating expense trends, liquidity, capital resources, and contractual obligations, noting headwinds from lower R&D investment in the biotech sector and economic weakness in Asia [Trends and Uncertainties](index=39&type=section&id=Trends%20and%20Uncertainties) The company faces significant uncertainty due to a substantial decline in COVID-19 related revenue, which is expected to continue Other headwinds include reduced R&D spending by early-stage biotechnology companies due to capital market constraints and a general economic contraction in Asia, particularly China, which may further impact revenue - Revenue from COVID-19 related products and services has dropped significantly, representing approximately **22.3%** of total revenue in Q3 2023, down from **66.1%** in Q3 2022 The company expects further declines due to reduced demand and existing customer inventory[173](index=173&type=chunk) - The company is experiencing negative impacts from lower R&D funding for early-stage biotech companies and economic slowdowns in Asia, which are causing customers to conserve capital and reduce spending[175](index=175&type=chunk)[176](index=176&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) The company experienced a significant downturn in financial performance For Q3 2023, total revenue fell **65.0%** to **$66.9 million**, resulting in a net loss of **$15.1 million** compared to a net income of **$99.7 million** in Q3 2022 The decline was driven by a **70.7%** drop in Nucleic Acid Production revenue due to lower demand for COVID-19 vaccine components Operating expenses increased as a percentage of revenue due to lower sales volume and fixed costs | | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $66,865 | $191,263 | $214,804 | $678,288 | | **Net (Loss) Income** | $(15,102) | $99,653 | $(28,393) | $403,234 | - Nucleic Acid Production revenue decreased by **70.7%** in Q3 2023, primarily due to a sharp decline in demand for CleanCap® analogs from COVID-19 vaccine manufacturers COVID-related CleanCap® revenue was estimated at **$14.9 million** in Q3 2023, down from **$126.5 million** in Q3 2022[204](index=204&type=chunk) - Gross profit margin decreased significantly due to lower sales volume, an unfavorable product mix, higher fixed costs as a percentage of sales (labor, facilities, depreciation), and lower manufacturing throughput and absorption[218](index=218&type=chunk)[220](index=220&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2023, the company had **$579.6 million** in cash and cash equivalents Despite a net loss, cash flow from operations was positive at **$118.4 million** for the first nine months of 2023 Principal uses of cash include funding operations, acquisitions, capital expenditures, and significant payments under the Tax Receivable Agreement (TRA) and tax distributions to non-controlling interests The company believes existing cash and operational cash flow are sufficient to meet needs for the next 12 months - The company held **$579.6 million** in cash and cash equivalents as of September 30, 2023 Net cash provided by operating activities was **$118.4 million** for the nine months ended September 30, 2023, a significant decrease from **$436.6 million** in the prior year period[236](index=236&type=chunk)[253](index=253&type=chunk) - The company has a substantial liability of **$678.4 million** under the Tax Receivable Agreement (TRA) as of September 30, 2023 Payments of **$42.6 million** were made under the TRA during the first nine months of 2023[234](index=234&type=chunk)[251](index=251&type=chunk) | Obligation | Total (in thousands) | Due within 1 year | Due in 2-3 years | Due in 4-5 years | Due after 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating leases | $69,311 | $10,701 | $21,585 | $17,172 | $19,853 | | Finance leases | $35,341 | $3,302 | $6,905 | $7,326 | $17,808 | | Debt obligations | $534,480 | $5,440 | $10,880 | $518,160 | $0 | | TRA payments | $678,399 | $4,198 | $14,724 | $37,559 | $621,918 | [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate fluctuations on its **$534.5 million** of variable-rate long-term debt This risk is partially mitigated by a **$500.0 million** notional interest rate cap agreement Foreign currency risk is currently minimal as all revenue is denominated in U.S. dollars - The company is exposed to interest rate risk on its **$534.5 million** Tranche B Term Loan A hypothetical **100** basis point change in interest rates would have impacted interest expense by approximately **$1.4 million** for Q3 2023[280](index=280&type=chunk) - An interest rate cap agreement with a notional amount of **$500.0 million** is in place to hedge a portion of the variable interest rate risk The contract expires in January 2025[279](index=279&type=chunk) - Foreign currency risk is not significant as all revenue is denominated in U.S. dollars, although approximately **48.4%** of revenue in Q3 2023 was from international sales[282](index=282&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of September 30, 2023 There were no material changes in internal control over financial reporting during the third quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2023[284](index=284&type=chunk) - No changes in internal control over financial reporting occurred during the third quarter of 2023 that have materially affected, or are reasonably likely to materially affect, internal controls[285](index=285&type=chunk) PART II - OTHER INFORMATION This section covers legal proceedings, key risk factors, equity sales, defaults on senior securities, other information, and exhibits [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently a party to any legal proceedings that are expected to have a material adverse effect on its business, financial condition, or results of operations - As of the filing date, the company is not involved in any material legal proceedings[288](index=288&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) This section highlights that the company's performance is highly dependent on customer spending, which is being negatively impacted by macroeconomic challenges Specifically, declines and uncertainty in capital markets are limiting access to capital for early-stage biotechnology and pharmaceutical companies, causing them to reduce R&D spending and conserve capital, thereby reducing demand for Maravai's products and services - A key business risk is the dependency on customer spending, which is currently being reduced due to macroeconomic challenges, rising interest rates, and volatile credit markets limiting customers' access to capital[290](index=290&type=chunk)[293](index=293&type=chunk) - Funding for early-stage biotech companies has contracted significantly in 2023, leading these customers to implement stringent budgetary policies, reduce R&D spending, and decrease purchases of the company's products[293](index=293&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period [Defaults Upon Senior Securities](index=60&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) The company states that none of its directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the fiscal quarter ended September 30, 2023 [Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Certificate of Incorporation, Bylaws, CEO and CFO certifications, and XBRL data files
Maravai LifeSciences(MRVI) - 2023 Q2 - Earnings Call Transcript
2023-08-08 08:36
Financial Data and Key Metrics Changes - Q2 2023 revenue was $69 million, slightly below the previous quarter's guidance of around $70 million, impacted by inventory rebalancing and sluggish biotech market conditions [16][17][19] - Adjusted EBITDA for Q2 was $9.1 million, resulting in an adjusted EBITDA margin of 13% [44] - Adjusted free cash flow for the quarter was negative $18 million, reflecting net capital expenditures of $27 million [22] Business Line Data and Key Metrics Changes - Nucleic Acid Production revenues were $53 million, representing 77% of total revenue, with an adjusted EBITDA of $14 million and a segment margin of 27% [47] - Biologics Safety Testing segment revenues were $16 million, contributing 23% of total revenues, with an adjusted EBITDA of $10 million and a margin of 66% [23] - Non-COVID CleanCap sales increased by 21% year-over-year in Q2 [17] Market Data and Key Metrics Changes - The clinical pipeline for mRNA has accelerated, with 30 non-COVID programs entering the clinic in the first half of 2023, indicating a fourfold increase compared to pre-pandemic levels [12] - The company anticipates a decline in COVID-related CleanCap revenues from $100 million to $65 million for 2023, reflecting a 90% decrease from 2022 levels [24] Company Strategy and Development Direction - The new CEO emphasized leveraging technology leadership to expand in mRNA and adjacent growth areas, with M&A being a key part of the capital allocation strategy [9][19] - The company aims to strengthen commercial operations and drive long-term revenue growth through market share gains and product portfolio expansion [19][54] - The focus remains on operational excellence, innovation, and people as strategic pillars for sustainable growth [54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment affecting customer spending priorities and R&D budgets, leading to longer decision-making processes [39][41] - Despite near-term headwinds, management remains confident in the long-term growth potential of target markets, expecting mid to high double-digit growth rates [62] Other Important Information - The company has a strong balance sheet with cash and cash equivalents of $580 million, allowing for flexibility in pursuing M&A opportunities [46][75] - The Flanders 2 facility expansion is nearing completion, expected to enhance capabilities for late-phase manufacturing and commercial GMP [34][108] Q&A Session Summary Question: What are the dynamics affecting demand in the industry? - Management indicated that the primary issue is general demand weakness across the sector, rather than inventory levels [56] Question: How should normalized margins be viewed given recent volatility? - Management noted that margins are closely tied to revenue changes, with expectations of around 22% EBITDA margin as revenues increase [58] Question: What is the long-term growth outlook for the nucleic acid market? - Management expressed confidence in the long-term growth of the nucleic acid market, despite current turbulence, believing growth will return [62] Question: How much of the revenue guidance cut is due to pushouts versus conservative views? - Approximately 35% of the revenue guidance cut was attributed to the services business, reflecting timing pushouts and budget prioritization [63] Question: What is the customer feedback on CleanCap M6? - Early feedback on CleanCap M6 has been positive, with interest from a broad range of customers including large pharmaceutical companies and smaller mRNA-focused firms [109]
Maravai LifeSciences(MRVI) - 2023 Q2 - Earnings Call Presentation
2023-08-08 06:42
Financial Performance - Q2 2023 revenue was $69 million[56] - Adjusted EBITDA for Q2 2023 was $9.1 million, with an Adjusted EBITDA Margin of 13%[56] - The company has $580 million in cash and $536 million in long-term gross debt[17, 37] - Adjusted Free Cash Flow was -$18 million in Q2 2023[58] Segment Performance - Nucleic Acid Production revenue was $53 million, representing 77% of total revenue, with $14 million in Adjusted EBITDA; CleanCap® from COVID-19 contributed $11.6 million[60] - Biologics Safety Testing revenue was $16 million, representing 23% of total revenue, with $10 million in Adjusted EBITDA[40, 61] Guidance Update - Updated 2023 revenue guidance is $300 to $325 million, a decrease of $108 million from prior guidance[74] - CleanCap® COVID-19 revenue guidance is $65 million, a decrease of $35 million from prior guidance[74] - Updated Adjusted EPS guidance is $0.04 to $0.08 per share, a decrease of $0.24 per share from prior guidance[74] - Updated Adjusted EBITDA guidance is $70 to $80 million, a decrease of $90 million from prior guidance[74] Strategic Initiatives - Trey Martin has taken over as Maravai's next CEO [9] - The company executed three new license and supply agreements in 1H 2023[16]